Indonesian Political, Business & Finance News

Imports inspection will be maintained

| Source: JP

Imports inspection will be maintained

JAKARTA (JP): Trade Minister S.B. Joedono said yesterday that
the present pre-shipment inspection system for imports, which has
been used since 1985, would be maintained.

"But I don't know whether the contract with the Geneva-based
Societe Generale de Surveillance (SGS) for the implementation of
the system will be extended or not," Joedono said. The SGS
contract expires in July.

The future of the SGS contract would, he said, be decided by
the minister of finance.

The imports inspection service is currently provided by PT
Surveyor Indonesia, a company controlled by the government, in
cooperation with SGS as a sub-contractor.

In a related development, Amirudin Saud, Chairman of the
Indonesian Importers Association, told the House of
Representatives yesterday that the pre-shipment inspection system
for imports should be maintained for its great success over the
past 10 years to facilitate smooth import flows.

"The restoration of the post-shipment inspection system will
again increase direct contacts between importers and customs
officials and such direct contacts could become the starting
points for corruption or other forms of malfeasance.

Amirudin said if the bill on customs and excise tax is really
designed to facilitate foreign trade, the regulation on the pre-
shipment inspection system should be clearly stipulated in the
new legislation.

He earlier pointed out that importers have been so satisfied
with the present system that they are willing to bear part of the
costs of the pre-shipment inspection service.

Amirudin added most businessmen are worried that the costs of
importing will again increase sharply if imports are inspected on
arrival at Indonesian ports. (vin)

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