New bills on customs submitted
New bills on customs submitted
JAKARTA (JP): New customs and excise bills would allow the government to impose anti-dumping tariffs and countervailing duties, curb the importation of pirated goods and abolish excise duties on sugar and kerosene.
Minister of Finance Mar'ie Muhammad, who presented three bills on customs, excises and capital markets to the House of Representatives yesterday, said that the power to impose anti- dumping tariffs and countervailing duties will help combat unfair trade practices.
"Economic relations among countries have been marked with such tight competition that it could lead to unhealthy trade practices such as dumping and subsidization....The customs bill, when enacted, would allow the government to impose anti-dumping tariffs and countervailing duties," Mar'ie said.
The new customs bill stipulates that anti-dumping tariffs shall be imposed when the prices of imported products are well below their normal value or when the importation of certain products endangers or causes losses to domestic industries producing similar goods or hinders the development of similar industries.
Under the new bill, the government would be able to use countervailing duties to stop the importation of over-subsidized products which could undercut the prices of locally-produced goods and, therefore, endanger certain domestic industries.
The customs bill also looks seriously at the violation of intellectual property rights, which has been common in developing countries.
Pirated products
Mar'ie said the bill will help the customs office curb the importation of pirated products. With written orders from district courts, customs officials can postpone the retrieval of products from customs areas whenever there is strong evidence that the products are pirated.
The new bill will also allow the holders of any trademarks in Indonesia to directly ask the customs office, through a local district court, to hold up any suspicious products in customs.
Mar'ie said the new bill will also improve the supervision of the importation and exportation of toxic waste and endangered species.
He assured that the bill is adapted to international agreements where Indonesia is a signatory, including the World Trade Organization (WTO).
"Currently our highest import tariff is 175 percent, apart from a 100 percent surcharge.... Under the new bill, however, the highest import tariff will be only 40 percent, in accordance with our commitment to WTO," Mar'ie said.
He noted that the government will continue its tariff reduction program but will also take into account the condition of domestic industries.
The bill, which will replace three old rulings produced under the Dutch administration between 1873 and 1910, also includes measures on trade facilitation.
The bill will set duties of zero percent on raw materials imported by export-oriented industries, on special gifts for charity, religious and cultural purposes as well as on weaponry and military equipment.
Speaking on the excise bill, Mar'ie said the bill no longer includes duties on sugar and kerosene because they are considered to be primary needs.
The new bill would limit the number of goods subject to excise duties to ethyl alcohol, ethanol, alcoholic drinks and cigarettes.
The maximum duty to be imposed on those commodities is 150 percent of their basic prices.
"The imposition of the maximum duty is not meant to increase government revenue in the excise sector but to control the production and consumption of those commodities whose effects could endanger health, environment, security and order," Mar'ie said.
Excise duties will not be imposed on commodities meant for export, packed for sale, or for gifts and charities. (rid)