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)