DIRECTORATE GENERAL CUSTOMS AND EXCISE IN

OVERCOMING THE BLACK MARKET

YONNY ANGGI DWI SUKMAWAN2-D30

PRODIP III KEPABEANAN DAN CUKAISEKOLAH TINGGI AKUNTANSI NEGARA

CUSTOMS ROLE IN OVERCOMING THE BLACK MARKET

A. INTRODUCTION

In daily life, we are familiar with trade activities, even regional or international trade.

In a trade we know about some regulations, agreements, and treaties that binding trade

itself. Such as the price of a good to be paid by the buyer to purchase the good and there are

some taxes that must be paid as a result of purchasing and selling a good. Then if we want

to do an import or an export activity, we have to pay import and export tariff that have been

set by the government. All of that have been set by the regulation of our country to stabilize

the economic condition, so it can be developed well.

As one of the tax collector institutions in our country, Customs and excise office

have a very important role to control and protect the trade activities in our country. Especially

for the international trade activities involving export and import the goods in our country. The

function of customs office as a trade facilitator is very important to help the traffickers to do

their trade activities. Moreover there are some free trade area that located in Indonesia, such

as Batam, Bintan, Sabang, and Karimun. In free trade area, all of goods that enter and exit in

that area will be exempted from import tariff, the value-added tax, and the sales tax of luxury

goods. So that people live in Batam can utilize the potential of that area and be able to

compete with the other area in Asia Pacific (ASEAN Free Trade Area).

What the matters now is the emergence of the market that through from illegal

trading practices that utilize the presence of free trade area as a means to do a trade with the

price is skewed or the price is cheaper than the normally price. Because in the process of the

goods that entry to Indonesia, there are some import tariff that must be paid by the trafficker.

But the traffickers find a solution to escape from it. The tariff that given by the government is

so high. It makes the traffickers suffering a decreased profit sale. And finally black market is

the solution of their business.

What is black market? When it happen for first time? What the effect of black

market? How the role of customs in overcoming black market? In this explanation text, all

about black marked will be discussed. Then the purpose is to show the reader why and how

black market happens and develops in human activities especially in a trade activity.

B. EXPLANATION

Black market is a sector of economic activity involving the illegal economic

transactions, especially in a buying and selling merchandise unlawfully or illegal. Its own

products can be illegal too, such as the sale of weapons or illegal drugs; stolen merchandise;

or official merchandise being sold illegally to avoid the payment of import duty, value added

tax, sales tax on luxury goods and license terms. Black Market is closely linked to smuggling.

Smuggling is all forms process to get good or merchandise which is forbidden using methods

that violate the law or illegal method, therefore items which appear on the black market are

usually the result of smuggling goods.

At the beginning of the 18th century in the United States there were many evil

organized groups took the opportunity to set up a black market which were producing and

selling alcohol. Then, since many residents were not believe that drinking alcohol as a very

dangerous thing and by the laws should be prohibited, illegal liquor store continued, and

groups such as the Mafia grew stronger through the great market activities by distributing

alcohol and other illegal drugs. Another black market practices also occur in countries of

Burma, which is under the authority of Ne - Win. The country became one of the poorest

countries in the world. Those countries are only able to meet their needs through the

activities of smuggling and black market trading. The black market also began to develop in

many places during the world war. The system of distributing and controlling the prices

applied by several countries during World War II encouraged the widespread of black market

activities.

Now, the goods traded in the black market have varied not only drugs and illegal

goods but also goods that are used in daily necessities. They are also traded in the black

market, for example: mobile phone, laptop, bags, shoes, clothing, tobacco and the others.

They are sold at a tilted price, so compelling people to buy it. For example, when the price of

Blackberry Dakota still over $ 5 million, on the black market blackberry dakota just for $ 1.6

million. This causes the buyer or the seller has the same advantage. The buyer can obtain

the goods at low prices when the market price is still high and sellers get the advantage

because goods are sold poorly.

Free trade area is usually become the main target in trade activities by the

traffickers. In Indonesia there are some areas which are designated as free trade area, they

are Sabang, Batam, Bintan, Karimun. But the most famous of all is the area of Batam.

Because of the seller consider that Batam is a heaven of shopping place. With the freedom

of great import tariff and tax make people in there tend to establish or engage black market

activities. So, In Batam black market becomes the reference of Indonesian people to find

goods that smells of technology. Whereas the purpose of a free trade area in Batam is to

increase the competitiveness of the industry and prepare ahead of the ASEAN Free Trade

Area around the area of Batam. The cheap goods should not be taken out of the area of

Batam, but if it happened, the goods should be subject to import tariff and other taxes.

Because of the lack of supervision and the number of incoming lines to Batam, this makes

the regulation ignored by the other people. So that incoming goods in and out of Batam to

other areas of Indonesia is very easy to be implemented. With the existence of imported

goods that are cheaper than domestic product makes the domestic products became

unrivalled with imported goods and there is less interest of it.

