To Boost Export, Letters of Origin Can Be Made Online

The Ministry of Trade makes it easy for exporters who have market shares to countries that apply the origin declaration (information on the origin of goods). The Ministry of Trade provides an online service for the making of origin declaration (DAB). This policy has been in effect since early 2019.

At present, there are 32 countries that apply the obligation of the origin declaration. A number of 28 countries come from Europe, and four others are from Southeast Asia. In the previous rule, the origin declaration was in the form of a certificate of origin (SKA) made manually in which exporters were first to verify the origin of the goods through the surveyor appointed by the Ministry of Trade, which then exporters could submit SKA to the Agency of Trade in each region.

Now through Minister of Trade Regulation (Per Mendag) Number 111 of 2018, exporters can manage their DAB by themselves. In addition to facilitating the flow of goods to export destination countries, DAB can also be the basis for exporters to get import duty facilities in the destination country.

“The DAB has the same function as the Certificate of Origin (SKA) that can be used by exporters to obtain reduction or exemption from import duty,” said the Ministry of Trade’s Director General of Foreign Trade, Oke Nurwan in a written statement on Friday (4 / 1).

To make DAB, exporters must fulfill several conditions. For example, to get a determination as a Registered Exporter (ER) or a Certified Exporter (ES). Making DAB can be through the SKA system electronically or e-SKA.

DAB must be printed on commercial documents for exported goods such as invoices, bills, shipping notes and packing lists, and include authentic codes obtained from the e-SKA system. DAB is valid for 12 months from the date of the commercial documents.

Facilitating Exporters

Oke is optimistic that the ease of managing the DAB will help increase exports. Chairman of the Indonesian Export Company Association (GPEI) Benny Soetrisno appreciates online DAB services.

“Previously the SKA arrangement was done manually to the Department of Commerce at the provincial level,” explained Benny.

With an online system, exporters can save more time managing export documents. But this policy does not necessarily boost export performance because with the trade war that has not subsided, demand for goods in the global market has also weakened.

Source: Kontan