The comparison of certificate or origin preference and certificate of origin non preference used to expot Indonesian's goods : job training report
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SURAT KETERANGAN PENYERAHAN HAK EKSKLUSIF
Bahwa yang bertanda tangan dibawah ini, penulis dan pihak perusahaan tempat penelitian bersedia:
“Bahwa hasil penelitian dapat dionlinekan sesuai dengan peraturan yang berlaku, untuk kepentingan riset dan pendidikan.
Bandung, 21 December 2012
Penulis Pemimpin Perusahaan
Imam Muhammad Iqbal Ir. H. SOLEH MAULANA, M.M NIM. 63708018 NIP. 195804101985031012
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CURRICULUM VITAE
1. Student’s Profile
a. Name : Imam Muhammad Iqbal
b. Address : Jl.Alun-alun No. 17, Legok - Tangerang c. Place and Date of Birth : Majalengka, January 1989
d. Sex : Male
e. Religion : Moslem
f. Phone : 085691208206
g. E-mail : endorselines@gmail.com
2. Educational Background 2.1Formal Education
No Year Institution
1 1995-2001 SDN CIKIJING III
2 2001-2004 MTS Al-Hikmah Curug - Tangerang 3 2005 – 2008 SMA ISLAMIC VILLAGE Tangerang
5 2008 - Now
English Department
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THE COMPARISON OF CERTIFICATE OF ORIGIN PREFERENCE FORM AND CERTIFICATE OF ORIGIN NON-PREFERENCE FORM USED TO
EXPORT INDONESIAN’S GOODS
JOB TRAINING REPORT
Submitted to fulfill one of the course requirements
IMAM MUHAMMAD IQBAL 63708018
ENGLISH DEPARTMENT FACULTY OF LETTERS
INDONESIA UNIVERSITY OF COMPUTER BANDUNG
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ACKNOWLEDGEMENTS
The writer thanks to the greatest creator Allah S.W.T who gave all gift, bless, help, and easiness to the writer to finish this report.
The writer wants to express her appreciation for the finishing of this job training report to the following:
1. M. Rayhan Bustam, S.S., the writer’s advisor who helps and leads the writer to accomplish this report.
2. Dr. Juanda, The head of English Department
3. Retno Purwani Sari, S.S., The Coordinator of Job Training
4. Dra. H. Tuti Sujana, M.Si, Head of Export-Import Trade Tangerang District 5. All staff of Succofindo crews.
Special thanks also to the writer’s family and close friends:
1. My beloved family, thanks for all of support and spirit given to the writer.s 2. All my lovely friends, thanks for all.
However, the writer feels many shortcomings in this report, so the writer expects the suggestion, advice and critic from the readers.
Bandung, December 2012
The Writer
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vii
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vii CONTENTS
ABSTRACT iv
ABSTRAK v
ACKNOWLEDGMENTS vi
CONTENTS vii
CHAPTER I : INTRODUCTION 1.1Background to the Topic 1
1.2Scope 2
1.3Objectives 3
1.4Significant to Knowledge 3
1.5The Framework of the Theory 4 1.6Research Method 4
1.7Place and Time 5
CHAPTER II :THE BUSINESS OF DEPARTMENT OF INDUSTRY AND TRADE (DISPERINDAG) OF TANGERANG DISTRICT 2.1 General Description of DISPERINDAG 6
2.2 Description of Succofindo Unit in Department of Industry and Trade Tangerang district (Disperindag)
2.3 Job Position and Coordination
2.3.1 Job Position 9
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2.4 Responsibilities 10
CHAPTER III: THE DESCRIPTION OF THE TOPIC
3.1 Description of Activities 11
3.2 Comparing Certificate of Origin Forms used to export procedure in
rules trade 12
3.2.1 Explanation 12
3.2.2 Problems and Solutions 13
3.2.2.1 Problems 13
3.2.2.2 Analysis and Solution 14 CHAPTER IV: CONCLUSION AND SUGGESTION
4.1. Conclusion 23
4.2 Suggestions 24
REFERENCES 25
APPENDICES 28
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REFERENCES
Departemen Jenderal Perdagangan Internasional. 1998. Kebijaksanaan Umum Perdagangan Internasional Departemen Perindustrian dan Perdagangan Tahun 1998.
