Q1. What are the basic import customs clearance procedures?

The basic import customs clearance procedures are as follows:


The Indonesian Customs Service classifies importers into three levels: Priority, Green, and Red, and applies differentiated customs clearance procedures when clearing imports. Priority Channel is a rating given to companies with the highest credit rating as assessed by the Korea Customs Service, and allows customs clearance without inspection before paying import taxes. However, in the following cases, customs clearance is completed after cargo inspection.

When importing items classified as high risk When importing temporary import cargo When importing re-import cargo When importing cargo designated as controlled items by government ministries

Green Channel is cleared through customs without customs clearance documents or cargo inspection after payment of import tax.

Red Channel is cleared through customs after payment of import taxes and completion of customs clearance documents and cargo inspection. Abolition of the existing Yellow Channel (as of April 22, 2022)

Documents for import customs clearance

- Divided into required and supplementary documents.

Required documents	Supporting documents
In principle, all required documents must be original.	Auxiliary documents are submitted upon customs request during customs clearance screening and are used as the main basis for import value screening and tariff rate application.

- Original Bill of Lading - Delivery Order (cargo delivery instruction) - Invoice, Packing List - Insurance Policy (cargo insurance) - FTA certificate of origin (When FTA application customs clearance is in progress)

- Sales Contract - Purchase Order - Remittance Slip / Bank Statement - Catalog / Specification

The types of import taxes payable upon import are as follows, and since the applicable taxes differ for each item, you must check the tax rate according to the HS code before payment.

• Import Duty: Bea Masuk
• Value Added Tax (VAT): PPN (Pajak Pertambahan Nilai)
• Corporate Tax in advance: PPH22 (Pajak Penghasilan Pasal 22)
• 특별소비세(Sales Tax on Luxury Goods): Value Added Tax on Luxury Goods
• Excise: Cukai

The import tax calculation method is as follows, and cargo insurance must be secured and submitted at the time of import customs clearance.

• Import tariff = customs value (CIF) × tariff rate
• Value added tax = (duty amount + import tariff) × 110%
• Corporate tax = (taxable amount + import tariff) × 2.5% (or 7.5% / 10%)
• Special excise tax = (taxable amount + import tariff) × special excise tax rate

cargo inspection

• Physical Inspection: We conduct a 100% inspection of all products, and if items not specified in the shipping documents are discovered, customs duties and administrative fines will be imposed.

• HI-CO SCAN

Q2. Is there a way to find out if the product I wish to export to Indonesia is subject to import restrictions in Indonesia?

Whether there are import restrictions or bans on items to be exported to Indonesia is subject to approval.

You can check this through the Indonesia Customs Service portal site (www.insw.go.id). Through this site, you can also check the required certification types and taxes for export items.

However, if it is not confirmed through the above portal site or is unclear, we recommend that you request separate confirmation from the buyer. Confirmation is also possible through KOTRA's overseas market research service, so please use it.

Q3. I am trying to file a customs declaration to import goods, but the 8-digit HS number exported from Korea does not exist in Indonesia. In this case, how should I report the HS code classification?

The first 6 digits of the HS code are common throughout the world, but the last 6 digits are different for each country. You can check the Indonesian HS code of the item you wish to export through the Indonesian Customs Service portal site (www.insw.go.id).

If you search the 6-digit HS code here, you can search sub-Indonesian codes and items for that HS code. Then, you can find the item with the sub-code corresponding to the first 6 digits searched for, and then find the HS code that matches the imported item.

However, if confirmation is not possible or is unclear through the above portal site, you can request confirmation from the buyer or confirm and investigate through KOTRA's overseas market research service. When using the overseas market research service, search for ‘KOTRA overseas market research service’ in the search box to check detailed information.

Q4. The same product was exported to the buyer twice. The first time was cleared through customs without a problem, but during the second time of customs clearance, the customs office informed me that the HS code was inappropriate and asked me to collect customs duties and pay an administrative fine for inappropriate application of the HS code. received. In this case, we would like to inquire about a solution.

In this case, there is a high probability that customs cleared customs without properly reviewing it during the first customs clearance. Afterwards, during the second customs clearance, it is discovered that the HS code of the item was entered incorrectly, and if an additional fee is requested, there is no choice but to pay it.

However, if you believe there were no problems with your import declaration, you can request a reconsideration with the Korea Customs Service along with relevant data. The exact HS code is provided by the Korea Customs Service.

