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1NSW/APJP/ICC/GA/230108

National Single Window :Towards Efficiency in Port Cargo Clearance

by:

Dr. - Ing. Gunadi Sindhuw inataChairman, APJP

Seminar onNational Single Window and Forum on Transportation & Logistic

Wednesday, 23 January 2008Gran Melia Hotel, Jakarta

N S W

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Competitiveness Ranking in 55 CountriesCompetitiveness Ranking in 55 Countries

Country 2003 2004 2005 2006 2007

Singapore 4 2 3 3 2

Hong Kong 10 6 2 2 3

Australia 7 4 9 6 12

China 27 22 29 18 15

Taiwan 17 12 11 17 18Malaysia 21 16 26 22 23

India 42 30 33 27 27

Korea 32 31 27 32 29

Thailand 28 26 25 29 33Philippines 41 43 40 42 45

Indonesia 49 49 50 52 54

Venezuela 51 51 51 53 55

Source: World Competitiveness Yearbook, 2007.

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Investment prospects 2007 to 2011Investment prospects 2007 to 2011

Source:Economist Intell igence Unit (2007)

82820.10.1Kenya (bottom)Kenya (bottom)

55552.42.4PhilippinesPhilippines

38386.56.5VietnamVietnam36366.66.6IndonesiaIndonesia

34346.86.8MalaysiaMalaysia

32327.17.1TaiwanTaiwan

31317.27.2South KoreaSouth Korea27278.98.9ThailandThailand

181820.420.4IndiaIndia

151527.127.1SingaporeSingapore

8848.048.0Hong KongHong Kong

3386.886.8ChinaChina

RankRankUS$ billionUS$ billionCountryCountry

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The Risk of Doing BusinessThe Risk of Doing Business

Source: The Economist In telligence Unit, 2007

Country

(N = 150)

Rating

(E = most risky)

Score

(100 =most r isky)

China

Hong Kong

India

Indonesia

Malaysia

Myanmar

Phil ippines

Singapore

Thailand

Vietnam

C 45 (46)

A 16

C 50

C 56 (57)

B 34 (35)

D 78

C 52

A 10 (11)

C 53

C 53

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Business Environment and RankBusiness Environment and Rank

Source: The Economist In telligence Unit, 2007

Total score

2007-11 2002-06 2007-11 2002-06Singapore 8.72 8.71 3 1

Hong Kong 8.68 8.57 6 8

Taiwan 8.11 7.66 19 21

Malaysia 7.43 7.29 31 23Thailand 6.81 6.71 42 37

China 6.38 5.61 53 58

India 6.37 5.27 54 62

Philippines 6.34 5.90 56 48Indonesia 6.21 5.39 61 60

Vietnam 5.95 4.83 65 70

Angola 3.92 3.19 82 82

RankCountry

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Comparison of Number of Procedures, Lead Time and

Costs to Start a Business

10,610,631311111JapanJapan

25,125,1303099MalaysiaMalaysia

3,43,4111155Hong KongHong Kong130,7130,71511511212IndonesiaIndonesia

19,519,550501111FilipinaFilipina

6,76,7333388ThailandThailand

1,21,28877SingaporeSingapore

6,36,3484888TaiwanTaiwan

CostsCosts(% GNP/(% GNP/ KapitaKapita))

Lead TimeLead Time (day)(day)Number ofNumber ofProcedureProcedure

ss

14,514,5

480,1480,1

1212

1111

4141ChinaChina

9494KambodiaKambodia

CountryCountry

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2. NSW

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NSW Towards 2015: 4 Main Pil lars of AEC

Single Market and production baseSingle Market and production base

Competitive economic regionCompetitive economic region

Equitable economic developmentEquitable economic development

Integration into the global economyIntegration into the global economy

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NSW Obligation for the Framework of AECObligation for the Framework of AEC

Create Efficiency in the Export and ImportCreate Efficiency in the Export and Import

Improve Service in International TradeImprove Service in International Trade

Enhance Supervision andEnhance Supervision and

Prevent HighPrevent High

Cost EconomyCost Economy

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National Single Window

Exports and Imports Determine by:Exports and Imports Determine by:

Physical Aspects:Physical Aspects:

-- Roads and other Transportation ModesRoads and other Transportation Modes

-- Ports, Terminals and FacilitiesPorts, Terminals and Facilities

-- IT SystemsIT Systems--Accelerated & Smooth Flow of GoodsAccelerated & Smooth Flow of Goods

Non Physical Aspects:Non Physical Aspects:

