The Hardest Country In The World To Clear Customs

- Feb 14, 2019 -

The hardest country in the world to clear customs


(The news from Singapore UNL Shipping & Logistics Pte Ltd ).


Indonesia was in a state of customs scrutiny since the end of (every year December to march, the red light of the import customs clearance in Indonesia), Indonesia customs and other law enforcement to scrutiny of import customs clearance, customs clearance formalities of formalities need to be more than before, for a longer time, if the improper operation, at the same time will produce more of the cost accordingly.Recently, some people reported that due to the red light period in Indonesia, it is difficult to clear the goods after they arrive in Indonesia.

Below from the red light period, Indonesia's import management, import licensing system, tariff system, port clearance guidelines, countermeasures and other aspects to give you an introduction.

What is a red light period?

In Indonesia, customs are divided into red light customs and green light customs.If a certain export goods in Indonesia customs red light, the customs will pay more attention to the protection of local production of the goods of the enterprises.Then export enterprises export goods to Indonesia, will encounter more stringent customs measures.A few years ago, for example, an air conditioner export enterprise in shenzhen encountered a red light in the Indonesian customs.As a result, corporate exports have fallen by about 50 per cent.

Generally speaking, from December to march of each year, there is a red light period for Indonesia's import customs clearance.Indonesia customs will cooperate with other law enforcement departments to carry out strict inspection on import customs clearance. Customs clearance procedures need more procedures and take longer than before. If the operation is improper, more fees will be generated correspondingly.For some red license plate title, is 100% will check.

"Red light period" coping strategy

1. For different categories of goods (each country may have different import requirements for different categories - tariff & non-tariff threshold) and quantities, the information of goods shall be clear before shipment, and it is essential to communicate with local businessmen in Indonesia about the latest customs policies and whether such products will encounter customs clearance obstacles.If necessary, but also combined with the strength of the destination port agent and customs relations of the container requirements for packing.

2. If Indonesian merchants do not have the corresponding import right, or have the import right but have a relatively shallow qualification, it is generally easier to be inspected (obtaining the import license API, or even applying for the Master List, does not mean that they can have barrierless customs clearance).Therefore, DDP can be used, that is, some of the better qualified import title agent to complete the customs clearance.

3. For both DDP and DDU operation, it is suggested to apply for 14-day free time of detention with the shipping company when booking the space. In this way, even if the time required for customs clearance is longer than usual, the container rent will not be generated or reduced.

Import control in Indonesia

When the Indonesian government implements import management, it mainly adopts quota and license.

The quota administration mainly applies to alcoholic beverages and direct raw materials containing alcohol, and its import quota is only issued to approved domestic enterprises.

The products subject to the license administration include salt, ethylene and propylene for industrial use, explosives, motor vehicles, waste products and hazardous articles.Among them, the nine categories of imported products, including CFC, methyl bromide, dangerous goods, alcoholic beverages and direct raw materials containing alcohol, salt for industrial use, ethylene and propylene, explosives and their direct raw materials, waste products and used clothes, are mainly subject to automatic license management.Cloves, textiles, steel, synthetic lubricants, sugar, agricultural hand tools and other six categories of products are mainly applicable to non-automatic licensing management.

Import licensing system

The ministry of trade of Indonesia is responsible for the import of products from that country and for the enforcement of regulations relating to import licensing requirements.Under the most basic requirements, the import of products into Indonesia requires the submission of the required documents for verification by the general administration of customs, and the products may be subject to inspection.In addition, importers are required to complete import declarations for all imported products and declare them to the customs.Importers are also required to apply to the general administration of customs for a customs identifier (NIK) to comply with customs requirements;Import licence (API) applications must also be made to the trade department or the investment and manpower bureau (BKPM).

Import license (API) is divided into general import license (api-u) and manufacturer import license (api-p).

