JICA provides aid to boost performance of customs office

JICA provides aid to boost performance of customs office

JAKARTA (JP): The Japanese government will provide Indonesia
with modern laboratory equipment worth 58.47 million yen (about
US$500,000) to boost the performance of the country's customs
office, according to Agung Permana, the director general of
customs and excise.

He said on Friday that the funds, which were channeled through
the Japanese International Cooperation Agency (JICA), would speed
up the physical inspection process of imported chemical products.

"This (the inspection) is important because 40 percent of the
chemical products sold here are imported," he told reporters at a
press conference.

Agung explained that the customs office had to physically
verify only imported products suspected to have false
documentation. Importers have been known to falsify import papers
to take advantage of a zero tariff facility provided by the
government for the importing of certain products.

He said that about 13 percent of the 596 import documents
investigated by the customs office between January and February
were found to be deceptive after samples of the imported chemical
products were examined.

Agung, however, stressed that efforts to prevent the state
from suffering losses caused by the practice must not cause
serious delays to product deliveries, which would only discourage
investment in the country.

"Japan knows very well that improving Indonesia's customs
office is very important for the country's economic recovery,"
said Takashi Matsumoto, a policy adviser to the director general
of customs and excise.

He explained that an efficient customs office was essential to
attract foreign investment to the country and to increase the
competitiveness of exports.

"Investors see a clear and transparent customs system as a key
factor," he said.

He said that in addition to the new equipment, JICA is
providing technical assistance to improve the expertise of the
customs inspection officers.

He added that there were plans to provide further assistance
by installing a modern computer system in the country's customs
office network, which was expected to be completed before the
2003 Asian Free Trade Area takes place.

Agung said the fact that only 13 percent of the suspect import
documents were proven to be falsified indicated the customs
officer's poor capability in detecting deception.

"We have to upgrade the skills of our officers in a bid to
save the state from massive loss, but also to prevent serious
delays in product deliveries," he said.

He pointed out that modern customs offices in developed
countries were much more effective, and that 70 percent of
suspect imported goods were proven to have used false documents.

He expected that 90 percent of imported products would not
have to undergo physical inspection starting next month.

"But I will not be rigid on this policy," he added. (rei)