Guidance for International Trade to Understand the Under Name Import Service

Corporate Secretary Service Indonesia – Many businesses face challenges when importing goods internationally. An under name import service or Importer of Record (IOR) provides a solution for companies lacking import licenses or customs expertise. This arrangement allows you to import goods using another company’s credentials and permits.

How Under Name Import Services Work

In this arrangement, a licensed importing company acts on your behalf. They become the official importer of record while you maintain ownership of the goods. The process involves these key steps:

1. You identify goods for import from overseas suppliers
2. A licensed import service provider processes customs clearance under their name
3. Goods clear customs and transfer to your possession
4. You compensate the service provider according to your agreement

Key Requirements for Compliance

The service provider must maintain:

• Active registration with Directorate General of Customs and Excise
• Valid import license (API)
• Clean compliance record
• Adequate insurance coverage

You should always verify these credentials before engaging any under name import service.

Participants in the Process

Several parties facilitate these imports:

• Importer: Your company purchasing the goods
• Service Provider: Licensed company handling customs clearance
• Customs Authorities: Government officials regulating imports
• Logistics Providers: Shipping and transportation companies

Advantages of Using Import Services

Businesses choose under name import service for these benefits:

Time Efficiency

Service providers handle complex paperwork and customs procedures. This eliminates delays from documentation errors or inexperience.

Cost Management

You avoid maintaining import licenses and customs compliance teams. Providers offer transparent pricing without hidden fees.

Regulatory Compliance

Licensed providers ensure full compliance with import regulations. This prevents penalties or shipment seizures.

Market Access

Companies without import licenses can immediately access international suppliers. This accelerates business growth.

Read Also: Navigating China-Indonesia Imports: How Import License Consultancy Services Simplify the Process

Selecting a Service Provider

Consider these factors when choosing a provider:

• Years of industry experience
• Specific commodity expertise
• Client references and reviews
• Contract transparency
• Insurance coverage limits

Always establish a formal written agreement (Indentor Letter) defining responsibilities, costs, and timelines.

Risk Management

While beneficial, these services carry certain risks:

• Potential liability for compliance violations
• Dependency on third-party performance
• Possible communication challenges

Mitigate these risks through careful provider selection and detailed contracts.

Industry Applications

Under name import services benefit various businesses:

• Startups testing new markets
• Small businesses avoiding license costs
• Companies importing restricted goods
• Businesses managing seasonal import volumes

Implementation Process

Follow these steps when using these services:

1. Identify qualified service providers
2. Negotiate terms and pricing
3. Sign formal service agreement
4. Provide product specifications
5. Coordinate shipping details
6. Monitor customs clearance
7. Take possession of goods

Long-Term Considerations

While convenient, these services work best as a temporary solution. Consider obtaining your own import license if you plan regular imports. This reduces costs and increases control over your supply chain.

An under name import service provides practical import solutions for businesses expanding internationally. Proper implementation helps you navigate complex regulations while focusing on core business activities.

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