G/PSI/Q/IDN/1  
 
16 June 2021 
(21-4906) Page: 1/4 
Committee on Customs Valuation  Original: English  
 
 
PRESHIPMENT INSPECTION  
NOTIFICATIONS UNDER ARTICLE 5 OF THE AGREEMENT ON PRESHIPMENT INSPECTION  
REPLIES FROM INDONESIA TO QUESTIONS POSED BY THE UNITED STATES  
CONTAINED IN  DOCUMENT G/VAL/ W/3141 
INDONESIA  
The following communication, dated 26 May 2021, is being circulated at the request of the delegation 
of Indonesia . 
 
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Question 1:  
 
In G/VAL/W/256, Indonesia indicated that "technical verification is needed to ensure that the 
imported goods are in accordance with the import documents… also conducted as an import policy 
instrument in order to overcome issues related to HSE (Health, Safety, and Environment, and 
consumer protection."  
 
We understand from Indonesia's response in G/VAL/W/309 that "Indonesia does not consider the 
technical verification as PSI activities, since the technical verification procedure does not determine 
custom valuation and/or custom classification prior to the importation of goods."  
 
However, as used in the Agreement on Preshipment Inspection, the term PSI activities is not limited 
to activities related to customs valuation and classification. Rather, "preshipment inspection 
activities" includes "all activities  relating to the verification of the quality, the quantity, the price, 
including currency exchange rate and financial terms, and/or the customs classification of goods to 
be exported to the territory of the user Member."  
 
We again request that any measure s that contain requirements for such technical 
verification procedures be notified to the WTO Customs Valuation Committee, even if 
those measures have already been notified to other Committees.  
 
With regard to the procedures themselves, we continue to hav e questions about the 
process and the purpose of these requirements.  
 
  
 
1 Previous documents containing questions or replies pertaining to the PSI notifications of Indonesia were 
issued in the G/VAL/W series as follows: G/VALW/180, G/VAL/W/237, G/VAL/W/256, G/VAL/W/257, 
G/VAL/W/257/Corr.1, G/VAL/W/278, G/VAL/W/309, G/VAL/W/314, and G/VAL/W/357.  G/PSI/Q/IDN/1  
 
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  Response 1:  
 
Indonesia is fully aware of the importance of notification, considering that transparency is one of the 
WTO's main principles. However, according to G/VAL/W/309, Indonesia does not consider the 
technical verification as PSI activities. Therefore, the Indonesia n Government views that it is 
irrelevant to notify the Regulation concerning VPTI to the Committee on Cus toms Valuation.  
 
The technical verification is carried out by a Survey Company appointed by the Minister of Trade. 
The survey company then appoints an affiliated survey company, and informs the company’s name 
to Minister of Trade, to do the verification. O nce the verification is completed, the survey company 
will issue the Surveyor Report (LS) where one LS is used for one shipment. The LS could also be 
used as a complementary customs document for Import Declaration (PIB). As an important note, 
the technical  verification is not a substitution to customs inspections procedures conducted by 
Indonesian Customs (Directorate General of Customs and Excise), nor eliminating the authority of 
Indonesian Customs to conduct customs inspections and to determine the class ification of goods as 
well as customs valuation.  
 
The main objective of the technical verification is to ensure the conformity of import documents and 
technical documents with the requirements, and to support the Government of Indonesia’s efforts 
to addre ss issues related to health, safety, and environment.  
 
Question 2:  
 
Based on the responses provided in G/VAL/W/309, we understand that these procedures are "only 
to conduct verification for import documents and technical documents the results of which will be 
used as reference for customs to determine custom valuation and custom classification."  
 
What specifically are the survey companies verifying?  
 
How will the information collected in the verification be used by customs to determine 
valuation and classification of the goods?  
 
Has Indonesia considered other ways that documents subject to verification by an 
appointed survey company could be checked? For instance, has Indonesia considered that 
documents could be sent directly to Indonesian customs, so that customs could start pre -
arrival processing before a shipment arrives?  
 