-- Integrating 36 Government AgenciesIntegrating 36 Government Agencies-- SoftwareSoftware

-- Simplifying Licenses Process & ProceduresSimplifying Licenses Process & Procedures

-- Smooth Settlement of DocumentsSmooth Settlement of Documents

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NSW Breakthrough Method in the CustomBreakthrough Method in the Custom

Handling ProcedureHandling Procedure

Clearing Documents and Release of GoodsClearing Documents and Release of Goods

are Settled through a Single Point andare Settled through a Single Point and

done Electronicallydone Electronically

Paperless Process, More Simplification,Paperless Process, More Simpl ification,

Increase EfficiencyIncrease Efficiency

Prevent Connivance Betw een CustomPrevent Connivance Between CustomOfficers and ClientsOfficers and Clients

Enhance Global CompetitivenessEnhance Global Competit iveness

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Key Success Steps of Implementing NSW

EDI (Electronic Data Interchange)EDI (Electronic Data Interchange) Paperless, Contact lessPaperless, Contact less Priority LanePriority Lane

Create Prime CustomersCreate Prime Customers KPU (KantorKPU (Kantor PelayananPelayanan UtamaUtama PrimePrime

Custom Office)Custom Office)

Provide Excellent ServicesProvide Excellent Services MITA (MITA (MitraMitra UtamaUtama First Class Client)First Class Client)

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3. PRIORITY LANE

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1.1. BackgroundBackground

a.a. ProblemProblem Lead timeLead time

Long lead time of goods clearance, which couldLong lead time of goods clearance, which couldretard production processretard production process

Additional unnecessary expenses: demurrage,Additional unnecessary expenses: demurrage,storage, extra handlingstorage, extra handling

CostsCosts Handling of importation, importer should bearHandling of importation, importer should bear

high cost from many factorshigh cost from many factors

Goods SafetyGoods Safety Prevention of privilege and damage of goodsPrevention of privilege and damage of goods

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1.1. BackgroundBackground (continued)(continued)

b.b. ExpectationExpectation Time EfficiencyTime Efficiency

Service performanceService performance

To ensure short service lead timeTo ensure short service lead time

Cost EfficiencyCost Efficiency

Elimination of High cost economyElimination of High cost economy

Easy & Simple ProcedureEasy & Simple Procedure

Easy & Simple service processes handlingEasy & Simple service processes handling ..

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2.2. PriorityPriority Lane Facility:Lane Facility:

Special facil ity from Customs to theSpecial facil ity from Customs to the

special importers to get specialspecial importers to get special

service, so the importation processservice, so the importation process

become more simple and fasterbecome more simple and faster

improvement of Green Laneimprovement of Green Lane

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3.3. Profile of Priority Lane CompaniesProfile of Priority Lane Companiesa.a. Excellent ReputationExcellent Reputation

b.b. Clear & Specific Nature of Business.Clear & Specific Nature of Business.

c.c. Have never misused Customs Facilities.Have never misused Customs Facilities.

d.d. Have never wrong declared the quantity of goods,Have never wrong declared the quantity of goods,

types of goods, and or customs value.types of goods, and or customs value.e.e. Have been audited by the Public Accounting ServiceHave been audited by the Public Accounting Service

with non disclaimer opinion or adverse.with non disclaimer opinion or adverse.

f.f. Have noHave no bad debtbad debt

on Import Duty Payment and taxeson Import Duty Payment and taxesto the Directorate General of Customs and Excise.to the Directorate General of Customs and Excise.

g.g. Have the ability to declare Customs Notification directlyHave the ability to declare Customs Notification directly

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4. Priority Lane Importer Obligation4. Priority Lane Importer Obligationa.a. Submit Corporate Guarantee legalized by the notary.Submit Corporate Guarantee legalized by the notary.

b.b. Abide by all guidelines approved by the relatedAbide by all guidelines approved by the relatedtechnical department before applying for Importtechnical department before applying for ImportDeclaration.Declaration.

c.c. Signing a Letter of Statement about the capability toSigning a Letter of Statement about the capability tofulfill all submitting to all regulations also acceptfulfill all submitting to all regulations also accept

penalty due to violation.penalty due to violation.d.d. Use own Importer`s Module and not giving / lending itUse own Importer`s Module and not giving / lending it

for other company`s advantages.for other company`s advantages.e.e. Create Importation Report every 6 months directed toCreate Importation Report every 6 months directed to

Head of Services Office in hard copy & soft copyHead of Services Office in hard copy & soft copyformatformatf.f. Report on Importer`s Module loss and or misuse at theReport on Importer`s Module loss and or misuse at the

first timefirst time

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5. Priority Lane Advantages5. Priority Lane Advantages1.1. Priority in Customs Audit.Priority in Customs Audit.

