Well, we are in this question again as what is the biggest problem in shipping the goods to Indonesia? What triggers your sense of difficulties and uneasiness when you ship your goods to Indonesia?
Shipping in Indonesia might have a lot of problems but what exactly the biggest problem to ship your goods to Indonesia? How you able to overcome and avoid any problem to ship your goods to Indonesia?
Access to international trade is important for countries now due to globalization as with exports and imports the country able to balance the need of people and the economy will thrive.
For now and the existing ones, the biggest problem in shipping goods internationally to Indonesia is the customs clearance. Do you know that Indonesia listed as the no 116 out of 189 countries listed by world bank as the easiest countries to doing business with trans border compliances? (as for Feb 2019)
Countries such as Gambia, Kenya, Timor Leste, Belize, Brazil have a better score than Indonesia. Well, you will think that that country does not have a trading capacity such as Indonesia. Think again with countries such as Brazil that only need 24 hours to clear the cargo, Philippines 96 hours, India 30 hours, China 24 hours, Thailand 4 hours, Malaysia 7 hours, Singapore 3 hours, etc.
What is the function of customs clearance?
- Revenue collection. One of the purposes of customs clearance is to collect taxes for the goods imported or exported from the countries. The tax will help the country more prosper as to increase the revenue to spend on the development of one’s country.
- Regulatory compliances. Customs and duty officers need to be able to strictly check and imposed the rules of the goods trafficking between countries based on the country’s requirement that will affect the economy. Tariff needed to encourage export rather than import to be able to create a surplus in the trading balance. The country with have a lot of imports might suffer in the long run as their economy will depend on other countries’ exports.
- Trade facilitation. Customs function also to help trade facilitation as the gateway of export and import, a custom has a position that can impact how easy the trade conducted between countries imports or exports.
- Security. Another function of customs is to increase the security of one’s country from any threat from animal-related diseases or plants that able to harm farm across one’s country. Furthermore, in terms of security, customs able to help the country to make sure no illegal weapons or any goods imported that able to threaten the security of one’s country.
Indonesia needs around 100 hours or equal of almost 4 days to clear cargo based on the World Bank reports. What exactly the main problem of Indonesian customs and duty that makes the shipping so delayed to Indonesia?
- Unnecessary bureaucracy. Often changing regulation in Indonesian custom and the one that handles the products have the full authority in regards of your products, if he/ she finds something amiss, the goods will be put on inspection and be held until he/ she satisfied with the results/ documentation provided (documentation problems)
- Redundant procedures. Most of the goods imported to Indonesia is controlled and need extra approved documentation from other related departments excepts personal item such as basic clothing, shoes (limited and inexpensive), bags, as with the rule of thumbs are the goods that for daily use and nothing applicable directly to human skin or consumed such as cosmetics, makeup, vitamins, health-related products, etc.
- An inefficient process as the clearance system has not fully integrated and automated furthermore need a lot of approval from the different offices or department for specific kind of goods imported to the country.
- Slow port operations. In Indonesia due to the lack of infrastructure management, it might be resulting in the slow process of operation in ports. A lot of procedure needs to be done to clear cargo. As an example in different procedures and steps to clear cargo for health, safety, quality control for every shipment.
- The central government still control tightly in regards to the importation of consumer goods to protect its economy and local producer as resulting in high tariff for some specific products and difficult documentation process also implemented.
Well, when Indonesian customs and duty are quite complicated and a lot of recommendations needed to change the system from within. There is no easy fix and based on research it might be needed 5-10 years as a new system to be implemented fully at the customs departments.
What exactly you as the shipper or companies able to do to help ease the process and problems?
Few things that you might able to do to be able to help ease the unease experience with the process of shipping goods to Indonesia are:
- Understand more the rules and regulations. Keep asking around in regards to the rules and regulations and have a clear understanding in regards to the shipping matter or goods that you want to ship to Indonesia. By knowing the specific in regards to the rules and regulations, you can tackle most of the obstacles that may be caused by the customs clearance process.
- Choose the shipping agency or company that able to represent you as customs broker with the customs and duty officers which able to represent you declaring the goods to the country with proper documentation and regulations.
- Understand the way of customs process on how long expected for your goods to bypass through the customs clearance will also help as you might feel frustrated more than you have experienced the service below your expectation as the Indonesia system is unstable and a lot needs to be improved.
- The common mistake is packaging and paper declaration during checks on customs clearance. It is quite important to understand the proper packaging that needs to be implemented and the declaration that is not undervalued which can arise suspicion from customs and duty officials.
- Try to consider shipping your goods by air instead of by sea. It might be more expensive but it is fewer troubles as shipping by sea to Indonesia port taking more time to clear the cargo as long list of imported goods compared to air transport which more efficient and operations in airport need to be as efficient as possible to cater the demand and it affected the performance of customs official at the airport official as well.
Try to find a company that able to cater to your needs and always communicate and have a clearer picture when you ship your goods to Indonesia. Find the company that has been in the industry quite long as more experience is quite an advance as the company itself needs to understand how the customs clearance works.
SindoShipping believes that our company’s purpose is to simplify the process of shipping your goods to Indonesia. Our company jobs are:
- Help you arrange your shipment from the point of origin to your destination effortlessly. As if required, we can arrange the pick up based on your request and time of pick up for delivery purposes at the point of origin.
- Allow you to access the information at the real-time on where is the location of your goods during transit. We believe that our company needs to provide you with online real-time information where is the location is as we value your shipment and we understand on how important it is for you to be able to locate your goods in every step of delivery until it reached your destination safely.
- Handle customs clearance and duty payment. With our expertise and our customs brokerage system, we will help you and your company to pay the tax to the customs and handle the paperwork based on Indonesia customs requests on behalf of you.
- Support the development of your company to the next level. As we believe that our job is to keep you and your company grow if you want to build a customer based in Indonesia as an online retailer or seller, our time-definite shipment will help you cater to your customer needs.
Contact our staff now for any inquiry or you have any question need to be answered in regards to shipping to Indonesia. Please do not hesitate to check as consultation is absolutely free.
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