What Is Import License API? Full Guide Every Importer Needs to Read

Corporate Secretary Service Indonesia – If you plan to import goods into Indonesia, you need to understand what is import license API. An API, or Angka Pengenal Impor, is a mandatory identification number for all import activities. This number serves as your official importer identification with Indonesian customs authorities.

An API is valid for as long as you maintain active import operations. The Indonesian government issues APIs specifically to domestic investment companies. Your company’s head office holds the API, and all branch offices can use this same number for their import activities if they conduct similar business.

The Current System: NIB Replacement

Since the implementation of the Online Single Submission (OSS) system, the process has changed. Businesses now receive a Business Identification Number (NIB) that serves multiple functions. Your NIB acts as both your importer identification number and your customs identification number. This means you no longer need to apply for a separate API or NIH (Customs Identification Number).

However, you must still meet all technical requirements from relevant authorities when importing goods. The NIB streamlines the process but doesn’t eliminate sector-specific regulations.

Legal Framework

The regulations governing import licenses originate from Minister of Trade Regulation Number 70 of 2015. Article 7 specifies that each importer can only hold one type of API for all import activities across Indonesia.

Government Regulation No. 5 of 2021 further clarified that the NIB now serves as both API-U and API-P permits. This regulation implemented risk-based business licensing across Indonesia.

Types of Import Licenses

Understanding what is import license API requires knowing the two main types.

The General Importer Identification Number (API-U) is for companies importing goods for trading purposes. This license applies to businesses that import finished products for resale in the Indonesian market.

Read Also: Your Guide to Renewing a Foreign Business License in Indonesia

The Producer Importer Identification Number (API-P) is for manufacturing companies. This license allows import of production machinery, raw materials, and auxiliary materials for company use. Goods imported under API-P cannot be traded or transferred to other parties.

Key Requirements and Validity

Your API has a five-year validity period from the issuance date. You must renew it every five years to maintain your import privileges. Without a valid API or NIB, you cannot legally import goods into Indonesia.

The OSS system has simplified the application process. You now apply through a single portal rather than multiple government agencies. This centralized approach reduces processing time and bureaucratic hurdles.

Practical Implications for Importers

When asking what is import license API, consider its practical importance. This number identifies you as a legitimate importer to customs officials. It appears on all your import documentation and customs declarations.

Your API type determines what goods you can import and for what purpose. Choosing the wrong type can result in customs delays or penalties. Ensure you select the appropriate category for your business activities.

Understanding what is import license API is fundamental to your import business in Indonesia. The system has evolved from separate permits to the integrated NIB approach. This change simplifies compliance while maintaining regulatory oversight. Proper understanding of these requirements ensures smooth customs clearance and avoids operational disruptions.

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