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Import and Export License in Indonesia

Import and Export License in Indonesia Review by Michal Wasserbauer on 25. 11. 2015 Company Registration in Indonesia, Market Research in Indonesia, Work Permit in Indonesia, Product Registration in Indonesia, Local Partner Selection in Indonesia, Trade Mission in Indonesia, Company Formation in Indonesia, Company Establishment in Indonesia, Company Set Up in Indonesia, Payroll Outsourcing in Indonesia, Tax Reporting in Indonesia, Medical Product Registration in Indonesia, Medical Device Registration in Indonesia, Cosmetic Registration in Indonesia, Food Supplement Registration in Indonesia.
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Once the establishment process completes and you obtain the permanent business licence. You can directly proceed to apply for Import and Export License.

Import and Export License in Indonesia

Import is the process of transporting goods or commodities from one country to another legally, generally in the process of trading. The general import process is the act of entering goods or commodities from other countries into the country. Large imports of goods generally require interference from customs in sending and receiving countries.

Obtaining an Indonesian import license is an important requirement for importing goods to the Indonesian market. Licenses are limited to a particular industry and do not permit importation of goods not related to that sector of business

A) Import Licence

There are three types of Import Licence you can apply :

1. API-U (General Import Licence) :

Is given to general trading Company who conduct import activities of fully-made product to be sold/distributed later in Indonesia. This Indonesian license may be used to import finished products or to trade goods with a third party.

Applications for an API Umum take around 1 month.

2. API-P (Producer Import Licence) :

Is given to manufacturing company who conduct import activities fow raw materials or manufacture support goods to be used in the manufacturing process in Indonesia (this license doesn’t allow Import for selling/distribution, only for production/manufacturing use process.

2. A Limited Import License, also known as API Terbatas (API-T):

This license may be used as a limited importer identification number and is obtained through the Indonesian Investment Coordinating Board (BKPM). Goods imported under an APIT are subject to a reduced withholding tax of 2.5 % compared to the normal rate of 7.5 %.

The moment you registered as Trading Company, hence you will get Business licence Trading. You will be entitled to API-U (General Import license) to import a finished goods/products to be sold/distributed again in Indonesia.

However, if you decide to add manufacturing activities, you will then obliged to revised all your Principle/Business Licence into manufacturing activity. Furthermore, You will need to apply for Industrial Licence (IUI) and Industrial Registered Licence (TDP). This process actually will basicaly change your Trading Company into a Manufacturing Company.

Where for the import licence, You will be then entitled to API-P licence in which you will no longer have rights to conduct import for selling and distribution, rather only for Manufacturing use process. (Because they will expect you will only sell and distributes products from your manufacturing facility in Indonesia.)

Indonesian goverment based on a regulation issued by the Ministry of Trade, as of 2011, regulates that a same company does not allowed to have both API-U and API-P licence. Hence, in other words It is not possible to conduct Manufacturing and Trading under one company. You will need to established 2 Company to be able conducting this activities simultaneously.

You might want to check: Application for IUI and Expansion Licenses is Now Integrated into OSS System

B) Export Licence

 To be able to conduct exporting activities, Indonesian exporters need to have Export Licenses (ET). There  are general provisions of export by 13/M-DAG/PER/3/2012, in which export of goods are grouped as follows:

  1. Exportable Goods Individual needs to  have  NPWP (Tax  Payer  Identification  Number) and  other documents specified by regulation to export; while business entities need to have SIUP (Trade Business License), TDP (Company Registration), NPWP and other documents specified by regulation.
  2. Restricted Goods Institution or business entities should have ET (Registered Exporter), SPE (Export Permit), LS (Surveyor’s Report), COO (Certificate of Origin) and other documents specified by regulation tobe able to export restricted goods. In most cases ET requires SPE at times of actual export. Coffee,rubber,iron  wood,  cow  or  buffalo,  fertilizer,  gold,  silverand  mineral  products exporterscan only export afterobtaining SPE. Below is the list of export-related specific documents requirements:
  • Inspection Report:
    Inspection  Report  by  the  Export  Verification  and  Monitoring  Team  of Swallow Nest
  • Quota Certificate:
    Certificate that explainsExporter Identity, HSCode, Amount, Export Contract.
  • Statement Letter  (for  Urea  Fertilizer):
    A letter from exporter to state that the exported urea fertilizer is not subsidized by the government.

Read also: Export to Indonesia without Import License

 

As of September 2018, the government has announced regulation to impose Import Tax for certain commodities. For further information on this matter, please kindly contact Cekindo.


Cekindo, as one of leading consulting company in Indonesia are ready to assist clients who wants to obtain Import and Export License for their business purposes in Indonesia. Contact Us for more information.

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