Public Hearing on Second Revision to Regulation on Procedures to Get Preferential Tariffs Import Duty based on FTAs

On 3 July 2019 EuroCham attended a public hearing invitation by the Directorate of International Customs to discuss the second revision to Minister of Finance Regulation No. 229/PMK.04/2017 on Procedures for Imposition of Import Duty Tariffs based on FTAs. The meeting was chaired by Mr. Eko Yulianto as the Head of Section of Regional I, who presented the background of the changes namely to integrate the newly ratified Indonesia-Chile Comprehensive Economic Partnership Agreement (IC CEPA), as well as the implementation of the Protocol to Amend ASEAN-China FTA (ACFTA).

Main changes discussed in the meeting include requirements for direct consignment, third party invoicing, web checking for Certificate of Origin, as well as provisions on overleaf notes in IC CEPA, as well as introduction of new Certificate of Origin form for ACFTA. It is expected that these changes will soon be made formal and the revision will be issued in August 2019. EuroCham during the meeting appreciates the efforts to integrate more FTAs as these will increase competitiveness of the country, however more could be done to also address some remaining technical challenges in the current implementation of the procedures, which includes short deadline for submission of original COO that could lead to annulment of COO itself and therefore higher tariffs applies, interpretation of requirements for transit and transshipment that are not always the same among different customs services offices, and lastly the rigid requirements to indicate route of shipment in the through bill of lading.

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