ALFI’s Reaction to the Implementation of Permenkeu 229/2017

Damas Jati - Jakarta, 23/05/2018, 12:53

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The implementation of the regulation on the import duty tariff impose has resulted different reactions from businesspeople, including from the Association of Logistics and Forwarders Indonesia (ALFI).

The ruling is the Regulation of the Minister of Finance (Permenkeu) No 229/PMK.04/2017 on the Imposing of Import Duty Tariff Based on Agreement or International Convention.

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It rules out the dateline of capitulation of Letter of Origin (SKA) for imported goods through red or yellow lane, which is stated to have one day or until 12.00 at noon on the following day after the stipulation of lane at the Imported Goods Notification (PIB).

If exceeding the above mentioned dateline, the SKA is then assumed as no longer valid, while in fact, the SKA is valid for a year due to the international trade agreement.

ALFI has sent the letter of complaint directly to President Joko Widodo dated May 2nd 2018. According to ALFI, this Permenkeu has caused high cost economy.

In the letter signed by the Chairman of ALFI Yukki Nugrahawan and the Secretary-General of ALFI Akbar Djohan, ALFI claimed that the high cost economy happened due to the difference of dateline of the submission of Letter of Origins (SKA) of imported goods.

Importers at red or yellow lane have limited time and hours (until 12 at noon) in submitting SKA. If they are late, then the SKA is assumed as invalid and get the penalty of Rectification Note (Notul) and the importers cannot get tariff preference facility.

Meanwhile, the importers at green lane have dateline of submission for 3 days and for main partners are even 5 days. ALFI disclosed that the high cost economy appeared because importers got the penalty of Customs Value and Tariff Stipulation (SPTNP) and they had to pay normal tariff.

In the letter to the President, the association also cited several suggestions to avoid negative impact of the ruling to national erconomy.

First, the sanction over the failure to submit SKA on time should not be in the form of Rectification Note (Notul), but better be in the form of temporary blocking with five days dateline. Because, obtaining preference tariff is the right of the importers as stated in the international conventions.

Second, the revision of Permenkeu No 229/2017 is also expected to rule out the mechanism  of complaint over the impose of Notul, so that Indonesia will not get sanction from trading partners from other countries for its export commodities.

Third, it is also suggested that in the revision of Permenkeu No 229/2017, there has to be a strong and clear purpose behind the issuance of Notul through the process of validity verification to prove it false, late, or any other reasons.

Fourth, the submission of imported documents and SKA, which currently is through INSW, certainly is no longer needed to include the original SKA document to the Customs Office (in order to prevent face-to-face meeting between businesspeople and customs officers).

ALFI is an association that has 4,133 member companies in the freight forwarding, logistics, expedition and customs clearance business sectors spread at 30 ALFI branches around Indonesia.

In addition, ALFI is also the member of ASEAN Federation of Forwarders Association (AFFA), Federation of Asia Pacific Air-Cargo Association (FAPAA) and Fédération Internationale des Associations de Transitaires et Assimilés/FIATA).

Meanwhile, after looking at businesspeople response, the Ministry of Industry also planned to conduct special meeting to discuss the regulation.

The source of Indonesia Shipping Gazette at the ministry office cited that the Directorate General of Endurance and Development of International Industrial Access at the Ministry of Industry (Kemenperin) planned to conduct a meeting to discuss it on Thursday (5/24/2018).

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