Indonesiaaccess

Indonesia Export Regulation



One of Indonesia Access’ aims is to assist Seller in obtaining and understanding the regulations and information on export.

Export activities in Indonesia can be carried out by individuals, institutions and business entities.

Sellers that want to become exporters must fulfill the following conditions:

  1. Have a legal entity (Company Registration Certificate (Tanda Daftar Perusahaan or TDP)), in the form of:
  • CV (Vennotschap Commanditaire).
  • Firm.
  • PT (Limited liability company).
  • Listed Company.
  • Public Company.
  • Company Service.
  • Koperasi.

  1. Have a NPWP (Tax payer Registration Number) (Nomor Pokok Wajib Pajak).

  2. Possess permit issued by the Government such as:
  • Trading Business License (SIUP) from the Trade office or other business license from the relevant technical ministry/non-ministerial government agency/institution, for example Industrial license from the Department of Industry if the business is under the Industrial category.

  • Domestic Investment (PMDN) or Foreign Investment (PMA) business license issued by the Investment Coordinating Board (BKPM).

  • Customs Identity Number (Nomor Identitas Kepabeanan or NIK), which is a private identity number from the Directorate General of Customs and Excise that allows exporters to access or connect to the customs system manually or electronically.


To obtain a NIK, an exporter must submit a customs registration application to the Directorate General of Customs and Excise or the appointed Customs and Excise officials, along with the required supporting documents. These supporting documents include deed of establishment of the company and its legalization or registration with the relevant institution, TDP, NPWP and Certificate of Domicile (Surat Keterangan Domisili Perusahaan or SKDP). The NIK will be issued within 14 working days from the receipt of the application and required supporting documents.


Exporters can be classified as:
  1. Manufacturer Exporter :
  • As a producer exporter in an effort to obtain its legality, it should fulfill the stipulated requirements, namely filling in the form provided by the Department of Industry and Trade in the Regency / City Government or Province, and related technical agencies.

  • Have an Industrial business license.
  • Have a tax ID.
  • Provide periodic (every three months) reports on export transactions to the Ministry of Trade and Industry and other required institutions or appointed officials. The reports must be approved by the Foreign Exchange Banks (Bank Devisa) and should include clearance from tax and any other financial debt.

  • NIPER: an export-oriented manufacturing business entity that already has a NIPER (Company Parent Number) can use KITE facility.


To obtain a NIPER, the business entity must submit an application to the Head of the Regional Office or Main Service Office (KPU) who is in charge of the factory or processing site and must meet the requirements and criteria specified in the provision of NIPER as stipulated in PER-04 / BC / 2014 for NIPER Exemption and PER-05 / BC / 2014 for Returning NIPER.

What are the Import Facilities for Export Purpose (KITE)?

There are 2 KITE facilities, namely:

  • Import duty and VAT exemption facilities are not collected on the import of raw materials to be processed, assembled, installed and exported products.

  • Facilities for returning import duties on imported raw materials to be processed, assembled, installed and exported are defined. Definition of Import Duty including additional import duties such as anti-dumping import duties, retribution duty, safeguard import duties, and reward fees.

  1. Non-Manufacturer Exporter:
  • As a non-manufacturer exporter and in order to obtain its legality, it should fulfil the stipulated requirements, namely filling in the form provided by the Department of Industry and Trade in the Regency / City or Province Regional Government and the related technical agencies.

  • Have a Trading Business License.
  • Have a tax ID.

 

The general export process is as follow:
  • Negotiatiation between buyer and seller.
  • Incoterm decided.
  • Prepare export packing list, as well as commercial invoices.
  • Arrange with an agent for the logistics: booking space for ships/ planes to carriers following the shipping instructions

  • Prepare PEB. Notification on the Export of Goods (Pemberitahuan Ekspor Barang or PEB is prepared by an exporter based on the supporting documents for customs, including invoices, packing lists and proof of payment of Non-Tax State Revenue (Penerimaan Negara Bukan Pajak or PNBP.


–  PEB registration is accompanied by a Company Registration Number (NIPER) and supplementary documents. PEB is submitted no later than 7 days before the estimated date of export and no later than before the exported goods enter the Customs Zone.

– Documents from related technical institutions (in the case of exported goods  subject to prohibition provisions and / or restrictions) are as well supplementary documents for PEB.

  • Insuring Cargo.
  • Bill of lading.
  • Preparing documents for certificate of origin (SKA) / COO to the ministry of trade (needed depending on the destination country).

