Export Declaration (PEB) and Export Service Note (NPE)
Goods entering or exiting across the border of a custom area are under the supervision or authority of the Directorate General of Customs and Excise. Therefore, to export goods, a company (here in after referred to as an exporter) must fill in the Export Declaration Form (PEB).
Export Declaration (PEB) is a custom document used to notify export goods. PEB is made by exporters or their proxies by registering online via the EDI software. Exported goods must be notified to the Customs and Excise Office using this PEB.
The required documents to obtain the Export Declaration (PEB) are:
- Packing list;
- Export Licensing Letter, for goods subject to restrictions on restrictions (lartas);
- Excise and Tax in the Context of Export;
- Customs Deposit Letters;
Other documents needed according to the characteristics of the goods.
The purpose of the submission of PEB is to obtain the Customs Export Approval Note (NPE). The Export Service Note (NPE) is a note issued by the official Export Document Checker. Only when the NPE is issued then it can be used as a travel document for exported goods. The NPE serves to protect the exported goods transferring to customs area and / or loading to transport facilities.
The legal basis for the procurement of Goods Export Declarations Documents (PEB) is based on the Decree of the Director General of Customs and Excise No: KEP-152 / BC / 2003 concerning guidelines for implementation of customs procedures in the export Sector for exported Goods which have the Import export Facility.
PEB export documents have a BC 3.0 code. Each PEB notification is only for one exporter (sender) and one importer (recipient). Each PEB document can contain more than one type of item. In the case of insufficient paper space or sheets for data goods, an additional sheet is submitted including numeric data 28.d. 32 with the signature, legal name and stamp of the exporter company on each supplementary page. The first sheet for the customs office, the second sheet for the Central BPS and the third sheet for BI.
The procedures for submitting PEB by exporters are as follows:
Include a Customs and Excise Inspection Report (LPBC) in the event that exported goods must be inspected
Photocopy of Deposit Proof (STBS) or photocopy of the Payable Letter (SSB) in case the export goods are subject to export levies.
Photocopy of invoice and photocopy of packing list.
Photocopy of other customs complementary documents required as fulfillment of customs provisions in the export sector.
Exporters or their proxies pay off all levies in the context of exports to foreign exchange banks or DGCE officials (Directorate General of Customs and Excise).
Exporters or their proxies submit PEB to DGCE officials, equipped with all required documents.
Exporters prepare items for physical examination (if needed). Each PEB is only for one sender or recipient. Each PEB can contain more than one type of export item.
For further explanations about the Export Declaration (PEB) document and the Export Service Note (NPE) please visit this website http://www.beacukai.go.id/arsip/pab/ekspor.html.
Certificate of Origin (COO)
Certificate of Origin (COO) or commonly known as Surat Keterangan Asal (SKA) is a certificate of origin, in which is stated that exported goods / commodities are from the seller’s origin country.
Depending on bilateral, regional, multilateral, unilateral agreements or because of unilateral provisions from a buyer or destination country, the COO has to be included for Indonesian exported goods. This COO proves that the item is originated, produced and or processed in Indonesia.
There are 2 (two) types of COO:
Types of COO as a requirement in obtaining preferences in certain exported goods to obtain exemption of all or part of the import duty granted by a country / group of destination countries.
- Non Preference COO
Types of COO documents that function as supervisory documents and / or participation documents from export goods to be able to enter a certain country.
Application for Issuance of Online Certificate of Origin (COO) are as follow:
- Register online https://e-ska.kemendag.go.id;
Copy of the Deed of Notary of establishment of the company and its amendments;
Copy of trading business permit or other similar business permit issued by the technical agency / office authorized in the field of trade;
Copy of Company Registration Certificate (TDP);
Copy of the Company’s Tax Payer Identification Number (NPWP);
Copy of KTP / Passport of management / directors;
Export Declaration (PEB);
Export Service Note (NPE);
Bill of Lading (BL), Airway Bill (AWB);
Note: number 1 until 6 only for first time management.
For more information about COO please visit https://e-ska.kemendag.go.id/home.php/home/rules.
HS Code Definitions and Benefits
The Harmonized Commodity Description and Coding System (HS code) code is an internationally standardized system of names and numbers aiming to classify and describe the type of traded goods. The HS code is declared to customs every time traded products enter and cross international borders. It facilitates the value, trade transactions and transportation of imported and exported goods.
The HS was compiled in a study group from the Customs Cooperation Council (now known as the World Customs Organization). It was ratified at the HS convention and signed by seventy countries, most of which were European countries, however almost all countries have now ratified the HS Code, including Indonesia which approved it through Presidential Decree no. 35 of 1993.
At present the classification of goods in Indonesia is based on the Harmonized System and mentioned into a tariff list called the Indonesian Customs Tarif Book (BTBMI).
The purpose of making this HS includes:
- Present uniformity in classifying systematic list of items.
- Facilitate data collection and analysis of world trade statistics.
Provide an official international system for coding, explanation and classification of goods for trade purposes.
