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NSW

Towards Efficiency in Port Cargo Clearance


by: Dr. - Ing. Gunadi Sindhuwinata Chairman, APJP Seminar on National Single Window and Forum on Transportation & Logistic Wednesday, 23 January 2008 Gran Melia Hotel, Jakarta
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National Single Window :

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1. ENVIRONMENT

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Competitiveness Ranking in 55 Countries


Country
Singapore Hong Kong Australia China Taiwan Malaysia India Korea Thailand Philippines

2003
4 10 7 27 17 21 42 32 28 41

2004
2 6 4 22 12 16 30 31 26 43

2005
3 2 9 29 11 26 33 27 25 40

2006
3 2 6 18 17 22 27 32 29 42

2007
2 3 12 15 18 23 27 29 33 45

Indonesia
Venezuela

49
51

49
51

50
51

52
53

54
55
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Source: World Competitiveness Yearbook, 2007.

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Investment prospects 2007 to 2011


Country China Hong Kong Singapore India Thailand South Korea Taiwan Malaysia Indonesia Vietnam Philippines Kenya (bottom)
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US$ billion 86.8 48.0 27.1 20.4 8.9 7.2 7.1 6.8 6.6 6.5 2.4 0.1

Rank 3 8 15 18 27 31 32 34 36 38 55 82
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Source: Economist Intelligence Unit (2007)

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The Risk of Doing Business


Country (N = 150)
China Hong Kong India Indonesia Malaysia Myanmar Philippines Singapore Thailand Vietnam

Rating Score (E = most risky)= 001( most risky)


C A C C B D C A C C 45 (46) 16 50 56 (57) 34 (35) 78 52 10 (11) 53 53

Source: The Economist Intelligence Unit, 2007

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Business Environment and Rank


Country
Singapore Hong Kong Taiwan Malaysia Thailand China India Philippines Indonesia Vietnam Angola

Total score
2007-11 2002-06 2007-11

Rank
2002-06

8.72 8.68 8.11 7.43 6.81 6.38 6.37 6.34 6.21 5.95 3.92

8.71 8.57 7.66 7.29 6.71 5.61 5.27 5.90 5.39 4.83 3.19

3 6 19 31 42 53 54 56 61 65 82

1 8 21 23 37 58 62 48 60 70 82
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Source: The Economist Intelligence Unit, 2007

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Comparison of Number of Procedures, Lead Time and Costs to Start a Business


Country Kambodia China Hong Kong Indonesia Japan Malaysia Filipina Singapore Taiwan Thailand
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Number of Procedure s 11 12 5 12 11 9 11 7 8 8

Lead Time (day) 94 41 11 151 31 30 50 8 48 33

(% GNP/Kapita)

Costs

480,1 14,5 3,4 130,7 10,6 25,1 19,5 1,2 6,3 6,7
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2. NSW

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NSW Towards 2015: 4 Main Pillars of AEC


Single Market and production base Competitive economic region Equitable economic development Integration into the global economy

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NSW Obligation for the Framework of AEC


Create Efficiency in the Export and Import Improve Service in International Trade Enhance Supervision and Prevent High Cost Economy

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National Single Window


Exports and Imports Determine by: Physical Aspects: - Roads and other Transportation Modes - Ports, Terminals and Facilities - IT Systems - Accelerated & Smooth Flow of Goods Non Physical Aspects: - Integrating 36 Government Agencies - Software - Simplifying Licenses Process & Procedures - Smooth Settlement of Documents
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NSW Breakthrough Method in the Custom Handling Procedure


Clearing Documents and Release of Goods are Settled through a Single Point and done Electronically Paperless Process, More Simplification, Increase Efficiency Prevent Connivance Between Custom Officers and Clients Enhance Global Competitiveness
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Key Success Steps of Implementing NSW


EDI (Electronic Data Interchange) Paperless, Contact less Priority Lane Create Prime Customers KPU (Kantor Pelayanan Utama Prime Custom Office) Provide Excellent Services MITA (Mitra Utama First Class Client)

