Thursday, 4 July 2013

GOVERNMENT REVIEW REGULATION CHANGE IN HORTICULTURE IMPORTING



The Government was now reviewing and dissecting the policy for importing of horticulture products. There were signals that the Government was going to impose import tax on horticulture products. It was expected that by the revised Government policy, services fir horticulture importers could be improved.
               
The Minister of Agriculture Suswono during his visit to the Tanjung Perak container harbor in Surabaya on Monday [1/4] said that either the Ministry of Agriculture or the Ministry of Trade were today analyzing betterment of import regulations for horticulture products. “Today we are still making in-depth analysis of the change of regulation in horticulture importing” Minister Suswono said.
               
There were some possible scenarios in the change of regulation. Firstly, the Government no longer stipulated import quota, but impose import tax. Secondly, scheduling of entry for imported products, especially for horticulture commodity which was seasonal. In that case if there was any arriving imported products it would not affect domestic production.
               
Thirdly, evaluation outcome unveiled that technically the previous policy was unpractical. For example, one Letter of Recommendation for Imported Horticulture Product [RIPH] for one commodity. The same was with the country of origin of the horticulture product to be imported; the Government must issue one Letter of Decision.
               
This was unpractical, because every company could posses an RIPH Decree. For that matter in the revision of Government policy, each and ever company would get one RIPH letter for several imported commodities.
               
Other reasons to make the Government have the intention to improve importing policy was to anticipate increasing number of registered importers [IT]. Previously there were 131 enlisted importers, now the number of those applying to import horticulture came to 170 companies. “The revision is intended to speed up services to business players”
               
However, in principle the importing of horticulture was only to cover up shortage of supply at home. For that matter to find out how much the shortage was, the Government would improve the domestic production data. “By the time the Government set up the import volume, it is based on accurate production data.”
               
In stipulating RIPH import plan the Ministry did it on the basis of recommendation by the related ministries. For example for producer importers [IP] who proposed importing, the Ministry of Agriculture only released RIPH recommended by the Ministry of Industry.
               
Meanwhile to determine the size of import quota of horticulture products, it was based on transectoral discussion in the RPPH team consisting of the Ministry of Agriculture, Ministry of Trade, Ministry of Industry, BPOM, and related ministers.
               
As known in the import procedure of horticulture products, the Government in this case the Ministry of Agriculture had issued Regulation of the Ministry of Agriculture [Permentan] no 60/2012 on Import Recommendation of Horticulture Products [RIPH]. Meanwhile the Ministry of Trade issued the Permendag Regulation no 60/2012 on Stipulation for Import of Horticulture products.
               
Based on the 2 Letter of Decision in the first Semester of this year the Government temporarily prohibit import of 13 horticulture commodities, i.e. pineapples, mango, melon, bananas, papaya, and durian. Three types of flowers i.e. Orchid, Cryssant, and Heleconia. Four vegetable product were: Cabbage, broccoli, and potatoes.
               
The Director General of Domestic Trading Ministry of Trade, Sri Agustina upon accompanying the Ministry of Agriculture to inspect the Tanjung Perak Harbor Surabaya told BusinessNews that she was discussing the amendment to Permendag no 60/2012 junto No 32/2012 on stipulations for Horticulture products.
               
The revision was more on the allocation for import need. The amount to be permitted by the Government must refer to the data of domestic production. For example to import garlics; if local production was only 13,000 tons with need coming to 366 thousand ton, the Government would only permit to fill in the shortage. “In terms of detail we are still discussing whatever can be improved. So just wait and see.” (SS)



Business News - April 05,2013

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