The Indonesian authorities require each company to apply for only one type of import licence.A company holding a general import licence may import products for trade or distribution, whereas a company holding a manufacturer's import licence may import products for its own use only, e.g. industrial equipment and raw materials for production.In addition, a special import licence (NPIK) is required for the import of electronic products, toys, footwear, textiles, rice, sugar, corn and soybeans.Import licence and special import licence shall be renewed every 5 years.

Since January 1, 2017, Indonesia has implemented import quota restriction policy on imported products, including tires, and required to provide packing list, invoice and SNI certificate for goods inspection before shipment.For products that are not covered by the province service's compulsory certification, you need to provide packing list, invoice and corresponding test report to apply for inspection.

*SNI, short for Standar Nasional Indonesia, is spelled Indonesia National Standard, which means the National Standard of Indonesia.A manufacturer that has already passed the Indonesian product certification scheme can use the Indonesian quality markup: the SNI markup.In Indonesia's national standard, SNI, 90% are recommended and 10% are mandatory.The high standard areas in Indonesia include: agricultural product standard (such as subtropical fruit planting technology), economic crop standard (rubber), oil and natural gas product standard.

All regulated products exported to Indonesia must be marked by (SNI marking), or they will not be allowed on the Indonesian market.Currently, the regulated product range is divided into four categories: household electronic products, telecommunications and IT equipment (46 items in total);Construction materials (8 items in total);Automobile material parts (a total of 24 products);Other goods (such as shoes, leather goods, toys, clothes, 25 items in total).

Indonesia customs system and port clearance guide

Indonesia imposes tariffs on imported goods in four categories

1. Category a commodities.Imports necessary for the domestic market, including rice, flour, certain iron and steel products, certain chemical fiber products, cotton, medicinal materials, agricultural machinery and equipment, etc.Import duties on most of these commodities range from 5 to 25%.

2. Category b goods.For some necessary parts and materials for industrial products, the import tariff rate is 5 ~ 35%.

3. Category c goods.For the domestic market demand is not large or domestic enterprises need to import protection of goods.The import tariff of this kind of goods is higher than that of a and b.

4. Category d goods.For luxury goods, certain consumer goods, and goods that can be produced domestically and should be protected by imports.The highest tariffs are levied on such imports.Import control "import license", generally do not need, some goods need a special license of the ministry of commerce, individual goods are prohibited from import, some goods only authorized exclusive agents can handle the import.There are also import monopoly measures and quota provisions for many goods.

Documentation requirements

1. Commercial invoice.The invoice must indicate the name and address of the exporter and the consignee, the place and time of shipment, the mark, serial number, quantity and type of the shipment, the weight and contents of each shipment, with the detailed name of the commodity and the customs tariff number.

2. Certificate of origin.There is no uniform requirement except that the Indonesian authorities reserve the right to request certificates of origin in individual cases.Certificate of origin requires 3 originals and 2 copies.

3. Other documents.The inspection report (LKP =laporan kebenaran pemeri kssan) requires that all goods must be inspected for quality, quantity and price before shipment.Some of these goods are exceptions, such as special goods, crude oil, petroleum, precious metals, gem works of art, etc., valued under $5,000.

Inspection of products

A wide range of imported products, including food and beverages, clothing, footwear, toys, electronic products and cosmetics, must be inspected before shipment in their place of origin.Overall, the regulations cover more than 800 tax codes in 17 different areas.Inspection must be carried out by a company accredited by the government of Indonesia at the importer's expense.The importer must submit the surveyor's report to the Indonesian customs for clearance.

In addition to basic data such as origin and product description, pre-shipment inspection will also determine whether the products subject to the mandatory Indonesian national standard meet the relevant standards.If the product is not up to standard, modifications must be made before it can be shipped to Indonesia for sale.

Special provisions on packing

Food, beverages, ceramics, glassware, household articles, textiles and soap must be shipped in the original packaging of the producer and packed separately according to the type, performance and trade mark of the goods.In addition, the climatic conditions in Indonesia should be taken into account, with particular attention to waterproofing and rust prevention.