2.2. Deleting of red line process in port (include temporaryDeleting of red line process in port (include temporary

import and deferred payment/import and deferred payment/VooruitslagVooruitslag).).

3.3. Shortened lead time of customs clearance in port.Shortened lead time of customs clearance in port.

4.4. Physical inspection have been omitted.Physical inspection have been omitted.

5.5. TruckTruck--losinglosing (not applicable yet).(not applicable yet).6.6. PrePre--notification.notification.

7.7. Paperless import declaration.Paperless import declaration.

8.8. Periodical payment.Periodical payment.9.9. Able to use Corporate Guarantee as an assurance.Able to use Corporate Guarantee as an assurance.

10.10. For KITE Exemption Facility, process without STTJFor KITE Exemption Facility, process without STTJ --

guarantee receiptguarantee receipt (not applicable yet).(not applicable yet).

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4. PRIME CUSTOMS OFFICE (KPU)

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Stakeholders of KPUStakeholders of KPU

++ 8.700 Importers8.700 Importers

++ 21.900 Exporters21.900 Exporters 385385 CCustomsustoms BrokersBrokers 44 TTemporaryemporary SStoragetorage PPremisesremises

Associations:Associations: Priority Lane CompaniesPriority Lane Companies(APJP),(APJP), Importers, exporters, etcImporters, exporters, etc..

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K P UPRIME CUSTOMS OFFICE TANJUNG PRIOK: Delivers best customs services through asingle point of service, as well as conductsan effective control to stakeholders byimplementing customs procedures whichare fast, efficient, transparent, andresponsive. Applies principles: Integrity, know yourclients (risk management), good clientsgood services.

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Risk ManagementBASED ON THEIR PAST RECORD,BASED ON THEIR PAST RECORD,STAKEHOLDERS ARE TREATED THROUGHSTAKEHOLDERS ARE TREATED THROUGH

THE FOLLOWING CATEGORIES:THE FOLLOWING CATEGORIES:

MITRA UTAMA (PRIME CLIENTS)MITRA UTAMA (PRIME CLIENTS) PRIORITYPRIORITYCHANNEL AND NONCHANNEL AND NON--PRIORITY CHANNEL.PRIORITY CHANNEL.

GREEN CHANNELGREEN CHANNEL

YELLOW CHANNELYELLOW CHANNEL

RED CHANNELRED CHANNEL

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MITA Treatment in Customs ClearanceMITA Treatment in Customs Clearance

Document VerificationDocument VerificationExit Permit (SPPB)Exit Permit (SPPB)

Client CoordinatorClient CoordinatorAccessAccess

Physical CheckPhysical Check

DocumentDocument ExaminationExamination

License DocumentLicense DocumentConfirmationConfirmation

Payment / GuaranteePayment / GuaranteeReconciliationReconciliation

PriorityPriorityMITAMITA

NonNon--PriorityPriorityMITAMITA

GreenGreenYellowYellowRedRed

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Lane and Treatment

Importer w ith Verified TrackRecord and Adequate InternalControl and Determinate Natureof Business

Without Intervention, ImportedGoods Allow To ExitImmediately, post clearanceaudit

MITA

Risk At tach To DocumentsImporter With good record, ValidExistence And Reliable capabilityof paying duty

Document checking, ImportedGoods Allow To Exit Immediately

Green

Risk Attach To DocumentsImporter With Valid Existence

Document checking, ImportedGoods Allow To Exit After All

Import Taxes has been paidIncluded Correction Note (Notul)

Yellow

Risk Attach To Physical Goods(like quant ity, kinds, etc.)

Importer With IndeterminateNature of Business andUnpredicted Import

Document and Physical Check,Imported Goods Allow To Exit

After All Import Tax has beenpaid Included Correction Note(Notul)

Red

Risk AnalysisTreatmentLane

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MITANot obliged to submit hard copy of commercialdocument (PIB attachments) except:

License Document, Recommendation and importrequirement from government agencies as like:Quarantine, POM, Department of Trade etc.

