Must Know! Here’s a Guide Step by Step Import License Process for Businesses
Corporate Secretary Service Indonesia – Importing isn’t just about bringing goods into the country; it’s also a crucial strategy for businesses to meet market needs, increase product variety, and obtain technology or raw materials that aren’t available locally. By leveraging imports, businesses can reduce production costs, increase competitiveness, and expand growth opportunities amidst global competition. However, import procedures aren’t easy, especially if you’re new to the industry, as there are a number of rules and regulations, including document processing, that must be met.
From understanding import regulations and preparing documents to choosing the right shipping method, each step requires special attention. Therefore, this article will discuss the important step by step import license process that business owners need to know to start importing. Read on this step by step import license process!
Import Procedures: Registration and Document Processing
Importer Registration
The first step prospective importers need to complete is registering and obtaining a business license as an importer. Based on Minister of Trade Regulation Number 36 of 2023 concerning Import Policies and Regulations (Permendag 36/2023), which was last amended by Permendag 9 of 2024, importers are required to have a Business Identification Number (NIB), which serves as an Import Identification Number (API).
NIBs are divided into two types: API-U for commercial activities and API-P for importing goods for personal use, such as raw materials or capital goods. As stated in Permendag 36/2023, there are three types of permits that can be obtained: Registered Importer, Producer Importer, and Import Approval.
Importers can have one or more types of permits depending on the type of goods imported. Registered Importer and Producer Importer permits are valid for more than one Import Customs Notification submission, while Import Approval is valid for one or more submissions.
Read Also: Understanding Customs Clearance Steps in Indonesia for Global Importers
Import Document Management
After obtaining an API, businesses must still obtain an Import Approval issued by the Minister of Trade. This Import Approval document is the primary requirement for imports and must be presented during inspection by the Directorate General of Customs and Excise. This document includes several important pieces of information, such as the approval number, importer identity, type and quantity of goods, country of origin, and port of destination. Import Approvals are issued based on the Commodity Balance, which takes into account domestic demand for goods.
If a Commodity Balance has not been established, import requirements can be adjusted to reflect relevant policies, such as for the import of beef products, which requires a recommendation from the Ministry of Agriculture. Importers must submit an application electronically through the SINSW system, which is forwarded to the INATRADE system. Access is obtained through registration and uploading required documents, including a Taxpayer Identification Number (NPWP), NIB (National Identity Number), or Population Identification Number (NPI), depending on the type of business entity they operate.
Applications are submitted by uploading scans of the original required documents, unless these documents are already available electronically through the relevant ministry or agency integrated with SINSW. Once the application is complete, the Director General will issue a Business Permit electronically within a maximum of 5 working days, accompanied by a QR code as proof of validity.
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