G/VAL/W/314  
 
12 November 2018  
(18-7121) Page: 1/2 
Committee on Customs Valuation  Original: English  
 
PRESHIPMENT INSPECTI ON 
INDONESIA  
Questions from the United States to Indonesia regarding document G/VAL/W/309  
The following submission, dated 9 November 2018, is being circulated at the request of the 
delegation of the United States.  
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The United States would like to thank Indonesia for its replies in G/VAL/W/309. While we appreciate 
these responses, we continue to have questions and concerns about Indonesia's requirements.  
In G/VAL/W/256, Indonesia indicated that "technical verificatio n 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 fr om 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 g oods." 
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, "[p]reshipment 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 measures 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 have questions about  the process and the 
purpose of these requirements.  
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 ref erence 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 go ods? 
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?  
From Indonesia's reply in G/VAL/W/257, we understand that the import documents subject to 
inspection include "Company Legal documents, Import Licenc e documents, and Shipping G/VAL/W/314  
 
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  documents" and that the technic al information includes 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?   
Furthermore, in G/VAL/W/256, Indon esia 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?  
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?  
In G/VAL/W/309, in response to a request that Indonesia notify Law No. 17 of 2006, which amended 
the customs law, Indonesia said "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 ag ain being updated? If so, 
we would appreciate any information Indonesia could provide to the Committee on those discussions.  
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