Some of the above statement indicates that the existence of a black market in

addition to bring profit turned out to be carrying a lot of harm to our country, especially for

products that are produced in our country. It could be said that the goods sold on black

market have features that almost same as the original but actually it has some weakness

such as the lack of warranty. Then the goods of black market typically are original goods but

it did not qualify the time checking doing by the manufacturer or commonly also called by

reject items or goods. Then another weakness is some of the features of the goods are not in

favor or we can call it as reduction of specifications of goods itself. Moreover the goods that

exist in the Black Market usually are a replica of Chinese-made goods that are similar to the

original. Buyers not only concerned with the cheap price in goods but also took a care the

things such as this. Black Market can be solved and prevented by the existence of support

from the people or society and Government agencies especially for Customs and Excise

instances. Customs and excise institute was very instrumental in controlling the rise of black

market in our country. What should be done to customs in order to overcome the problem?

Directorate General of customs and Excise is the name of a government

organization that is responsible for customs and Excise, during the occupation of the

Netherlands, customs and Excise is often called a douane. As one of the state instances

which have a big responsibility. Customs has the basic tasks that implement the most basic

tasks of the Ministry of Finance in the field of customs and Excise, based on regulations

determined by the Minister and secured the Government's regulations relating to the traffic of

goods in or out of the Customs Area and collected the import tariff and Taxes and other

charges based on the applicable regulations in our country. To carry out the basic tasks of

this, of course is not an easy job for customs and excise considering a lot of smuggling or

illegal importing goods from certain areas. Moreover with the emergence of a black market in

various points cause customs should work with double extra care. Based on a statement

already presented in the previous paragraphs, Black Market brings many disadvantages

especially for the country's foreign exchange supply. Then the implementation of Customs is

attempting to minimize the black market spot in our country.

Based on the origin of the black market on the 2nd paragraph and the goods bought

and traded by that time, it can be concluded that the black market is an illegal activity and

has a negative impact in the economy and the well-being of a country. In our country such

activities like that are contrary to the regulations, especially in the instance of the Directorate

General of customs and Excise, such activities should be completed. In accordance with

narcotics sub director in customs office and the function of the CNT (Customs Narcotic

Team) that is carrying out the preparation of regulation formula, drafting of standardization

and technical guidance, evaluation and implementation of intelligence, patrols and operations

in the framework of prevention and action of violation of customs regulations in narcotic

drugs and psychotropic substances, precursors, goods smuggling, as well as the planning

and management of narcotics operations support. Described in the Customs regulations No.

17 of 2006 on clause 102 that everyone is doing the smuggling of imported goods the

shortest prison are convicted of 1 (one) year and the longest imprisonment 10 (ten) years

and criminal fines of at least Rp 50.000.000,- and at most Rp. 5 billion,-. Viewed from the

point of the beginning of the emergence of a black market and some of the regulations that

exist in our country, especially the regulation of the General Directorate of customs and

Excise, it can be concluded that the principle of black market contrary to what exist in our

country.

With the existence of Customs and Excise regulations on Directorate General

Customs and Excise is able to minimize the illegal trade as well as black market spot began

to expand in the our country especially in the spot like frontier. In this case the regulations

and supervision in frontier areas especially for prone to smuggling should be tightened.

Affirmation of the regulations against the perpetrators of smuggling or illegal trade should be

defined so it can give deterrent effect against the perpetrators who are in the black market

spots. In addition to supervision and affirmation of the law, it should be done an education

involving customs and Excise Agency and its tasks and functions to the general public so

that the public can understand on how to support the condition of economy in our state and

how to protect the foreign exchange as a source of State revenue. So the importance of

education is expected to each person of the general public could examine and provide a

good solution for the developed of economic condition in our State. If all of that is done well

and properly, we are sure that the existence of the black market that exists in our region will

be reduced. So it is able to restore the economic condition was unstable due to the existence

of Black Market.

C. CONCLUSION

After we know and understand about the black market in the previous paragraph, we

can draw some conclusions. First, black market is started from the international trade

process which involves the presence of exporting and importing of goods. Due to the import

tariff payable paid by the traders when importing the goods makes them suffering a

decreased profit on sales. So they are thinking of ways to avoid the imposition of import tariff.

One of ways is by smuggling the import of goods. Then the black market also comes from

the sale of illegal goods such as drugs that should be banned in that country so the

entrepreneurs opened a hiding black market to sell forbidden goods.

The next conclusions prove that goods sold in the black market are causing harm to

the public or the Government. Such as the goods sold in black market are not origin goods,

the goods that sold in black market are experiencing a reduction specifications, in black

market the goods usually did not qualify the time checking doing by the manufacturer or

commonly also called by reject items or goods. And black market goods typically have no

warranty. Black market also gives disadvantage for the state like decreasing the state

revenue. The existence of black market needs to be prevented in some ways. One of them is

through government regulations in the field of customs and Excise.

Based on the explanation on the previous paragraph can be concluded that the role

of customs in tackling the black market is divided into a number of points, they are :

1. Tighten the function of supervision at the frontier areas that are prone to the

black market.

2. Tighten the functions of control and evaluation in the supervision of the black

market. In the hope of being able to minimize the occurrence of smuggling

practices.

3. Affirmation of the regulations against the perpetrators of smuggling or illegal

trade should be defined so it can give deterrent effect against the

perpetrators who are in the black market spots.

4. The functions of the education to the public. So the public also understand

how the impact of the existence of the black market and public can help in

order to minimize the presence of customs.