Hutabarat, Roselyn. 1995. Transaksi Ekspor Impor, Edisi Kedua. Jakarta: Erlangga. Simorangkir, O.P. 1985. Kamus Perbankan, Bina Aksara. Jakarta.
S. Gautama. 1889. Hukum Dagang Internasional. Bandung.
M.S, Amir. 1989. Ekspor Impor Teori dan Penerapannya, Jakarta: PT. Pustaka Binaman Pressindo.
R. Subekti & R. Tjitrosudibio. 1991. Kitab Undang-Undang Hukum Dagang dan Undang-Undang Kepailitan, Cetakan keduapuluh. Jakarta: PT. Pradnya Paramita.
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1 CHAPTER I
INTRODUCTION
1.1 Background to The Topic
Nowadays, economic globalization has made global market activity get higher in all countries. It has been trigger in many aspects, especially for export and import field. Many countries have agreed to cooperate on bilateral, regional, multilateral, and unilateral with other countries. To avoid illegal trading activities, many countries provide trade rules as way to take the procedure agreement between countries and exporter. The countries usually build department which has a responsibility to arrange the rules. As in Indonesia, the government sets DISPERINDAG to arrange the problems.
As the writer has much interest in knowing about the problems, the writer chose Department of Industry and Trade (DISPERINDAG) of Tangerang District as the place to conduct the job training. In here, the writer could apply and had new experience in export and import activites.
For about a month, the writer did the job training and assigned to be Succofindo assistant. As the Succofindo assistant, the writer was given some jobs like: handling, checking, and scanning the document before exporter shipped goods to other countries. Commonly there are 2 documents involved in export import
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namely: Certificate of origin preference form and certificate of origin non-preference form. However, to check a document is not easy. Sometimes, there will be difficult to find during the process, such as the validation on the document. Each document has different data, and it must be checked for several times.
To make the validation of the data, a file document is very important. When the exporter gives incomplete file or corrupt, the department will lose apart of the data. The different data between exporter and officer also becomes a problem in making validation. The right data will make continuity of the document to ship easily.
According to that case, the writer is interested to entitle this report by “The Comparison of Certificate of Origin Preference Forms and Certificate of Origin non-Preference Forms Used to Export Indonesian’s goods”. This report aims to give an explanation and difference about Certificate of Origin forms used to export Indonesian goods.
1.2 Scope
This research is generally attempted to compare the difference of several documents that become condition terms to process export of Indonesian goods to other countries, the documents use certificate of origin forms. It also indicates the uses of each Certificate of Origin forms as a requirement of goods export.
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1.3 Objectives
This report has some objectives, as follows;
1. To report the job training conducted in (DISPERINDAG). 2. To describe and explain different Certificate of Origin
3. To give further information about the activities of Export Indonesian goods process.
1.4 Significance to Knowledge
This research has some purposes theoretically and practically. Theoretically, the readers can learn another procedure which is rarely used in making document than is used in common method as a study of commercial English. The readers also can understand the use, the process and the function in commercial English.
1.5 The Framework of Theory
The writer uses the theory of Roselyn Hutabarat (1995:63) mentioning that another aspect of global trade is important documents business same as a document condition. In this theory Roselyn Hutabarat mentions that without documents, an exporter cannot pay and negotiate with the bank as validation Letter of Credit (L/C).
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The document is important not only for exporter, but also for importer and the bank. In other word, the documents are important for all sides that get involved in Letter of Credit (L/C) opened, so Letter of Credit (L/C) must be stated as special documents.
Based on those theories above, the writer took theory of Roselyn Hutabarat about document of export-import transaction to analyze the data.