Response 2:  
 
The surveyor verifies the conformity of import documents such as Company Legal documents, 
Import License documents, and/or Shipping documents, and technical documents such as technical 
informati on regarding imported goods such as brand, type, specification, loading port, destination 
port, and/or country of origin.  
Information collected by the survey companies is optional  for customs to use. If the customs opt to 
use it, they have the autonomy to  decide on how it will use the information for any customs related 
purposes. In a broader sense, the verification is conducted to fulfill the duty and responsibility of the 
Indonesian government in preserving Health, Safety, and Environment for the society . For instance, 
should there be a notice of non -compliance on certain imported goods, the information collected by 
the survey companies will be used as a traceability factor. If there are problematic goods, it will 
inhibit like products in the same carrier . The information also facilitates the supervision of imported 
goods that have been distributed. Should there be any problem in the future, it will  be easier to 
withdraw the distributed goods from the domestic market.  
The Government of Indonesia always se eks for an effective and efficient way for a regulation to 
function in the most proper and suitable manner. We would consider possibilities, suggestions, and 
recommendations as long as they are in line with Indonesia’s characteristics and common  objectives.  
 
  G/PSI/Q/IDN/1  
 
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  Question 3:  
 
From Indonesia's reply in G/VAL/W/257, we understand that the import documents subject to 
inspection include "Company Legal documents, Import License documents, and Shipping 
documents" and that the technical information inclu des information "such as quantity, type, HS code 
correctness, loading port, destination port, and country of origin."  
 
What is the purpose of checking these documents as required under Decree No. 56?  
 
Response 3:  
 
The Minister of Trade Decree No. 56/200 8 was applied for the period from 1 January 2009 until 31 
December 2010.  
 
Question 4:  
 
Furthermore, in G/VAL/W/256, Indonesia states that the "technical verification is needed to ensure 
that the imported goods are in accordance with the import documents…  as well as to build database 
for administrative matter."  
 
Please explain what is meant by "administrative matter." For what "administrative 
matter" is the database used?  
 
Why is preshipment inspection necessary to create a database?  
 
Response 4:  
 
“Administrative matter” refers to the data recording and systematic preparation to ensure conformity 
of the import documents and technical documents. This is to obtain valid info rmation in regards to 
the imported goods.  
 
The data collected from this process could be used as a traceability factor. When there is any 
outbreak or problem to the imported goods that have been distributed to domestic market, the 
government of Indonesia can quickly take action based on the database.  
 
Question 5:  
 
In its responses provided in G/VAL/W/309, Indonesia states that the technical verification 
"streamlines the procedures at the destination port."  
 
How specifically does the technical verification streamline the port procedures?  
 
Response 5:  
 
The technical verification applies only to certain product s. While the technical verification is not a 
substitution to customs inspection conducted by Indonesi an Customs, it may serve as one of 
reference for Customs officer to release the consignee at the destination port. Therefore, the 
technical verification could help to expedite the importation process by avoiding the possibility of 
illegal importation cause d by the discrepancy of import and technical documents. Hence, this 
procedure reduce s clearance  time considerably.  
 
Question 6:  
 
In G/VAL/W/309, in response to a request that Indonesia notify Law No. 17 of 2006, which amended 
the customs law, Indonesia s aid "it is still under discussion by the relevant ministries."  
 
We again ask that Law No. 17 of 2006 be notified to the Committee.  
 
With respect to the statement that "it is still under discussion," does this statement mean 
that the 2006 amendment is not  in effect? Does it mean that the Customs Law is again 
being updated? If so, we would appreciate any information Indonesia could provide to the 
Committee on those discussions.  G/PSI/Q/IDN/1  
 
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  Response 6:  
The Law No.17 of 2006 which amend s the Customs Law No. 10 of 1995 is still valid and had been in 
effect since November 2006 . 
 
 
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