'New law must stipulate pre-shipment inspection'

'New law must stipulate pre-shipment inspection'

JAKARTA (JP): The Indonesian Importers Association has suggested that the pre-shipment inspection for imports be stipulated in the bill on customs which is currently under debate at the House of Representatives.

"The pre-shipment inspection system has contributed greatly to facilitating smoother imports and the legal foundation of that mechanism therefore should be strengthened," the association's chairman Amirudin Saud announced on Monday.

Amirudin said after a meeting with Trade Minister Billy Joedono that it has now become imperative to enact the pre- shipment inspection system because of recent strong lobbying to restore the old system of upon-arrival auditing.

The pre-shipment inspection of imports was launched in mid- 1985 under a Presidential decree designed to speed up the customs clearance of imports.

The decree stripped the customs and excise tax directorate general of its inspection authority and the government later assigned the Geneva-based Societe Generale de Surveillance (SGS) to inspect Indonesian imports at the points of loading.

The contract with SGS was modified in 1991 after the government set up a new inspection company, PT Surveyor Indonesia, in a joint venture with SGS.

The main contract for the inspections was later awarded to PT Surveyor Indonesia which in turn hired SGS as a sub-contractor. PT Surveyor Indonesia is scheduled to eventually take over the whole inspection of Indonesian imports from SGS.

Amirudin said the government had pledged to maintain the pre- shipment inspection system.

"But given the strong lobbying by certain groups to reinforce the old system by restoring inspection authority to customs officials, we think it is much better if the enforcement of the system is strengthened by law," he added.

He said almost 98 percent of all importers polled last year by the association said they preferred the continuation of the pre- shipment inspection.

The present system has proven to be quite effective in facilitating smooth flow of imports, cutting importing costs, minimizing administrative irregularities and undervaluing goods on invoices, Amirudin added.

"Most importers are afraid that post-audit inspections by customs officials would again cause numerous barriers to imports," he said. (32/vin)