Customs Three-Color Management: The Secret to Fast Customs Clearance

In the process of handling imported goods in Indonesia, Customs has implemented a unique red, yellow and green color classification management system. This system is designed to increase the efficiency of customs clearance while at the same time differentiating between different types of goods. Understanding and adapting to this system is essential to ensure that goods arrive at their destination smoothly.

 

Green Channel: A Symbol of Speed and Efficiency

Characteristics: Applicable to goods with complete documents and no special requirements. This type of cargo can enjoy fast customs clearance, with queuing time at the port usually taking as little as 1 day.

Suggestion: Ensure all documents are well prepared in order to utilize the shortest possible time to complete the customs clearance process.

Yellow channel: requires extra attention

Characteristics: Involves the preparation of some additional documents or the presence of lower risk goods. The clearance process may be a little slower and storage charges may be incurred if the goods are subject to spot checks, with queuing times of approximately 2 to 3 days.

Recommendation: Prepare all additional documents that may be required in advance to minimize delays due to incomplete documentation.

Red Channel: High Risk and Strict Scrutiny

Characteristics: For high-risk goods or products imported for the first time from a new importer. These goods will be subject to physical inspection and very high inspection rates, resulting in longer waiting times and higher costs.

Recommendation: For goods entering the Indonesian market for the first time, they should be well prepared for inspection, including detailed product descriptions and relevant certification materials.

Red Light Period Revealed: Challenges and Opportunities Ahead

At the end of each year, between December and March, Indonesia Customs enters into a so-called “red light period”, which is designed to protect local businesses and respond to policy adjustments during certain periods. During this period, customs clearance procedures become more cumbersome, time is extended, fees increase and the risk of goods being held up increases. Here are some of the key factors that influence the emergence of red light periods:

 

Import policy adjustments: The government may tighten its control over import trade through measures such as revising import quotas or introducing new APIs (import licenses).

Tax consolidation: Strengthening of customs tax management, making cargo inspection more stringent.

Trade deficit: In order to balance the trade deficit with other countries such as China, the Indonesian government will adopt stricter import management measures.

Security considerations: Crackdowns on the inflow of illegal goods, such as drugs or terrorist materials, will also result in longer red light periods.

Strategies to help you clear customs

In the face of the complex Indonesian customs environment, the following tips can help you better plan your export business:

 

Understand the policy in advance

Make sure you have a thorough understanding of the latest Indonesian customs regulations before shipment to ensure that your products comply with local requirements.

 

Clarify cargo information

Maintain good communication with Indonesian buyers to make sure they know exactly how to cooperate with customs clearance to avoid unnecessary obstacles.

 

Choose a quality agent

Consider adopting the DDP (Delivered Duty Paid) model, where the seller is responsible for paying all taxes and fees until delivery to the buyer, and select an experienced import agent to assist with customs clearance.

 

Apply for container free period

Try to get a longer free container period (e.g. 14 days) when booking, so as to minimize extra expenses even if there is a delay.

 

Maintain consistency between cargo and documents

Ensure that all documents submitted are accurate and correspond to the actual goods to avoid detention or return due to discrepancies.

 

Timely communication

Establish close communication channels with Indonesian customers, customs agents and shipping lines to keep track of the progress of customs clearance.

 

Prepare contingency plan

Prepare a detailed contingency plan in order to respond quickly to any emergencies and minimize potential losses.