  • Customs inspection report (needed depending on the destination country).
  • Notes / Draft bill of exchange (needed depending on the destination country).
  • Customs management (custom formalities / custom clearance).
  • Physical inspection of exported goods and document research.
  • Approval and loading of exported goods to supporting facilities.
  • Physical inspection of exported goods and document research.
  • Approval and loading of exported goods to supporting facilities.

If the export goods are subject to export tax (for example Palm oil, wood, sand products and rattan), the export tax must be paid off before being put into the transportation facilities. This export tax is calculated based on the export benchmark price (HPE) and the benchmark export price is determined by the Minister of Trade in the form the Minister of Trade regulation that applies for a certain period of time taking into account the consideration of the Technical Minister and related associations. The HPE is based on international average prices and / or FOB average price prices in several ports in Indonesia.

The export levy rate (Tarif pungutan ekspor/TPE) used as the basis for calculation is the TPE that applies when the export goods notification (PEB) is registered at the Customs and Excise Service Office, as well as HPE, the HPE used is HPE that applies when PEB is registered at the Service Office Customs and Excises. Payment of this export levy can be made at a Foreign Exchange Bank or at the Customs and Excise Service Office as following.

How to calculate export tax

  1. Exported goods subject to tariffs  “ad valorem”   (percentage), Export Tax is calculated as follows: Export Tax = Export Tax Rates x Export Benchmark Price x Number of Units of Goods x Exchange Rates.

  2. Exported goods subject to tariffs  “ad naturam”   (specific), Export Tax is calculated as follows: Export Tax = Export Tax Rate x Number of Units of Goods x Exchange Rates.

 

Food Export Regulations

Export goods are classified as:

  1. Free Export Goods, which are goods that have no restrictions or prohibitions on their export from Indonesia;
  2. Export Restricted Goods, or goods on which there are restrictions on the type and/or amount of exports or on who can export such goods; and

  3. Export Prohibited Goods, which are goods that are prohibited to be exported.

Processed foods and beverages are generally classified as Free Export Goods. Given that, we will look here only at the licenses and documents required for Free Export Goods.

For exports of processed foods in particular, exporters must also comply with the relevant regulations issued by the Indonesian Drug and Food Control Agency (BPOM). Any processed foods, whether produced domestically or imported to Indonesian territory for trading in retail packages, must have a Registration Approval Letter issued by the head of BPOM, except for the following processed foods:

  1. produced by a home industry;
  2. having a storage period of less than seven days at room temperature;
  3. imported into Indonesian territory in small volumes for the purpose of (i)  sample for registration application; (ii) research; (iii)  personal consumption; and/or (iv) to be used as raw material and not to be sold directly to end-consumers.


The head of BPOM will issue the Registration Approval Letter at least 150 working days from the receipt of the registration form accompanied by proof of payment of the registration fees.

Home industries involved in the production of processed foods must have a Certificate of Home Industry Food Production (Sertifikat Produksi Pangan Industri Rumah Tangga or SPP-IRT) issued by their local regent/mayor. An SPP-IRT is issued to home industries that have obtained a Food Safety Counselling Certificate and Recommendation on the Examination of Home Industry Food Production Facility from the local health service office of their regency/city.

In conclusion, an exporter must have the following documents to export processed foods:

  • Customs Identity Number (Nomor Identitas Kepabeanan or NIK)
  • Registration Approval Letter from BPOM.
  • Statement Letter of Export from BPOM in the form of Certificate of Health (COH). This is a statement letter issued by BPOM or the local technical implementing unit of BPOM, known as Balai Besar/Balai Pengawas Obat dan Makanan, stating that the food products to be exported are safe/suitable for human consumption. A COH is commonly required if the processed foods to be exported are not registered with BPOM.

  • Certificate of Free Sale (CFS) is a statement letter issued by BPOM or Balai Besar/Balai Pengawas Obat dan Makanan stating that the processed foods registered at BPOM can be distributed in Indonesia. A CFS is required for the export of processed foods registered with BPOM.


Other documents may be needed depending on the requirements of the destination country, and the importer in the destination country must comply with the applicable provisions in that country. Requirements related to the import of processed foods are commonly related to the health standards of the processed items being imported.

For more information, please visit the following links :

http://www.kemendag.go.id/id/newsroom/regulations

https://e-bpom.pom.go.id/

http://djpen.kemendag.go.id/app_frontend/contents/102-larangan-ekspor

http://www.gbgindonesia.com/en/main/legal_updates/food_export_regulations_and_licenses_in_indonesia.php


If you don’t have NIB

IF you are  a Seller  looking to export and do not posses NIB (Company Registered Number),  you can process it online at www.oss.go.id

If you would prefer us to assist you on the process, please contact us!