Indonesia, China to Sign MoU on e-CoO Data Exchange

Brussel, InfoPublik – Indonesian government and Chinese government have agreed to increase the provision of import and export facilities with electronic Certificate of Origin (CoO) exchange.

The agreement was marked with the signing of Memorandum of Understanding (MoU) on Electronic Origin Data Exchange to Facilitate Free Trade Agreement Implementation between parties authorized to issue Certificates of Origin from both countries. The signing was held on the sidelines of the 133^th/134^th World Customs Organization (WCO) Council sessions in Brussels, Belgium, on 27 June 2019.

Foreign Trade Director General of Trade Ministry Oke Nurwan, Customs and Excise Director General of Finance Ministry Heru Pambudi, and Indonesia National Single Window Head Djatmiko signed the MoU on behalf of the Indonesian Government with Republic of China’s Deputy Minister of General Administration of Customs (GACC) Wang Lingjun.

"In this digital era, Indonesian Trade Ministry must create a new breakthrough in accommodating the needs of business players so that they are able to compete in the international market. Trade Ministry is also expected to create public services that are fast, easy, and transparent. One of the steps taken by the Ministry is by developing e-CoO and strengthening electronic certificate of origin’s data integration cooperation with another countries," Oke said in a press release received in Jakarta on Sunday (30/6/).

According to him, the trend of increasing competitiveness from global and domestic markets has led Indonesia to adopt a more innovative trade practices and standards in encouraging the trade facilitation. This MoU is in line with President Joko widodo’s directives in the implementation of digital service program.  

Oke stated that the MoU is intended to facilitate the implementation of free trade agreements (FTAs) and to improve the use of CoO between the two countries.

In addition, the cooperation is also expected to encourage bilateral trade and contribution to the economic development and trade of both parties. The cooperation becomes a means to develop close and consistent partnerships between parties and to modernize licensing techniques in the implementation of free trade agreements.

"The MoU is expected to strengthen the commitment of the two countries in preventing and prohibiting the practice of illegal use or fraudulent of origin of goods that hinder the implementation of FTA," said Oke.

Meanwhile, Heru said, this MoU is a form of commitment to enhance cooperation between the two parties.

"The signing of the MoU will enable the achievement of a common goal of trade facilitation within the framework of the ASEAN-China free trade agreement. It also will ensure legitimate trade development, economic growth, and the protection of the people. In addition, it will also accelerate information flow between governments and provide benefits to parties involved in international trade," Heru said.

Export and Import Facilitation Director Olvy Andrianita added that CoO is an international trade document stating that goods in export shipping are fully obtained, produced, or processed in certain countries. In addition, CoO also functions as a declaration by exporters.

"With this MoU, both parties agreed to exchange CoO data and be able to approve/reject data directly, using XML-based standards," Olvy explained.

In 2012, Indonesia has created electronic CoO system called e-SKA. This system uses a centralized network-based system to connect all regional issuing authorities appointed by Trade Ministry. The e-SKA system also sends CoO data to be exchanged internationally, which is currently used for INSW and ASEAN Single Window.

During his visit to Belgium, Oke attended a number of meetings, one of which was a meeting with legal consultant Fratini Vergano and VVGB Lawfirm. This meeting aimed at developing strategic litigation steps in the World Trade Organization (WTO) forum regarding the policy of biodiesel products in the European Union.

Director General Oke also attended business meetings with buyers from Belgium and the Netherlands engaged in spices, furniture, coffee, wood products and processed fish products. In addition, the he also attended the launch of the House of Indonesia-Belgium, a cooperation between the Brussels Trade Attaché and a number of Belgian buyers initiated by the Barabas BVBA company.

Reporter: Isma

Translator: Wilda Stiana