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Indonesia to continue crackdown on illegal textile imports
19
Oct '15
Indonesia's Customs and Excise Department would continue to confiscate any illegally imported textile products to protect the domestic industries, so that they remain viable, the government has said.

"These smuggled products will damage the domestic industries because they could be easily produced at home and so they must be prevented (from entering the country)," an Indonesian news agency quoted Finance Minister Bambang Brodjonegoro as saying in Jakarta.

The Finance Minister's comment came as he accompanied President Joko Widodo for the inspection of four containers of illegal textiles that were confiscated.

Brodjonegoro said the operation to confiscate the illegal textiles was carried out following indications that they would be distributed directly to agents and not to the bonded zone destination in Purwakarta.

"When they arrived at Tanjung Priok port, two containers did not go to the bonded zone in Purwakarta (West Java). Instead, one went to a warehouse in Marunda, Jakarta, and the other to Cikampek in Palimanan, West Java. These were caught on the charge that the containers did not go where they were supposed to," he said.

The imported goods in the containers were to be unloaded outside the zone and transported directly to other places for sales without paying the import tax.

The goods smuggled from China included 3,519 textile rolls or 376,000 yards of cloth, worth $10,28,000. In all, the state suffered a loss estimated at Rp2.21 billion ($1,63,281).

The bonded zone is a facility given by the government to certain companies that wish to delay the payment of customs and import taxes to boost exports. So far, the facility has often been misused.

President Joko Widodo hailed the foiling of the illegal textile imports in the bonded zone, saying the distribution of unlicensed products has been disrupting the national textile industry.

He appealed to the police and the attorney general's office to support the Directorate General of Customs and Excise to prevent such cases from recurring in the future.

"I have ordered the police chief and the attorney general to back the Directorate General of Customs and Excise so that illegal textile does not slip into the country again because not only will it deny income to the state, but it would also damage the domestic market. Our industries cannot compete in such a market then," he said. (SH)

Fibre2Fashion News Desk – India

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