Cross-Border Carbon Transportation Requires a Specific HS Code

Cross-border carbon transportation requires a specific Harmonized System (“ HS ”) Code. Dwi Adi Nugroho, Coordinator of the Working Group (Kelompok Kerja/Pokja) on the Development of Unconventional Oil and Gas (Minyak dan Gas– “ Migas ”) Working Areas at the Ministry of Energy and Mineral Resources (“ ESDM ”), stated that discussions will be held with the Ministry of Trade (“ Kemendag ”) and the Directorate General of Customs and Excise to prepare the necessary regulations.

“Naturally, when cross-border activities occur, we must coordinate with the Ministry of Trade and Customs,” said Dwi.

According to Dwi, HS codes for carbon transport need to be regulated under two distinct classifications. The first code is required for carbon as a commodity, while the second is necessary for carbon as emissions.

Dwi emphasized the importance of having comprehensive regulations in place, as cross-border carbon storage projects represent one of the key strategies for attracting international financing to support carbon storage initiatives.