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2' Trade

MEMORANDUM OF COOPERATION

BETWEEN

THE DEPARTMENT OF ASIAN RELATIONS AND TRADE OF

THE NORTHERN TERRITORY OF AUSTRAUA

AND

THE

DIRECTORATE

GENERAL

OF CUSTOMS AND EXCTSE OF

THE DEPARTMENT OF FINANCE OF THE REPUBLIC OF INDONESIA

ON

A CUSTOMS FAOLin' IN DARWIN FOR

GOODS SHIPPED TO

INDONESIAN PORTS OTHER THAN IN JAVA AND SUMATERA

1 he Department of Asian Relations and Trade of the Northern Territory of Australia and the Directorate General of Customs and Excise of the Department of Finance of the Republic of Indonesia (hereafter referred to as "the Parties");

DESIRING to support and encourage the continued trade relationship between the Northern Territory of Australia and Indonesia, other than Java and SUmatera;

REFERRING

w

the Memorandum of Understanding between

the

Government of the

Northern Territory of Australia and the Government of the Republic of Indonesia

on

Ecooomic Development Cooperation, signed

In

Jakarta on 21January1992;

ACKNOWLEDGING the Previous

Memorandum

of Cooperation

between

the Parties on.

Darwin Customs

Pre-dearance

FacHlty for Goods Shipped

to

Indonesia other than in Java

and Sumatera, Signed in

Jakarta

on 4 December 1998;

HAVE AGREED

AS

FOLLOWS :

Artide 1

1. The Parties agree

to

implement the

establishment

of a Customs Facility in Darwin for

goods shipped to Indonesian ports other than in Java

and Sumatera.

2. The Parties agree that

the

objective of the Customs Facility is to conduct customs

activities on goods shipped from Darwin to Indonesian ports other than in Java and

Sumatera.

Artide 2

1.

Two Indonesian

Customs

Officials will

be

located in Darwin for a period of six months

commencing on

the

date of their appointment

by

Directorate General of Customs and

Excise of the Republic of

Indonesia.

2. The

two

Indonesian

Customs

Officials

will

be based at the Northern Territory Trade

Development Zone.

3. The two Indonesian Customs Officials shall make reports concerning the

implementation

of

this Memorandum of Cooperation. Such reports

shall be

submitted

to the Secretary of the Department

of

ASian Relations

and Trade of the Northern Territory, the Director General of Customs and Excise of the Republic-of Indonesia,

and the Consul of the Republic of Indonesia in Darwin. ·

4. Salaries of the two

Indonesian Customs Officials will be met

by

the Directorate

General of Customs and Excise of the

Department

of Finance of the Republic of

Indonesia.

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Artide 3

1. The

Government of

the

Northern

Territory of Australia

will

provide

accommodation,

a car, a

daily

living

allowance, office

equipment

and

office

operational

costs

incurred. :

1

Other

resources w ill

be provided

as agreed by the

Parties.

,.

!

2. The

Government

of the Northern Territory of Australia will promote the presence of ·

the

officials

in

order to ensure optimal use

of

the Customs facility.

3. The Government of the

Northern

Territory of Australia will

facilitate

a working

relationship with the Australian Customs Service in Darwin and other relevant

?f"tl'"\f"'\r"il"'\c; _{_, ..}

Artide 4

1. The Parties agree

to

amend or review the implementation of this Memorandum

of

Cooperation and

will

jointly evaluate the success of the objective of this Memorandum

of Cooperation

at

the end of the six months posting period of the two Indonesian

Customs officials.

2. The continuation

of the

implementation of this Memorandum of Cooperation will be

determined

by

the result of the evaluation as stated in the

first

paragraph.

Artide 5

Any dispute between the Parties concerning the implementation

qf

this Memorandum of

Cooperation shall be

settled

amicably

.through

consultation and negotiation.

Artide 6

This Memorandum of Cooperation shall take effect on the date of

its

signing and shall be

valid for a

period

of five (5) years.

IN WITNESS WHEREOF the undersigned, being duly

authorized

by their respective

authorities,

have

signed this Memorandum of Cooperation

DONE in

Denpasar

Bali

on this

8th day

of

June

2001, in

duplicate,

in

tl]e English

and

I ndonesian languages,

both

texts being

equally

authentic. In case of any divergence of

the language, the

English

texts shall prevail.