Please note that you can check with your local government or customs office.

Q5. Can the import customs clearance process be carried out by the exporter rather than the importer? When a Korean company exports to Indonesia, import customs clearance in Indonesia is not possible in the name of the Korean exporter. Import customs clearance requires local import permission from Indonesia.

This is because it is only possible for one company. Generally, these are the B/L, invoice, and packing list that Indonesian importers request to be sent to exporters. Please note that the certificate of origin based on the FTA agreement is also required for procedures such as tariff exemption.

If a Korean exporter needs to directly handle Indonesian import customs clearance, they may consider establishing a local corporation and importing through that corporation.

Q6. It is said that the Mutual Recognition Agreement for Excellent Export and Import Safety Management (AEO) between Korea and Indonesia will come into effect. If you are recognized as an AEO company, I would like to know what benefits you can receive when clearing customs in Indonesia.

On June 30, 2022, the “Korea-Indonesia Export and Import Safety Management Excellent Company Mutual Recognition Agreement” came into effect. This system provides benefits such as reduced customs inspection and expedited customs clearance during the import and export process to companies certified by the Korea Customs Service, and is being introduced in 97 countries around the world. A mutual recognition agreement refers to an agreement between customs authorities that allows a company to be recognized as a certified company in the other country and receive benefits from customs clearance procedures in that country. Korea began negotiations with Indonesia in April 2019, and signed the Mutual Recognition Agreement in February 2020, which officially entered into force on June 30, 2022.

Once the mutual recognition agreement goes into effect, certified companies from both countries will receive benefits such as reduced inspection rates and priority customs clearance at the customs office of the exporting partner country, which will reduce the time required for customs clearance. Korea has mutual recognition agreements with 22 countries, including the United States, China, and Japan, and trade volume with these countries accounts for more than 70%, so exporting companies will receive a lot of help when utilizing the “Mutual Recognition Agreement for Excellent Export and Import Safety Management Companies.” You will be able to.

Q7. Are there any customs clearance issues if manufactured in a third country other than Korea and then exported to Indonesia?

If you are an exporter (Korea), manufacturer (China), or importer (Indonesia), you can issue and apply a certificate of origin in accordance with the ASEAN-China FTA agreement when producing products in China and exporting them to Indonesia.

The precautions for this type of business between three countries are that when receiving a FORM-E, a certificate of origin issued for products originating from China, the Korean exporter must be specified on the FORM-E, and the invoice between the three countries, i.e. the Korean exporter, must be specified. , the invoice must contain the Invoice Number issued by the Korean exporter. It must also be marked as Third Party Invoicing.

Q8. What are the main causes of problems with customs clearance, and what are the solutions if a problem occurs?

Generally, for sea freight sent from Korea, it takes about 10 days to reach an Indonesian port, and for air freight, it takes about 7 hours. In cases where customs clearance is delayed, customs clearance may usually be delayed when defects are discovered in the shipping documents submitted by the importer or when cargo is inspected. Customs clearance is usually completed within 1 to 3 days after payment of import taxes.

If customs clearance is delayed, you can inquire with the customs clearance company that requested customs clearance, or visit the customs office and request a meeting with a customs clearance officer. The reason for the delay can be confirmed through the interview. If the delivery period for a product sent by mail such as EMS is delayed, tracking is possible through the EMS registration number.

If customs clearance of cargo is on hold during import customs clearance, you must first visit the customs office for an interview to determine the reason. Most cases where customs clearance is withheld during import customs clearance occur due to discrepancies between shipping documents and cargo or failure to meet licensing requirements. After carrying out cargo inspection, if the actual cargo is different from the cargo on the customs clearance document, or if the quantity on the document is inconsistent with the actual quantity, customs clearance is often put on hold, and customs clearance is carried out without obtaining the license required for importing a specific cargo. It is also subject to import customs clearance hold. In many cases, cargo quantity discrepancies and cargo mismatches are usually cleared through customs duties and administrative fines. However, if the relevant permits and permits required for import are not obtained, import customs clearance is usually required.

This is not permitted. In this case, you can submit a request for return processing to customs and receive approval before proceeding with the return process.

Q9. What is the pre-shipment inspection procedure?

