U.S. firms continue to report that the Indonesian customs relies on a schedule of reference prices to assess duties on some imports rather than using transaction values as required by the WTO Customs Valuation Agreement. Indonesia’s Director General of Customs and Excise reportedly makes a valuation assessment based on the perceived risk status of the importer and the average price of a same or similar product imported during the previous 90 days.
Indonesia’s Ministry of Trade Regulation 87/2015 requires pre-shipment verification on a broad range of products (including electronics, textiles and footwear, toys, food and beverage products, and cosmetics) by designated companies (known in Indonesia as “surveyors”). The verifications come at the importer’s expense and impede the entry of imports to designated ports and airports.
In 2019, Indonesia adopted new pre-shipment inspection requirements for scrap paper, scrap plastic and scrap metal to ensure that it is “homogenous and clean” and does not contain hazardous waste. In 2020, Indonesia also began requiring scrap exporters to register with the nearest Indonesian Embassy or consulate. The Ministry of Trade in Indonesia confirms that by September 2021 they will revise implementing regulations to increase the acceptable level of impurities in imported scrap from the current 0.5% to 2.0%.