Mar'ie firm on customs law date

JAKARTA (JP): Minister of Finance Mar'ie Muhammad said yesterday the 1995 customs law must come into action by April 1, although some technical matters could be adjusted after that date.

He told a hearing of the House Budgetary Commission yesterday he had closely monitored press coverage of concerns raised by businessmen regarding the new laws' ability to do its job.

"But the law must be implemented by April as we have prepared all necessary supporting rulings; as for technical matters, we can adjust them whenever necessary," Mar'ie said.

The supporting rulings include six government regulations signed by President Soeharto and 26 finance ministerial decrees and 11 circular letters from Soehardjo Soebardi, director general of customs and excise.

The new laws will restore responsibility for import inspection authority to the customs office.

They will introduce selective on-arrival inspections of imports, post-entry audit of import documents, a self-assessment system for calculating import duties and the GATT code of valuating imports for customs purposes.

Mar'ie did not clearly state whether the government would terminate the system of import pre-shipment inspection currently carried out at loading points by state-owned PT Surveyor Indonesia.

The government has informed Surveyor Indonesia its contract expires March 31.

Local and foreign businesspeople have expressed concern over the new system; they have been apprehensive of customs officials' ability to exercise new responsibility properly.

The Indonesian Chamber of Commerce and Industry has suggested the government allow a transitional period of three to six months before the new system is fully enforced.

"We do appreciate businesspeople's concerns and criticisms. It shows the public's attention to the customs business is increasing. And we are open to any criticisms and suggestions," Mar'ie said.

The minister acknowledged the impact the new system would have on the economy, and the challenges involved in its introduction.

He said the government was committed to making the customs service more efficient by incorporating the electronic data interchange (EDI) into the customs clearance system.

"EDI is the key to the success of the customs law implementation because it provides trade facilitations in accordance with the World Trade Organization's provisions," Mar'ie said.

He said the government had asked for assistance from Malaysia and Singapore to provide technical assistance in applying the EDI in Indonesia's system.

Singapore, with the help of the EDI system, can process all customs-related documents within 15 minutes per shipment; it has vowed to reduce this to 5 minutes.

The Indonesia customs office has promised four hours to process customs documents.

The EDI system will electronically connect the customs office with all related parties, including port and airport authorities, foreign exchange banks, airlines, shipping lines, freight forwarders, importers and customs brokers.

Soehardjo thanked Mar'ie for supporting EDI, as the customs office had not yet received funding for installation of the system.

He said EDI would help reduce physical contacts between customs officials and businesspeople, reducing possible collusion and illegal levies arising from such contacts.

"If the EDI system does not materialize, we cannot face globalization and provide faster customs service," Soehardjo said.

An executive of PT Electronic Data Interchange said yesterday that custom's EDI system had not yet been operated.

Importers and freight forwarders -- especially smaller businesses -- have complained over the cost of EDI hardware installation and software, which they have said was too costly. The installation fee alone will total Rp 40 million (US$16,700) per company, not including the monthly charge, admission, storage, interconnection and gateway fax fees. (rid)