Govt Simplifies CBU Vehicle Export Regulation
The Indonesian Government on 11 February 2019 issued a new policy to simplify export procedures for Completely Build Up (CBU) vehicles through Regulation of Director General of Customs and Excise number PER-01/BC/2019 on Export Procedure of Completely Build Up Vehicles.
The Regulation aims to accelerate export by providing the following facilities: (i) the entry of CBU vehicles into customs area can be carried out before the submission of the Export Declaration (PEB), (ii) the entry of CBU vehicles does not require an Export Service Note (NPE), and corrections of PEB can be done no later than three days from the ship’s departure date.
Minister of Finance Sri Mulyani Indrawati said that the regulation simplification would simplify export process by integrating data from State Car Terminal Company PT Indonesia Kendaraan Terminal and data from Directorate General of Customs and Excise of Ministry of Finance and by scanning barcode of the vehicle identification number (VIN). “The process is expected to increase competitive advantage,” she said at Launching Ceremony of CBU Vehicle Exports Simplification in Jakarta, Wednesday (13/2).
The Minister explained that the new policy can provide four advantages:
First, ensuring data accuracy through automatic business processes and data integration between companies, temporary warehouse and Directorate General of Customs and Excise;
Second, improving efficiency in exporters warehouse to reduce inventory levels so that exporters’ warehouse can be used for CBU vehicles resulting from increased production capacity;
Third, maximizing the stack period at temporary warehouse for seven days by grouping process and final quality control before PEB submission can be done at the temporary warehouse;
Fourth, reducing truck costs because the number of trucks is reduced and logistics partners do not need to invest in large quantities of trucks. In addition, the use of trucks becomes more efficient because they can be operated every day and are evenly distributed.
Before this new regulation applies, every CBU vehicle to be exported must submit PEB and NPE and the data correction must be done before entering the customs zone. The grouping process was also complicated and some manufacturing companies must rent yards to carry out the activities.
Sri Mulyani expressed hope that the additional competitive advantage will improve Indonesia to become the largest vehicle exporting country in Southeast Asia and the 12th largest vehicle export base in the world.
The Minister added that the new regulation can also reduce the average stock level by 36% from 1,900 units/month to 1,200 unit/month, reduce the need for trucks by 19% per year from 26 units to 21 units, reduce logistics costs by 10%, and reduce storage logistics and handling costs to Rp.600,000/unit and truck costs to Rp.150,000/unit.
Sri Mulyani went on to say that Directorate General of Customs and Excise will continue to examine all aspects related to export acceleration and review all existing laws and policies to provide more efficient services as well as to increase competitiveness and boost exports.
For the record, the trend of Indonesias exports of CBU vehicles shows an increase in the past five years: 51.57% export and 48.43% import in 2014, 55.40% export and 44.60% import in 2015, 61.40% export and 38.60% import in 2016, 53.16% export and 46.84% import in 2017 and 63.56 % export and 36.44% import in 2018. (Ekon/Humas Kemenkeu/ES)
Translated by: Ridwan Ibadurrohman
Edited by: Ersan Pamungkas