1.6 Research Method
The method used in this research is descriptive comparative. Best (1982:119) states that descriptive method is kind of method which try to describe and intreprate the object just as the way it is, and comparative method is used in purpose to compare one phenomenon or variable to another one. In this research, the writer used comparative method to analyze data by comparing them, and the writer explained the analysis of the data by describing them in details using descriptive method till then the writer could make conclusion. The data collected are taken from journal of DISPERINDAG where the writer did job training.
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1.7 Place and Time
The writer did the job training in the official office, Dinas Perindustrian dan Perdagangan (DISPERINDAG) at Jl. Komplek Perkantoran TIGARAKSA, Tangerang District. It was conducted from August 8th to September 16th 2011.
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CHAPTER II
THE BUSINESS OF DEPARTMENT OF INDUSTRY AND TRADE (DISPERINDAG) OF TANGERANG DISTRICT
2.1.1 General Description
Department of Industry and Trade (DISPERINDAG) of Tangerang District is a civil organization that works directly under the Governor of Tangerang. It is formed by Governor’s decision of Tangerang number 052 year 2001 on 19th
march 2001 as regards of main task. Department of Industry and Trade (DISPERINDAG) of Tangerang District formed as implementation of regional autonomy and efforts to achieve about mission and vision. It functions to provide public service, and creates good business especially on industry that would be raising economy activity.
The main job of Department of Trade and Industry of Tangerang District is to implement decentralization and to make the tasks given by the Government. It establishes the basic and Trade Office of South Tangerang District to formulate technical policy in accordance with policies that based on legislation in force by the Head of the Region rules, the development guidance of Chemical Industry, Agro, forest, Metal, Machinery, Electronics and Miscellaneous, coordination of Domestic
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Trade Development, Management of administrative affairs, Technical Implementation Unit of Office Manager.
In this job training, the writer was assigned in Succofindo Unit as General assistant.
2.2 Description of Succofindo Unit in Department of Industry and Trade Tangerang district (Disperindag)
Succofindo office is located on the 3th floor of Department of Industry and Trade Tangerang district (DISPERINDAG). The Head of Succofindo is Mr Agus Budianto, and The Vice of Succofindo is Mr M. Sahur.
Succofindo tasks are including, as follows:
1. Handling office facilities, computer. 2. Managing data shipping preparation 3. Checking emails from exporter 4. Scanning document before shipped
Holding important works causes Sucoffindo have a deal office. All tasks which are handled by Sucoffindo should be done through computer as media bussiness. However, the documents are coming mostly in and out are written in english and bahasa, and it should be replied in english and bahasa too before shipped to other
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countries. In this case, as an assistant, the writer was asked to handle this job. The writer not only handled checking documents but also did additional job such as signing and printing documents. After all documents had been signed, they should be copied and filed based on their categories to prevent abuse file.
2.3 Job Position and Coordination
2.3.1 Job Position
The writer was assigned as Succofindo Assistant at Department of Industry and Trade of Tangerang district. The jobs that were given to the writer including checking, printing and signing documents.
2.3.2 Coordination
During job training process, the writer coordinated with some staff of Succofindo crew and Head of Promotion of Product and Information as in the following:
1. Dwi Eka Aprillia Putri, SA.p, M.Si, she is the Head of Export & Import, her duties are executing, and monitoring projects based on schedule The writer coordinated with Dwi Eka Aprillia Putri, SA.p, M.Si to print the document.
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2. Faisal, he is the Head of Promotion of Product and Information, his duties are handling to hold such official events such as annual anniversary, employee gathering and many others. The writer coordinated with Faisal to check the document.
3. Tauhid, he is Exchequer, his duties are handling vehicle operation maintenance, managing driver, and providing office facilities. The writer coordinated with Tauhid to sign the document.
