Sometimes a country or a company needs equipment that is not easy to buy. Aside from it not being easy to buy, it could be because you only want to use the equipment for a certain period of time. So the best option you have is temporary import. Then what is temporary importation in Indonesia?
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What is Temporary Import in Indonesia?
According to DJBC (Indonesian Customs), temporary importation is the bringing of imported goods into the customs territory for re-exportation. Therefore, the imported goods must be re-exported immediately, for a maximum of three years.
Things that allowed to be imported temporarily
If you are planning to import any goods temporarily, it is best to know what goods the customs allows,
Merchandise for exhibitions, seminars, conferences, or similar activities,
- Goods for research and scientific purposes, professionals/experts, samples and/or demonstrations,
- Public performances, sports, and/or competitions goods,
- Packages used in connection with the transportation and/or packaging of imported or exported goods, either repeatedly or not;
- Foreign yachts used by foreign tourists themselves;
- Goods to be repaired, overhauled, tested, and/or calibrated;
- Live animals for the purpose of public performances, sports, competitions, training, and/or handling security incidents;
- Goods for the purpose of dealing with natural disasters, fires, environmental damage or security incidents, or for humanitarian or social purposes
- Goods for the activities of the Indonesian National Armed Forces and the Indonesian National Police, in the context of defense and security;
- Vessels imported by national commercial shipping companies or national fishing companies. Whose main function is sailing to transport passengers and/or goods engaged in maritime transport or fishing within Indonesian waters;
- Aircraft and aircraft engines imported by national airlines engaged in air transportation activities within Indonesian territory, including helicopters;
- Personal effects of passengers and personal effects of the crew of the means of transport;
- Support beams for government projects financed by loans or grants from abroad;
- Means of transportation not used for transportation within the Customs territory; and/or o. Containers and equipment not used for transportation
Documents Needed for Temporary Importation
Before doing temporary importation to Indonesia, there are some documents you need to prepare first, which are :
1. Details of the value of the goods
The first one is the documents which include several details of the goods. The example of it such as invoices, purchase orders, and proof of ownership of goods.
2. Goods Identification Documents
The second one is the Goods identification. In particular, such as brochures, photos of the goods, safety data sheets (msds), and especially ships.
3. Letters of Explanation
Besides the documents above, you also need to include an explanation letter. In any case, this document explains the intended use of the goods, and the period of temporary importation (employment contract or lease).
4. Identity Documents of Applicants
The next one is Applicant’s Identity Documents. For temporary import permits in Indonesia, an applicant has to include several permits. Such as NPWP, NIB, API, passport, and e-mail.
5. Power of Attorney
Above all the documents mentioned before, a power of attorney is a must document. Power of attorney by which the sender of the goods authorizes the importer to take care of all matters in Indonesia. Such as administration of licenses, documentation of the use of goods, etc.
6. The HS Code of Goods
Following the documents above, you need to know the HS Code of your products. To find the right HS Code, Kickrate provides the HS Code Indonesia explorer. For example, I am going to find the HS code of Pile Extractor.
7. Taxes Declaration Letter
After finding the HS Code, you can prepare the Taxes declaration letter. To know how much tax you need to pay, you can check out the details inside the HS Code. You can click on the HS code link of the pile extractor on point six above.
After clicking the link of HS Code above, you can see the details of the goods. Scroll down for further information.
Below the description bar, there are the percentages of tax you need to calculate. For importing pile extractors, make sure to include the 5% of import duty. To ease your calculation, Kickrate also provides the tax calculator.
8. Lartas Documents.
In addition to the taxes, do not forget to check out the Lartas (Prohibitions and Restrictions) documents. Let’s move back to the HS code above to find out if your goods have lartas or not.
Below the Import tax bar, you can see the Post Border Import. For importing pile extractors, you need to submit two additional documents. The first one is PI (Persetujuan Impor) Barang Modal Tidak Baru and Laporan Surveyor.
The first one, which is PI Barang Modal Tidak Baru, is Non-new capital goods (BMTB) Import Permit in English. This states that you use the goods you import as a business capital to produce something usable or can be refurbished, reconditioned, and reused and is not scrap.
Meanwhile, Laporan Surveyor or surveyor’s report in English, is a supplementary customs document in the customs clearance process. The Surveyor Report must contain a truthful statement of the results of the Import Technical Tracing Verification (VPTI).
How to Get the Temporary Importation Permit?
Consequently, you need to follow some steps to obtain the temporary importation permit in Indonesia. Which are :
1. Submitting the Application Letter
Initially, the head of the company or agency submits an application letter to the customs office for the temporary importation of goods.
2. Attach all the Necessary Documents
For submitting to the customs, the applicant must attach the necessary documents. The applicant can submit it through online via government’s website.
3. Wait for the Government's Approval
After submitting to the customs, the applicant needs to wait for confirmation. You need to wait to one until five days work days whether it will get accepted or not.
4. Pay the Import Duty
If the Indonesian government approves your request, you need to pay the import duty based on the kinds of goods you want to import.
5. Choose the shipping Method
For the most part, choosing the most suitable shipping method for your goods in necessary. By choosing the right shipping method, it can avoid the unfortunate risks.
6. Extend The Usage Import or Re-Export
Most importantly, don’t forget to take care of re-exporting the goods you imported into Indonesia. If you want to continue to use the goods in Indonesia, you must extend the useful life of the goods until the date agreed with the Indonesian government.
7. Use Importer of Record Service
In reality, completing temporary import permits to Indonesia is not a simple matter. The documents that need to be processed can be more complex than for regular imports. With a temporary import, you are re-exporting the goods that you imported.
By using an importer of record service like Kickrate, you can make your activities easier. Because when you use Kickrate’s services, we help you take care of all the documents, permits, and customs clearance in a legal and unexpensive manner. Moreover, we also offer shipment service and delivery of goods to your destination.