Indonesia enforces customs and export control regulations through a combination of national laws to oversee and supervise the flow of goods in and out of the country. These measures play a crucial role in upholding international trade standards, safeguarding national security, and preserving the nation’s economic stability. The Directorate General of Customs and Excise (DGCE) in Indonesia, operating under the Ministry of Finance, takes charge of overseeing and regulating the movement of goods across the national borders. Its responsibilities include enforcing customs laws, collecting duties and taxes, implementing trade regulations, and ensuring adherence to import and export controls.
Furthermore, the DGCE collaborates with various governmental bodies like the Ministry of Trade, the Ministry of Industry, and the National Agency of Drug and Food Control (BPOM) to oversee and supervise specific commodities, especially those under prohibitions and restrictions (Lartas). These entities are also responsible for granting permits, licenses, and certifications essential for the lawful transportation of goods through Indonesian borders.
1. Customs Control in Indonesia
Directorate General of Customs and Excise (DGCE): The primary authority responsible for customs control in Indonesia, overseeing the enforcement of customs laws, duty and tax collection, and trade regulation implementation.
Import and Export Procedures: Businesses are required to adhere to customs protocols, including goods declaration, duty payment, and submission of necessary documentation like invoices, packing lists, and certificates of origin.
Customs Valuation and Classification: Goods are categorized using Harmonized System (HS) codes and valued based on international standards to determine applicable duties and taxes.
Inspections: Customs inspections are carried out to prevent smuggling, enforce restrictions, and ensure compliance with health, safety, and environmental regulations.
2. Export Control in Indonesia
Prohibitions and Restrictions (Lartas): Indonesia enforces Lartas to manage the export of certain goods. Items falling under Lartas may necessitate special licenses or permits, while some may be completely prohibited from export. These measures are in place to safeguard national security, the environment, and cultural heritage.
Export Licensing: Specific goods require an export license, particularly those that are sensitive or of strategic importance. These licenses are issued by the Ministry of Trade and other relevant authorities.
Strategic Goods: Indonesia regulates the export of strategic goods, such as military equipment, dual-use items, and technology with both civilian and military applications. Exporters of these goods must adhere to stringent regulations and may need specific permits.
Customs Clearance: Prior to export, goods must pass through customs, where documentation is examined, and goods may undergo inspection to ensure compliance with export controls.
Trade Sanctions and Embargoes: Indonesia follows international trade sanctions and embargoes imposed by organizations like the United Nations, meaning certain goods cannot be exported to specific countries or entities.
3. Key Challenges
Compliance: To avoid penalties, companies need to navigate intricate regulations and meet all customs and export control requirements.
Documentation: Smooth customs clearance and export processing rely on precise and comprehensive documentation.
International Standards: Staying updated on local and international trade regulations is essential for businesses, as non-compliance can lead to delays or financial penalties.
