Understand the Challenges and How to Manage LARTAS Efficiently!

What is LARTAS? In this era of globalization, international trade is a key driver of economic growth. However, behind the huge potential benefits, there are complexities and challenges, especially when it comes to Prohibitions and Restrictions on Transportation and Trade (LARTAS). The process of applying for a LARTAS license can be a confusing maze of laws and regulations, but with the right steps, you can overcome these obstacles more efficiently.

In this article, we will explore a step-by-step guide to better administering LARTAS licenses. From a deep understanding of the regulations to the application of the latest technology, let’s uncover the secrets of efficiency in navigating this complex process together. Discover how to simplify and expedite the journey of your goods across international borders, providing greater opportunities for your business growth. Check out the explanation through the following article TransTRACK!

How to apply for an import clearance permit?

The process of obtaining import licenses (clearance permits) may vary depending on the country and type of goods to be imported. However, in general, the following steps can help you in applying for import licenses:

Identify the Type of Imported Goods

Make sure you understand the type of goods to be imported and whether or not they require a special import permit.

Find Information on Regulations and Requirements

Research the import regulations and requirements that apply in the destination country. You can contact the customs office, food and drug control agency, or other relevant agencies for more information.

Register at the Integrated Import Service (PIT) or Integrated Service System (ISS)

Many countries have online systems for import licensing. Registration and document submission can be done through this system.

Complete the required documents

Prepare the necessary documents, such as commercial invoices, packing lists, certificates of origin, permits from related institutions, and other documents that may be required.

Submission of Import License Application

Apply for an import permit through the online system or by visiting an authorized service office. Ensure that all required documents are complete and appropriate.

Payment of Import Duties and Taxes

Upon approval of the import license, complete payment of import duties and taxes imposed by the authorities.

Process Monitoring and Goods Collection

Monitor the process of issuing import licenses and make sure to pick up the imported goods in accordance with applicable regulations.

The Import Import Consultation with Legal Experts and Consultants is Important

Given the complexity of the applicable rules and regulations, it is often useful to consult with an experienced legal expert or import consultant to ensure that all legal and regulatory aspects are met.

How to apply for an export lartas license

Here’s how to apply for an export license by yourself:

1. Ensure whether or not the goods to be imported fall under the Lartas category

First, importers must determine whether or not the products to be imported fall under the Lartas category. This step may seem simple, but it is crucial to the overall import process. Goods may or may not require an Import License, Surveyor’s Report, or both. This is also related to the government’s policy in determining Lartas goods which can change.

Decree of the Indonesian Minister of Finance Number 23/KM.4/2022 allows importers to inspect products before they are imported. If you want to be more practical, visit the insw.go.id website. To do this, navigate to the website  www.insw.go.id, enter the HS number or item description in the “Search HS Code/HS Description” column, then click “search”. After that, you will be taken to a page that lists HS Codes and related items.

Clicking “details” on the list of items will indicate whether an item is affected by Lartas or not. Export and Import Regulations will be included with the full information. Imported products usually require import permits, certificates and surveyor reports to be imported.

2. Obtain an import license from a technical agency

The second step is to obtain an import license from the relevant technical agency. If importers know that their imported goods are subject to Lartas, the next step is to request an import license from the relevant technical agency. Import license from the Ministry of Trade is the most commonly used import license.

This Import License document is required for the release of imported goods at the port. If imported goods included in the Lartas are not accompanied by an Import License document, the goods cannot be released from the port of loading and must be re-exported or partially released. Importers can obtain this document by applying for an import license online through the Online Single Submission (OSS).

3. Process the Surveyor’s Report document

The third step in processing the import of goods affected by Lartas is to process the Surveyor’s Report. In addition to import licensing, the government monitors exports and imports through the Import Technical Traceability Verification (VPTI) program that generates a Surveyor’s Report document. On the importer’s side, completing this Surveyor’s Report can help ensure that imported goods meet standards before being shipped to Indonesia.

Importers can obtain this document by submitting a technical verification request to the Independent Surveyor Institute (LSI). Importers can create an account on the LSI system and then submit a verification request. Surveys will be conducted by LSI affiliates located around the world. The importer must provide the correct information required by LSI, cooperate with the exporter to verify the goods, and of course, pay the survey fee.

4. Completing Customs services

The final stage in the import of foreign products (including those affected by Lartas) is Customs. Simply put, all imported goods (excluding goods subject to government laws) will be inspected first, and customs duties must be paid. Importers arrange this customs service through the Directorate General of Customs (DGCE) of the Ministry of Finance. DGCE will inspect the imported goods subject to Lartas, including the Import License and Supplier’s Report, to ensure the completeness of the documents.

Importers who can provide Import License and Surveyor’s Report documents for imported goods subject to Lartas may proceed with the inspection and release of goods from the port of loading. Otherwise, the imported goods will be detained until the importer can present the Import License document and Surveyor’s report. The time limit for these documents is 30 days. If the importer does not present the required documents for more than 30 days, the imported goods will be classified as “Uncontrolled Goods”.

Meanwhile, customs services are centrally controlled at  www.insw.go.id.

How to handle goods that are subject to lartas

In the import process, especially through customs declaration, the documents submitted will be validated by the system to determine whether the HS Code of the product is subject to restrictions or not. Goods are classified using the HS Code as the parameter.

However, in other circumstances, the goods are not immediately known, but after physical inspection, the HS belongs to a certain group. Therefore, DGCE proceeds with securing the commodity until it meets the required standards.

With the increasing complexity of international trade regulations, especially related to LARTAS, a smart and integrated approach is needed to manage the import and export process. In an effort to improve your operational efficiency, TransTRACK Warehouse Management System (WMS) offers a leading solution.

With advanced features such as real-time inventory monitoring, accurate shipment tracking, and documentation process automation, TransTRACK WMS enables your company to face the challenges of LARTAS licensing with confidence.

Don’t let regulatory complexities hinder your business growth. TransTRACK WMS is here to help you overcome every obstacle with an integrated and reliable system.

Don’t wait any longer. Discover how TransTRACK WMS can take your business to the next level in dealing with import and export challenges. 

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