The use of CIF Incoterms in Indonesia's import declarations

Abstract

The World Trade Organization (WTO) General Agreement on Tariffs and Trade (GATT) 1994 (WTO Valuation Agreement) and the International Chamber of Commerce's (ICC) International Commercial Terms (Incoterms®) are two quite separate instruments. In Indonesia, however, reference to 'customs value' in some regulations is confused by the use of the Cost, Insurance and Freight (CIF) Incoterm in the same regulation. This paper identifies several areas of confusion and identifies changes that, if made to some Indonesian regulations related to the determination of customs value and the use of the import declaration form, would clarify the methods used to calculate that value.