General Export Clearance Information

Clearance Process
Geographically, the Republic of Indonesia is a huge archipelago state. It is impossible to place the Customs Official along the seashores to secure that goods incoming to and outgoing from the Customs Territory have fulfilled the prevailing provisions. Therefore, the fulfillment of Customs formality shall be done at the Customs Office. It means that loading or unloading goods at any place other than the Customs Office shall be regarded as violation against the law. In this way the control is easier to be done since the place to meet Customs formality such as: the lodgement of the Customs Declaration or payment of the Import Duties has been clearly limited by designating the Customs Office in accordance with the trading needs.

Imported goods are not legally entered until the vessel has been arrived in the Customs Territory. Prior to the arrival of the aircraft or vessel, the shipping agent should submit a Notice of Estimated Time of Arrival to Customs. Upon the arrival of the vessels, the master or the agent is obliged to lodge a General Declaration in the form of a Manifest covering all cargoes and supplies on board to the Customs Service Office, not later than 24 hours after the arrival.

Imported goods are allowed thirty (30) days to complete the entry processing with Customs, commencing from the date of unloading. If the goods are not yet released within a period of more 30 (thirty) days as of the date their storage in the temporary storage, they will be regarded as unclaimed goods. If the unclaimed goods are not yet released within a period of more than 60 days, Customs may declare them abandoned by act of law and is empowered to sell such goods by auction.

The proceeds of the auction are used to cover import duties, taxes and accrued charges. The balance of the process of the auction shall become state property unless; a claim is lodged by the owner, within the period of 90 (ninety) days as the date of notification letter. If no claim is lodged with Customs the balance will be appropriated for the state revenue.

Goods may be declared by the importer or the customs broker on his behalf. In order to obtain release of imported goods for home use, the declaring party must perform as follows:

• Carry out the import declaration, along with all original documentation and pay import duty and taxes at the bank or customs office
• Submit import declaration, the security and other supporting documents to Customs.
• Submit complementary customs documents and security

If the declaring party is other than the actual importer listed on the documents the following must be provided for purposes of lodging a declaration with customs:

Import License if applicable, Importers Tax Obligation Number and Power of Attorney executed by the importer for whom they are acting as declarant.

All declarations must be submitted on the appropriate import declaration form "Declaration of Importation of Goods" (PIB) upon which the following must be submitted by declaring party, such as name & address of exporter; name, address and status of importer; name and address of declaring party (if other than importer); name of the vessel; description of goods; value of the goods; etc.

Where possible the declaration should be submitted and processed electronically through the EDI (Electronic Data Interchange) system (required in these four main ports (Tanjung Priok I, II, III and Soekarno-Hatta I-II), while in the other ports it may be done manually or in diskettes media.

Within a maximum of 4 (four) hours, importers will be provided a decision from customs of the PIB which has been submitted, whether the PIB is rejected or received and determining the clearance channel. Customs will advise the basis of any reason for rejection in the Rejection Note. Physical inspection or examination will be conducted by Customs at the port of destination in Indonesia, and as mentioned above, will only be performed based on a very selective basis (through determination of red or green channels).

With regard to physical inspection, it shall be required entry is made under the following conditions and examination is required:

• There are intelligence information determined by computer; random selection
• Temporary admission goods
• Re-imported goods

To facilitate physical inspection, Customs Service office at Tanjung Priok Jakarta and Tanjung Perak Surabaya use the Hi Co Scan X-Ray Container. Customs officials can decide if physical inspection is needed or not by translating the Scanner image of that such apparatus.

Imported goods may only be released from the Customs area after the Customs formalities have been fulfilled and the approval from the Customs official has been obtained.

In case of a tariff misclassification or miscalculation on import declaration occurred, the goods can still be released though the shortage of import duties and taxes due on such importation as a result of such mistakes is not paid yet. This is on the condition that such a shortage has to be paid within 30 (thirty) days from the date of the letter of payment shortage declaration of import duties from the date of Reassessment Note issued on such an import declaration.

The Goods as referred to in paragraph (1) may be released from the Customs Area after the fulfillment of the Customs Formality in order for such goods to be:

• Imported for home use;
• Temporarily admitted;
• Stored at the Bonded Storage;
• Transported to the Temporary Storage in another Customs Area;
• Transited or transshipped; or
• Re-exported.

Import for home use means:

• Bringing goods into the Customs Territory destined for home use; or
• Bringing goods into the Customs Territory to be under possession or control of a person who domiciles in Indonesia.

Imported goods may be released for home use:

• After submitting the Customs Declaration and after payment of the Import Duty;
• After submitting the Customs Declaration and the security as referred to in Article 42;
• After submitting the complementary Customs documents and the security as referred to in Article 42 of the customs regulations.

Imported goods brought by passengers, crews of means of transport, and border crossers to the Customs Territory shall at the time of their arrival be declared by each of them to the Customs Official.

Imported goods sent by postal or courier service shall only be released with the approval of the Customs Official.

