Insights
Indonesia’s customs system is working for domestic companies only so far. It is understood that the obligation to have a fully operating subsidiary is the main reason most foreign companies cannot submit recordal applications.
The first seizure took place recently for Indonesian stationary brand STANDARD. A container containing 858,240 ballpoint pens branded STANDARD and also model names AE7 Alfa Tip 0.5 and marked ‘Made in Indonesia’ and estimated to be worth Rp 1,019,160,000 (USD75,000) were imported into Tanjung Perak port in Surabaya on 6 December 2019. The Indonesian owner PT Standard Pen had recorded their marks with Customs after the Customs recordal system began operation in 2018. The company has a substantial international trade for its products, exporting worldwide.
PT SI provided confirmation and approval for the temporary suspension of the goods by submitting a bank guarantee to Customs in Tanjung Perak, after which the goods could be inspected. The joint inspection was conducted by a Judge of the Surabaya Commercial Court, clerk of a court, Customs and Excise officers, expert witness and applicant representatives (PT Standard Pen), and the importer. The goods were determined as counterfeits. The next step is the legal process. This is an area of uncertainty since it is not clear if all cases must got to the Commercial Court or whether they can be dealt with out of court.
