Wed, 19 Mar 1997

Mar'ie vows to implement new customs law

JAKARTA (JP): Despite private sector concerns the government has vowed to implement the new customs procedures on April 1 without any transition period.

The minister of finance, Mar'ie Muhammad, said yesterday the government had made enough preparations to implement the 1995 customs law, including the new customs procedures, which most importers still find vague.

"There will be no retreat because this is a law, a national commitment, and we have given it a lot of thought," Mar'ie said after opening a workshop for employees at the Directorate General of Customs and Excise.

The minister acknowledged that many parties were unconvinced the customs office was ready to implement the new customs procedures.

The new procedures include self-assessment on import duties and taxes, on-arrival inspections and post-release audits. They will replace preshipment inspection system.

"That's why we have to prove that this new system is relevant to our needs in the long run. We must prove it, and it depends on all of you commanders in the field," Mar'ie told customs officials at the workshop.

The minister said the new customs procedures would be totally different with the post-shipment inspection practiced before 1985 when the customs office was scrapped of its inspection authority because of corruption.

Customs officials should have learned from their experience and should not repeat their mistakes. They should do their best to make the implementation of the new customs procedures a success, Mar'ie said.

Many importers and exporters, traumatized by the corrupt customs services before 1985, have doubted the readiness of customs officials, especially those in the front line, to implement the new customs procedures correctly.

Frightened producer importers have even stockpiled six months of supplies fearing the implementation of the new procedures will hinder import flows.

They wanted a transition period in which they could choose preshipment inspection or the new procedures.

But the government rejected their requests.

Mar'ie said there would be some technical problems in the field but said they were not grounds for delaying the implementation of the new customs law.

"Maybe there will be some technical problems somewhere during the early implementation period. We do not deny this possibility, and we anticipate those problems may happen," he said.

He promised customs officials would make deliberate technical difficulties to stop importers being extorted.

If importers come across any extortion attempts they should report it directly to the director general of customs and excise.

"The customs office, especially its leaders, will be open to corrections," he said.

The minister told customs officials to serve businesses and ensure a smooth flows of goods.

"We should serve, not demand to be served," he said.

He said corrupt customs officials could ruin the government's efforts to build a new image for the customs office.

He promised the new procedures' implementation would not face serious hurdles because the government had prepared for it.

The preparations included subscribing to electronic data interchange to facilitate paperless document processing.

The customs office has also improved cooperation with related institutions, including the ministries of transportation, industry and trade and the Central Bureau of Statistics.

The customs office has also prepared its officials, especially their attitude, so that they can adapt to the changes which demand they act as trade facilitators.

"We remain optimistic that, with our various preparations including our human resources, we will be successful," Mar'ie said. (rid)