Import License Is an Important Document for Foreign Transactions
Corporate Secretary Service Indonesia – Want to start an import-export business in Indonesia? You must have an import business license. A license is essential in foreign transaction activities. Without using an import license, you will not be able to continue the shipping process. You must apply for a special permit to go through the customs process and carry out the import activity.
As is known, in completing the delivery of goods, every process of importing, whether small or large, will require a permit. The permit file will be adjusted to the type of shipping road, the quantity of goods, and the existence of specific certificates or special laws for the country.
So, What is an Import License?
An import license is a permit that allows importers to send foreign goods to a destination country. This license is mandatory because it requires permission from the local government to continue shipping goods and apply import restrictions, including the number of goods and the currency used.
Purpose of an Import License
The purpose of an import license is solely to protect domestic producers during the import transaction process. In addition, this license is intended to improve the trade balance by limiting import quotas so that the government can control incoming goods or hazardous materials prohibited from entering the destination country, such as illegal drugs and restrictions on foreign currency.
Import licenses will be a permit file for incoming goods, making monitoring more manageable for the government. For example, if goods such as chemicals are considered detrimental and dangerous, they can be detained. That is why, when carrying out the trade or buying and selling process between countries, entrepreneurs are expected to complete the required files, always check those related to the law and choose a shipping company that is guaranteed during shipping.
Several Types of Licenses That Must Be Known
Judging from the regulations the Indonesian Minister of Trade sets, the Importer Identification Number or API must be owned by every company importing goods to Indonesia. All import activities cannot be carried out without an API. API is indeed a record of importer data and those related to import activities.
Read Also: 3 Important Things Before Exporting Indonesian Food
Currently, two types of APIs are often used: General API (API-U) and Producer API (API-P). However, in early January 2016, the Minister of Trade set two new import license regulations, as stated in the Ministry of Trade Regulation 70/2015.
API-U or General Import License
This importer identification number is owned by general trading companies that import finished products to distribute them in Indonesia. This license can import finished products or as merchandise with third parties.
API-P or Manufacturer Import License
API P is owned by manufacturing companies that import raw materials or supporting goods for the manufacturing process to be carried out in Indonesia. In this case, this license type cannot be used for import or trade purposes, specifically only for the production or manufacturing process.
Goods Permitted and Prohibited by Import License
In Indonesia, the government has set several specific limitations for the types of imported goods and services. What are they?
The license permits the following items:
- Agricultural products and materials
- Non-hazardous plants
- Medicines
- Food
- Chemicals for weapons purposes that are permitted or within certain limits
- Military weapons
- Wood products
- Technology
The following items are not permitted to be imported into Indonesia. There will be severe sanctions imposed. The license prohibits the following items:
- Pornographic materials
- Illegal drugs and narcotics
- Political materials
- Dangerous weapons used for sports and hunting
- Explosive materials, such as firearms and ammunition (special permits are required)
An import license is essential, especially if you want to conduct transactions globally. For those who want to expand your company’s wings to foreign countries, immediately prepare the files and import licenses for smooth business.
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