International Trade Transaction Insurance, Customs Valuations, and Import Duty Calculations

The Director General of Customs has recently issued Regulation No. 02/BC/2005 on Insurance to Secure International Trade Transactions as a Component of Customs Valuations for Import Duty Calculations to ensure that Indonesia complies with current international standards relating to international trading insurance, particularly in relation to documentary credits.

The Regulation covers three types of insurance cover; namely, Individual (closed); Open/Floating; and, Open Cover policies. Each type of insurance is enumerated in the Regulation as are the obligations that importers must satisfy to ensure that are in compliance with the provisions of this Regulation.