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Customs and Excise adds incentives for AEO-certified businesses
As a facilitator of trade, the Customs and Excise Directorate General is striving to improve the national logistics and distribution ecosystem by granting Authorized Economic Operator (AEO) certification to eligible businesses.
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s a facilitator of trade, the Customs and Excise Directorate General is striving to improve the national logistics and distribution ecosystem by granting Authorized Economic Operator (AEO) certification to eligible businesses. The certificate is a way for the Custom Office to recognize quality operators, including importers, exporters, customs services management companies (PPJKs), transportation providers and warehousing service providers. AEO certification is required to obtain certain customs facilities.
Hatta Wardhana, who heads the Custom Office’s Public Relations and Customs Counseling Sub-Directorate, said that AEO certificate holders were trusted government partners. He added that being AEO-certified would improve a company’s reputation so it would benefit from international trade through interinstitutional cooperation between customs agencies.
"The good news, specifically for customs operations, is that Customs and Excise Director General Decree No. KEP-75/BC/2022 dated April 28, 2022 on Authorized Economic Operators Mutual Recognition Arrangement (AEO MRA) has been established between the [Indonesian] Customs Office and the [...] Korean Customs Service, which came into force on June 30, 2022,” said Hatta.
Continuing, he explained that the MRA was an “agreement between two or more customs administrations”.
“With the MRA AEO between Indonesia and Korea, [AEO-certified] Indonesian companies will also be recognized as AEOs in Korea.”
Hatta highlighted that the benefits of being a certified AEO would only increase through the cooperation between Indonesian and Korean customs agencies. Whereas AEOs had received priority treatment in the past, such as minimal document verification and physical inspections, simplified customs procedures and ease of prenotification and regular payments, the new Indonesia-Korea MRA brought even greater benefits. These included reductions in inspection rates, time and logistics costs due to faster customs clearance processes, as well as increased business opportunities and wider market share.
“Considering the huge benefits that AEO certificate holders will gain, we continue to urge the public, especially businesses that meet the [certification] requirements and criteria, to apply for AEO certification and take advantage of this customs facility. Decisions and AEO certification will be issued no later than sixty days from the date of receipt of the field review report,” said Hatta.
“The certificate is valid for five years and can be extended [contingent on] monitoring and evaluation results," he added.
For more information, email aeoindonesia@customs.go.id, call the Bravo Bea Cukai contact center (1500225), the Customs Office’s official communication channel, or visit the Indonesia National Trade Repository (eservice.insw.go.id). The Indonesia-Korea AEO MRA rules are available via https://bit.ly/KEP75BC2022.