How to use the HS Code
The HS code uses a numerical code in classifying traded items. The six-digit code include descriptions of items arranged systematically. The HS code has a six-digit number for classification, each numbering is divided into a chapter (2-digit), post (4-digit), and sub-post (6-digit) with the following explanation:
Suppose the HS code 0101.11.xx.xx is taken from BTBMI (10 digits)
01 01 11 xx xx
__ Chapter (Chapter) 1
_____ Heading 01. 01
________ Sub-heading (Sub-heading) 0101. 11
___________ Sub-post of ASEAN, ASEAN Harmonized Tariff Nomenclature (AHTN)
______________ Post Tariff for Indonesian Import Duty (BTBMI)
The first two digit numbers relates to the chapter where the item is classified, the example above shows that the item is classified in Chapter 1.
The next two digit number or the first four digit number indicates the heading or heading in the previous chapter, this example shows the item is classified in heading 01.01.
The first six digits indicate sub-headings or sub-headings in each post and chapter in question. In the example above, the item is classified in sub-heading 0101.11.
The first eight digit numbers are posts originating from the AHTN text.
These ten digits indicate the national tariff post taken from BTBMI, this tariff heading shows the amount of loading (BM, PPN, PPnBM or Excise) as well as the presence or absence of regulations on the trade system.
Each country participating in signing the HS convention or contracting party can develop the six-digit classification to be more specific with their respective government policies. However the classification must still be based on the HS code six-digit provisions. In Indonesia, the Indonesian Customs Tariff Book (BTBMI) uses a 10-digit numbering system which is a further elaboration of the sub-posts in the six-digit HS code.
Steps to Interpret the HS Code
Identify the specification of the item by chapter.
Pay attention to what part or chapter the item is classified and to the explanations contained in the section notes or chapter notes related to the classified items. With this note, we can find out if the item is classified in another chapter or other section.
Then identify the post that may cover the item more in detail. Here we will determine the sub-post (6-digit), the AHTN sub-post (8-digit) and the tariff post (10-digit) of the loading goods that will enter/exit Indonesia.
For details using the HS code, please see the following link https://eservice.insw.go.id/.
Bill Of Lading Information
Definition and Function of the Bill of Lading
The Bill of Lading (B/L) is a receipt of goods to the ship or proof of ownership of goods containing the agreement to transport goods. B/L is used specifically for ships that carry traded goods. While Air Waybill is specific to aircraft transported goods. And the Railway Consignment Note is for traded goods using land transportation, such as trains, and others.
In the Indonesian language B/L is also called connosement, which is the most important shipping document because of its guarantee / security nature. B/L shows ownership rights of goods, without a B/L someone or a designated party cannot receive goods mentioned in B/L.
Not only shipping requires B/L (Bill of Lading), but the receipt also needs B/L (Bill Of Lading). The B/L is required for traded items that have an official letter of ownership and if the item is not illegal. Illegal goods are not permitted to be marketed and on public consumption.
The B/L is also required for collecting goods. The B/L is very important for exported goods that are imported in Indonesia.
The Function of the Bill Of Lading (B/L).
The following are some of the functions of B/L (Bill of Lading), including:
- Evidence of the Agreement to transport and deliver goods to the carrier.
- Proof of official ownership of goods.
- Proof of receipt and delivery of goods.
- Goods insurance.
- Safekeeping of goods.
- As an intermediary between the owner and the recipient.
- As a form of cooperation between owner, anchor, and recipient.
Who will be Involved in the Bill of Lading (B/L).
In the export-import trade the use of B/L involves several parties, including:
- Carrier, the transportation party or shipping company.
- Shipper, acts as a beneficiary.
- Consignee, the party notified of the arrival schedule of goods.
- Notify Party, the party applied in the Letter of Credit.
Types of Bill of Lading
The Bill of Lading can be distinguished based on the statement contained in the B/L document. It can be divided into several types:
- Charter Party B/L
B/L is used when transporting goods using “charter” (leasing a portion of the ship or the entire ship).
- Combined Transport B/L
B/L is used in the event of a transhipment which is then followed by land transportation.
- Liner B/L
B/L is used for transporting goods with ships that already have travel routes and scheduled stops.
- Long Form B/L
B/L which contains all the detailed transport conditions.
- Received for Shipment B/L
B/L which shows that the goods for shipment have been received by the shipping company but have not been fully loaded or shipped until the time specified in the L/C. Risks that may occur in this type of B/L are as following :
- Possible items will be loaded with other vessels.
- If a strike occurs, the items may be neglected or damaged.
- The possibility of additional costs or other costs such as warehouse rental and others.
- Shipped on Board B/L
B/L issued if the concerned shipping company acknowledges that the items to be shipped are actually already present or loaded on board.
- Short Form B/L
B/L which only includes a brief note about the shipped goods (and does not include transportation terms).
- Throught B/L
B/L is issued in the event of transhipment due to unavailability of services directly to the destination port.