Purchasing: Definition, Activities, and Functions
What is Purchasing? Purchasing is the organized acquisition of goods and services on behalf of a buyer. Purchasing activities are necessary to ensure that needed goods are obtained on time and at a reasonable cost. A purchasing department is essential in the manufacturing industry, where large quantities of raw materials and components must be procured on a recurring basis. The primary objectives of the purchasing department are as follows: To identify suppliers capable of providing goods and services that meet the buyer’s needs. To purchase goods that meet the buyer’s quality specifications. To establish a supply flow to the buyer’s location that minimizes investment in raw material inventory while ensuring goods are available as needed. To minimize the amount of cash tied up in inventory. Purchasing Activities Common purchasing activities include the following: Receiving and verifying purchase requests from across the company. Identifying qualified suppliers capable of meeting the buyer’s needs. Preparing and issuing request for proposal (RFP) documents to qualified suppliers. Evaluating suppliers’ responses to the RFP, selecting the winning bidder, and negotiating the contract. Issue purchase orders to suppliers to authorize the purchase. Master purchase orders can be issued when multiple shipments are planned based on Purchasing settings. Manage contracts with longer durations. Review open purchases to see if any need to be closed. Purchasing Functions There is a tendency for the purchasing function to become bogged down in administrative tasks related to the excessive use of bidding procedures and the issuance of purchase orders. This function can be streamlined by replacing competitive bidding with single-source arrangements for most purchases. In addition, lower-cost purchases are now made using procurement cards, thereby avoiding the use of purchase orders. This level of streamlining allows the Purchasing department to focus its attention solely on the most expensive and complex expenditures. Purchasing Systems The Purchasing Department can operate a standalone purchasing software package, although this system is more effective when integrated into accounts receivable and accounts payable software. An enterprise resource planning system will include a Purchasing module.
Manufacturing: Definition, Types, and Examples of Products
What Is Manufacturing? Manufacturing is the production of goods through the use of labor, machinery, equipment, and biological or chemical processing or formulation. Manufacturing can involve transforming raw materials into finished goods on a large scale, or creating more complex goods by supplying basic materials to manufacturers for the production of items such as cars, airplanes, or household appliances. Raw materials are transformed into finished products through manufacturing engineering or manufacturing processes. This process begins with product design and material selection. Materials are modified during various manufacturing processes to create the finished product. Modern advanced manufacturing often involves several intermediate processes to create various components for finished goods, with some manufacturers using the term “fabrication.” Manufacturing is closely related to the engineering sector and industrial process design. History of Manufacturing Manufacturing has existed for centuries and was initially carried out by skilled artisans, sometimes working with assistants, with skills passed down through apprenticeships. Manufacturers may have joined guilds that protected the trade secrets and privileges of these artisans. Alternatively, manufacturing could take place on a less organized scale, often in rural areas, where artisans would supplement their agricultural livelihoods through home-based manufacturing. These manufacturing households were sometimes organized into cooperative enterprises through the put-out system. However, this early manufacturing system changed with the introduction of the factory system in England at the start of the Industrial Revolution in the late 18th century. This system leveraged technological advancements and utilized machines powered by water, steam, and, later, electricity, enabling large-scale production. The assembly-line method was described by Adam Smith in *The Wealth of Nations*, which introduced the concept of the division of labor. This meant that different people would each take on only one part of the manufacturing process—for example, cutting wire for pins—to create a more efficient and cost-effective process. Mechanization and automation later built upon this concept to create highly repetitive manufacturing. Rather than a single artisan producing an entire product—as had been the case for centuries in the past—manufacturing was broken down into separate parts to lay the foundation for modern manufacturing as we know it today. What Are the Types of Manufacturing? At its core, manufacturing is a simple process: raw materials or component