3.2 Responsibilities
During the Job Training, the writer had responsibility to contribute in achieving the objectives of the organization. At the first day, the writer got socialization about job description that the writer would have. The writer was informed by Head of Promotion of Product and Information Mr. Faisal, he gave instruction about how to help other staffs. Monday until Friday the writer should attend morning at 09.00 Am till 03.00 Pm. Mostly, the writer was asked to make a database of list certificate of origin forms. First, the writer collected documents. Second, the writer signed address destination of documents. Third, the writer divided documents into two, Certificate of Origin preference and Certificate of Origin
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preference. Last, the writer was given duty to check the data, which it has been created database and edited by Sucoffindo crew. After it finished, the writer needed to copy and to file documents for exporter and office.
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CHAPTER III
THE DESCRIPTION OF THE TOPIC
3.1 Description of Activities
For about a month, the writer did job training at Department of Industry and Trade (DISPERINDAG) of Tangerang District in Sucoffindo. The writer marked the Certificate of Origin which contains different term of documents. Mostly the writer found many terms which were very difficult to understand. The writer was also very confused when the writer found some terms which had different forms.
The writer was given a job to handle Certificate of Origin forms (SKA), and found many obstacles to understand the meaning of the term on documents. The documents always used unfamiliar words, called with the specific terms. The specific term may raise some problems for people who do not deal with them. Based on that reason, the specific terms lead to the discussion here: export document (the important document to process export, certificate of origin (SKA). The description was managed base on the source. The export documents mentioned followed:
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3.2 Comparing certificate of origin forms used to export procedure in rules trade
In comparing certificate of origin forms, the writer used procedure of export-import overview to describe the documents differently. In this point, the writer explains to relate the overview, the problem found during job training, and the solution to overcome each problem.
3.2.1 Explanation
According to S. Gautama, 1980, since goods and commodity are transported from one country to another country, it needs legitimate document that typically for use in trade. It fulfills the rules of export-import activities, each documents is fixed types of goods or service. The documents are divided into two types of certificate of origin preference and certificate of origin non-preference. There are many forms which the functions different for each other. For example, the differences forms are involving types of goods like: Chemical Industry, Agro, forest, Metal, Machinery, Electronics and Miscellaneous. The small trades had bypassed the involvement of Customs in many countries because of the low individual values of these trades. Nonetheless, these small exports are still subject to legal restrictions applied by the country of export each forms. In this research the write will focus on two forms
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which representing certificate of origin preference and certificate of origin non-preference. During the job training, the writer found some differences of documents used by exporter to export their goods. In instance, the writer had to analyze certificate of origin forms as requirement trade in goods. The writer referred to Department journal book to ensure whether these differences are same as the other document of rules.
3.2.2 Problems and Solutions
During collecting Certificate of Origins forms, the writer found some difficulties and problems to mark documents. The Problems and solution while comparing are explained as follows :
3.2.2.1 Problems
Comparing Certificate of Origins in the specific field of study is not as easy as comparing common document. In specific genre, there are some forms both Certificate of Origin preference and Certificate of Origin non-preference in which their rule are not as the same or similar to other business letter. On the other hand,
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there are some different rules. These phenomena causes the writer difficult to find the different of documents.
While comparing Certificate of Origin forms, the writer found some problems occuring from the data, as in the following:
1. Understanding the details which belongs to preference and non-preference forms 2. Finding the countries of shipping destination
3. Grouping of goods that would be shipped to export
To overcome every problem above, the writer used overview of journal procedure in export-import. The texts below are the data which were analyzed by journal procedure.
3.2.2.2Analysis and Solution
The writer analyzes the data using overview of journal procedure to compare forms. The analysis of data are described and explained, as follows :
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Data 1:
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Data II :
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From the data above, we can see the different both Certificate of Origin preference and Certificate of Origin non-preference. Each of forms is representing both of Certificate of Origin forms, which forms have compared as the function in export-import activity.
The Comparison of Certificate of Origin Preference Forms and Certificate of Origin non-Preference Forms Used to Export Indonesian’s goods.
Here are details for each coloumn both of forms:
Certificate of Origin preference Certificate of Origin non-preference
1. Functions Generalized system of preferences is facilitation of preference that given by a country of a group of certain countries in goods that had qualified in a country.
Generalized system of
Certificate of Origin non-preference is kind of document that the function is to control document and accompanying document of origin.
