improper penaltie. Penalties are oftenn imposed by th customs officials without adequate cause to extract fine which one must par to be repealed. It impedes free trade by increasing the total time for shipment, and hence a higher cost of shipment. Moreover, such penalties may lead the shipment to lie at the yard, thus influencing the quality of the shipment. In most of ASEAN, such penalties are rare. In Malaysia, Cambodia, and Myanmar, however, penalties are imposed on late submissions, amendment, and related to inspections in order to elicit arbitrary money. In Indonesia, such penalties are quite common