Indonesian Government Implements Post-Border Supervision System for Imported Goods

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Authors: Bama Djokonugroho, Stefanny O. Simorangkir

On 1 February 2018, the Indonesian government commenced with the implementation of Post-border Supervision System (Pemeriksaan Pemenuhan Persyaratan Impor setelah Kawasan Pabean) for the Implementation of Post-Border Supervision System for the importation of the following goods:

  1. iron, steel, and its variants;
  2. horticultural products;
  3. pearls;
  4. clinker cement and cement;
  5. material for plastic;
  6. flat glass;
  7. rough diamond;
  8. certain products (including food and beverage, traditional medicines and health supplements, cosmetics and household goods (perbekalan kesehatan rumah tangga), clothes and finished textile, shoes, electronics, and kid’s toys);
  9. used capital goods;
  10. refrigerant-based goods;
  11. lubricants;
  12. tires;
  13. forestry products;
  14. corn;
  15. colored multi-functional machines, colored copier and printer machines;
  16. metrology measuring instruments, weighing instruments, gauging instrument, and related equipment;
  17. ceramics;
  18. animals and animal products;
  19. saccharin, cyclamate, and chemical compounds with alcohol odors; and
  20. hand tools.

Post-border Supervision for the above goods are governed under several regulations from the Ministry of Trade (19 regulations), Ministry of Health (1 regulation), Ministry of Agriculture (1 regulation), Ministry of Mineral and Energy Resources (1 regulation), Ministry of Communication and Informatics (1 regulation), and Food and Drug Supervisory Agency (2 regulations)[1]. In addition, the government is currently preparing regulations to imply Post-border Supervision System upon another goods i.e. oil, gas and other types of fuel, which expected to be finalized in the near future.

Previously, the government adopted the Border Supervision System, wherein the Customs authority supervises or inspects all documents/license(s) of the imported goods at the location where the imported goods enter the customs area (Kawasan Pabean) i.e. certain borders at ports, airports, or other locations stipulated as a place for the traffic/flow of imported goods. However, with the adoption of the Post-border Supervision System, the supervision/inspection of importation documents/license(s) of types of goods as stipulated above will be conducted by the relevant ministry and institution (instead of the Directorate General of Custom and Excises) at the importer’s site/place.

Under the Post-border Supervision System, procedurally the importer may directly transport the imported goods to importer’s site/place after the Directorate General of Custom and Excises conducted physical inspection as well as inspection for tariff and import duty related with the imported goods as mentioned above by the Directorate General of Custom and Excises that may prolong the importation process, has been eliminated. However, the importer is obliged to submit self-declaration through the electronic system (at http://inatrade.kemendag.go.id) to declare the importer has fulfilled the import’s requirements before the imported goods are used, traded or transferred. The importer is also obliged to keep relevant documents/license(s) for importation and the Import Declaration (Pemberitahuan Impor Barang) for a five year period, which is used for Post-border Supervision by the authority.

The Directorate of Consumer Protection and Trade Compliance of Ministry of Trade may conduct Post-border Supervision periodically upon imported goods through: (1) inspection of importation documents/license(s); and (2) supervision on validity of import realization report, compatibility of import goods and data under the Import Approval Letter (Persetujuan Impor), as well as compliance with relevant regulations.

Specifically, for iron, steel, and its variants, the inspection of the import’s requirements is conducted at the site and/or storage of iron, steel and its variants before the importer utilizes such goods. Supervision and inspection for iron, steel, and its variants are conducted by the Directorate of International Trade and the Directorate of Consumer Protection and Trade Compliance of Ministry of Trade, as well as the Surveyor appointed by the Ministry of Trade.

The government’s policy regarding implementation of Post-border Supervision upon specific imported goods is expected to decrease dwelling time at ports, eliminate storage concerns at ports, expedite the flow of goods at customs area and minimize costs for the importer. This policy is also part of the Indonesian government’s effort to improve the investment climate in Indonesia. In addition to the implementation of Post-border Supervision System, the Indonesian government is currently preparing to revise relevant regulations pertaining to restrictions and/or limitations of imported goods (through specific import permits and/or subject to certain technical verifications or examinations) to reduce the list of imported goods subject to certain restrictions and/or limitations, inter alia, for capital and material goods. However, our contact at the Ministry of Trade, informed that currently they are still gathering input from other relevant ministry and institution to finalize such regulation, which expected to be finalized within the coming months.

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