Local businessmen to meet U.S. customs

Local businessmen to meet U.S. customs

The Jakarta Post, Jakarta

The Indonesian Shipowners Association (INSA) has asked
United States customs officials to explain to Indonesian
businesspeople the new U.S. customs policy, which has caused
apprehension about the harm it could cause to the country's
exports.

INSA chairman Barens TH. Saragih told The Jakarta Post on
Friday that Indonesian businesspeople were confused about the new
Container Security Initiative (CSI), and worried the new policy
would add to the cost of exporting to the U.S.

The U.S. customs office has agreed to meet with local
businesspeople in Jakarta on March 13, according to Barens.

The CSI, which was introduced in the wake of the Sept. 11,
2001, terrorist attacks, aims to prevent dangerous goods from
entering the U.S.

The policy took effect in January, but there is a two-month
transition period before the policy is fully implemented.

Under the CSI, Barens said, exporters must file a report with
the U.S. custom office about any goods they are shipping to the
U.S. 24 hours prior to loading. However, most local
businesspeople remain in the dark about the details of the
policy.

"First, the reporting system is not clear. Do we send the
reports to the U.S. customs office in the U.S. or Singapore? And
can we send the report via e-mail?" Barens said.

"Second, do all the vessels carrying our goods have to stop in
Singapore for inspection before leaving for the U.S.?" Barens
said.

Barens said that during a recent meeting with U.S. customs
officials in Singapore, he was informed that not all containers
from Indonesia had to be inspected in Singapore, but only those
containers carrying "high-risk" goods.

However, Barens said local businesspeople feared that in the
long term the agency would expand the policy, requiring all goods
from Indonesia bound for the U.S. to be physically checked in
Singapore.

"We fear the system will only benefit Singapore, as we have to
pay additional costs for inspections there," said Barens.

The U.S. is the largest market for Indonesian products,
particularly agricultural goods such as tea, coffee, shellfish,
black pepper and rubber.

Indonesia's exports to the U.S. amounted to US$7.7 billion in
2001, down from $8.4 billion the previous year.