G/VAL/W/309  
 
2 November 2017  
(17-5983) Page: 1/2 
 Committee on Customs Valuation  Original: English  
 
 PRESHIPMENT INSPECTI ON 
INDONESIA  
Replies from Indonesia  to Questions from the United States  
contained in document  G/VAL/W/278  
The following submission, dated 31 October 2017, is being circulated at the request of the 
delegation of Indonesia.  
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We understand from Indonesia's response in G/VAL/W/257 that the "technical 
verification procedure" it conducts "includes verification of import documents (Company 
Legal documents, Import Licence documents, and Shipping documents) and technical 
document s (technical information regarding imported goods, such as quantity, type, HS 
Code correctness, loading port, destination port, and country of origin)."  A similar 
response was provided in G/VAL/W/256.  As described, these procedures, at least in 
part, app ear to overlap with the definition of preshipment inspection procedures in 
Article 1.3 of the Agreement on Preshipment Inspection.  We request further 
explanation from Indonesia as to its view that these procedures are not PSI activities.  
Response:  
Indone sia 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. We reiterate that the aim of this procedure is only to conduct verification 
for import documents and technical document s, the result of which will be used as reference for 
customs to determine custom valuation and custom classification.  The determination will be 
conducted  in Indonesia by customs.  
We again request that these procedures be notified to this Committee, so that Member 
representatives in this Committee be afforded the opportunity to review these 
measures.  
Response:  
With reference to our response  above , we are  not of the view that such proc edures fall under the 
definition coverage in  Article 1 of the PSI.  
Indonesia indicated that these procedures "provide better access for importers and 
exporters to obtain easy and fast importation services."  Could Indonesia provide further 
information on t he practical ways in which these procedures speed entry into 
Indonesia?  
Response:  
As the procedure conducts verification on conformity of import and technical document prior to 
shipping, it streamlines the procedures at the destination port. The procedure will also contribute G/VAL/W/309  
 
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  to  a reduction in the dwelling time  at the port , avoid uncertainty, and ensure the expedited 
verification of documents  
Indonesia also notes that it has a provision in its Customs Law (No. 10 of 1995 as 
amended by Law No. 17 of 2006) t hat Indonesia's Customs and Excise Authority "do not 
conduct Preshipment Inspection". We have reviewed notification G/VAL/N/1/IDN/1 
and found that the notified legislation only included Article 15 on Customs Value and 
Ministry of Finance Decree No.  690/KMK .05/1996 on Customs Valuation for the 
Calculation of Import Duties . We request that Indonesia notify the specific section of the 
Customs Law related to Preshipment Inspection.     
Response:  
Indonesia 's custom law does not have a specific section related to preshipment inspection.  
Further, we request clarification whether any restriction on conducting preshipment 
inspection is limited to Indonesia's Customs and Excise Authority or if it applies more 
broadly to all ministries of the Indonesian government.  
Response:  
Indonesia does not conduct PSI activities.  
We would also like to note that we anticipate having additional questions with respect 
to the responses provided by Indonesia in G/VAL/W/256 in response to questions in 
G/VAL/W/167.    
As to customs laws, we understand that that Indonesia amended its customs law in Law 
No. 17 of 2006, and we request that Indonesia notify that law.  
Response:  
It is still under discussion by the relevant ministries . 
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