The Association of Indonesian Fiber and Filament Yarn Producers (APSyFI) said that around 60 companies owned by around eight businessmen carried out various modes of importing illegal textiles. "They play a lot, play in API-P (Importer Identification Number-P for producers) yes, API-U (Importer Identification Number-U for general traders) yes, they play in wholesale, yes it depends if wholesale is cheaper, they will do more in wholesale. If it's wholesale, they play on the API that he has," said APSyFI Chairperson, Redma Wirawasta, during a press conference in Jakarta, Friday last week.
Redma said that the illegal import mode or what is known as the unprocedural import mode consists of several ways. First, under invoice, namely lowering and reducing the volume and value of goods in the Goods Import Declaration (PIB). Second, flight from the list of goods classification or what is called the Harmonized System (HS) in the PIB to HS with lower import duties.
Then, there is transhipment or the production of fake import certificates from countries that have trade agreements or countries that are not affected by trade remedies.
Then, bulk imports are carried out without calculating import duties and taxes which should use the services of an undername importer.
"This practice negates import regulations for Import and Trade Remedies. Mid-2017 to 2019, this wholesale practice was disbanded by the PIBT Task Force led by the Minister of Finance, but has returned to anger since 2019 until now," he said.
This wholesale import mode, called Redma, is easily found in e-commerce. He explained that these rogue importers openly listed various types of import mode, starting from undername import-export, official import, wholesale, door to door and even helping customers whose goods were stuck at customs because the import legality was incomplete and the goods could not be processed.
As for the textile company that abused the API-P import permit, based on the APSyFI investigation in 2020, it was PT Internal Textile. The company received an import quota of 32 million. However, after being surveyed, there are only warehouses and no production capacity.
Then, there is PT Windu Eka which has an import quota permit for 49.5 million meters. However, the installed capacity is only 500 thousand meters per year with less than 100 workers. In fact, to meet the demand for 49.5 million meters, 9,500 employees are needed.
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On the same occasion, the Minister of Cooperatives and SMEs, Teten Masduki, believes that efforts to enforce the law prohibiting the import of illegal used clothing are correct after discussions with the Indonesian Textile Association (API) and the Indonesian Association of Fiber and Filament Yarn Producers (APSyFI).
Minister Teten said that based on data processed by API, as many as 350,000 pieces of used clothes invade the local market every day. Then, APSyFI recorded imports of textiles and textile products including used clothing reaching 320 thousand tons in 2022, far exceeding legal imports which were recorded at 250 thousand tons.
"It was mentioned earlier that this really hit the SME apparel industry," he said.
In addition, he continued, the association emphasized that local apparel products could compete with imported products, in terms of quality and price.
Teten also asked the public not to confuse the notion of trihfting, which is hunting for branded clothes with imported second-hand clothes.