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Working with Customs officials throughout the world, FedEx has developed innovative technology to eliminate many steps of the paperwork-handling process and expedite the movement of international shipments. This process is known as the FedEx Expressclear Electronic Customs clearance system. Starting at the origin location, state-of-the-art technology allows the processing of shipment paperwork and electronic transmission of documents to the designated FedEx hub and destination clearance location. The Expressclear system also keeps a database of regulatory information, which includes; importers' numbers, broker designations, corporate contact names and telephone numbers. At a FedEx hub, international shipments are sorted, scanned and loaded onto an international flight. Vital shipment information is keyed into a worldwide manifest database, which is linked to computer systems operated by brokers and Customs officials in many countries. Even before the plane has taken off, or while it is in the air, Customs agents and brokers at the destination airport of entry can begin examining shipping manifests, querying air waybill data if they need more details, assessing duties and taxes and selecting the shipments they wish to examine. By the time the plane arrives at its destination, many packages have already been cleared by Customs. As the plane is unloaded, the Expressclear system identifies packages to be examined and prints "cleared" Customs labels for all others. Cleared shipments are transferred to trucks for immediate delivery. International shipments are scanned at all key points throughout the process and this allows for up-to-date status reports including when Customs clearance is obtained.
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In order to avoid delays in customs clearance, copies (pre-fax/scanning) of available versions of the commercial invoice are required. This covers the customers own business letterhead commercial invoice in addition to the generic Electronic Commercial Invoice (ECI) generated via FedEx automated shipping tools.
FedEx provides primary clearance for shipments consigned to Indonesia via Jakarta, but also offers clearance via the following ports in Indonesia: Jakarta, Bandung, Batam, Denpasar, Medan, Semarang, Surabaya.
Commercial Invoice
All shipments consignee to 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 consumption entry into Indonesia. Three copies are normally required to accompany all shipments. Prices, quantities, and qualities on the invoice 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 importer control number.
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.
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.
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.
Additional Documentation
Phytosanitary Certificates for Goods originating in places infected with pests and cholera must be disinfected before their import. The entry and Export of some plants and seedlings require a permit from the Ministry of Agriculture or from a designated official.
Plant Health Certificates may be required from the originating country Agriculture department for all plants, seedlings, etc imported.
Based on the Indonesian Customs Law, the Customs value of goods tendered for entry into the commerce of Indonesia shall be determined using the WTO and GATT methods of valuation as follows:
The Customs value of imported goods shall be the transaction value, that is the price actually paid or payable for the goods when sold or exported to the country of importation.
If the Customs value of the imported goods cannot be determined under the transaction value method, then the Customs value shall be the transaction value of identical goods.
If the Customs value of the imported goods cannot be determined under all mentioned above methods, then the Customs value shall be the transaction value of similar goods.
If the Customs value of the imported goods cannot be determined under all mentioned above methods, then the Customs value shall be based on a deductive method
If the Customs value of the imported goods cannot be determined under all mentioned above methods, then the Customs value shall be based on a computed method
If the Customs value of the imported goods cannot be determined under all mentioned above methods, then the Customs value shall be determined by using reasonable means consistent with the principles and the provisions mentioned under point 1 to 5 above on the basis of available data in the Customs Territory subject to certain limitations.
All goods presented for import to the Republik Indonesia must be tendered with a value that adequately represents the fair market value of the goods. If a value is missing or deemed inadequate customs may at its discretion assign a value (using the above methodology), or require documentation from the importer and shipper that will assist in determining the value for customs purposes. NCV (No Commercial Value), Zero Value, NC (No Charge) are not acceptable for customs processing and should not be used for any shipment including shipments consisting of documentation, samples or gifts.
Normal tariff based duty is currently levied on qualifying imported goods at a rate ranging from 3 to 26% on most goods, with some products still subject to rates of duty of up to 50-60%. With the full implementation the ASEAN Free Trade Agreement and WTO agreements duty will continue to be lowered.
Additional Fees
In addition to normal duty assessed against the imported goods, the following fees and taxes may also be applied based on the commodity and or processing involved:
License Fees
Fees assessed in the course of obtaining the proper forms and approvals for import processing. Usually the fees are minimal designed to cover the cost of processing and offering the service to the importer.
Storage and warehouse fees
Fees that are assessed during the customs processing that are applicable when goods are left unclaimed or entry is not made in the timely manner as determined by customs.
