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Steel smuggled into Indonesia reaches US$1 bln per year JAKARTA - About one billion US dollar worth of steel products which could have been produced at home is smuggled into Indonesia annually, Director General for Metal Textile Machine Industry Anshari Bukhari said in Bogor, West Java, on Sunday. He said that the government learnt the illegal import of steel after they saw the difference of data on the import of steel at the Central Burea of Statistics (BPS) and on export of the products to Indonesia by producing countries.

"Data obtained from exporting countries indicated that hot-rolled coil steel entering Indonesia reached some two billion dollars but our import data on the product at the BPS showed only 900 million dollars," he said. He said that the steel products could have entered illegally through various ports without or with fake documents. "They declared lower prices then they should had been so that they paid only a small portion of import duties," he added.

At present, steel import duty for HS-72 steel type (hot-rolled coil and its down stream products) stands at between 7.5 and 12.5 percent. He said that his side had so far cooperated with the relevant agencies, particularly the Customs and Excise office, to prevent the entry into the country of illegal steel products which could disadvantage the state and local industries.

"We have had cooperation with the Customs and Excise office to supervise intensively steel products which have been included in the SNI national standardization," he said. The director general also said that a data base on the price of steel would also be installed so that it could be monitored if there was an import price lower then that of the data base. "If there is a tip that a certain steel is imported at a lower price, the importer concerned would be fined with a surchage," he added.



Posted in Economy @ 26 November 2006 09:12 CET by Jeroen · 'Blog' RSS feed · permalink






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