BATAM TRADE COMPLIANCE

VESSEL LOAD OUT TRAINING

McDermott Australia Pty Ltd

July, 2014

© 2010 McDermott International, Inc. All rights reserved.

 Agenda

 PTMI Licensing & Compliance

 PTMI Customs Area Status – Customs Clearance
Process
 Timeline of events - Vessel loadouts
 Interfaces
 Requirements of Vessel Loadouts
 Load list template / Samples
 When in Batam
 Sending vessels back to Batam
 PTMI Licensing
 API-P - Transform raw materials to finished product (or partial)
 Import material must be for own use
 Surplus material must be re-exported
 Trading of imported items is prohibited

 Customs Area Status privilege (recently acquired)

 Customs, immigration and other authorities have 24/7 access to PTMI
 Shipment physical inspection is random, or based on intelligence
 Customs audit on import, and where the items end use is – material
traceability

 CBI (Central Bank of Indonesia)

 Duty & taxes exemption or suspension - reporting

 Specific licenses exist through various Ministries for items related to health,
environment & security
 BIFZA protects local economy
 Strictly administered used item policy exists in the Batam FTZ
 Batam Trade Compliance
Batam Regulatory Bodies
 Customs
 BIFZA (Batam Indonesia Free Zone
Authority)
 Ministry of Trade
 Ministry of Agriculture
 Ministry of Environment
Cargo categories and special requirements
 New items
 Nil
 Used capital Goods
 Require survey, COI (Certificate of Importation) &
BIFZA approvalprior to import
 Used general goods & scrap (Prohibited)
 Temporary import (includes rental)
 No COI, but BIFZA approval required
 Permanent Export
 Temporary export (cannot include rentals)
 Require temp. export permit
 Ship spares and equipment
 Restrictive with various methods available
 Marine Logistics will advise and assist with any
requirements into or out of Batam
4
Risks to non-compliance

 Facilitating payments
 Customs fines
 Suspension of import and export facilities
 Personal liability with customs for
breaking laws
 Interpretation of regulations
 Harbour Master Permits
 PTMI – CUSTOMS AREA STATUS

Loading & Clearance Operations :

1. Temporary export applications 3 - 5 days approval cycle after submission by broker (if
applicable)
2. Cargo export clearance process 1 - 2 days approval cycle after submission by broker
3. Ship’s agent gives customs verbal notification of intention to load – information only, no
approval cycle
4. Loading may commence

Export clearance must be obtained prior to goods being

loaded onto vessel
 Total processing time :
 Permanent Export Items 1 - 2 working days
 Temporary Export Items 4 – 7 working days

 This process allows MDR to have multiple loads per vessel. Weekly final CIPL’s should be
submitted for clearance when staged loading is required.
 Clearance Activity Timelines

Time by function Time by function

Activity
(Permanent Export) (Temporary Export)
Batam Traffic
Receives Load list / Create CIPL
1 - 3 days (depends on size of file) 1 - 3 days (depends on size of file)
Find import documents
Check and update information by cell
Customs Broker
Classifies each item (HS Code) 1 - 3 days (depends on size of file) 1 - 3 days (depends on size of file)
Creates final customs data file
Customs
4 - 7 days
Verify information provided
1 - 2 days (depends on customs) (includes temp. export approval and
Check against import record customs clearance)
Provide approvals / clearance
Total Cycle Time 3 - 8 days 6 - 13 days

* Days in cycle times should be considered as working days only.

 Load list interfaces
Challenges to expect when completing load list
 Information usually only available from custodian of goods
 Different record-keeping protocols in each department
 Each department should be responsible to provide enough information to
complete the load list to the minimum acceptable level

BMB
PMT Fabrication E&M
Warehouse

Marine Rigging

AWS Subcons

Diving Fabrication
Warehouse
 Temporary v Permanent

 Temporary Export
 Temporary export items are those which could conceivably re-enter Batam……
ever
 Marine installation aids, PTMI owned equipment, tools
 Does not include subcontractor equipment (Rov’s, tools etc.), even though
it is returning
 Batam contractors may/or may not need this – check contract

 Permanent Export
 Permanent export items are those which could not conceivably return to
Batam…. Ever
 Anything being fixed to the ocean floor
 Load list General Information

 Previous import documentation match is mandatory against export documents for customs
clearance purposes

 Verification fields for matching:

 Description
 Value
 Dimensions
 Weights

 Numeric link to import document

 Invoice number, line item on invoice
 Temporary import acquittal

 Grillage and sea-fastenings that are originating in Batam (on vessel) is not declared.
 Photographs of the structures should be taken and kept for the vessels return to Batam.
When grillage returns to Batam, it is permitted to discharge as long as it matches the
photographs provided at the time of export.
 Critical information / Template

 Each and every cell for every line must be complete

 Exception for columns N – Q (refer to load list template)
 Each package must be entered at its handleable unit level
 E.g. Box, Container
 Contents must still be itemised
 UOM (unit of measure) using 'set' or 'lot' is not acceptable. Must be itemised by piece with
individual price
 E.g. "1 set of tools" to be shown as 5 hammers, 3 screw drivers with a unit price per item

Revised load list format Recent example

 Planning the loadout

 Meet Batam Traffic to help plan loadout (Grey Building)

 Chaidir Zubir/Rozali Alistair & involve project logistics staff
 They will help you navigate this process and help information retrieval

 Timelines in this are guidelines and can change – they are not gazetted
 Logistics and Traffic can help with scheduling for load out activities
 Multiple CIPL’s for long vessel mob’s
 Plan temp items early

 Ensure those providing you with items are also providing the information needed
to finalise the load list and achieve customs clearance

 Failure to plan & provide accurate and complete information will cause delays
 Sailaway date
 Cargo left behind
 Issues & additional work/cost for items returning to Batam
 When Returning to Batam

 Template mirrors the export one – copy and paste where possible
 Temporary Export acquittal (Batam origin)
 Same process applies for goods returning – matching against export docs to
acquit
 Items under temp export do not have to return

 Australian (and other non-Batam) origin items:

 Used and general in nature - prohibited
 Scrapping prohibited
 COI and permanent import process Load list to Batam template
 Temp import
 Separate invoice and packing lists required for 5 categories:
 Refer to attached template
 Used items permanent import require COI and BIFZA approval