A. AITIGA Preferential Tariff Framework & Rules of Origin

Concessional tariff rates under the ASEAN-India Free Trade Area (AITIGA) require satisfying origin conditions detailed in Article 7 of the agreement:

• Wholly Obtained (WO): Applicable to raw agricultural produce harvested or mined in India.
• Change in Tariff Sub-Heading (CTSH): Requires non-originating raw inputs to undergo a 6-digit HS code heading transformation during manufacturing.
• Regional Value Content (RVC 35%): Requires a minimum of 35% domestic value addition on FOB pricing:
  RVC = [ (FOB Price – Value of Non-Originating Materials) / FOB Price ] x 100 >= 35%
• DGFT e-CoO Filing: Exporters generate a digital Form AITIGA Certificate of Origin via coo.dgft.gov.in, verified by Class 3 DSC and Chartered Accountant cost sheet.

B. Customs Authority & Digital Clearance Architecture (Bea Cukai & CEISA 4.0)

The Directorate General of Customs and Excise (Bea Cukai – Direktorat Jenderal Bea dan Cukai – DJBC) operates under Customs Law No. 17/2006:

• CEISA 4.0 & INSW System: Declarations are processed on the CEISA 4.0 (Customs-Excise Information System and Automation) platform integrated with the Indonesia National Single Window (INSW) portal.
• PIB Form BC 2.0 Declaration: Importers file the Pemberitahuan Impor Barang (PIB BC 2.0) declaration prior to cargo arrival.
• Tax & Duty Calculation:
  • Import Duty: 0% 5% under AITIGA preference.
  • Value Added Tax (PPN): Standard 11% VAT calculated on Landed Cost (CIF + Duty).
  • Income Tax Article 22 (PPh 22): 2.5% for importers holding a valid Business Identification Number (NIB / API), or 7.5% 10% for non-API holders.

C. SNI (Standar Nasional Indonesia) Mandatory Safety Certification

Enforced by the National Standardization Agency of Indonesia (BSN – Badan Standardisasi Nasional):

• Mandatory Product Scope: Structural steel, automotive tires, ceramic tiles, domestic electrical appliances, footwear, and toys.
• Factory Audit & SPPR Certificate: Requires an on-site audit of the Indian manufacturing plant by an accredited Indonesian Product Certification Body (LSPro), sample testing in accredited Indonesian laboratories, and issuance of an official SPPR (Certificate of SNI Marking).

D. BPOM Registration (ML Code) for Foods, Pharma & Cosmetics

The Indonesian Food and Drug Authority (BPOM – Badan Pengawas Obat dan Makanan) governs public safety under strict registration frameworks:

• ML Import Registration Number: Processed food and beverage items must obtain an ML (Makanan Luar) Code before commercial shipment. Pharmaceuticals and cosmetics require specific BPOM POM approval numbers.
• Required Documentation: Certificate of Free Sale (CFS), Good Manufacturing Practice (GMP) Certificate, Certificate of Analysis (CoA), and full qualitative/quantitative formula disclosures.

E. BPJPH Halal Law No. 33/2014 & Law No. 6/2023

Governed by the Halal Product Assurance Organizing Agency (BPJPH – Badan Penyelenggara Jaminan Produk Halal):

• Mandatory Halal Obligation: Law No. 33/2014 and Omnibus Law No. 6/2023 mandate that all food, beverages, pharmaceutical ingredients, cosmetics, chemical additives, and consumer goods entering Indonesia must be Halal certified.
• Foreign Halal Certificate Recognition: Foreign Halal certificates from accredited Indian Halal bodies must be registered with BPJPH to obtain an official Indonesian Halal Registration Number.

F. Surveyor Reports (LS) & Import Approvals (PI / Neraca Komoditas)

• Surveyor Report (Laporan Surveyor – LS): Mandatory pre-shipment physical inspection at the port of loading in India carried out by accredited survey agencies (e.g. PT Sucofindo / PT Surveyor Indonesia) for steel, textiles, chemicals, and agricultural shipments.
• Import Approval (PI – Persetujuan Impor): Importers must hold a PI permit granted under the Commodity Balance (Neraca Komoditas) allocation system.