Garuda ‘Smuggling’ Case a Lesson

An Airbus A330-900neo aircraft operated by Garuda Indonesia that was discovered to be transporting bicycles and motorcycle spare parts from France. The incident need serious investigation as part of the learning process

KOMPAS/HARYO DAMARDONO

A Garuda Indonesia Airlines Airbus A330-900neo aircraft is towed to the GMF hangar on Wednesday (27/11/2019) at Soekarno-Hatta International Airport in Cengkareng, Banten. Soekarno-Hatta Airport Customs and Excise officers discovered 15 boxes containing used Harley-Davidson motorcycle parts and two boxes containing brand-new Brompton bicycles.

JAKARTA, KOMPAS – The media spotlight is on a case involving an Airbus A330-900neo aircraft operated by Garuda Indonesia that was discovered to be transporting bicycles and motorcycle spare parts from France. The incident needs serious investigation as part of the learning process to set up a better system, particularly in terms of consistent law enforcement.

State-Owned Enterprises (SOEs) Minister Erick Thohir said that he would leave the case to the Finance Ministry’s Directorate General of Customs and Excise. “Let customs and excise authorities check whether such cases exist as reported,” Erick said on Wednesday (4/12/2019) in Jakarta.

Communication and Publication head Deni Surjantoro at the Customs and Excise Directorate General said the office was investigating the matter

The incident began, said Deni, with the maiden flight on 17 November 2019 of Garuda Indonesia’s new Airbus aircraft operated under flight number GA9721 from Toulouse, France. The aircraft carried a crew of 10 and 22 passengers. After landing, the Airbus was directed to the PT Garuda Maintenance Facility (GMF) hangar.

If they are secondhand goods, they must comply with the Trade Minister’s regulation.

When the plane’s cargo hold was checked at the hangar, Deni continued, several suitcases belonging to the passenger and 18 brown boxes were found, of which 15 boxes marked with the name contained used Harley-Davidson motorcycle spare parts. The remaining three boxes, marked with the name, contained two brand-new Brompton bicycles and accessories. The boxes were discovered to belong to two passengers on the flight, who were identified as respectively S.A.W. and L.S.

Deni said the motorcycle spare parts, coded HS 8711, and the bicycles were worth Rp 170 million together. The items were not on from the list of used capital goods permitted for import under Trade Ministerial Regulation No. 76/2019 and Trade Ministerial Regulation No. 118/2018.

Trade Ministry secretary-general Oke Nurwan stressed, “If they are secondhand goods, they must comply with the Trade Minister’s regulation.”

KOMPAS/ HARYO DAMARDONO

A Garuda Indonesia Airlines Airbus A330-900neo aircraft is towed to the GMF hangar on Wednesday (27/11/2019) at Soekarno-Hatta International Airport in Cengkareng, Banten. Soekarno-Hatta Airport Customs and Excise officers discovered 15 boxes containing used Harley-Davidson motorcycle parts and two boxes containing brand-new Brompton bicycles.

Illicit goods

Center for Indonesian Taxation Analysis executive director Yustinus Prastowo underlined that all parties should understand the intricacies of the trafficking regulation, which was intended to protect domestic products and the public interest. At the same time, the state also had a right to tax such goods for serving the public interest.

Prastowo emphasized that the goods found aboard the Garuda Airbus aircraft should thus be investigated thoroughly. If the goods were not on their manifest, it was very likely that not declaring them was the intent from the beginning.

“If they were to be declared as secondhand items, they need a permit from the Trade Ministry. Today, used and new goods can entail their own problems,” said Prastowo.

Any violation that occurs should incur a heavy fine, so people won’t try to import the same goods again.

The next issue was the items’ value, he said. If they were valued at less than US$500, they were not liable to import duty. If they were valued at $500 to $1,500, they were liable to import duty, and if they were valued at more than $1,500, the individual transporting them must declare them as imported goods.

The discovery of the undeclared items aboard the Garuda aircraft was a lesson for establishing a better system, especially in terms of consistent law enforcement. “Any violation that occurs should incur a heavy fine, so people won’t try to import the same goods again,” said Prastowo.

Honesty

The SOEs Minister warned that the culpable persons in the case should be honest. “If the goods were brought in by Garuda personnel, they must be dismissed. It would be better for them to resign before they are found out. We should be like the Japanese samurai. However, if it’s true, we should also presume their innocence,” he said.

Erick added that Finance Minister Sri Mulyani Indrawati had instructed the relevant officials to inquire into the matter in a transparent manner.

Separately, Sri Mulyani noted the use of several means of smuggling, including postal forwarding services and shipping an item as smaller parts. The smuggling methods were also becoming even more sophisticated as they get along with the changing applied by the government.

Vice President Corporate Secretary Ikhsan Rosan M. of PT Garuda Indonesia (Persero) stated in a press release, “Garuda Indonesia will follow and comply with all provisions, regulations and procedures as required by customs and excise authorities.”

Ikhsan added that all Garuda Indonesia employees would follow and comply with all regulations in force, such as the required import duty. The spare parts discovered in the cargo hold were for personal use by the employees concerned, and were not for commercial use.