parts are purchased and then transformed into finished products. However, to be successful, manufacturers must be able to cover the costs of producing the goods, meet demand, and create products that the market wants. There are three types of manufacturing production processes: make-to-stock (MTS), make-to-order (MTO), and make-to-assemble (MTA). These three types of manufacturing work as follows: Make-to-Stock (MTS) In this system, a factory produces goods that are stored in inventory at stores and showrooms. This means that market demand for these goods must be predicted so that they can be produced in advance and made ready for consumers. However, producing too much can result in excess inventory that must be sold at a loss, while producing too little can mean missing market opportunities and costs not being covered by sales. Make-To-Order (MTO) The make-to-order method allows manufacturers to wait until an order is received before production begins. This makes it easier to manage inventory and respond to market demand. However, customers must wait for their products to be manufactured, and the manufacturer will need a steady flow of orders to keep the factory running and remain profitable. Make-To-Assemble (MTA) This method is similar to make-to-stock, except that the factory produces parts in anticipation of assembly orders. This means the manufacturer is ready to fulfill customer orders as they arrive, but it can leave the manufacturer with unwanted inventory of parts if there is no demand. As shown above, all of these manufacturing types carry their own risks related to supply and demand. Produce too much, and the market will be flooded, leading to lower prices and profits. Produce too little, and customers will go elsewhere, resulting in lost profit potential. Quality control is also a critical aspect of every manufacturing process to protect your brand and product reputation. A successful manufacturing business requires a good balance between sales management, inventory management, quality control, and production cost management. Examples of Manufacturing Products Manufacturing is defined as the creation of new products, whether from raw materials or components. Examples of manufacturing include automotive companies, bakeries, shoe manufacturers, and tailors, as they all create products rather than provide services. However, for example, logging or mining is not considered manufacturing, as it does not transform raw materials into new products. Construction, although it may appear to be a manufacturing process, is actually its own category and is also not considered part of manufacturing. Manufacturing jobs can encompass a wide range of skills, including assemblers, bakers, dental and medical equipment technicians, food processors, jewelers, metalworkers, machinists, printers, quality control inspectors, tailors, upholsterers, welders, cutters, and woodworkers.
Easy Tips for Choosing an International Shipping Service
These days, there are countless international freight forwarding services—in Indonesia alone, there are more than 40 providers offering these services. Most of us might be confused about which one to choose from among so many options. That’s why we at Oaktree, as a freight forwarding software provider in Indonesia, would like to share some tips with you so you can make the right choice. You might be tempted to choose based on price alone, but there are actually other factors you should be aware of—check out the explanation below. Read Also: What Is Freight Forwarding Accounting? A Complete Explanation Tips for Choosing an International Shipping Service Examine the Services Pay close attention to the services provided. To do this, ask what they offer and what’s included in their services. After all, service is the core of any business, so make sure the services provided are of the highest quality. In this industry, “highest quality” means the provider takes responsibility and delivers excellent service, ensuring that shipments are handled smoothly and arrive on time, in line with the type of service offered. Goods Protection Make sure the items being shipped are clearly protected; this provides peace of mind when the items we’re sending are fragile, prone to bending, or have other vulnerabilities. Price The next tip for choosing an international shipping service is to consider the price. Compare the prices offered with your budget, and don’t forget to compare prices among the various shipping services available. Guarantee Does the shipping company guarantee that your items will arrive 100% intact? Unexpected events—such as accidents, natural disasters, or other unforeseen circumstances—can cause damage to goods. In such cases, will the company take responsibility? Compare International Shipping Services Finally, don’t forget to compare the services offered by each company. This will broaden your perspective, as there might be a better option out there that you’re not aware of. Conclusion Well, that’s all we have to share on this topic—we hope you find it helpful.