For

The Deparbnent of Asian Relations

ｾｔｲ｡､･＠ of

the

Northern Territory

Fr jfstralia

For

The Directorate General of Customs And Excise of the Department of/ fif)0r}ce of thP RPnt rhlic of I ndQl"f'esia

Signed

ｐ･ ｾ ｡ｮ｡＠

Agunq

D.,

M.Sc.,

Ph.D.

cg. ':>

rax Ｑｲｯｾ＠ . DU ｕＺＺｲｴｌｌＨｄｾ＠

111

Indonesian Customs Pre-Inspection

j ·,

Facility in Darwin

Following negotiations with the Indonesian Directorate General of Customs and Excise. an Indonesian Customs Facility was established in Darwin in August 2002, on a trial basis for two years.

The purpose of the trial facility, in its initial form, is to provide for Customs pre-inspection of goods exported from Australia through the Port of Darwin to ports in Indonesia, other than in Java or Sumatra.

Goods destined for ports in the eastern part of Indonesia can be inspected

prior to departure by Indonesian Customs officers stationed in Darwin.

Consignments inspected in this way will be certified ond. provided the container or packaging is not tampered with. will be available for release in the destination port without rurfher inspection required. (Customs duties·and normal port handling costs will still apply.}

The Customs Facility in Darwin is being trialed as port of a program to establish

a range of services to compl.ement the ran and port infrastructure which is

currently being developed in Darwi.n.

A tailored Indonesian Customs facmty in Darwin is seen as a means of

smoothing the flow of Australian exports to the eastern part of Indonesia and greatly reducing delivery times. When fully operational. use of the facility for direct export through Darwin into ports in the eastern part of Indonesia.

coupled with faster transport times to Darwin by roil, wm shorten delivery times

of consignments by a factor of weeks.

Currently the facifity only applies if consignments are sent directly to

Indonesia. Transit through major Indonesian ports and on to a final destination outside of Java and Sumatra does not negate the Indonesian Customs Pre-lnspection in Darwin. However. transit through a third country (such as Singapore or Timor Leste) is still not possible without further inspection.

There are a number of immediate advantages with this system - especially in ports where there is no regular Indonesian Customs inspection service, such as specialised mining ports or the many smaller ports in the ·eastern part of

Indonesia where no Indonesian Customs office exists.

Advantages include:

• Consignments of imported goods no .longer have to be held at the port.

often in the open and without adequate s·ecurity, until a Customs officer can be summoned from a l'arger port.

• Consignments can be sent directly to the port of destination without

having to transit through a port with Customs facilities.

• Delays due to the unavailabiliiy of Customs officers in smaller ports at the

time of ornval or due to the need to transit a larger port for Customs inspection purpqses, can be avoided.

• In smar!er ports, consignments can be removed to the importers

In the longer term, the trial of the Customs Facility in Darwin will lead to further modifications and improvements to the system. Already, through examination of the electronic bank transfer system and the use of the

internet for document transfer and processing, the possibility of the extension of the system to a much more comprehensive clearance of goods is being explored.

The Facility covers consignments by air as well as by ship and ports covered ,:

1

1

include the larger ports of Makassar, Bitung, Balikpapan, Samarinda and

Kupang as well as smaller ports such as Benoa, Ternate, Timika, Waingapu and . the many other small ports in the eastern part of Indonesia.

The Indonesian Customs officers in Darwin are not a customs handling service

nor are they customs agents. When using the facility it will be necessary for

interstate exporters, who do not already have

a

handling agent in Darwin, to

appoint a customs agent or local handler to act on their behalf.

For further information on how to access the Indonesian Customs Facility in Darwin, please contact:

Department of Business, Industry and Resource Development

GPO Box 3000

DARWIN NT 0801

Website: www.dbird.nt.gov.au

Telephone: +61 8 8999 7769

Facsimile: +61 8 8999 51 06

or

Indonesian Customs Pre-Inspection Facility in Darwin

Lot 31 62, Unit 1 Export Drive

Trade Development Zone DARWIN NT 0828

Website: www.beacukai.go.id

Telephone: +61 8 8947 1525 Facsimile: +61 8 8947 3663

DISCLAIMER

While oil core hos been token to ensure that ritormatiOfl ｣ｯｮｴｯｩｮｾ＠ in this Fact Sheet is true. and oorrect at the time of pf.Jbiicotion, the Northern Territory of Aus1rollo gives oowooonJy orossurQ1'1Ce,. andmokesnotepresentation

os to the accuracy of any information or advice contained in thiJ publcation, or that II is suhoble fot yotK