RI, Malaysia forge ties on paperless customs services
RI, Malaysia forge ties on paperless customs services
JAKARTA (JP): Indonesia and Malaysia are forging closer customs cooperation through paperless customs services in anticipation of the advent of free trade in the Southeast Asian region.
The two countries' directors general of customs and excise, Soehardjo Soebardi of Indonesia and Dato Mohammad Nor bin Abdul Hamid of Malaysia, signed an agreement yesterday on the development of the electronic data interchange (EDI) system.
Indonesian Minister of Finance Mar'ie Muhammad and his Malaysian counterpart Anwar Ibrahim witnessed the signing of the customs agreement.
Soehardjo said the agreement was aimed at preparing both countries for the commencement of free trade within the Association of Southeast Asian Nations (ASEAN) by 2003.
He said that such free trade would need harmonized customs procedures among member countries.
ASEAN groups Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Under the customs agreement, Malaysia, which has installed the EDI system in its Kelang Valley customs area, will transfer its knowledge and experience towards the development of the paperless customs service system in Indonesia.
Soehardjo said the EDI system would electronically connect customs offices to all related parties involved in customs matters.
Those parties include importers, exporters, port and airport authorities, shipping companies, airlines, freight forwarders, banks and related government departments.
Better service
Soehardjo said the system would enable his office to provide better and faster customs services in pace with the growing volume of Indonesia's international trade.
The system is expected to reduce personal contact between customs officials and entrepreneurs and, consequently, lessen red tape and minimize the possibility of collusion between officials and traders.
The customs office said earlier that it would soon conduct a simulation of the system's operations together with port and airport managements, freight forwarders, shipping companies and banks.
In the first stage, the planned EDI system will be installed at a number of large ports in the country, including Tanjung Perak in Surabaya, East Java; Tanjung Mas in Semarang, Central Java; and Belawan in Medan, North Sumatra.
The planned EDI system in Indonesia will also be connected with the international EDI network, known as EDI for Administration, Commerce and Transportation.
In addition to the customs agreement, Indonesia also signed an agreement yesterday on the avoidance of double taxation with the United Arab Emirates (UAE).
The agreement, aimed at boosting trade and investment between the two countries, was signed by Minister Mar'ie and UAE Finance and Industry Minister Ahmad Humaid Al-Tayer.
The tax agreement covers a wide range of tax objects, including income; land and buildings; shipping and aviation; dividends; royalties. (rid)