Post Border Supervision Increases Logistics Costs

JAKARTA – The Indonesian National Importers Association (GINSI) has asked the government to postpone the implementation of post border supervision because it is only increasing the burden of bureaucracy.

The government is currently working on the simplification of a number of restrictions and restrictions (lartas) to support the smooth flow of goods. A number of beleids assessed to inhibit the import export process will be reorganized.

However, the plan to change the monitoring process to be outside the customs or post border area is considered to increase the bureaucratic process as well as vulnerable in the supervision process. One of the rules that use the system is the Regulation of the Minister of Trade (Permendag) No. 63 of 2017 on Amendment to the Regulation of the Minister of Trade No. 82 of 2016 on Provisions on the Import of Iron or Steel, Alloy Steel, and Derivative Products.

Secretary General of the Central Board of Directors (BPP) of the Indonesian National Importers Association (GINSI) Erwin Taufan asked the government to postpone post border surveillance system. He called the rule was not a solution to cut the waiting time at the port alias dwelling time.

“The principle should be postponed because this policy only moves the burden to other places,” he said in Jakarta, Tuesday (19/9).

Erwin assess the rule would incriminate importers. This subs, goods that have passed the inspection at customs can be directly used.

With the transfer of supervision in importer warehouse, he added, need to wait for inspection from the officer. “If a large producer after import he must wait to be checked in the warehouse ga can directly use the means to interfere with production.”

On the other hand, the policy according to him would increase the burden of logistics costs. Moreover, for importers who do not have warehouses must incur additional costs to rent.

He advised the government to optimize the role of Indonesia National Single Window (INSW). Thus, simplification does not only increase the burden for business actors so it is counterproductive.

“Now there is an IT system, please do not meet. Because later who will take responsibility? If the goods are different from the standard who wants to monitor? “He added.

Add Expense

Economist Faisal Basri also considered that the policy actually adds to the logistics cost in the process of importing goods. In fact, the purpose of the simplification is to trim the dwelling time process. “Even feared later play on post border,” he said.

Meanwhile, Head of Trade and Development and Trade Development Agency of Kasan Muhri stated that the simplification of trading system to provide access to raw materials and capital goods through imports. Through this way, it is expected the industry to get quality raw materials that in the end encourage productivity.

The rules of post border supervision, he added, refer to the rules of the World Trade Organization (WTO). According to him, the policy does not violate the provisions of trade rules of goods trade.

As is known, in the 15th Economic Policy Package on Business Development and Competitiveness of Logistics Service Providers includes simplifying points of trade administration to support the smooth flow of goods. In addition, the percentage of 19% is rated by the government to approach the average non-tariff barrier of Asean countries by 17%.

Earlier, Coordinating Minister for Economic Affairs Darmin Nasution explained the background of the policy package was launched, among others, to improve the national logistics system to accelerate the business development and competitiveness of national logistics service providers. Because the portion of logistics costs accounted for about 40% of the retail price of goods.

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Sources: http://industri.bisnis.com/read/20170922/257/692139/pengawasan-post-border-menambah-biaya-logistik
Translated by Aryputra Pande

Originally posted on September 25, 2017 @ 10:35 am

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