27 February 2017

More companies eligible for simpler customs clearance processes

The government has increased the number of companies eligible for simpler customs clearance processes at ports to reduce dwell times and logistics costs.

The Directorate General of Customs and Excise has 264 export or import companies categorized as “main partners” (MITA) as they have good history of compliance, making them eligible for a facility allowing simpler documents and physical checking during the overall clearance processes.

Companies categorized as the main partners can apply for an upgrade to Authorized Economic Operator (AEO) certification, a top category that gives full automatic clearance for their containers without physical checks.

 “We have verified them [AEO certified companies] by visiting their factories for months to ensure that they will not abuse the facility,” said customs and excise director general Heru Pambudi after an event on Tuesday.

As of now, the directorate general has given 46 AEO certificates to 44 companies, most of which are exporters and importers involved in the global supply chain. The number increased significantly from five companies two years ago.

 According to the customs authority’s data, AEO-certified companies are able to reduce their dwell time to about one day, with the average dwell time has reached 2.38 days.

Coupled with the facility given to main partners, the customs authority expects that overall dwell time can be reduced by 30 percent, while companies could also cut their customs costs by about 34 percent. 

Source: http://www.thejakartapost.com/news/2017/02/22/more-companies-eligible-for-simpler-customs-clearance-processes.html