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EDI
e Cl Prim

A MIT ient

Priority Lane

Prime Custom Office


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KPU

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3. PRIORITY LANE

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1. Background a. Problem
Lead time
Long lead time of goods clearance, which could retard production process Additional unnecessary expenses: demurrage, storage, extra handling

Costs
Handling of importation, importer should bear high cost from many factors

Goods Safety
Prevention of privilege and damage of goods

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1. Background (continued) b. Expectation


Time Efficiency
Service performance To ensure short service lead time

Cost Efficiency
Elimination of High cost economy

Easy & Simple Procedure


Easy & Simple service processes handling.
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2. Priority Lane Facility:


Special facility from Customs to the special importers to get special service, so the importation process become more simple and faster improvement of Green Lane

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3. Profile of Priority Lane Companies


a. b. c. d. Excellent Reputation Clear & Specific Nature of Business. Have never misused Customs Facilities. Have never wrong declared the quantity of goods, types of goods, and or customs value. e. Have been audited by the Public Accounting Service with non disclaimer opinion or adverse. f. Have no bad debt on Import Duty Payment and taxes to the Directorate General of Customs and Excise. g. Have the ability to declare Customs Notification directly
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4. Priority Lane Importer Obligation

a. Submit Corporate Guarantee legalized by the notary. b. Abide by all guidelines approved by the related technical department before applying for Import Declaration. c. Signing a Letter of Statement about the capability to fulfill all submitting to all regulations also accept penalty due to violation. d. Use own Importer`s Module and not giving / lending it for other company`s advantages. e. Create Importation Report every 6 months directed to Head of Services Office in hard copy & soft copy format f. Report on Importer`s Module loss and or misuse at the first time
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5. Priority Lane Advantages


1. Priority in Customs Audit. 2. Deleting of red line process in port (include temporary import and deferred payment/Vooruitslag). 3. Shortened lead time of customs clearance in port. 4. Physical inspection have been omitted. 5. Truck-losing (not applicable yet). 6. Pre-notification. 7. Paperless import declaration. 8. Periodical payment. 9. Able to use Corporate Guarantee as an assurance. 10. For KITE Exemption Facility, process without STTJ guarantee receipt (not applicable yet).
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4. PRIME CUSTOMS OFFICE (KPU)

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Stakeholders of KPU

+ 8.700 Importers + 21.900 Exporters 385 Customs Brokers 4 Temporary Storage Premises Associations: Priority Lane Companies
(APJP), Importers, exporters, etc.
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KPU
PRIME CUSTOMS OFFICE TANJUNG PRIOK: Delivers best customs services through a single point of service, as well as conducts an effective control to stakeholders by implementing customs procedures which are fast, efficient, transparent, and responsive. Applies principles: Integrity, know your clients (risk management), good clients good services.
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Risk Management
BASED ON THEIR PAST RECORD, STAKEHOLDERS ARE TREATED THROUGH THE FOLLOWING CATEGORIES:
MITRA UTAMA (PRIME CLIENTS) PRIORITY CHANNEL AND NON-PRIORITY CHANNEL. GREEN CHANNEL YELLOW CHANNEL RED CHANNEL
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MITA Treatment in Customs Clearance


Red Yellow Green
NonPriority MITA

Priority MITA

Payment / Guarantee Reconciliation License Document Confirmation Document Examination Physical Check

Exit Permit (SPPB) Document Verification Client Coordinator Access


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Lane and Treatment


Lane Red Treatment
Document and Physical Check, Imported Goods Allow To Exit After All Import Tax has been paid Included Correction Note (Notul) Goods Allow To Exit After All Import Taxes has been paid Included Correction Note (Notul)

Risk Analysis Risk Attach To Physical Goods


(like quantity, kinds, etc.) Importer With Indeterminate Nature of Business and Unpredicted Import

