The Indonesian government has recently undertaken step resulting in simplification of export to Indonesia. The amendment issued by the Minister of Trade (Permendag) came into effect on February 1, 2018.
What does it mean?
In order to improve the investment climate in the country, accelerate handling processes at ports across the country and prevent containers piling up in the customs area, post-border supervision of the imported goods will be implemented.
According to Director of Customs Technical Directorate of Customs and Excise (DBC), Fadjar Donny Tjahjadi, out of 10,826 existing Harmonised System Codes, 48.3% of them (5,229 HS Codes) are subject to limited restriction (Lartas) or closely monitored by customs.
However, this is going to be changed
With the new policy, it is expected that this number will be reduced to only 20.8% of the original amount (2,256 HS Codes). The categories of goods that remain restricted are safety, health, security and environmental goods. Rice, salt, and sugar should, however, still go through the inspection at the Indonesian border.
Mr Tjahjadi also mentioned that customs continues in physical inspection based on risk management and conducting research on tariffs to ensure the accuracy of imported goods.
Although this policy makes the exportation process easier, the requirements that exporter must fulfill in order to be enabled to import goods into the territory of Indonesia will remain the same.
The difference is that the goods which were previously supervised by customs are now going to be checked by ministries and related institutions (such as BPOM, Ministry of Industry, Ministry of Trade).
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