Customs Probe Alleged Abuse of Rice Import Permits

Jakarta (Antara Bali) - 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, surveyor's 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 surveyor's reports," he explained.

Under the Trade Minister's 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. (*/DWA)