SUCOFINDO: Application agency for pre-shipment inspection of mechanical equipment KSO SUCOFINDO: Organization that applies for pre-shipment inspection of items excluding machinery and equipment

Among Indonesian imported cargo, there is cargo that can only be cleared through customs after undergoing a pre-shipment inspection (Laporan Surveyor). Most cargoes require professional verification, and customs clearance is only possible when shipped after conducting a cargo survey at the shipping inspection agency. In the event of a pre-shipment inspection, the application and reception organizations are as follows.

Upon receiving approval after completing the application for cargo inspection at the pre-shipment inspection application agency, the exporter at the shipping location consults with the inspector of the designated cargo inspection agency to confirm the cargo inspection date and completes the export shipment after the cargo inspection.

Indonesian importers who have applied for pre-shipment inspection receive a cargo inspection report from the relevant agency, specify the pre-shipment inspection report number on the import declaration form at the time of customs clearance, and, if necessary, submit the pre-shipment inspection report to customs to proceed with customs clearance.

The approximate sequence of pre-shipment inspection progress is as follows:

order	detail	Agency	period	Note
1	Importer's first registration on the Indonesian inspection agency SUCOFINDO website (import permit, etc.) Company corporate documents required)	Sucofindo/ KSO Sucfindo	3 days	www.sucofindo.co.id www.scisi.co.id ID/Password granted upon completion of application
2	After receiving ID/Password, apply for online pre-shipment inspection based on Packing list and Invoice (Verification Request) and Verification Order are issued and delivered to shipping location)	Sucofindo/ KSO Sucfindo	5-7 Day	SUCOFINDO/KSO, an inspection agency after online application for pre-shipment inspection An inspection cost estimate will be sent from Suconfindo, and after payment, SUCOFIN-DO/KSO Suconfindo will send the inspection agency to the shipping location. Notification of inspection request to

3	Inspection carried out and completed at the shipping point	Designated inspection agency	Within 7 days	1. The application form is sent by email to the exporter’s representative at the shipping point of SUCOFINDO. - After filling out and submitting the application, you will receive an inspection schedule (inspection is usually conducted within 1 week after submitting the application) 2. Inspection is usually completed on the same day 3. The inspector prepares the product name, country of origin, HS code, etc., and the inspection results and sends them to Indonesia for inspection. old book notice
4	Indonesian Sucofindo/KSO Sucofindo issues final cargo inspection report based on pre-shipment inspection report (Surveyor's Report)	Sucofindo/ KSO Sucofindo	5-7 Day	Indonesia Sucofindo/KSO Sucofindo issues an inspection report based on the inspection report at the shipping point.

Q10.Is there an import quota system in Indonesia?

The system that acts as an import quota to control the amount of imported goods is the pre-import permit system. The Indonesian name for the islands is Persetujuan Impor, abbreviated as PI. Main target items include steel, textiles, horticultural crops, tires, energy-related products, and forestry-related products. Therefore, before importing by a buyer or local corporation (trading company, etc.), you must check whether the item you wish to import is subject to prior import permission before importing it.
Pre-Import License (Persetujuan Import) Approval Process*

*Applicant: Indonesian importer

procedure	The details
① Submit application	Before submitting an application, the importer must You must register by accessing INSW, the Nesia customs portal site. *Address: ht tps://www.insw.go.id The application for prior import approval must be submitted online through the INATRADE portal, and must be accompanied by documents showing the following: - Business registration number (NIB, Nomor Induk Berusaha) including importer registration number (API) information - Technical review issued by the Indonesian Ministry of Industry (or designated agency) through INSW (Indonesia National Single Window) - Sales contract or purchase order (if the importer is an importer with a NIB in the nature of an ordinary importer registration number (API-U) importing non-steel derivative products) - Mill certificates (limited to alloy steel imports)
② Approval or refuse	Once pre-import approval is completed, the validity period is as follows. - 1 year for API-P importers - 6 months for API-U importers
③ Edit	If modifications occur after the pre-import approval request has been approved Access the INSW website and submit the application for correction online. Application is possible.
④ Extension	Not exhausted at the time of expiration of the pre-import import approval When importing an item, the importer must request an extension application through INSW 14 days before expiration. ※If the extension is approved, it is valid for up to 30 days

Q11. We plan to import raw materials for export from a local Indonesian manufacturing corporation, not a bonded company. In this case, is it possible to be exempt from import taxes and permits?

