Import & Export

The import of goods into Indonesia is usually subject to import duties; for government revenue purposes but also to protect Indonesian businesses that produce similar goods domestically.

The export of (raw) commodities is a main contributor to Indonesia’s GDP; to support its economy, the Indonesian government aims to minimize taxes on exported goods.

If a business is involved in straight import or export of goods under its own company name, it needs to have an import or export license in Indonesia.

Freight forwarding

For international freight transport, you have to engage a carrier.

Besides the import/export license, the basic documentation involved in order to import or export goods are:
  • Bill of Lading (B/L)
  • Packing List (PL)
  • Certificate of Origin (CoO)
  • Transport Insurance
  • Pro forma invoice
  • Terms of payment

In addition to the storage and shipping of goods, a freight forwarder is the appropriate party to serve as your agent in arranging these documents for you.

A freight forwarder does not actually move the cargo itself, but acts as an intermediary between your company and the carrier (by sea, air, rail a/o road).

The use of a freight forwarder is not mandatory for your transportation needs, but as the importing and exporting of goods involves dealing with many regulations which can vary per country, it is advisable to hire a freight forwarding company as your logistics partner.

In consultation with you, AdvintA can select the suitable freight forwarder and negotiate the best possible prices, depending on your needs and priorities.

Import

Since the introduction of the Online Single Submission (OSS) platform, the need for importers to apply for a main import license and a customs registration number has been abandoned.

Now the Business Identity Number (NIB) serves as the company’s primary import license (API) and customs registration number (NIK):
  • The NIB will not expire as long as the company is in operation, meaning that there is no need anymore to renew your API and NIK every 5 years as was required before the launch of the OSS platform.
  • Moreover, when your company undergoes changes, now you can just enter the new data in the OSS system using your NIB, without your imports being halted until the whole revision was completed as was the case prior to the OSS.

Only company directors are permitted to sign import documents under the OSS system, unless you assign another authorized person to do so via a power of attorney.
Products which require additional permits in Indonesia may still need specific import approval.

Export

The Business Identity Number serves as the company’s primary customs registration number.

If a company will be exporting goods on a regular basis, it should also have:
  • A trading business license (SIUP).
  • A registered exporter enlistment (REx).

Exporter registration is called Eksportir Terdaftar (ET) in Indonesia. Obtaining a SIUP and ET is not complicated, but besides the SIUP and ET, exporters need to verify whether their products need specific export approval, called Izin Expor (SPE), for their cargo.

Usually, for the export of (bulk) commodities and several other (quota) regulated goods a SPE is required. For example, the production of wood/timber based goods is a diversified manufacturing specialty in Indonesia.

Timber processing companies, including furniture and handicraft producers in Indonesia who export goods in which timber is used, need to comply with the Timber Verification and Legality System, known as Sistem Verifikasi dan Legalitas Kayu (SVLK).
This system is introduced to prevent illegal logging and ensure the legality of the timber source within the supply chain.
The SVLK is recognized by the European Union (EU) and many other countries.
Via a voluntary partnership agreement (VPA) between the EU and Indonesia, the SVLK issues a so-called V-Legal customs document which complies with the EU's Forest Law Enforcement, Governance and Trade (FLEGT) scheme.
Together with a certificate of origin (CoO), the V-Legal certification covers Indonesian exports of timber and timber-based products, so customers abroad do not have to double-check the origin and legality of the wood.

To regulate international trade, the World Customs Organization (WCO) has introduced a commodity description system for which it uses Harmonized System codes (HS codes) by which all cargo is identified. These HS codes are attached to the packing list which contains a description of the shipped goods.

Undername services

Although the OSS platform makes the import and export of goods less of a hassle, importing and exporting companies still need to comply with the practical procedures, and additional approval may be applicable, depending on the cargo.

AdvintA can take care of the necessary import a/o export documentation for your company if you wish to import or export under your own company name.

 

However, if you do not ship goods on a regular basis, or if you want to outsource the (paper) work involved, it is possible to use a third party service which already has the licenses you need.

This is called an undername import or export service. Depending on the product, AdvintA can serve as your undername agent or we can find you the specialized broker who possesses the specific permit you need.

Whatever your needs, we can help you with your import or export necessities.