Custom's Service with Less Red Tape, Stiffer Penalties
Government Moves to Clean Up and Improve Efficiency in Custom's Office.
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As part of the Government's pledge to create a more favorable investment climate through the reduction of red tape and corruption, the Indonesian House of Representatives recently ratified a new Customs Law.
Highlights of the new law, include:
• The eventual introduction of a fully computerized customs clearance system in accordance with agreements made by Indonesia under the World Trade Organization (WTO).
• Absolute time limits of 30 days imposed on the Custom's department for determining applicable duties payable on any import or export commodity.
• An absolute time limit of 60 days has been set in deciding any challenge filed by an importer or exporter regarding a duty rate or commodity classification for a specific shipment.
• Exemptions or lower duty tariffs for raw materials or capital goods required by companies classified as "pioneering enterprises."
• The provision of interest-free installment payments for exporters and importers in the payment of any duties due to the government.
• Export duties of up to 40% of value on selected items deemed essential to the domestic market in order to stabilize both supply and prices.
• Stiffer penalties for smugglers of up to 20 years in prison and fines of US$10.8 million.
• Punitive penalties adding 33% to the sentences for Custom's officials found guilty of involvement in smuggling activities.
• Payment incentives of 50% of any penalties imposed by Courts or half of the value of seized commodities to those who assist the Government in preventing smuggling activities.
• Substantially enlarged investigative, audit and inspection authority for Custom's officials in the enforcement of export and import regulations.
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