If imported goods are used for export, import tariffs may be deferred or refunded, but registration and approval as a KITE company must be completed. Once registered as a KITE company, you can benefit from import tariff exemption and value-added tax deferral when importing raw materials for export.

Items registered as KITE by a non-bonded import company and approved as export raw materials are subject to approved import quotas and pre-shipment inspection exemption. However, some items require import quotas even if they become KITE, so detailed confirmation is required before import.

If a KITE company wants to pay import tariffs, clear customs, export products, and receive a refund of import tariffs, the procedure is as follows.
Q12. Do I have to pay customs duties when goods are imported into a bonded area? A bonded area refers to a place where the payment of import taxes is deferred when goods are imported into a bonded area. When overseas goods are imported, they must be placed in Indonesia’s bonded area.

During the period in which the goods are stored, payment of import tax is deferred, and when finished products are made from imported goods and exported, the obligation to pay import tax is lifted.
However, among the raw and subsidiary materials imported by companies located in bonded areas for the production of goods for domestic consumption in Indonesia, import taxes must be paid. Indonesia's bonded areas are as follows, and goods imported into the bonded areas are exempt from various permits.

• When importing raw materials for export, the payment of import taxes is bonded, and after export, the final tax exemption is processed through customs audit.
• A bonded corporation located in a bonded area can sell domestically up to 50% of the previous year's export performance (overseas exports/domestic bonded zone/domestic free trade zone).

• Types of bonded areas in Indonesia
  
  • Bonded Company
  • Bonded Industrial Zone
  • Bonded Warehouse*
  • Bonded Exhibition Place
  • Duty Free Shop
  • Bonded Auction Place
  • Bonded Recycling Area
  • Bonded Logistic Center**

* Bonded Warehouse: Bonded Warehouse (Gudang Berikat) can store imported cargo such as raw materials in a bonded state for up to one year and allows for simple tasks such as sorting and packing, making it an industry suitable for VMI (VENDER MANAGEMENT INVENTORY).

(▼Types of bonded warehouse)

▶GUDANG BERIKAT: Cargo is imported in a bonded state, no work other than packing and sorting is allowed, and it must be supplied to customers in the imported condition.

▶PUSAT LOGISTIK BERIKAT: Cargo is imported in a bonded state, but operations such as repackaging and sorting can be performed internally, so it is operated more flexibly than GUDANG BERIKAT.

- Cargo (finished products) from general companies can be imported and stored in a bonded state at PUSAT LOGISTIK BERIKAT, and if necessary, repackaged, reclassified, etc. for customs clearance and export after payment of taxes.

** Bonded Logistics Center: The Bonded Logistics Center (Pusat Logistik Berikat) is similar to a bonded warehouse, but finished products can be stored in a bonded state for up to 3 years, and tasks such as sorting, packing, and partial export are possible, and imports from outside the customs area are possible. Allows storage of one good or goods imported from another place within the Indonesian taxation area. Temporary storage (up to 3 years) of imported goods and goods scheduled for export is possible.

As part of its economic revitalization policy, the Indonesian government announced regulations on bonded logistics centers (PER-01/BC/2016) to create a logistics hub in Southeast Asia.

Q13. A local corporation wants to import infrastructure-related equipment and use it for the infrastructure project it is participating in. It is a capital product scheduled to be exported to Korea in the future. Can it be exempted from import tax and licensing?

You can take advantage of the temporary import cargo customs clearance system (Impor Sementara). This system is a system that grants import tariff exemption or import tariff reduction benefits to cargo that will be re-exported within a fixed period after confirming the period of use of imported cargo. The maximum permit period is 3 years. Therefore, it is a useful system that can exempt or reduce import taxes for cargo that requires temporary import, such as the import of construction equipment for domestic infrastructure construction companies in Indonesia. Applications for temporary import cargo can be made through the competent customs office.

Indonesian Minister of Finance Decree 178/PMK. Overview of the temporary import cargo customs clearance system on 04/2017 (revised 106/PMK.04/2019), application procedures, approval conditions, main benefits, import duty-free cargo, import tariff reduction cargo, related precautions, temporary import cargo containers It contains information on conditions for cancellation of government approval, submission of collateral for import tariff exemption, and recovery of collateral.