How to Obtain an HS Code
How to obtain an HS Code to comply with regulations for each imported and exported product, including the documents that importers/exporters must complete, and to determine the amount of import duties and taxes payable to the government. Definition of HS Code The Harmonized System, commonly known as HS, is a systematically organized list of product classifications designed to facilitate searching, trade, transportation, and statistics—an improved version of previous classification systems. Currently, the classification of goods in Indonesia is based on the Harmonized System and is included in the tariff list known as the Indonesian Import Tariff Book (BTBMI). The HS Code governs the classification of every imported and exported product, including the documents that must be completed by importers and exporters, and determines the amount of import duties and taxes payable to the government. This international product classification aims to ensure that all countries share a common understanding of the types of goods they import or export. It also facilitates customs and excise operations, which serve as an extension of the government’s authority to monitor the movement of goods entering or leaving Indonesia. In Indonesia, commodity classification was initially established in a tariff schedule—the Indonesian Import Tariff Book (BTBMI)—which consists of 10-digit codes. The first six digits are established by the World Customs Organization (WCO) and comprise 97 chapters that are internationally recognized. The six-digit HS classification system can be expanded to include additional subcategories by each participating country. ASEAN itself has agreed to adopt the eight-digit ASEAN Harmonized Tariff Nomenclature (AHTN), which is a further development of the six-digit HS. As of March 1, 2017, HS codes in Indonesia follow the AHTN and use the eight-digit system. Here’s how to find a product’s HS Code: Method 1 for Obtaining an HS Code Go to the INSW (Indonesia National Single Window) portal at http://eservice.insw.go.id/. Click the INDONESIA NTR menu on the toolbar, then select HS CODE INFORMATION. Click on the “Options” section and select “BTBMI – Description in Indonesian.” Enter a word in the Indonesian keyword field, such as “apple.” Various types of HS codes containing “Apple” will appear. Find the required HS Code. Look for the eight-digit code. Scroll down to view the Import Duty, VAT, Income Tax, and Prohibitions or Restrictions (Lartas). Method 2 for Obtaining an HS Code Log in to intrade.kemendag.go.id Select the "Tools" menu, then click "HS List." In the HS search field, enter the HS code if you already know the HS number of the item you’re looking for. If not, select the “Item Description (Indonesian)” menu. In the next field, enter the keyword you’re looking for, such as “apple.” Click the "View" menu, and you’ll see a list of HS codes containing items related to "Apple"; choose the one you’re looking for. The HS code is listed on the left. How to Read HS Codes The HS uses code numbers to classify goods. The code numbers include systematized descriptions of the goods. The HS numbering system is divided into chapters (2 digits), headings (4 digits), and subheadings (6 digits), with the following explanations: For example, HS Code 0101.11.xx.xx is taken from BTBMI (10 digits) 01 01 11 xx xx __ Chapter 1 _____ Header 01. 01 ________ Subheading 0101.11 ___________ Subtitle: ASEAN Harmonized Tariff Nomenclature (AHTN) _______________ Tariff Schedule of the Indonesian Import Tariff Book (BTBMI) The category in which an item is classified is indicated by the first two digits of the number; the example above shows that the item is classified under Chapter 1. The next two digits of the number—or the first four digits—indicate the heading within the chapter mentioned above; in this example, the item is classified under heading 01.01. The first six digits indicate the subheading for each heading and chapter discussed. In the example above, the item is classified under subheading 0101.11. The first eight digits of the number are the heading taken from the AHTN text. The ten-digit number indicates the national tariff heading taken from the BTBMI; this tariff heading specifies the amount of duties (import duties, VAT, luxury goods tax, or excise tax) and any applicable trade regulations. Source: Indonesia.go.id.
