If you are interested in buying goods from Indonesia, you need to know the terms and processes of the export itself. By knowing them, it will be easier for you to conduct transactions with your business partners in Indonesia. So, how to export goods from Indonesia?
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As a resource-rich country, many exporters from Indonesia trade with other countries. Of course, in order to export goods, an exporter must comply with government regulations. Below, we list the documents required by exporters and the general process of exporting goods in Indonesia.
Documents Needed to Export From Indonesia
In exporting goods from Indonesia, usually you will need several documents, namely :
1. NPWP (Nomor Pokok Wajib Pajak)
First and foremost, You need NPWP. It stands for Taxpayer Identification Number. Specifically, this is a number assigned to a taxpayer as a means of tax administration for the taxpayer’s self-identification in the exercise of his rights and obligations.
2. TDP (Tanda Daftar Perusahaan)
Second, you need a Company Registration (TDP). By having this, that means your company has fulfilled its registration obligation.
3. SIUP (Surat Izin Perdagangan)
Third, there is SIUP or business permit. This is an operating licence for a company or person carrying on business activities in the trade of buying and selling goods / services.
4. NIK (Nomor identitas Kepabeanan)
Fourth, NIK or Customs Registration Number is a registration number issued by the Director General of Customs (DJBC) to individuals and companies. Also, this works as a form of permission to access anything related to customs.
Fifth, you need an invoice. This contains information about the goods to be shipped. The consignor or exporter will create this for the consignee.
6. Packing list
Almost in the same way as an invoice, the packing list also contains information about the items to be shipped. However, the information in this document is not linked to the price of the goods as stated in the invoice.
7. Bill of Lading
Seventh, Bill of Lading (B/L) is a receipt for the transportation of goods as an intermediary between the shipper and the consignee. Besides that, it is also an evidence of the contract for transportation. This document also serves as an agreement for the transportation and delivery of the goods to the carrier and as a guarantee of the goods in the process of shipment.
8. Shipping Order
Then, shipping order is letters addressed by the shipper or exporter to the shipping company to receive and load the goods specified therein. This letter contains the identity of the shipper and complete information about the cargo to be shipped.
9. PEB (Pemberitahuan Ekspor Barang)
Afterward, PEB is a customs document used to provide information about the export of goods. In PEB, Shipper or exporter create this document using the online EDI software.
10. Certificate of Origin (COO)
Next, COO contains information on the origin of goods based on an agreement in a treaty between countries.
Steps on Exporting Goods From Indonesia
Normally, exporting goods from Indonesia will take some steps below, which are :
1. Letters of Agreement
Initially, The exporter conducts correspondence with importers abroad to offer and negotiate for the goods he wishes to sell. The offer letter to the importer must include the type of goods, quality, price, terms of delivery, etc.
2. Sales Contract
If the importer agrees to the exporter’s offer, the importer and exporter enter into and sign a commercial contract. A sales contract states the things on which both parties agree.
3. Issuance of Letter of Credit (L / C)
After signing the trade agreement, the importer opens the letter of credit through a correspondent bank in his country. After that, they sends the letter of credit to the designated Foreign Exchange Bank, to inform the exporter that the letter of credit has been received.
4. Preparation of Export Goods
Upon receipt of the letter of credit, the exporter prepares the goods ordered by the importer. Therefore, the condition of the prepared goods must meet the requirements of the commercial contract and the L / C.
5. Registering Export Declaration of the Goods (PEB)
Next, the exporter registers a Trade Export Declaration (PEB) to the Foreign Exchange Bank, by attaching a promissory note if the exported goods are subject to export duty.
6. Vessel Space Reservation
After registering PEB, the exporter orders vessel space from Ocean Shipping Lines or airlines. Moreover, exporters should considerate to which shipping company has the lowest freight transportation rate and offers the greatest guarantee of punctuality of the voyage.
7. Processing the Delivery Order (D/O)
After obtaining a Shipping Order (S/O),do not forget to ask about about Delivery Order (D / O) to your supplier. Delivery order is a ordered goods document which agreed between the seller and the buyer. This document is addressed to the warehouse department of the company.
8. Stuffing and Delivery of the Goods
When the vessel are available, the exporter can send the goods to the port of delivery himself. Aside from the exporter themselves, a forwarding company (Freight Forwarding Company or Ship Cargo Expeditionary Company / EMKL) can assist them to the clearance of the goods to the port and to the ship.
9. Customs Inspection
At the port, customs will check the export documents . If necessary, customs will also check the goods. When the goods and accompanying documents are in compliance, customs will sign the loading permit on the PEB.
10. Goods Loading onto the Ship
Once Customs has signed the PEB, the goods can be loaded onto the ship. Then, the shipping authority issues a bill of lading (B / L) to the exporter
11. L / C Disbursement
When the goods have been shipped, the exporter can go to the bank to withdraw the L / C. Additionally, documents submitted to the bank are B / L, Commercial Invoice, Packing List and PEB.
12. Delivery of Goods to Importers
Last steps, the importers will get the goods.
In conclusion, it is better to know export process in Indonesia. Thus, your exporting activities will go without any unnecessary loss.