Approval for temporary import cargo must be non-consumable and non-deformable. Additionally, the type of cargo must be the same at the time of initial import and export (re-export). You can apply only if the purpose of use of the product is clear and proof of export (re-export) is provided. Companies utilizing this system are exempt from import regulations such as licenses for products required for import, and cargo subject to import tariff exemption can receive benefits such as import tariff exemption, value-added tax (special tax) exemption, and corporate tax exemption.

In addition, cargo subject to import tariff reduction must pay 2% of the import tariff amount every month during the temporary import period, and payment of value-added tax (special tax) and corporate tax exemption are possible. The same benefits as above are granted when importing parts related to temporary import cargo (equipment). And the tax exemption/reduction amount must be submitted as collateral to customs.

Import duty-free cargo (import duties, value-added tax, corporate tax) includes exhibition cargo, performance equipment, sports or various competition supplies, cargo transportation packaging materials and tools, tourist boats (yachts), animals, and disaster relief equipment (goods). ), cargo for the Army, Navy, Air Force and police, merchant ships and fishing vessels, aircraft and helicopters, personal cargo for passengers and crew, cargo for national projects imported through loans or donations, international passenger or cargo transport, containers, etc.

Import tariff reduction cargo (2% of import tariff amount paid monthly, value-added tax paid, corporate tax exempted) includes machinery for production or infrastructure construction, repair equipment, and testing equipment.

However, there are some things to keep in mind when proceeding with temporary import cargo. Firstly, when partial import is carried out, the permit period is calculated based on the initial import cargo. Second, the import must be made within 3 months from the date of approval, and if the period is exceeded, the approval effect is lost.

In addition, if the cargo is moved arbitrarily without the approval of the competent customs office, if the cargo is used for a purpose other than the original permission, and if the cargo exceeds the permission limit, it will not be recognized as a temporary import cargo, so it will not be possible to pay the import tax benefited at the time of import. You must be careful as you may be subject to administrative fines.
When importing import tax-exempt cargo, collection of collateral submitted to customs is possible only in the following cases.

When using this system, you must apply for a re-export permit to the competent customs office at least 30 days before the expiration of the temporary import cargo customs clearance permit, but it is recommended to proceed with the re-export procedure at least 2 months before the expiration period. This is because import taxes and fines will be imposed if re-export is not completed within the permit expiration period. The standard for imposing fines is 100% of the import tariff to be paid, which is a huge burden on companies, so you must carefully understand the regulations in advance to avoid being fined.

This system appears to be useful for construction companies or manufacturers.

Q14. I would like to make a donation to the Indonesian government, school, religious facility, etc. In this case, do I still need to obtain all certification required for customs clearance?

If you wish to proceed with donated goods, this is only possible if it is an aid project between central ministries. Therefore, it is realistically impossible to send cargo as a donation from an individual company in Korea to an individual company (or corporation/organization) in Indonesia without certification.

Therefore, there are two ways to proceed. The first is to obtain the relevant license (SNI certification) from a company located in Indonesia and then proceed with the formal import procedure and then donate to an organization or corporation. The second is to donate to an organization or corporation. This is done through donation cargo through the Indonesian central government. In this case, an import permit is not required and taxes and various permits are exempted. If you choose the first method, despite its good intentions, you must obtain a difficult certification called SNI, Indonesia's national standard certification. It costs a lot and the process is complicated. Therefore, we recommend the second method rather than the first, and for this, it is important to search for an appropriate central government agency in Korea.

Q15. Sam♘ How should I do customs clearance?

Most samples must also go through normal import customs clearance procedures. If samples are sent via express freight, import duties are exempted only for USD 3.-(FOB) or less. Therefore, in most cases, sample customs clearance is not possible. In addition, since products subject to licensing can only be cleared through customs if they meet the requirements for licensing, it is difficult to expect virtually tariff-free sample customs clearance.

When sending a sample, first check with the importer and the license section, and if it is a non-exchange transaction,

Even in this case, the normal value of the sample must be specified before customs clearance to prevent disadvantages due to customs arbitrarily setting the import value.

Q16. What should I do if I want to bring Sam♘ to Indonesia to use at an exhibition, but it is too bulky to hand carry?