HTS Code 8302.30 Installation of base metals and similar materials
HTS Code 8302.30 – Base metal mountings, fittings, and similar articles suitable for motor vehicles (excluding hinges and wheels). HTS Code Description Unit of Quantity Duty Rate Column 1 Column 2 General Duty Rate Special Duty Rate 2 8302.30.30 Of iron or steel, of aluminum, or of zinc 0.00% Free (A*, AU, B, BH, CA, CL, CO, D, E, IL, JO, KR, MA, MX, OM, P, PA, PE, S, SG) 30.00% 8302.30.30.10 Pneumatic cylinders for lifting, lowering, damping, or counterbalancing No. 8302.30.30.60 Other kg 8302.30.60.00 Other kg 0.00% Free (A+, AU, B, BH, CA, CL, CO, D, E, IL, JO, KR, MA, MX, OM, P, PA, PE, S, SG) 50.00% What are HTS Codes 8 and 10? HTS or HS Code 8302.30 refers to base metal mountings, fittings, and similar articles suitable for motor vehicles. While the first 6 digits of the HS Code are the same globally, the next 2–4 digits vary by country. Types of Import Tariffs Column 1 – “General” Column 1 “General” is the General subcolumn of the Harmonized Tariff Schedule (HTS). Countries whose goods qualify for this tariff are considered countries with which the U.S. has “Normal Trade Relations” (NTR). Column 1 – “Special” Many countries eligible for Column 1 rates may also qualify for preferential duty rates under various special trade agreements, as listed in the “Special” sub-column of Column 1. Column 2 Countries not covered by NTR are typically referred to as “Column Two” countries, meaning that the duty rates for products from those countries are listed in Column Two of the HTS. Currently, the only countries with Column Two status are Cuba and North Korea. This is the information regarding HTS Code 8302.30 that may be useful to you.
What Is Door-to-Door Service? Read the Full Explanation!
Have you ever heard of door-to-door services before? If you’ve been involved in the shipping process frequently, you’re certainly no stranger to this concept—especially when shipping large shipments, whether domestic cargo or imports and exports. Import and export activities can often be very complex and time-consuming processes because there are so many rules, regulations, and procedures that must be followed. Understanding Door-to-Door A door-to-door service is a shipping service that allows goods to be picked up directly from a location specified by the sender—or, in this context, the shipper—whether it’s a warehouse, factory warehouse, residence, or business address, and transported to the desired destination. This means that if you use this door-to-door shipping service, you won’t have to worry about any processes or procedures. All you need to do is wait for the driver to pick up your goods at the designated location and pay the shipping fee until the shipment arrives at its destination. The cost itself depends on the type of package and the standard terms and conditions. In general, this door-to-door service is more effective for shipping goods from overseas (imports), making it a fast track for importers to receive their goods. However, this door-to-door service is also widely used for shipping large-tonnage and high-volume cargo from one location to another. What Are the Benefits of Using Door-to-Door Services for Your Business Save on Business Expenses Door-to-door shipping services offer you considerable flexibility because you don’t need to consolidate shipments to reduce import costs. This door-to-door service helps you significantly reduce transit time, which in turn saves you even more money. Additionally, you don’t have to worry about shipping large quantities of goods just to get packages to the final distribution point. That’s because the goods will be picked up directly from your location and delivered to their destination as soon as possible. Save on Shipping Time Whereas you previously needed a lot of time to handle shipments yourself from start to finish, this process can now be streamlined by using door-to-door services. Having goods picked up directly from your desired location allows you to use all your extra time to focus on growing your business. Simpler Process Simplicity is the primary benefit of door-to-door shipping services. As mentioned earlier, there are many different stages and levels involved in logistics. Door-to-door service makes things easier for you. Faster Delivery With the pickup system, goods can be shipped faster because they don’t have to pass through multiple other locations. For any questions, you can also contact us at sales@kargo.tech. We’re happy to provide all your freight forwarding software needs, ranging from FTL, FCL, LCL, and customs clearance—and even accounting services.
