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Evaluation meeting discusses implementation of cargo manifest regulation

By Karmila Bain
Sunday, October 28, 2018

AmCham Indonesia, along with other international business chambers in Indonesia and ground handling agents, attended an Evaluation Meeting of the implementation of Ministry of Finance Regulation (PMK) No. 158/2017 on Inward and Outward Cargo Manifest, on August 7 at the Customs Main Office.

The regulation provides technical guidelines to handling cargo at Indonesia’s Customs, and was issued as part of deregulation packages by the government aimed at accelerating and modernizing the administration of Customs services. It has been implemented at Soekarno-Hatta International Airport since July 25, and the meeting was the first evaluation to monitor implementation and discuss issues faced by the new system.

One problem is with the entry of data across the system, resulting in delays. In the early stages of implementation, Customs said only 50 percent of data could be reconciled across the system. However, on August 7 the percentage increased, with some companies claiming 80 percent of their data was automatically reconciled across the system, without additional manual entry.

Following implementation, Customs said most of the issues at Soekarno-Hatta were related to the readiness of Customs’ IT systems, which accommodate data submitted by all parties to allow automatic reconciliation of all data and speed up the Customs process.

During the meeting, chaired by Djanurindro Wibowo, Deputy Director for Imports, he said manifests were the key to Customs activities.

He was accompanied by Anju Gultom, Import Section Head; Dzikri from the Directorate General of Customs and Excise Information/IKC; Sumardiono from the Soekarno-Hatta Customs Service Office; and other representative from the Directorate General of Customs and Excise.

They received a list of issues to be evaluated.

First, better communication between all stakeholders regarding their obligations, including airlines, ground handling agents, freight forwarding companies and Customs itself, regarding the responsibilities and obligations of each party in the submission of cargo manifests.

Second, Customs called for all parties to correctly enter detailed data information requested by the system such as Tax ID, date of departure or arrival, flight numbers, and the names of transportation facilities. Redress for manifests to be corrected was definitely an additional time and consequently storage cost.

In order to reach standard procedures, all the parties, including airlines, ground handling agents, freight forwarders, and postal organizers, are required to have a Customs Identification Number/NIK, tax ID or NPWP, as carriers are defined broadly in the new regulation.

Third, late submission of data by airlines and or ground handling agents can create problems through the delay of customs clearance. Partial clearance still has room for improvement as it is a daily issue for the airlines, making it difficult to adapt to the Customs system.

The meeting was held to help find solutions to these problems. Together, the participants emphasized that communications between all stakeholders needed to be aligned. Customs also received feedback from stakeholders to guide all stakeholders, including airlines and ground handling, to align their internal system with the current regulation. Customs was also asked to avoid the application of sanctions and to encourage more joint training and evaluation to educate on and understand its IT system.

Another suggestion was to have a “neutral consultant” sit with Customs and the exporter and importer sides to avoid the problems faced and possibility cut down time and cost.

EuroCham, which coordinated the meeting, said there were not many issues in the implementation of the regulation at Tanjung Priok Port, but at Soekarno-Hatta it was still challenging due to the different process of operations that was in general faster at the airport.

It is hoped this evaluation can help improve operations at Soekarno-Hatta, as well as other ports and airports, considering the regulation was due to be implemented nationally on September 29, 2018.

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