Mar'ie firm on customs law date
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)