Once the establishment process completes and you obtain the permanent business license. You can directly proceed to apply for Import and Export License.
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
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 for 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 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.)
The Indonesian government based on a regulation issued by the Ministry of Trade, as of 2011, regulates that the same company does not allow to have both API-U and API-P license. 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.
The processing time of an import license application could be daunting and used to take up to five months.
However, good news for foreign investors, the implementation of the OSS licensing system, and the cancellation of unnecessary procedures by Ministry of Trade have allowed more convenient and shorter processing time.
With the OSS implementation, it is no longer necessary for foreign investors to secure both an API and a NIK (Customs Registration) as basic import licenses anymore.
With this new system, all business entities will need to register themselves through it. After completion of registration at the OSS, each business will get a Business Identity Number NIB (Nomor Induk Berusaha).
The NIB will not expire as long as the company is in operation. This NIB number makes all processes much easier as it replaces the Company Registration Certificate, Importer Identification Number (for import license), and Customs Registration NIK (Nomor Induk Kepabeanan).
As such, import companies or companies engage in import activities do not have to go through the process of acquiring API and NIK anymore. However, importers need to make sure that they still comply with technical import requirements with relevant authorities.
You might want to check: Application for IUI and Expansion Licenses is Now Integrated into OSS System
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:
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.
