Transshipment, digitization, green trade policy, forced labor, and customs on intangible goods were the main topics of discussion during a joint AmCham Indonesia-US ASEAN Business Council meeting with the US Customs and Border Protection (CBP) Agency on Sep 20.
The meeting featured an open discussion with the CBP delegation led by Deputy Executive Assistant Commissioner John Leonard, who spoke of current issues and challenges the agency faces. The emergence of the digital economy and e-commerce has triggered more small packages to enter the US, and the CBP must update its IT system to process the high-volume of these small parcels more efficiently, said John. CBP supports the implementation of the ASEAN Single Window, where interoperability of customs systems among countries is crucial for seamless cross-border trade.
Companies discussed the issuance and ramifications of Ministry of Finance Regulation 190/2022, specifically surrounding customs duty on intangible goods, as one of the examples of digital protectionism implemented by the Indonesian government. John and his team graciously offered to convey our message to their Indonesian counterpart, the Directorate General of Customs and Excise (DGCE).