Importers who do not pay the Import Duties on imported goods within the period designated by this law shall be subject to a penalty of ten percent of the Import Duties that should be paid.

Obligation which shall be carried out by a carrier or his/her behalf is to notify the arrival of means of transport by submitting the Customs Declaration to the Customs Officials and such a document shall states all imported goods, either commercial goods or ship supplies carried by the means of transport. When the amount of the unloaded goods is less than that stated in the Customs Declaration, the carrier based on this paragraph is deemed to have already imported the goods. Therefore the carrier shall be obliged to pay both Import Duty on the shortage goods and administrative sanction, unless the cause of the shortage can be proven as not his/her fault.

Import Duties shall not be imposed on goods solely brought into the Customs Territory for transit or transshipment to another country. In principle, goods from outside the Customs Territory are subject to the Import Duties at the time such goods enter into Customs Territory. Considering that these goods are not intended to be imported for home use, the Import Duties are waived.

Exemptions of the Import Duty shall be granted for import of:

• Goods of foreign countries representatives and their officials who work in Indonesia under reciprocal principles
• Goods for international bodies and their officials who work in Indonesia
• Goods and materials to be processed, assembled, or installed on other goods destined for export
• Scientific books
• Goods donated for public worship, charity, social, and cultural purposes
• Goods for museum, zoo, and other similar public places
• Goods for research and scientific purposes
• Goods for the blinds and other disables
• Weapons, ammunition, and other military equipment, including spare parts for the national defense and security
• Goods and materials used to produce other goods for the national defense and security
• Samples of no commercial value
• Coffins or other containers containing corpses or ashes of corpses
• Removal goods
• Goods brought by passengers, crews of means of transport, border crossers, and consignments of a certain Customs value and/or a certain number

Exemption or relief of the Import Duty may also be granted for import of:

• Machinery for the establishment and development of industry
• Goods and materials for the establishment and development of industry for a specified period of time
• Equipment and substances used to prevent environmental pollution
• Seeds and breeding animals for the establishment and development of agricultural industry, animal husbandry, or fishery
• Marine products caught by licensed hauling vessels
• Goods exported to undergo repair, processing, or testing
• Goods re-imported in the same state
• Goods which are naturally damaged, decreased in quality, destroyed or decreased in volume or weight occurred between the time of transportation on the Customs Territory and the time of import approved for home use
• Human therapeutic substances, blood grouping and tissue typing reagents
• Goods by the Government for public purposes
• Goods for temporary admission

The Minister of Finance shall further regulate the provisions on exemptions, relief and refund. It should be noted that any person who does not comply with the provisions of the exemption and/or relief of the Import Duties by virtue of Indonesian Customs Law, whenever causing loss of the government revenue, shall be subject to an administrative fine of one hundred percent.

Refund of the Import Duty may be carried out in a whole or in a part of the duty paid for, interalia:

• Excess payment of the Import Duties, for example an excess payment resulted from Customs determination of tariff classification, or an excess payment caused by an administrative error
• Excess payment of the Import Duty as a result of the decision of the appeal institution

Entry Types

Entry processing or the act of making customs declaration is divided into two processes:

Informal entry possible:
Shipments of low value, samples, documents where there are no controls or agency requirements in place to be satisfied.

Consignment via courier service with its value not more then FOB USD 50, 000 for each person per each delivery then will be given exemption of import duty and import related taxes.

Formal entry required:
Shipments of high value; or goods that are subject to formal processing due to controls or agency requirements in place that have to be satisfied regardless of the value declared for customs. Formal processing is also required for those goods that are imported temporarily or are eligible for duty tax exemption, or that are consigned for entry to a qualifying agency or government department, foreign embassy, etc.

Document Requirements

General Export Clearance Information
Declaration of Exportation of Goods (PEB) shall not be required by Customs for certain export activities, for example goods taken out by passengers and crew of means of transport, border crossers, vehicles which are using international document (ATA Carnet, TRIPTIEK, CPD Carnet) consignments by PT Pos Indonesia which are using Declaration En Douane (CN 23).

Normally for export there should be only documentary examination carried out by Customs, therefore it is important that all documents tendered are complete and properly executed to avoid rejection by customs or delay caused by examination. Physical examination will only be performed by Customs, under special circumstances where it is warranted or required by operation of law, as in the following cases:

• Where Customs fraud is suspected.
• For goods that are presented for Temporary exportation/importation and processing is required to fulfill these requirements by law.
• Fraud in VAT (Value Added Tax) and Sales Tax on Luxurious Goods (STLG)
• Exportation of goods which are subject to Export Tax (PE)
• Exportation of goods which are using drawback system facilities (BAPEKSTA facility)

A government appointed surveyor inspects cases arising from condition 4 above.
Customs examination shall be performed at the Customs area, at the exporter's premises or other location used to store export goods. Surveyor examination shall be performed at any place beyond customs area, which is determined by exporter.

Goods being tendered as export goods must be reviewed and identified by the shipper as to whether they are subject to required declaration or exempt from declaration. If the export goods are found to require export declaration, it is completed and submitted to customs manually or via electronic (EDI) transfer. The information provided below is provided as a general guide for goods that are / are not subject to export declaration processing with customs prior to export from Indonesia.

