We discussed the Online Single Submission (OSS) system in several previous client alerts (click here)
The OSS system was launched last week (mid-July 2018), although there are still teething ssues with the system and the system still has limited coverage at this time. Upon launching of the OSS system, eventually all licensing processes will be streamlined under the OSS system.
NIB serves as Basic Import Licenses
The streamlining of licensing processes at the OSS system includes import licenses. All business entities eventually will need to be registered in the OSS system. Upon registration, a Business Identity Number/Nomor Induk Berusaha (NIB) will be issued. The NIB, which will be valid as long as the business entities operate, replaces the (i) Company Registration Certificate, (ii) Importer Identification Number (API), and (iii) customs access right (hak akses kepabeanan), which it has been confirmed refers to the Customs Registration/Nomor Induk epabeanan (NIK).
In other words, business entities that engage in import activities nowadays do not have to process API and NIK as basic import licenses. However, any technical import requirements must still be processed at the relevant supervising authorities. The benefit of an NIB compared to the API and NIK is that the NIB does not have a validity period, unlike an API that had to be renewed every five years. In addition, the NIB also eliminates some technical hurdles, for instance when a company's data changes (e.g., change of address). Previously there would be a series of license updates to adjust the company's data in the licenses (including import licenses), which commonly affected the capability of the company to do importation (the company had to wait until all licenses had been updated to resume the importation). But now, once the company has an NIB, the only thing that will need to be updated in case of a company's data change is the NIB. In other words, the company will not be required to go through the process of updating its API and NIK.
The OSS is Linked to Indonesian Customs and Excise System
It is confirmed that an NIB now serves as an import license has been effectively implemented in the field. The OSS system has been successfully integrated to the Indonesian customs system.
Further, previously an API reflected authorized persons of companies (other than directors) that can sign import documentation ("Import Document Signatories"). The concept of Import Document Signatories is no longer acknowledged under the OSS system. Now, the only persons that will be registered in the OSS system as authorized persons are directors. However, based on our discussion with a Customs office official, in practice registered directors still can authorize other persons to sign import documents by giving powers of attorney.
What remains to be seen is how and when is the right time for importers to migrate to OSS system.