The handling of delayed inventory by the customs

Goods arriving in Indonesia must be paid duty within 30 days.At the port of Jakarta, the cargoes will be taken beyond the expiry date to a makeshift warehouse run by the supervisory agency, which is part of the national seaport corporation.Goods can be stored there 1-3 months, exceed the time limit does not take, auction in the storehouse of port authority, auction gain is used at paying storehouse cost.If the balance after deducting the auction expenses is kept for 3 years and no one claims it after 3 years, it will be turned over to the national Treasury of Indonesia and the goods are not allowed to be returned until the customs duties are paid.

For some red license plate title, is 100% will check.In view of the particularity of customs clearance in Indonesia, some countermeasures are put forward based on the experience accumulated by relevant Indonesian logistics and customs clearance companies at the special time:

One, for a shipment of different category (each country imports may have different requirements for different category - tariffs and non-tariff barriers), quantity, need to clear the goods before shipment information, confirm the consignee and the goods according to the concrete situation, if necessary, combine with the port of destination agent and customs relations of the container requirement for packing.

Second, if there is no corresponding amongs so many brands, or is a amongs so many brands but shallow easily by the customs (API, and even apply for the Master List, do not represent can no obstacle clearance), can be operated with DDP, for some need special import license, import quotas, and need to do the commodity inspection (SGS, SNI), like steel, ceramic tile products, can look for a corresponding import permissions agent for customs clearance.

Iii. For both DDP and DDU operation, it is suggested and required to apply for 14-day free time of detention from the shipping company when booking the space. In this way, even if the time required for customs clearance is longer than usual, the container rent will not be generated or reduced.

Four, import and export involves exporters and destination countries of two parts, but whatever the operating mode, export customs declaration and import customs clearance are two relatively independent work and countries is to encourage the general product export, as long as it is real exports, domestic customs clearance documents obtain corresponding drawback is not affected by the influence of different way of customs clearance in destination country.

V. international trade is a systematic project, and the import and export of Indonesia is relatively special. In China, we confirm the corresponding import rights and qualifications with Indonesia, and then specify the requirements for loading, so as to complete the import and export related work as efficiently as possible before shipment.

Six, consignor must be to the port of destination before shipment to confirm whether there is a import and export right, regardless of the shipping, express delivery, air must be confirmed, on the premise of not do shipment (no amongs so many brands such as the port of destination, must shut up the need to find agents as consignee help clearance) Indonesia customs than other countries, with no amongs so many brands of the consignee can clearance.Remind consignor to bear in mind, bear in mind!

Seven, such as mechanical products, please be sure to report, the machine is new or second-hand, if second-hand must be explained in advance, need to go to the customs to apply for the record in advance, will not produce additional costs, if the old, must do SGS.If be being exported below the premise that did not make SGS, so check by custom, either buckle ark, return shipment, have concern of course money is certain to be able to get out, fine is quite much, cycle also is quite long, very troublesome formalities is numerous, so shipment to this country must be discreet again discreet.

Eight textile exports, also need to pay attention to, in view of the cloth, apparel goods import need apply SGS (SGS in commonly the first application easier, or at the end of month didn't afraid of quota) in July for textiles import is strict, remind the shipper before delivery to customers, foreign customs clearance no problem?It is safer to ship under the premise of no problem confirmed by foreign countries.

Nine since January 2016, Indonesia is quite strict for many products, such as light-emitting diodes (leds), mechanical (old), machine (old), textile and so on need to do SGS inspection before the ark, need to apply for abroad, send SGS NO. Done by SHIPPER here to make an appointment before loading, so the chances of the port of destination customs clearance when the card is almost zero.

X. export goods and the actual packing list must be consistent, if the destination port inspection found that the goods and the actual packing list invoice, bill of lading COPY is not consistent, then the resulting penalties are quite expensive.Some customers like to use abbreviation, or do not list details, it does not matter to export to other countries, but for Indonesia's products, as detailed as possible.Avoid costly penalties.

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