'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)