The condition that must be observed when using the above temporary import cargo customs clearance system is that the imported product must be re-exported without any changes in its physical properties. Therefore, this does not apply to products imported for the purpose of selling or tasting, or any other activity that may modify the product. For short-term exhibition purposes, a carnet is more useful. In other words, it is useful to use the temporary import cargo customs clearance system for cargo that is expensive and must actually be used, such as equipment for construction companies or machinery for manufacturers, while carnets are considered better for simple exhibitions and buyer samples.

Indonesia is a carnet agreement country that has joined the ATA agreement and can utilize the system. Carnet application and issuance are done through the web. When you access the 'Korea Chamber of Commerce and Industry Trade Certification Service Center (http://cert.korcham.net)' and fill out the application form on the web screen, the issuing person will review it and request corrections or approve issuance. Issuance is completed when the user pays the issuance fee. Since the original certificate with the issuing agency's seal must be submitted when clearing a carnet, you must visit the issuing agency in person or receive the original by mail. When visiting in person, it takes one day to receive the certificate after applying for issuance, and when receiving by mail, it takes about 3 days from the date of issuance.

Whether a product can be temporarily exported as a carnet is determined by determining (1) whether the product can be re-imported after being exported, and (2) whether the product can be re-imported in its original form when exported without modification. . Products that do not meet the above conditions are excluded from carnet coverage.
Items excluded from carnet are as follows:

Carnet is a security deed that replaces customs duties, value-added tax, security deposit, etc., and the Indonesian Chamber of Commerce guarantees the payment of duties, etc. due to non-compliance with re-export imposed by Indonesian customs, so the customs office of the importing country needs to take complicated measures to secure separate customs bonds. there is none.

The carnet validity period cannot be extended up to one year from the date of issuance, and even within the validity period, if the customs office of the importing country explicitly specifies a re-export period in the ATA carnet certificate, it must be re-exported within the same period.

Q17. I would like to purchase overseas directly or indirectly. Is it possible to use Indonesian e-commerce companies?

Cross Border Trade (abbreviated as CBT) is cross-border e-commerce that involves selling products to overseas customers through B2C online or through mobile devices. In other words, it means the combination of overseas direct purchase and reverse direct purchase markets. When an overseas consumer orders an overseas product through a local e-commerce platform, it is called overseas direct purchase, and when an overseas consumer purchases a product from an overseas internet shopping mall, it is called reverse direct purchase.

B2C Customs Clearance Overseas direct purchases of less than $3 (FOB basis) can be cleared customs without tax. However, if you wish to expand your transaction platform from online to offline transactions, that is, if you want to sell through an offline store in Indonesia, food, products that touch the human body, toys, infant and toddler products, etc. must obtain a Food and Drug Administration Certificate (BPOM) or an Indonesian National Standards Certification (SNI) is required.

According to an official at JD.ID, one of the e-commerce platforms capable of CBT operating in Indonesia, approximately 90% of Korean products are sold through CBT. According to our company, we use a local logistics company for logistics delivery. It directly connects overseas sellers with JD.ID-collaborating logistics companies, and logistics costs are said to be calculated separately from store entry fees. In the case of JD.ID, the logistics delivery method is where a logistics company receives e-commerce goods from overseas sellers and delivers them to the final consumer in Indonesia. For example, the seller of the product

After sending the product to a designated warehouse in Korea, the logistics company transports the product from Korea to Indonesia, and then JX (J-Express) or another logistics company delivers it to the final consumer. Air shipping is usually used because it is faster than sea shipping. JD.ID says that popular Korean products include fashion products, beauty products, skin care products, and products and foods related to lifestyle and hobbies.

Export Procedures in Korea

Recently, as e-commerce exports and imports have become more active, the Korea Customs Service has simplified the export declaration process so that ordinary individuals can use it conveniently. Export declaration items have been simplified, and bulk registration is possible in the electronic customs clearance system (UNIPASS).

To use the simplified export system, you must first report to customs as an e-commerce business. If an e-commerce business that has been reported as a mail order business wishes to register, it must apply for an e-commerce export business report to the competent customs office by mail or fax. The target goods are e-commerce goods worth less than 2 million won (FOB standard). If you file an export declaration under the simplified export system, your export performance will be recognized and you will be able to benefit from export support systems such as customs duty refunds, zero VAT rates, and trade finance. You can receive detailed guidance by contacting the customs clearance support department at your local customs office.

