About Certificate of Origin (COO) for Import Commodity to Indonesia
12 Jun
2017

About Certificate of Origin (COO) for Import Commodity to Indonesia

COO (Certificate of Origin) or Surat Keterangan Asal (in Bahasa), can be utilized to decrease custom tax on import goods to Indonesia. Related to this matter, Indonesia has enacted Law No. 7/1994 related to the Agreement of World Trade Organization trade policy and regulations.

When doing import for their business activities in Indonesia, customers sometimes confused on how to use COO documents in doing importation, and how the regulations manage the issues. There are some regulation you need to know when using this facility (Trade Ministry Regulation/ Permendag No. 77/M-DAG/PER/10/2014). Generally, the COO are documents to facilitate the import goods with function like minimalize the import tax to the import goods.

However, there are common types of discrepancies in COO documents, for example:

a. Minority Mistakes: incorrect data on address and type of goods in COO documents. If this discrepancy arise, it will not create serious problem. The COO document still can be used to further the importation process.

b. Majority Mistakes: incorrect data on invoice number, amount of goods and name of commodity. If these mistakes arise, custom officer will questioned the COO, and most probably the COO documents will be declined to be processed. There are steps to be taken to remediate the COO document, namely the COO shall be returned to the country of origin, corrected, or renewed according to the exact data listed in the invoice and packing list. If the importers can not run the correction process, naturally the COO document can not be used in the Indonesian custom, and the consequence that the import goods tax can not be decreased.

More detailed information can be checked in the Trade Ministry Regulation/ Permendag No. 77/M-DAG/PER/10/2014 for your references