Customs authorities probe alleged abuse of rice import permits

Jakarta (ANTARA News) - The Indonesian customs authorities are investigating the alleged abuse of permits to import Vietnamese rice, which had sparked a polemic at the Cipinang wholesale market in East Jakarta.

"The Directorate General of Customs and Excise will soon take anticipatory steps in response to the alleged abuse (of the rice import permits) at an operational level in the customs service and supervision system," Director General of Customs and Excise Susiwijono Moegiarso stated in a press statement released on Tuesday.

He noted that the import of 16.9 thousand tons of rice complied with the standing procedures and rules, the given import approvals, surveyors reports and the automated reconciliation from the Indonesian National Single Window portal.

However, he did not rule out the possibility of the import permits being abused on the grounds that the permits used written approvals intended to import special rice instead of general rice which can be imported by state logistics board (Bulog).

"This has happened as the HS codes of the two types of rice are the same: 1006.30.99.00. The Directorate General of Customs and Excise is investigating the alleged abuse of the import permits, including the audit of the surveyors reports," he explained.

Under the Trade Ministers Regulation No.06/M-DAG/PER/2/2012, the import of rice, with headings 1006.30.99.00, can be done only by Bulog with approval from the ministry to stabilize price, cope with a state of emergency, provide subsidized rice for the poor, or address food scarcity issues.

Last year, the ministry issued a permit to import 16.9 thousand tons of special rice, consisting of 1,845 tons of the Basmati variety and 14,997 tons of the Japonica variety.

According to the Directorate General of Customs and Excise, the rice imports from Vietnam were shipped 83 times and involved 58 importers other than Bulog. The rice was imported via Tanjung Priok port in North Jakarta and Belawan port in North Sumatra.

The rice imports were supported by import permits and surveyors reports.

On Tuesday, Trade Minister Gita Wirjawan pledged to take stern measures against abusers of the rice import permits, explaining that the permits were issued according to the standing procedure and recommendation from the Agriculture Ministry.

However, he added that the Trade Ministry had yet to find evidence pointing toward the abuse of rice import permits.

Editor: Jafar M Sidik
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