The Bill of Lading (B/L) is issued by an Indonesian shipping company based on the Invoice, Packing List, and Certificate of Origin (COO) to certify the acceptance of cargo. In the case of exports, the B/L date becomes the sales recording date. Production Control System in Indonesia It’s not limited to Indonesia, but it’s often said that the ultimate goals of the manufacturing industry are twofold: "cost reduction through productivity improvement" and "delivering products on time without delays." From a management perspective, business plans are crafted to maximize growth based on market supply and demand adjustments. However, even if sales increase due to low pricing, it only reduces gross profit, leading to losses from selling and administrative expenses or non-operating costs. On the other hand, raising unit prices isn’t straightforward due to market price considerations. Therefore, process management based on production plans aimed at reducing costs through ... 続きを見る
Relationship Between Packing List, Delivery Note, and Invoice
Starting in 2021, Japan seems to be transitioning from the current bookkeeping method to the invoice method to clarify tax processing following the introduction of a reduced tax rate. A picking list for verifying item lot information on physical labels at the time of shipment In Indonesian manufacturing, a picking list is created by grouping the item lot detail lines from a list of registered shipping instructions into shipping units at the time of shipment. It is used to verify whether the physical goods match the item lots registered at the time of order entry. Comprising shipping instruction numbers (header) and item lot numbers (details), shipping performance is recorded accordingly. 続きを見る
The advantage of the invoice method is that it mandates specifying the applicable tax rate and tax amount per item on the invoice. Copies of invoices retained by businesses serve as clear evidence of taxable transactions, reducing tax collection oversights.
In domestic transactions in Indonesia, the Delivery Note (Surat Jalan) is a document for the physical delivery of goods, used by customers to verify the items, but it does not include pricing.
On the other hand, the Invoice is a financial請求書 (billing document). Ideally, it should be delivered alongside the Delivery Note at the time of shipment. However, in Indonesia, delivery often precedes billing, so a copy of the Delivery Note is provided, and the original is attached when the Invoice is sent later.
A common mistake is when someone brings an Invoice to the customer but the original Delivery Note is still held by accounting, and only a copy is presented—resulting in the customer refusing to accept the Invoice.
When importing materials from Japan or exporting from Indonesia, a Packing List is required as a detailed content list for the container, entrusted by the Shipper to a Forwarder. The Delivery Note, along with the Invoice, is sent separately via FedEx or DHL to the Consignee in Japan, arriving before the shipment itself.
Relationship Between Bill of Lading (B/L), Surrendered B/L, and Arrival Notice
When I was exporting furniture from Bali, the cargo company handled everything—packing, creating the Packing List, and applying for the issuance of the Bill of Lading (B/L) from the shipping company—all in one, making it very convenient.
Around 2005, for major Japanese ports, a 20-foot container with K-LINE, including agency fees, cost about $1,300 at its cheapest, I believe.
The B/L is issued by the shipping company in Indonesia to certify cargo acceptance and is essential for receipt in Japan. However, when shipping furniture from Bali, issues often arise related to the B/L.
Since the cargo company’s billing to me was settled before stuffing (container loading), human nature meant follow-up after receiving payment was often neglected.
If follow-up with the shipping company for B/L issuance was delayed, I’d get emails from customers saying, “We received the Arrival Notice from the Japanese shipping company, but the B/L hasn’t been sent from Indonesia yet…”—leaving me sweating.
Normally, the B/L issued by the shipping company in Indonesia is sent directly from the cargo company to the customer, but it’s typical for the ship to arrive before the B/L does.
As a result, the container couldn’t be picked up even after arriving at the port, burdening the customer with warehouse storage fees—not just once or twice.
In such cases, I’d ask the cargo company, “Once the shipping company issues the B/L, make it Surrendered immediately.” With standard B/L procedures:
- Surabaya shipping company issues B/L: Start
- Surabaya shipping company sends original B/L to Bali cargo company: n+2 days
- Bali cargo company sends original B/L to Japanese customer: n+5 days
This takes about 5 business days. However, with a Surrendered B/L, the shipping company in Indonesia endorses it (*Balik nama*), certifying “this cargo definitely belongs to the customer”:
- Surabaya shipping company issues B/L: Start
- Surrender processing: n days
- Surabaya shipping company faxes Surrendered B/L to Bali cargo company: n days
- Bali cargo company faxes Surrendered B/L to Japanese customer: n days
Even if the B/L’s arrival doesn’t make it in time for cargo pickup, this allows immediate pickup on the issuance day without the original B/L.
This process was called Surrendered B/L or Telex Release.