Monthly Report

License Document Submit Every Day 10 NextMonth

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5. IMPLEMENTATION OF NSW

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Trial Implementation of NSWTrial Implementation of NSW

LocationLocation TanjungTanjung PriokPriok 60% of Import and Export Activities60% of Import and Export Activities

Restricted to 10 importer companies in foods,Restricted to 10 importer companies in foods,

beverages and pharmacy member of APJPbeverages and pharmacy member of APJP

amongst 100 Priority Lane companiesamongst 100 Priority Lane companies

Involving 5 Government Agencies: Customs,Involving 5 Government Agencies: Customs,

BPOM, Directorate General of InternationalBPOM, Directorate General of International

Trade, Agriculture Quarantine and FisheryTrade, Agriculture Quarantine and Fishery

QuarantineQuarantine

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Expansion of NSW Implementation in 2008Expansion of NSW Implementation in 2008

BelawanBelawan (North Sumatera)(North Sumatera)

TajungTajung MasMas (Central Java)(Central Java)

TanjungTanjung Perak (East Java)Perak (East Java)

MakasarMakasar (South Sulawesi)(South Sulawesi)

PanjangPanjang (South Sumatera)(South Sumatera)

Pontianak (West Kalimantan)Pontianak (West Kalimantan)

BatamBatam

BaliBali

Banjarmasin (South Kalimantan)Banjarmasin (South Kalimantan)

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6. APJP

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To create conducive business environment forTo create conducive business environment formembers based on trust, respect, and responsibility inmembers based on trust, respect, and responsibility in

order to accelerate growth and to increase economicorder to accelerate growth and to increase economiccompetitiveness towards global market.competitiveness towards global market.

VISIONVISION

MISSIONMISSION1. To increase national reserve through an efficient1. To increase national reserve through an efficient

import with export orientation.import with export orientation.

2. To be an effective government partner in national2. To be an effective government partner in national

economy activity.economy activity.3. To develop members based on equality, respect, and3. To develop members based on equality, respect, and

responsibility.responsibility.

4. To contribute in social and economic development.4. To contribute in social and economic development.

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MAPING OF MEMBERSMAPING OF MEMBERS

Non

APJP

41%

APJP

59%

Chemicals

12%

Automotives

44%

Foods

7%

Cosmetics

3%

Other Industries

20%

Electronics

14%

NUMBER OF PRIORITY LANENUMBER OF PRIORITY LANECOMPANYCOMPANY

TOTAL : 100 COMPANIESTOTAL : 100 COMPANIES

MEMBERS OF APJPMEMBERS OF APJP

TOTAL : 59 COMPANIESTOTAL : 59 COMPANIES

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Date of Establishmentate of EstablishmentThe organization was founded on January

26th 2006 in Jakarta with the name :

Asosiasi Perusahaan JalurPrioritas( A P J P )

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APJP Founding MembersAPJP Founding Members

1. PT. ASTRA DAIHATSU MOTOR 12. PT. MULTI BINTANG INDONESIA

2. PT. ESSENCE INDONESIA 13. PT. NATIONAL GOBEL (PT. PANASONIC MFG IND.)3. PT. HALIM SAMUDRA INTERUTAMA 14. PT. PANTJA MOTOR

4. PT. HILEX INDONESIA 15. PT. SANYO INDONESIA

5. PT. HITACHI CONSTRUCTION MACHINERY IND. 16. PT. SELAMAT SEMPURNA

6. PT. HYUNDAI INDONESIA 17. PT. SHARP ELECTRONICS INDONESIA

7. PT. INDOKEMIKA JAYATAMA 18. PT. STAR COSMOS Ltd.

8. PT. INDOMOBIL SUZUKI INTERNATIONAL 19. PT. TOPJAYA SARANA UTAMA

9. PT. INKOTE INDONESIA 20. PT. TOYOTA MOTOR MANUFACTURING INDONESIA10. PT. INTIKERAMIK ALAMASRI INDUSTRI Tbk. 21. PT. TOYOTA-ASTRA MOTOR

11. PT. LAUTAN LUAS 22. PT. UNILEVER INDONESIA Tbk.

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OfficeOffice

AsosiasiAsosiasi PerusahaanPerusahaan JalurJalur PrioritasPrioritas( A P J P )( A P J P )

Association of Priority Lane CompaniesAssociation of Priority Lane Companies

JlJl.. MitraMitra SunterSunter BoulevardBoulevard

RukoRukoSunterSunter PermaiPermai IndahIndahBlok A8Blok A8A9,A9, LantaiLantai 44

Jakarta UtaraJakarta UtaraTelpTelp./Fax. : (021) 6504509./Fax. : (021) 6504509

EE--mail : [email protected] : [email protected]

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