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preference is required to gain preference that included on certain goods, it facilitated to make free all of customs by countries.
Certificate of Origin preference is free customs document that different of Certificate of Origin non-preference which need control document.
To qualify for preference, products must:
Fall within a description of products eligible for preference in the country of destination. The description entered on the form must be sufficiently detailed to enable the products to be
goods in order it can enter to a group of countries without get verification facilities or free shipping destination.
Certificate of Origin non-preference need to require Letter of Credit (L/C) as tax export.
To qualify for non-preference, products doesn’t need specific fulfillment like preference form.
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identified by the customs officer examining them;
Comply with the rules of origin of the country of destination. Each article in a consignment must qualify separately in its own right
Comply with the consignment conditions specified by the country of destination. In general, products must be consigned direct from the country of exportation to the country of destination but most preference-giving countries accept passage through intermediate countries subject to certain conditions.
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2. Country of destination :
1. Canada 2. Japan
3. New Zaeland 4. Norway
5. Switzerland & Liechtenstein 6. United States 7. Russia
8. Belarus 9. Turkey
10. (European Union): Austria, Belgium, Bulgaria, Holland, Cyprus, Czech Republic, Denmark, Estonia, Finland, Hungary, Italia, Ireland, United Kingdom, Germany, Luxemburg,Latvia,
Lithuania, Malta, France,
All countries of European Union
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3. Quality of paper
4. Size of paper
5. Paper colors of Cerificate of Origin:
Poland, Portugal, Rumania, Spain, Slovakia, Slovenia, Sweden & Greece.
Paper is not containing mechanical pulp, which weighs no less than 25 gram/m2.
210 x 297 mm
Light green as shipping document for the importer
White (the second sheet) for the issue
White (the third sheet) for the exporter
White (the fourth sheet) for destination of country
White (the fifth sheet) for
Paper is not containing mechanical pulp weigh not less than 25 Gram/M2
210 x 297 mm
White (the original sheet) for importer
White (the second sheet) for authority file
White (the third sheet) for country of destination
White (the fourth sheet) for exporter
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6. Procedure fulfilment
file
1. Goods
consigned from (Exporter’s business name, address, country)
2. Goods
consigned to (Consignee’s business name, address, country)
3. Means of
transport and route, date of shipment
4. For official use
5. Sequence
number of goods
6. Marks and
numbers of packages
1. Goods
consigned from (Exporter’s business name, address, country)
2. Number
3. Quote of year
4. Category
number
5. Goods
consigned to (Consignee’s business name, address, country)
6. Country of
origin
7. Country of
costumer
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7. Number and
kind of packages, description of goods
8. Origin criterion
9. Gross weight
or other quantity
10. Number and
date of invoice
11. Certification 12. Declaration by
the exporter
Full details of the conditions covering admission to the GSP in these countries are obtainable from the designated authorities in the exporting preference-receiving countries or from the customs authorities of the preference-giving countries listed
date of shipment, meanst of transport
9. Supplementar
y details
10. Marks and
number
11. Quantity
12. FOB Value
13. Certification by the competent authority
14. Competent
authority (Name, address, country)
Certificate in Regard to Handlooms Textile Handicraft and Traditional Textile Products of the Cottage Industry is classified to Certificate of Origin non-preference, which function is exporting all kind handicraft TPT
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above. An information note is also obtainable from the UNCTAD secretariat.
(Textile/Product Textile) that made of silk and cotton. It includes in Europe goods coverage.
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24 CHAPTER IV
CONCLUSION AND SUGGESTION
4.1 Conclusion
After finishing the research, the writer concludes that to solve the problems found while comparing such as understanding the unknown business letter, finding the different equivalent of the form, and knowing the function of the forms, we can use journal office procedure. Journal office procedure itself explains about kinds of rule and term. Journal office explains about the field that should be dated, signed and stamped by the competent governmental authority of the exporting party or designee. As the result of the analysis, the writer found the technical word for some document terms such as Obligation, Non Negotiable Bill of Lading (B/L), Copy Airway Bill (AWB), Copy Cargo Receipt. The writer also found that the role of countries is important in export-import activity. While the right condition of rule found. In addition, analyzing forms through Journal office can help us to get the right meaning and to understand it. To reach that, there is a book needed as reference that has correlation with this case, “Transaksi Ekspor-Impor” by Roselyn Hutabarat.