Required submission of the Export Declaration:

• Export Consignment 300,000,000 Rupiah or more
• Removal Goods
• Diplomatic Corps Goods
• Goods donated for public worship, charity, social and cultural purpose
• Imported Goods that being re-exported
• Goods temporarily exported that will return to the customs territory
• Souvenirs
• Handicrafts from local cottage industry
• Samples
• Goods for research and scientific purpose
• Goods controlled by local agency or department

Export Declaration won't be needed if goods being exported are:

• Passenger Goods and Crews Goods
• Border Crosser hand carried out of the territory
• Goods covered by ATA Carnet, TRIPTIEK OR CPD Carnet regulation
• Consignment Goods by the Postal service

Export Document Requirements
The following documents are required at the export level for all shipments (of non-document) commercial goods being presented for export from Indonesia:

Commercial Invoice
All shipments exported from Indonesia must be presented to customs with a valid commercial invoice. The invoice should bear the name and address of the shipper, place and date of the shipment, name and address of the consignee, number and kind of packages, content and weight of each package, tariff number, marks and numbers. Additionally the invoice should state the reason for shipment if the goods are being presented for other than permanent export from Indonesia. Goods exported temporarily for repairs, technical inspection, tradeshows etc may require additional processing and formal registration to avoid potential duty/tax liability when returned to Indonesia. Three copies are normally required to accompany all shipments.
Prices, quantities, and qualities on the invoices should be the same as those originally quoted. Invoices covering shipments under letter of credit should show the date and number of the letter of credit and the import control number.

Packing List
Although not expressly required by law, Customs normally requires a Packing List to help expedite the Customs clearance process and it is especially helpful for shipments containing several commodities and multi-piece shipments.

Certificate of Origin
A Certificate of Origin, (COO) is sometimes requested for verification / certification of the country of origin of certain commodities. There are many types of certificate of origin in use, in most cases where trade preference is not being requested a General Certificate of Origin is used. For qualifying shipments to ASEAN countries the Form D ASEAN Certificate of Origin should be used in order to qualify for trade preference (less or zero duty based on commodity shipped. Qualifying goods exported to General System of Preferences (GSP) supporting countries should be tendered with the properly completed Form A GSP Certificate of Origin. Regardless of the type of certificate of origin used, it must be certified by a recognized chamber of commerce, which usually requires one additional notarized copy for its files.

Bill of Lading/Airway Bill
A bill of lading / airway bill serves as the transportation authorization that allows the exporter to designate a carrier or agent to transport goods. The bill of lading/ airway bill usually indicates the following information: name and address of the shipper, name and address of the consignee, port of destination, description of goods, listing of freight and other charges, numbers of bills of lading in full set, and date and signature of the carrier's official acknowledging receipt on board of goods for shipment. The information should correspond with that appearing on the invoices and packages. Freight charges must be stated separately. The airway bill replaces the bill of lading on air cargo shipments.

Additional Documentation

Sanitary certificate: special sanitation, fumigation, and other similar certificates may be required for certain goods. The entry and export of some plants and seedlings require a permit from the Ministry of Agriculture or from a designated official.

Export Licenses

Goods controlled for export must be tendered to customs at time of export with the appropriate export license and or agency approval. Goods subject to this requirement:

• Culturally valued goods, defined as goods over 50 years of age, whether movable or not with ties to history or national cultural or scientific importance.
• Natural goods that are part of the Republik Indonesia and are protected by law.
  • Raw woods
  • Raw rattan
  • Natural resources that are unique to Indonesia and valuable to the local cottage industry
• Hides and raw leather from reptiles (includes pickled and wet blue)
• Rubber lumps
• Rubber in all forms harvested from local forest system.

• Cash or negotiable instruments exceeding (IPR) 5 Million must be authorized by the Central Bank.
• Cultural goods
• Certain goods as determined by the Department of Industry and Trade;
• Leather hides, rawhides wet and blue
• Rubber lumps
• Rubber in all forms harvested from local forest system

Record keeping
Article 49, Customs Regulations Republik Indonesia
Importers, exporters, operator of the Temporary Storage, operator of the Bonded Storage, management of Customs brokers, or managements of transportation shall be obliged to carry out book-keeping and keep records and correspondence concerning Imports and Exports.

Article 51 Customs Regulations
The books and records as referred to in Article 49 shall use Latin characters, Arabic figures, Rupiahs currency, and the Indonesian language or the foreign currency and other languages stipulated by the Minister. Books, records, and letters shall be kept for a period of ten years at their business premises in Indonesia.

Books, records, and correspondence relating to Import or Export activities shall be kept for a period of ten years, therefore if during that period of time a violation against this law is discovered, the required books, records, and correspondence are still available. The obligation to keep such books, records, and correspondence is consistent with the provisions of Article 111 concerning the expiration dates of criminal prosecutions in Customs affairs.