What Is an AWB? Its Functions and How to Obtain One
What is an AWB? An air waybill, also known as a consignment note, dispatch note, or waybill, is a contract between the shipper and the carrier. It provides important information for the shipper, is used to track shipments, and contains a barcode to electronically identify the shipment. What is an AWB? AWB stands for Air Waybill, which is a document accompanying goods shipped by a shipping service to provide detailed information about the shipment and enable tracking. An AWB has multiple copies so that every party involved in the shipment can keep a record. An air waybill (AWB), also known as an air consignment note, is a type of bill of lading. However, while an AWB serves a similar function to a marine bill of lading, it is issued in a non-negotiable form, meaning it offers less protection than a marine bill of lading. Functions of the Air Waybill (AWB) An air waybill (AWB) serves as a receipt for the goods by the airline (carrier), as well as a contract of carriage between the shipper and the carrier. It is a legally enforceable agreement. The air waybill also contains the shipper’s name and address, the consignee’s name and address, the three-letter origin airport code, the three-letter destination airport code, the declared shipment value for customs purposes, the number of pieces, the gross weight, a description of the goods, and any special instructions (e.g., “fragile”). The AWB also contains contractual provisions outlining the carrier’s terms and conditions, such as limits of liability and claims procedures, a description of the goods, and applicable charges. The air waybill is a standard form distributed by the International Air Transport Association (IATA). Types and Characteristics of Air Waybills The International Air Transport Association (IATA) designs and distributes air waybills. There are two types of AWBs: airline-specific and neutral. Every airline AWB must include the airline’s name, headquarters address, logo, and air waybill number. Neutral air waybills have the same layout and format as airline AWBs; they are simply not pre-filled. An air waybill consists of 11 numbers and is issued in eight copies of various colors. With Multilateral Electronic Air Waybill Resolution 672, paper air waybills are no longer required. Known as the e-AWB, it has been in use since 2010 and became the default contract for all air cargo shipments on enabled trade routes starting in 2019. Some airlines no longer issue paper air waybills, allowing access only to electronic air waybills. Air Waybill (AWB) vs. Bill of Lading An AWB differs from other bills of lading because it is a non-negotiable instrument, meaning the AWB does not specify on which flight the shipment will be transported or when it will reach its destination. A bill of lading is a legal document between the shipper and the carrier, detailing the type, quantity, and destination of the goods being transported. The bill of lading also serves as a receipt for the shipment when the goods are delivered to the specified destination. This document accompanies the goods and is signed by authorized representatives of the shipper, the carrier, and the consignee. However, unlike a bill of lading, an air waybill (AWB) is not negotiable. Because it is not negotiable, an AWB is a contract solely for transportation and does not cover the value of the goods. Source: What is an air waybill (AWB)? (fedex.com)
Ocean Shipping: Definition and How It Works
International shipping costs can increase when a company chooses a mode of transportation that isn’t suitable for the volume and type of goods. If your company needs to ship large, heavy, and non-perishable cargo, ocean freight can be an efficient option. Ocean freight is a method of transporting goods by sea using cargo ships. This article will discuss what ocean freight is in international shipping, including how it works, how much it costs, and when it makes the most sense to choose this shipping method. ✦ Key Takeaways Ocean freight is a method of shipping goods by sea that is suitable for large, heavy, and non-time-sensitive cargo. FCL uses a single container for a single shipper, while LCL shares container space with other shippers. The choice of service should take into account cost, time, risk, and the nature of the goods. Integrated systems help companies manage shipments, documents, invoices, costs, and reports in a more centralized manner. Ocean Freight in International Shipping In international shipping, ocean freight is often defined as the method of transporting goods between countries by sea using cargo ships. The process includes loading goods at the port of origin, transport by sea, unloading at the port of destination, and delivery to the recipient. The terms “ocean freight,” “sea freight,” and “maritime shipping” are often used to describe the same activity. However, the term “ocean shipping” has a broader scope because it can refer to shipping activities, ship operations, shipping routes, and shipping company services. Simply put, ocean freight is a service for shipping goods by sea that is generally used to transport large, heavy, or high-volume cargo at a more cost-effective rate. Ocean freight plays a vital role in international trade. According to the United Nations Conference on Trade and Development (UNCTAD), approximately 80 percent of the volume of international