Global shipping giant Hapag-Lloyd has implemented significant changes to its booking and documentation requirements for cargo shipments to and from Indonesia, effective June 1, 2021. The updated policy mandates precise 6-digit HS code declarations for all booking requests and shipping instructions, with non-compliance resulting in substantial financial penalties.
Understanding the HS Code Mandate
The Harmonized System (HS) Code serves as the international standard for classifying traded products. Hapag-Lloyd emphasizes that accurate HS codes are critical for proper cargo identification, handling, and stowage—particularly for specialized or hazardous goods. Shipping documents must now reflect exact HS codes that correspond precisely to the actual commodities being transported.
Financial Penalties for Non-Compliance
Failure to provide correct HS codes will trigger immediate consequences:
- Booking Order Modification Fees: IDR 400,000 (approximately $27) per document for HS code discrepancies
- False Information Origin Penalties: Up to $15,000 per container for misdeclared dangerous goods
Important note: HS code declarations do not replace other mandatory documentation, especially for hazardous materials which require complete specialized paperwork.
Recommended Compliance Measures
To avoid shipment delays and financial penalties, shippers should implement these proactive steps:
- Verify HS codes: Conduct thorough verification of all HS codes before submission
- Staff training: Educate logistics teams on updated requirements and verification procedures
- Policy monitoring: Regularly check for updates from shipping lines regarding regulatory changes
These measures will help ensure smooth cargo movement while maintaining full compliance with Indonesia's updated shipping regulations.