New customs law will not change Bapeksta's role

New customs law will not change Bapeksta's role

JAKARTA (JP): The Ministry of Finance's export service
facilitating agency (Bapeksta) will continue to administer the
provision of import duty exemptions and value added tax (VAT)
refunds despite next month's new customs law, an official said
yesterday.

The agency's head, M. Tjoek Soeroso, said yesterday exporting
companies should not fear that they could no longer use the
agency's services next month.

"We will continue to administer the provision of import duty
exemptions and drawbacks as well as value-added tax refunds for
importers which use imported materials for manufacturing export
products," he said.

Soeroso said the new customs law would simplify import
procedures which currently require exporters to fill in many
documents.

The new law, which comes into effect on April 1, will require
exporters to fill in only an import declaration form through an
electronic data interchange system.

The system will be on line with the customs office and banks
through the electronic data interchange system.

Tjoek said after completing their import declaration forms and
submitting them to the customs office, exporters could send a
copy to the agency when they submitted their bank guarantees,
custom bonds or promissory notes.

Exporters are exempt from duties and VAT on materials imported
to make export goods.

As they are required to pay duties and VAT on materials upon
their arrival -- if they are not processed in a bonded zone --
they are entitled to a refund on the duties and VAT after they
have exported their products.

Companies registered with the export service facilitating
agency get their VAT and duties refunds from the agency.

Tjoek said more than 3,000 exporting companies used the
agency's services.

He said tax facilities like those administered by his agency
helped increase Indonesia's non-oil and gas exports.

The agency administered US$642 million in duty exemptions and
VAT refunds for $2.4 billion of imported raw materials in the
1994/1995 fiscal. Exports from the imported materials were worth
$10.89 billion.

In fiscal 1995/1996, duty exemptions and VAT refunds for $1.95
billion worth of imported raw materials was $449 million. Exports
from these imported materials were worth $12.57 billion. (pwn)