Indonesia Customs Clearance Is Difficult, The Reason for The Emergence of Red Light Period of Strict Inspection!

In the Southeast Asian market, Indonesia is far ahead of other Southeast Asian countries in terms of economic development and is the major economy in Southeast Asia, and the fourth most populous country in the world after China, India and the United States. With its economy and population, its consumer market also has huge potential.

In Indonesia, common goods such as garments and textiles, metal products, rubber products, paper products, etc. are sensitive goods and require relevant quota qualification for customs clearance.

Although Indonesia's market is coveted by many, the country's customs clearance is also notoriously difficult in the industry, especially during Indonesia's "red light period", which makes the original hellish customs clearance even more difficult. Let's take a look at the three periods of customs clearance in Indonesia.

Green light period: As long as the documents are complete, the goods can be cleared through customs soon and wait for pickup; pickup time is 2-3 working days. (The time of green light period is relatively short every year)

Yellow light period: in the green light period on the basis of documents also need to provide some additional documents, slow speed of cargo inspection, the container may produce storage costs, an average of 5-7 working days. (Normal yellow light period will last longer)

Red light period: for new importers, incomplete customs clearance documents, high-risk goods or from high-risk countries, customs require physical inspection, the rate of inspection is extremely high. May incur storage costs. Average 7-14 working days, may need to re-import, or even need to return to customs. (Usually end of year December to early March)

Under what circumstances will Indonesia's customs crackdown occur?

01 Indonesian Government Policy Objectives

To increase the tax revenue of the country while protecting the local economy, such as the previous part of increasing efforts to rectify the customs revenue.

02 Changes in the top management of Indonesian Customs

To assert sovereignty and compete for related benefits by means of such inspections.

03Regulation of trade balance

To regulate the trade balance by setting corresponding non-tariff thresholds on the import and export of certain categories of goods.

04Creating a favorable environment for the domestic economy

By strictly inspecting imported goods, it creates advantages for domestic independent goods, thus making a better environment for domestic economic growth.