Yellow Document checking, Imported

Risk Attach To Documents Importer With Valid Existence

Green

Risk Attach To Documents Document checking, Imported Goods Allow To Exit Immediately Importer With good record, Valid Existence And Reliable capability of paying duty
Without Intervention, Imported Goods Allow To Exit Immediately, post clearance audit Importer with Verified Track Record and Adequate Internal Control and Determinate Nature of Business 27

MITA

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MITA
Not obliged to submit hard copy of commercial
document (PIB attachments) except:
License Document, Recommendation and import requirement from government agencies as like: Quarantine, POM, Department of Trade etc. Monthly Report

License Document Submit Every Day 10 Next


Month

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5. IMPLEMENTATION OF NSW

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Trial Implementation of NSW


Location Tanjung Priok 60% of Import and Export Activities Restricted to 10 importer companies in foods, beverages and pharmacy member of APJP amongst 100 Priority Lane companies Involving 5 Government Agencies: Customs, BPOM, Directorate General of International Trade, Agriculture Quarantine and Fishery Quarantine
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Expansion of NSW Implementation in 2008


Belawan (North Sumatera) Tajung Mas (Central Java) Tanjung Perak (East Java) Makasar (South Sulawesi) Panjang (South Sumatera) Pontianak (West Kalimantan) Batam Bali Banjarmasin (South Kalimantan)
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6. APJP

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VISION

To create conducive business environment for members based on trust, respect, and responsibility in order to accelerate growth and to increase economic competitiveness towards global market.

MISSION

1. To increase national reserve through an efficient import with export orientation. 2. To be an effective government partner in national economy activity. 3. To develop members based on equality, respect, and responsibility. 4. To contribute in social and economic development.
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MAPING OF MEMBERS
Other Industries 20% Electronics 14%

Non APJP 41%

Cosmetics 3% Foods 7%

Chemicals 12%

APJP 59%

Automotives 44%

NUMBER OF PRIORITY LANE COMPANY TOTAL : 100 COMPANIES

MEMBERS OF APJP TOTAL : 59 COMPANIES

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Date of Establishment
The organization was founded on January 26th 2006 in Jakarta with the name :

Asosiasi Perusahaan Jalur Prioritas (APJP)


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COMPARTMENT OF APJP
Beaurocracy and Regulation Compartment Inter Government Agency Coordination and Infrastructure Compartment Socialization and Information Compartment Secretary
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APJP Founding Members


1. PT. ASTRA DAIHATSU MOTOR 2. PT. ESSENCE INDONESIA 3. PT. HALIM SAMUDRA INTERUTAMA 4. PT. HILEX INDONESIA 5. PT. HITACHI CONSTRUCTION MACHINERY IND. 6. PT. HYUNDAI INDONESIA 7. PT. INDOKEMIKA JAYATAMA 8. PT. INDOMOBIL SUZUKI INTERNATIONAL 9. PT. INKOTE INDONESIA 10. PT. INTIKERAMIK ALAMASRI INDUSTRI Tbk. 11. PT. LAUTAN LUAS
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12. PT. MULTI BINTANG INDONESIA 13. PT. NATIONAL GOBEL (PT. PANASONIC MFG IND.) 14. PT. PANTJA MOTOR 15. PT. SANYO INDONESIA 16. PT. SELAMAT SEMPURNA 17. PT. SHARP ELECTRONICS INDONESIA 18. PT. STAR COSMOS Ltd. 19. PT. TOPJAYA SARANA UTAMA 20. PT. TOYOTA MOTOR MANUFACTURING INDONESIA 21. PT. TOYOTA-ASTRA MOTOR 22. PT. UNILEVER INDONESIA Tbk.
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Office
Asosiasi Perusahaan Jalur Prioritas (APJP) Association of Priority Lane Companies
Jl. Mitra Sunter Boulevard Ruko Sunter Permai Indah Blok A8 A9, Lantai 4 Jakarta Utara Telp./Fax. : (021) 6504509 E-mail : apjp.indonesia@yahoo.co.id
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