What Happens If an Importer Doesn’t Have an API?

Corporate Secretary Service Indonesia – In today’s global economy, international trade has become part of daily business activity. According to Indonesia’s Central Statistics Agency, the country’s import value in January 2024 reached USD 18.51 billion, an increase of 0.3% compared to the same period the year before. This high volume of imports highlights the importance of having the proper legal documentation to move goods across borders smoothly.

One of the essential documents for any business wanting to import goods into Indonesia is the Importer Identification Number, or API. But what exactly is it, and what happens if a company wants to import goods without one?

What is an API?

API (Angka Pengenal Importir) is a license issued by the Indonesian government to companies that engage in import activities. It functions as the company’s official identity in the import process. This number is used by customs authorities to track imports, assess import duties, and determine the applicable taxes. In short, API is your business’s entry ticket to the Indonesian import system.

Why is API Important?

Having an API provides several key benefits:

Official Recognition

An API makes your business a legally recognized importer in Indonesia. It helps simplify paperwork and shows that you are operating within government regulations.

Faster Customs Clearance

Since customs already has your information on file, inspections and goods release processes are much faster.

Better Control and Lower Risk

With an API, importers can better monitor their shipments, which reduces the risk of fraud or delays caused by incorrect documentation.

Read Also: How to Obtain Import License API‑U Indonesia?

Types of APIs in Indonesia

There are two main types of API licenses:

• API-U (General Importer License): This license is for companies that import goods for resale, such as electronics, fashion items, or food products.
• API-P (Producer Importer License): This one is for manufacturers who import raw materials or machinery for their production process. Items brought in under API-P cannot be resold directly and are restricted for use within the company.

Each company may only hold one type of API. Even so, the license can be used by all branch offices under the same legal entity.

What If You Don’t Have an API?

In some situations, a company might not have, or be eligible for, an API. In those cases, imports are only allowed under limited circumstances, such as:

• Goods that are not for sale (non-commercial)
• Shipments that are not repeated
• Items used for infrastructure projects, research, exhibitions, or humanitarian purposes

However, if you need to import goods commercially but don’t have an API, there is still a solution.

Using an Importer of Record (IOR) Service

For foreign businesses without an Indonesian entity or local API, working with an importer of record can be the key. An importer of record is a licensed third party that takes legal responsibility for bringing goods into the country on your behalf. They handle everything, from licensing and compliance to customs clearance.

At PortCorp, we specialize in importer of record services for businesses worldwide. Whether you’re shipping finished products, samples, or industrial machinery, we ensure your imports meet all legal and regulatory requirements in Indonesia, without the need for you to establish a local presence.

So, don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business, also when you need importer of record services. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!