How to deal with the red light period for Indonesian customs clearance

Indonesian Customs has always been known for its “strict customs clearance”.

Generally speaking, the period from December to March of the following year is the red light period for import customs clearance in Indonesia. The Indonesian red light mainly refers to the period during which Indonesian customs strictly inspects goods exported from China to Indonesia. The time is uncertain and mainly depends on the policy of Indonesian customs. Indonesian Customs will work with other law enforcement agencies to strictly inspect import customs clearance. Customs clearance procedures require more procedures and take longer than before. If not done properly, more fees will be incurred accordingly.

But this year the situation seems to be more severe. It is now April and the "red light period" has not passed yet, resulting in a large backlog of import and export goods and slow customs clearance. Some people in the industry speculate that, based on this situation, it is estimated that the red light warning will not be lifted until the end of Ramadan in Indonesia.

Therefore, please be sure to tell each other that Hengbang International Logistics, through foreign trade and freight forwarding companies that have recently exported to Indonesia, please pay close attention to this situation and keep abreast of the latest trends of Indonesian customs.

In Indonesia, customs is divided into red light customs and green light customs. If a certain kind of export goods has a red light at Indonesian customs, the customs will pay more attention to protecting local companies that produce that kind of goods. Then when export companies export goods to Indonesia, they will encounter stricter customs measures. An example is what a Shenzhen air conditioner export company encountered in Indonesia in the past few years. The company repeatedly encountered red lights from Indonesian customs when exporting, and the cost of exporting to Indonesia increased. As a result, corporate exports dropped by about 50%.

In this regard, it is recommended that foreign traders adopt the following response strategies: Before completing a transaction and shipping, please be sure to communicate with local Indonesian merchants to find out what the latest local customs policies are and whether such products will encounter customs clearance obstacles. If necessary, packing should be carried out in conjunction with the packing requirements of a powerful destination port agent and customs relations.

If an Indonesian merchant does not have the corresponding import rights, or has import rights but has shallow qualifications, it is generally easier to be inspected. Therefore, DDP operation can be adopted, that is, some well-qualified import agents can be used to complete customs clearance. Whether it is a DDP or DDU operation, it is recommended and required to apply for 14 days free time of detention from the shipping company when booking, so that even if customs clearance takes longer than usual, container rent will not be incurred or reduced. .