trade in goods is transported by sea. This percentage is even higher in many developing countries. The large capacity of ships makes ocean freight suitable for transporting raw materials, machinery, vehicles, manufactured goods, commodities, and large quantities of goods. However, delivery times are generally longer than for air freight. When Should You Use Ocean Freight? Ocean freight isn’t always the best option for every shipment. Companies need to choose the mode of transportation based on the nature of the goods and the desired delivery timeframe. Shipping by sea can be considered under the following conditions: The goods are large in size or weight. The volume of goods is large enough to fill part or all of a container. The shipment does not require extremely fast delivery. Cost efficiency is more important than speed. The goods are not prone to damage during transit. Companies ship machinery, raw materials, vehicles, or products in large quantities. Ocean freight may not be suitable for products with a very short shelf life, goods that must be received immediately, or high-value shipments with tight deadlines. In such cases, companies should compare it with air freight before making a decision. Types of Ocean Freight Before booking ocean freight services, you need to understand the available shipping options so you can choose the service that best fits your shipping needs. Here are the shipping services commonly available: 1. FCL or Full Container Load Full Container Load is a shipping service where a single shipper uses an entire container for their goods. The shipper pays for the use of the entire container even if the space inside is not fully filled. FCL does not mean the container must always be full. The term indicates that the use of the container is not shared with other shippers. This service is suitable for high-volume goods, regular shipments, or goods that require more restricted handling. Containers are typically sealed after loading and reopened according to procedure at the destination. FCL can reduce the need for consolidating and separating goods. As a result, the number of handling operations during transit tends to be fewer compared to LCL. 2. LCL or Less than Container Load Less than Container Load is a service that allows multiple shippers to share space within the same container. Each shipper pays based on the space used or the calculation method employed by the service provider. LCL cargo must undergo a consolidation process before shipment. Upon arrival at the destination, the cargo must be separated again through a deconsolidation process. According to Maersk’s explanation of LCL, this service allows shippers to share a container with other shippers. Logistics service providers will combine multiple shipments with matching destinations within their service network. LCL is suitable for shipments that do not yet require a full container. However, the consolidation and deconsolidation processes can add to handling time. [irp posts="3707" ] How to Ship Using Ocean Shipping Ocean shipping relies heavily on third-party services known as freight forwarding or shipping services. Freight forwarders are typically third-party individuals or companies that ship goods, pack them, arrange for proper loading and transportation, and ultimately deliver them correctly to their final destination. This is because it usually requires reliable expertise to help manage the shipment of goods by sea. Supply contracts are also a crucial part of the process that must be considered. There are standard international shipping terms that govern shipping contracts. These rules are known as Incoterms, which must be understood in any international movement of goods. After determining the terms of delivery, the ocean shipping registration process will consist of the following steps: Export Transportation: This stage marks the beginning of the shipping journey. At this stage, the goods are transported from the seller’s warehouse to the shipper’s warehouse. Export Customs Clearance: Most countries require that goods intended for export undergo customs clearance first. This process involves providing detailed information about the cargo along with supporting documentation. Origin Processing: This step covers all the necessary steps to prepare the goods for shipment. The shipment will be placed in an area for inspection and confirmation. After confirmation, the shipper will issue a receipt stating that they have received
TMS Forwarder: The Benefits of TMS Technology in the Freight Forwarding Industry
TMS Forwarder is a trucking management system; in the world of freight forwarding, TMS is a feature. In today’s technological landscape, the use of technology spans a wide range of applications—one of which is in the logistics industry, where the need for speed and accuracy has led to the development of a system to assist with transportation management. This automated transportation management technology is known as a transportation management system, commonly abbreviated as TMS. This technology can be used to manage a company’s transportation operations by reducing the need for manual data entry, monitoring transportation modes and delivery efficiency, and much more. The benefits of using a TMS include: What Are the Benefits of Using TMS Technology? 