* Excluded items: Export goods pursuant to Article 226 of the Customs Act and Article 3 of [Notice on Designation of Goods and Confirmation Methods Confirmed by the Head of Customs in accordance with the provisions of Article 226 of the Customs Act], goods re-exported because they are different from the contract details, or goods subject to customs clearance and export under conditions of re-export. article

Import procedures in Indonesia (overseas direct purchase method)

Korean sellers can deliver goods through local e-commerce platforms through Indonesian import distributors or directly located on Indonesian e-commerce platforms. After a transaction contract is signed between Korean and Indonesian trading parties and payment procedures are completed, the Korean seller delivers the product to the collection point in Korea. Afterwards, the Indonesian distributor brings the products from the Korean distribution point to Indonesia via air delivery. Once customs clearance procedures are completed, the product will be delivered to the Indonesian warehouse.

In the case of online distribution, when an online sale is made, supporting documents are delivered to the warehouse manager. Warehouse staff locates the products, packages them, and delivers them to the final buyer through logistics couriers such as JNE, J&T express, and SICPEAT. If the local e-commerce platform where the distributor operates has a designated logistics company with which it has entered into a direct agreement, such company may be used.

For reference, the Indonesian government has mainly focused on importing raw materials and capital goods for domestic production in accordance with the contents of Finance Ordinance No. 272/PMK.04/2015, but the revised law, Finance Ordinance (PMK) No.28/2018, With this announcement, we have entered a new phase in bonded logistics window operations. The second bonded logistics warehouse is classified into large-scale industrial PLB, small and medium-sized industrial PLB, e-commerce PLB, basic product PLB, air baggage hub PLB, floating storage PLB, and finished product PLB.

* PLB: Bonded logistics warehouse

Article 4A of the Ministry of Finance Decree (PMK) No.28/2018 stipulates that e-commerce bonded logistics warehouses are to be used only as e-commerce platforms, and for this purpose, e-commerce platforms must be in a cooperative relationship with a bonded logistics warehouse operator. specified. Through this e-commerce platform, the Indonesian government systematically conducts customs audits of e-commerce products, whether product quantity matches, whether the product matches the relevant tariff, whether import/export regulations are complied with, and whether income/expenditure/inventory storage are appropriately reported. It is said that it is managed by .

Import duties are assessed as soon as the import is declared at customs, and the import value and tax classification of the product are implemented when the goods are shipped from the bonded logistics window, and the applicable tax must be paid. A company can decide whether to use a bonded logistics warehouse by considering the import size of the product and the benefits of using a bonded warehouse. In particular, the government expects that the larger the transaction size, the greater the effect in reducing logistics costs.

Q18. It has recently been said that Indonesia is regulating the import and export of major raw materials. Can you tell me about the legal background?

Indonesia, a 'resource-rich country', is continuing its policy of restricting exports of major raw materials, including enforcing export restrictions on palm oil in May 2022, following coal in January 2022. Because of this

International raw material prices have also soared.

A ban on exports of bauxite and copper ore, which are materials for electric batteries, is expected from June next year. This is a result of the Indonesian government's policy to create high added value by transforming the country from a simple exporter of raw materials to an exporter of finished products and semi-finished products processed from raw materials.

Resource-rich Indonesia has often taken measures in the past to restrict raw material exports when necessary. At the end of 2019, we completely suspended nickel ore exports. At the time, Indonesian nickel accounted for 25% of the world's supply, so the price of nickel ore rose sharply worldwide, and battery producers entered Indonesia by establishing factories to solve supply and demand problems. Indonesia, the world's second-largest coal exporter, implemented a complete ban on coal exports in January this year. Indonesia's power shortage occurred as coal producers reduced domestic supply and increased exports under a price cap system. Additionally, in May, exports of palm oil and raw materials were suspended to stabilize domestic cooking oil prices. Regarding this, President Joko Widodo said, “Since we stopped exporting nickel ore, the related export amount has increased more than 10 times,” and added, “I want to apply the success we have achieved in nickel to other raw materials such as bauxite, copper, tin, and gold.” I did it.

The government's policy of banning the export of raw materials, especially mining products, is implemented as an important means of increasing Indonesia's economic growth. Due to the ban on raw material exports, Indonesia has become a major raw material producing country, with the aim of expanding the export of derivatives using these raw materials. Due to the ban on raw material exports, items exported overseas are no longer raw materials but semi-finished or finished products, which has the advantage of adding added value to products. It is also expected that employment will increase and tax revenues will increase.