New customs regulation
The new customs regulation which comes into effect on April 1, 1997 has caused a lot of apprehension in the minds of importers. This apprehension is justified because, as expected, the Directorate General of Customs is not openly disseminating information to importers.
The trend today is to conduct meaningless "seminars" for which importers have to pay fees ranging from Rp 250,000 to Rp 1,500,000. I attended a seminar (free of charge) conducted by the customs authorities at the Soekarno-Hatta airport and came away very disappointed because several of the importers' questions on procedural matters could not be answered. We were informed that they would check and get back to us.
A three day "diskette" seminar by the customs authorities costs Rp 500,000 and a three month course on the new import regulation costs Rp 1,500,000. The diskette program teaches importers how to fill out the new import declaration form. The three month course trains importers and customs clearance agents in the new customs procedures.
The programs have not been openly announced by the customs authorities -- I have not seen any promotion of these courses. However, a chance visit to the head office of the Directorate of Customs revealed that such courses are being conducted, particularly for customs clearing agents.
Now the importers association has joined the seminar bandwagon and conducted two seminars, one on March 10 and another on March 17 -- of course at a price. Under the new regulation, officials of the importers association could not resist making a quick buck by charging a fee for holding a seminar. The main topic discussed at the seminar was Law No. 10 which was announced in 1995. Several importers are so thorough about this law that they could recite it backwards.
But the seminars are pointless. No one knows the procedures. The senior customs officials who are supposed to know the procedures have refused to publish booklets detailing the new procedure. Information is being given in bits and pieces deliberately. And we all know where this is leading to -- utter confusion from April 1 (by coincidence it is April Fools' Day) and a chance for you-know-who to make money.
I have a few questions for the customs authorities and hope they will clarify them by replying to this letter:
1. Can consignments shipped in March after inspection by PT Surveyor Indonesia, but arriving in April, be declared based on the valuation given in PT SI's surveyor inspection report (LPS)?
2. According to the minister of trade's decree No. 311/KP/X/1993 dated 23 Oct, 1993 capital equipment in used condition can be imported as long as the equipment has been inspected by PT SI as confirmed by SI's LPS and is also certified by PT SUCOFINDO as "not scrap". But what happens to this regulation from April 1?
Can the seminar organizers answer these questions? Of course not. They just blink and say that they will come back after checking with the authorities concerned.
And what about the authorities themselves? According to the office of the Director for International Trade, it is better for importers to apply for a new permit since the minister of industry and trade has not yet issued a directive. What about shipments already inspected by PT SI and expected to arrive in April?
The Directorate General of Customs are doing themselves a disservice by not releasing a booklet on the new regulations. Without a shadow of a doubt, they are proving to importers that they are going back to the bad old days which forced the government to introduce pre-shipment inspection.
I urge the Director General of Customs to examine this matter and issue a booklet containing all procedures and diskettes of whatever software importers have to use. I am sure importers will not mind paying a fee of Rp 50,000 for this booklet instead of wasting Rp 250,000 on a useless seminar.
PT SI and their affiliates abroad have started informing exporters that consignments being shipped in March 1997 but reaching Indonesia after April 1, 1997 will not be inspected because the LPS issued for such shipments will not be accepted under the new regulations.
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