Sea Border Crossing and Overlord Border Crossing are types of border crossing. Border crossing itself is a trade activity between countries that occurs on the border of the two countries. Border crossing trade is a common thing that occurs in countries that border each other or are neighbors, but border crossing or cross-border trade can only occur if there is an agreement between the countries that directly border or there is an agreement between countries involved in border trade. the crossing. If there is no agreement or agreement between the two countries, then this border crossing trade is illegal.
One of the relations and cooperation between countries in various parts of the world is in terms of trade. A product or commodity, may not be produced or produced by one country, but we can find it in other countries. For example, Indonesia needs rice, imports rice from Thailand, Vietnam, India and Pakistan, imports motor vehicles such as cars and motorcycles and other electronic devices from Japan, Germany, America, and so on. While Indonesia is rich in natural resources in the marine, plantation, forestry and mining sectors, of course it will also export Indonesian products and commodities to other countries that need them. This is what is called international trade activities between countries. The goal of international trade for each country is to expand market share which will increase productivity which will automatically increase the country’s foreign exchange earnings.
The purpose of border crossing is:
1. So that residents or communities in the bordering area can shop more easily.
2. To control the smuggling of goods to and from the bordering countries.
3. To limit the trade in illegal goods such as narcotics and firearms at the border between the two countries.
4. In order to avoid disputes between the two bordering countries.
5. To make it easier to control goods entering and leaving the country.
This border crossing can occur at the land border of the two countries and at the sea border. So there are two types of border crossings, namely:
Sea border crossing, is cross-border trade between two countries that have sea borders.
Overland border crossing, is cross-border trade between two countries that have land borders
The advantages of overland border crossing:
It is easier to do because it is by land, it can even be done without using a vehicle.
The cost is cheaper, because land transportation is cheaper than sea transportation.
Less risk than sea border crossing.
Disadvantages of overland border crossing:
It is difficult to control incoming and outgoing goods in border areas that have settlements close to each other.
The advantages of sea border crossing:
The volume of goods transactions is large, because the sea route can be passed by ships with large carrying capacity.
Disadvantages of sea border crossing:
Has a higher risk, because the sea route is relatively more dangerous than the land route.
Supervision of sea broder crossing is more difficult than supervision of overland border crossing.
Sea Border Crossing and Overland Border Crossing are international trade activities, also known as cross-border trade. It’s just the seller’s procedures and mechanisms that differentiate. Both activities involve two or more countries in conducting trade. International trade is carried out by fulfilling certain administrative obligations in the form of tariffs (taxes / import duties) and non-tariffs such as protection, quotas, export and import prohibitions, while cross-border trade is without the imposition of taxes and other administrative burdens. In cross-border trade various facilities are provided by the government by enriching policies with the aim of minimizing trade rules so that they can involve the community at large.
Definition of Sea Border Crossing and Overland Border Crossing
For bordering countries that are carried out with certain agreements (Border Agreements), the aim is that the occupation of interconnected borders is given convenience and freedom in a certain and reasonable amount. Border Crossing can occur through:
a. Sea Border Crossing
A trading system that involves two countries that have a state border in the form of an ocean, trade is carried out by sea crossing
b. Overland Border Crossing
A trading system that involves two countries that have a land border, trade is carried out by means of each resident of that country interacting by crossing land boundaries in each country through applicable agreements.
There are two possibilities of overland border crossing. That is :
1.Countries That Have Land Borders
In the first case, international trade through land routes may occur in countries adjacent to land areas. So in this case, sometimes overland border crossing is done for reasons of efficiency even though the countries involved have seas and ports. But if trade by sea is more possible, then the sea border crossing route will still be chosen.
For example, Indonesia and Timor Leste. For international trade transactions on a large scale, trade routes are still carried out via sea border crossings between ports. But for people who live on the border between Indonesia and Timor Leste on Timor Island, overland border crossing trade is still carried out based on people’s habits. In fact, it is reported that the Rupiah currency can still be used for this overland border crossing. The trade carried out is not based on a bilateral agreement, but only based on customs and the border officials there have also understood this. However, only the people who live there are involved. The same thing also happened between Indonesia and Papua New Guinea, where in addition to sea border crossings, overland border crossings are also commonplace for people living on the borders of Indonesia and Papua New Guinea.
Another example is the trade relationship between Belgium and the Netherlands. These two countries are neighbors, have land borders, but at the same time have sea and ports as well. There are trade transactions between two countries that are carried out by sea, and there are also trade transactions in which goods are sent via land. However, overland trade in Belgium and the Netherlands is official and bound by bilateral agreements, unlike at the border between Indonesia and Timor Leste.
2. A Landlocked Country
In the second possibility, overland border crossing occurs when a country does not have a sea border. The closest example is Laos. Neighboring countries that are both members of ASEAN are confined by Thailand, Vietnam, Myanmar, Cambodia and China. Regionally, the majority of international trade carried out by Laos is carried out with these 5 neighboring countries. But internationally, that doesn’t mean Laos doesn’t have trade relations with other countries. Laos also has trade agreements with other countries, such as Indonesia and the United States.
For cases like Laos, the international trade route is through Vietnam. So, for example, Laos exports to the United States, then Laos will send its goods through Vietnam, where there is an overland border crossing between Laos and Vietnam. Then, from Vietnamese ports, goods are sent to America by sea. Yes, for countries that do not have seas, there will usually be a special bilateral agreement between that country and its neighboring countries to serve as a transportation route for international trade. The same thing happened in other landlocked countries such as Mongolia, Lesotho, Luxembourg, or Andorra.