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4.2 Suggestion
After finishing the research, the writer had some suggestions for the students who will take the research of Commercial English study. First, the students should collect various data from field and another source of study which has not ever been used in the previous research. Second, the students also need to use appropriate method to analyze data such as compare analysis, and expantion, and many other methods and procedures in Commercial English study. Third, the students should learn more about trade activity in order to know how to process global market activity. Last, the students should understand the theory that they will use.
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APPROVAL
THE COMPARISON OF CERTIFICATE OF ORIGIN PREFERENCE FORM AND CERTIFICATE OF ORIGIN NON-PREFERENCE FORM USED TO EXPORT
INDONESIAN’S GOODS
IMAM MUHAMMAD IQBAL 63708018
Bandung, December 2012 Approved by:
Advisor,
M.Rayhan Bustam, S.S. NIP: 4127.20.03.021
Acknowledged by Head of English Department
Dr. Juanda. NIP: 4127.20.03.007
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7. Number and kind of packages, description of goods
8. Origin criterion
9. Gross weight
or other quantity
10. Number and
date of invoice
11. Certification
12. Declaration by
the exporter
Full details of the conditions covering admission to the GSP in these countries are obtainable from the designated authorities in the exporting preference-receiving countries or from the customs authorities of the preference-giving countries listed
date of shipment, meanst of transport
9. Supplementar
y details
10. Marks and
number
11. Quantity
12. FOB Value
13. Certification
by the competent authority
14. Competent
authority (Name, address, country)
Certificate in Regard to Handlooms Textile Handicraft and Traditional Textile Products of the Cottage Industry is classified to Certificate of Origin non-preference, which function is exporting all kind handicraft TPT
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above. An information note is also obtainable from the UNCTAD secretariat.
(Textile/Product Textile) that made of silk and cotton. It includes in Europe goods coverage.
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24 4.1 Conclusion
After finishing the research, the writer concludes that to solve the problems found while comparing such as understanding the unknown business letter, finding the different equivalent of the form, and knowing the function of the forms, we can use journal office procedure. Journal office procedure itself explains about kinds of rule and term. Journal office explains about the field that should be dated, signed and stamped by the competent governmental authority of the exporting party or designee. As the result of the analysis, the writer found the technical word for some document terms such as Obligation, Non Negotiable Bill of Lading (B/L), Copy Airway Bill (AWB), Copy Cargo Receipt. The writer also found that the role of countries is important in export-import activity. While the right condition of rule found. In addition, analyzing forms through Journal office can help us to get the right meaning and to understand it. To reach that, there is a book needed as reference that has correlation with this case, “Transaksi Ekspor-Impor” by Roselyn Hutabarat.
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4.2 Suggestion
After finishing the research, the writer had some suggestions for the students who will take the research of Commercial English study. First, the students should collect various data from field and another source of study which has not ever been used in the previous research. Second, the students also need to use appropriate method to analyze data such as compare analysis, and expantion, and many other methods and procedures in Commercial English study. Third, the students should learn more about trade activity in order to know how to process global market activity. Last, the students should understand the theory that they will use.
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APPROVAL
THE COMPARISON OF CERTIFICATE OF ORIGIN PREFERENCE FORM AND CERTIFICATE OF ORIGIN NON-PREFERENCE FORM USED TO EXPORT
INDONESIAN’S GOODS
IMAM MUHAMMAD IQBAL 63708018
Bandung, December 2012 Approved by:
Advisor,
M.Rayhan Bustam, S.S. NIP: 4127.20.03.021
Acknowledged by Head of English Department
Dr. Juanda. NIP: 4127.20.03.007