Export warning: This major Southeast Asian country is comprehensively rectifying its customs, and compliance risks are soaring

Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, focusing on markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~

Recent news, according to Indonesian media reports, Indonesian Finance Minister Purbaya Yudhi Sadewa recently publicly promised to implement comprehensive reforms of the Customs and Excise Department. If it fails to improve its bad image and performance in the eyes of the public and its president within one year, it will face freezing and be taken over by Swiss SGS.

For a long time,The Indonesian public thinks their customs is a "den for collecting black money", some second-hand clothing dealers said that in order for an imported container to pass customs smoothly,May be required to pay illegal fees of up to IDR 550 million.

Purbaya also pointed out two key points for rectification:"Underreporting of export invoices" and "smuggling of illegal items into the country".

It is worth noting that December to March of the following year coincides with Indonesia’s customary “red light period” for customs clearance, which mainly targets new importers, incomplete customs clearance documents, high-risk goods or goods from high-risk countries. Customs requires physical inspection, and the inspection rate is extremely high. The goods of export companies holding red license plates will almost certainly be inspected.

This year, under the severe crackdown by Indonesian customs,The red light period becomes more severe.

According to feedback from sellers, currentlyIndonesia’s core ports such as Jakarta and Tangerang implement 100% unboxing inspection for many types of commodities., including:Textiles and clothing, electronics, cosmetics, ceramics, children's toysFor categories that are considered “high-risk”, focus on checking whether the goods have valid SNI certification, import quotas, import licenses and other compliance documents.

In addition, the "value" is also very easy to make a fuss about. Low-priced goods are easily judged to be under-declared for tax avoidance or illegal smuggling.Some sellers even declared goods based on value, but were accused by Indonesian customs of under-declaring goods..

In response to under-reporting of goods value, Indonesia is already using technological means——In March next year, Indonesia will launch a centralized scanning system to seal loopholes..

Purbaya said the Indonesian government has invested heavily in improving information technology systems and purchasing new scanners, which are now deployed in major ports such as Jakarta, Surabaya, Semarang and Belawan.

Through this new system, the scanning results of containers will no longer be analyzed by local customs offices themselves. All scanned images will be transmitted in real time to the central processing center in Jakarta. Judgments about cargo compliance, value and even signs of non-compliance will be made directly by a central team and no longer by port officials.

Foreign traders who have recently exported to Indonesia should pay attention to the fact that during the red light period and the severe crackdown,The Indonesian government is likely to further tighten the regulatory gates and not relax the inspection and compliance review of all types of imported goods.