1. Simplifies Corporate Control The use of technology is key for every company looking to grow its business. By using TMS technology, logistics companies can monitor all their transportation modes from a single dashboard, making it easier for management to evaluate operations and make strategic decisions for the company. 2. Improves company efficiency By using a Trucking Management System, the time required to manage shipments is reduced due to logistics automation, giving the company more time to focus on and optimize its operations. Additionally, the Trucking Management System is typically integrated with the company’s ERP system, thereby reducing data entry errors and the time needed to correct them. 3. Improving Freight Delivery Capabilities A TMS automates how a company handles goods delivery. For example, if a company wants to set up a distribution hub, a Transportation Management System can automatically generate bills of lading (documents proving that goods have been loaded onto a vehicle), and the company can have users log in to the TMS from different locations—all of which can be managed by a single administrator. 4. Real-Time Data Access When data can be accessed in real time and is supported by the ability to process it into reports, it provides added value for making business decisions, and those decisions will be better because they are supported by data on trends and past history. Suppose a company has data showing that 70% of vehicle usage comes from Vendor X; from this data, we can conclude that Vendor X was chosen because of its lower prices. Other data reveals that 30% of shipments made by Vendor X arrive late at their destinations. Given this information, the company will naturally think twice about using Vendor X due to the high rate of delays. This process is supported by automation, ensuring that individuals within the company have access to the data they need to make informed decisions. Read Also: Online Customs Declaration in Indonesia—Here’s How to Fill It Out! 5. Improving Customer Service By using a TMS, customers will receive real-time vehicle tracking information, an automated pickup process, insurance coverage, and transportation cost calculations tailored to their specific needs. As a result, customers will have a clear understanding of the exact costs incurred and will receive automatic notifications informing them of the estimated arrival time at their destination. Oaktree Software Oaktree is freight forwarding software in Indonesia that supports the Trucking Management System (TMS) feature for forwarders. For more information, please contact us here.
Online Customs Declaration in Indonesia: Here’s How to Fill It Out!
Shopping is one of the most common activities when traveling abroad. However, keep in mind that these items must be declared to customs officials—a process commonly known as online customs declaration. As stipulated in PMK 203/2017, declarations can be made verbally or in writing. For written declarations, passengers can use a customs declaration form or a special import declaration form. What Is a Customs Declaration? A customs declaration (CD) is a document used to declare imported goods carried by passengers or vehicle crew members. The CD can be completed manually or online. To date, the Indonesian Online Customs Declaration system is only available for arrivals at Soekarno-Hatta International Airport in Jakarta. Consequently, arrivals at airports other than Soekarno-Hatta International Airport still require a printed customs declaration form. How to Fill Out a Customs Declaration You can create or complete a Customs Declaration online by following this link: https://ecd.beacukai.go.id/. On the main page, you’ll be asked to enter passenger information. If so, click Next. In the additional information section, fill in the fields regarding the number of pieces of checked baggage, the number of pieces of carry-on baggage, and the number of family members traveling with you. Once finished, click “Next.” The next step is to fill out the baggage section. In this section, please check the appropriate box if you are carrying items as listed on the form. Then click “Next.” Next, you’ll be asked about the return of your checked baggage. Answer according to the actual conditions and click Next. Next, the system will ask you to agree to the specified terms. In this case, check the appropriate box. Then click Submit. The system will display a barcode; you can print it or take a screenshot of it. Do this quickly because the system will automatically return to the main page. Regulations on the Export and Import of Goods by Passengers Now, after completing all the steps above, the passenger has finished filling out the electronic customs declaration. The completed Online Customs Declaration can then be submitted to customs officials using the QR code displayed after entering the data. This innovation is an implementation of the provisions of PMK No. 203/PMK. 04/2017 regarding Regulations on the Export and Import of Goods Carried by Passengers and Crew Members of Transport Vehicles, Article 9, paragraph 6a, which states: “Customs declarations or notifications of the import of special goods as referred to in paragraph (4) may be submitted no later than the arrival of the passenger or vehicle crew in the form of electronic data.” With the Customs Declaration Electronic application, passengers and crew members can experience greater efficiency and effectiveness in filing customs declarations.