How to Get Import Export License – In Indonesia, obtaining an import export license is a crucial step for businesses engaged in international trade. This license ensures compliance with Indonesian regulations and allows businesses to legally import or export goods. Without the proper licensing, companies face the risk of fines, delays, or the confiscation of shipments.
Step 1: Registering Your Business Entity
Before applying for an import export license, it is mandatory to establish a legitimate business entity in Indonesia. The two primary options are:
- Local Company (PT): Ideal for Indonesian-owned businesses.
- Foreign-Owned Company (PT PMA): Necessary for foreign investors conducting business in Indonesia.
The company registration process requires the following:
- A Business Identification Number (NIB) obtained through the Online Single Submission (OSS) system.
- Registration with the Indonesian Investment Coordinating Board (BKPM).
Step 2: Obtaining a Business Identification Number (NIB)
The NIB serves as your business’s primary identification and enables you to conduct legal operations. This number also functions as your company’s import export license if your business activities include trading. To apply for an NIB:
- Access the OSS system.
- Submit the necessary documents, such as your business license and tax registration.
- Specify your business activities, including import-export operations.
Once approved, the NIB grants businesses access to customs clearance and other trade-related activities.
Step 3: Securing an Importer Identification Number (API)
The API is essential for businesses that wish to import goods into Indonesia. There are two types of APIs:
- API-U (General Importer Identification Number): For businesses that import goods for commercial purposes.
- API-P (Producer Importer Identification Number): For manufacturers importing raw materials or equipment for production purposes.
To apply for an API, prepare the following documents:
- A copy of your NIB.
- Articles of association of your company.
- Taxpayer Identification Number (NPWP).
- A letter of intent specifying the types of goods to be imported.
Submit these documents to the Ministry of Trade or an appointed licensing body.
Read More: Indonesia Customs Tax Rates Explained
Step 4: Applying for a Customs Identification Number (NIK)
The NIK is a unique number issued by the Directorate General of Customs and Excise. It enables businesses to access Indonesia’s INSW (Indonesia National Single Window) platform for customs documentation and clearance. To obtain a NIK:
- Register online through the Customs and Excise website.
- Provide the required documents, including your NIB, API, and company registration details.
- Complete the verification process with the customs office.
Once approved, the NIK allows businesses to process import-export transactions seamlessly.
Step 5: Understanding the HS Code and Import Export Regulations
The Harmonized System (HS) Code is critical for determining the tariff rates, duties, and restrictions applicable to specific goods. Before importing or exporting, identify the correct HS Code for your products. Use Indonesia’s customs website or consult with a freight forwarder for assistance.
Some goods may require additional permits, such as:
- Food and Drug Import Permits: Issued by BPOM for consumable goods.
- SNI Certification: Mandatory for industrial products to meet Indonesian National Standards.
Ensure compliance with these regulations to avoid delays or penalties.
Step 6: Paying Import Duties and Taxes
Indonesia imposes several taxes and duties on imported goods. These include:
- Import Duty: Based on the HS Code of the product.
- Value-Added Tax (VAT): Generally set at 11%.
- Income Tax (PPh 22): Ranging from 2.5% to 7.5%, depending on the importer’s tax status.
Exported goods, on the other hand, may be exempt from VAT but could be subject to export duties for certain commodities.
Step 7: Establishing a Robust Documentation Process
Proper documentation is critical for the import-export process. Ensure the following documents are accurate and complete:
- Bill of Lading (B/L) or Airway Bill.
- Commercial Invoice detailing the value of goods.
- Packing List with itemized descriptions.
- Certificates of origin or conformity, if applicable.
Incomplete or inaccurate documentation can result in delays or additional scrutiny from customs authorities.
Step 8: Partnering with Logistics and Customs Brokers
Navigating Indonesia’s complex import-export system can be challenging, especially for new businesses. Partnering with experienced logistics providers or customs brokers can streamline the process. These professionals assist with:
- Documentation preparation.
- Customs clearance.
- Freight coordination and warehousing.
Choosing the right partner ensures efficiency and compliance with regulations.
Step 9: Leveraging Indonesia’s Free Trade Agreements
Indonesia is a participant in several free trade agreements (FTAs), such as the ASEAN Free Trade Area (AFTA). These agreements can reduce or eliminate tariffs for certain goods. To benefit, importers and exporters must present certificates of origin proving the goods qualify under FTA terms.
Step 10: Staying Updated with Regulatory Changes
Indonesia’s trade policies and regulations are subject to frequent updates. Stay informed by:
- Subscribing to updates from the Ministry of Trade.
- Consulting with local trade experts or legal advisors.
- Participating in industry forums or trade events.
Regular updates ensure compliance and help businesses adapt to changes effectively.
Conclusion
Obtaining an import export license in Indonesia involves multiple steps, from business registration to securing essential permits and complying with customs regulations. By following the outlined process and leveraging local expertise, businesses can navigate Indonesia’s trade landscape efficiently. Proper planning and adherence to regulations are key to unlocking the vast opportunities in the Indonesian market.
Indonesia Customs website here.
Collection of Indonesia customs consultations here.
Topic: import license, export license, Indonesia trade, customs clearance, trade regulations, business permits, NIB registration, API Indonesia, import taxes, HS code