Additional duties levied on goods that are imported into the Customs territory at prices that are below the actual cost of the goods and or lower than available in the originating country for purposes of harming local commerce and industry. Duties are assessed in amounts that make the importation of the goods into the country at a comparable price so as to negate any harm that might be brought on local industry.
Countervailing Duty
Additional duties levied against goods being imported into the Customs territory that have been subsidized by another nation with purpose of artificially controlling price of the goods and gain unfair advantage over local producers of same product. Duties are assessed in amounts that make the importation of the goods into the country at a comparable price so as to negate any harm that might be brought on local industry.
The imposition of the Excise duty on excise goods (luxury goods) produced in Indonesia shall be applied at the time they have been completely made, and on the import of "excise goods" shall be applied at the time of importation of the goods into the Customs Territory by virtue of the Customs Law. Goods subject to Excise Duty; Tobacco, Ethanol and beverages containing ethanol in all its percentages; including concentrates.
NOTE: Excise duty where applicable is levied at a high rate ranging from 55% of the retail value or 250% of import value (customs + duty value) of the goods.
None
VAT (Value Added Duty)
VAT is assessed all qualifying shipments that are presented for import into the Republik Indonesia based on the Cost, Insurance and Freight (CIF) value of the goods consigned. Currently VAT is assessed at a rate of 10%.
None
Bank of Indonesia, the Ministry of Trade and Industry, and the Ministry of Finance, Foreign Exchange Banks and the customs authorities administer Exchange control. The best currency for exchange control is the American dollar.
Exchange regulations in Indonesia are liberal. Capital transactions including profits, dividends and interests are not subject to exchange control. Authorized banks only may carry out foreign trade related exchange operations. Additional information regarding exchange controls is available via the following URL: http://www.bi.go.id/web/id/
While the government of Indonesia is moving towards liberalized trade and open markets it maintains controls in the form of licenses and agency approvals that are required on many goods for import as well as export. This is slowly improving by removing many of these requirements and slowly reducing tariff rates on certain goods previously controlled.
Shipping restrictions: All imports of goods consigned for the Indonesian government as well as exports from the government must be carried out on Indonesian vessels.
Goods originating in places infected with pests and cholera must be disinfected before their import. The entry and Export of some plants and seedlings require a permit from the Ministry of Agriculture or from a designated official.
Mandatory Inspections
Plants, propagating materials and plant products must be imported through authorized ports and are subject to inspection in Indonesia at the expense of the importer.
Import Licenses
Indonesia continues to remove trade barriers via removal of import licenses and restrictions. It has drastically reduced the number of commodities to which these license and restrictive policies were associated. Currently approximately 141 tariff line items are noted as still requiring license or agency approval as a condition of import, this is an improvement from 1994, 261 (tariff line items) or 1990 when 1112 or roughly 10% of all goods were controlled and restricted for import. Authorized "registered importers:" may qualify for licenses for the following goods, in some cases licenses are only granted to specific companies designated by the government.
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Alcoholic beverages
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Hand tools
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Salt
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Raw plastic
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Artificial sweeteners
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Dangerous goods, explosives
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Metals bromide
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Scrap metals
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Lube oil
Foodstuffs
All food products, including distilled products require a health certificate issued by the authorized body in the country of origin. Additionally all food products imported for consumption in Indonesia are required to be approved by the Ministry of Health and obtain the product registration. The process is lengthy and requires that the goods be submitted with detailed information that in some cases may cause the perspective importer to divulge proprietary information that is confidential.
Medications
All drugs and drug products imported for consumption in Indonesia are required to be approved by the Ministry of Health and obtain the product registration. The process is lengthy and requires that the goods be submitted with detailed information that in some cases may cause the perspective importer to divulge proprietary information that is confidential.
Agriculture
Some animals require an inspection certificate from the Indonesian Veterinary Service.
Leather in form of raw or semi-processed hides are controlled and require Agriculture / Veterinary Service review and approval for import.
Import Document Requirements
The following documents are required at the import level for all shipments (of non-documents) commercial goods presented to customs for entry into Indonesia:
Commercial Invoice
All shipments consigned to 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 consumption entry into 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.
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.
There are currently no document consularization requirements or related fees for shipments consigned to the Republik Indonesia.
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