What is Under-Name Importer of Record Service and How Does It Work in Indonesia?

Corporate Secretary Service Indonesia – You’ve probably heard the terms import and export before, but have you ever come across the term undername import? If you’re planning to enter the Indonesian market and looking for a faster, more practical solution for bringing goods into the country, the under-name importer of record service might be the answer you’re looking for.

So, what exactly is undername import?

In simple terms, undername import is when a company imports goods using the name and import license of another company that is already registered and authorized by Indonesia’s Directorate General of Customs and Excise. The registered company, acting as the importer of record, is responsible for handling all import documentation and compliance processes, while the business borrowing the name focuses on the commercial side of the transaction.

This arrangement is entirely legal and widely used by companies, especially foreign businesses or those without an import license in Indonesia, who want to get their goods into the country without the lengthy process of setting up a local legal entity.

How the Undername Import Process Works?

Here’s a general breakdown of how undername import works step by step:

Initial Agreement with the Supplier

Before the goods are shipped, the company intending to import should inform their overseas supplier or shipper about using an under-name importer of record service. The supplier must agree to address all shipment documents to the registered Indonesian company that will act as the importer.

Preparing the Shipping Documents

Once the agreement is in place, make sure all necessary documents are prepared correctly, this includes invoices, packing lists, and the bill of lading or airway bill.

Confirming with the Undername Importer

The company whose name is being used (the importer of record) must be informed and ready to process the import. Coordination is essential to avoid delays at customs.

Read Also: How to Manage Import Permits & Official Requirements in Indonesia?

Arrival and Customs Clearance

When the goods arrive at a port in Indonesia, the freight forwarder will start the customs clearance process through the EDI (Electronic Data Interchange) system. Import duties are paid at a designated bank before the customs declaration is submitted, complete with all supporting documents.

Customs Inspection Paths

There are three possible inspection paths:

• Green Lane: Goods are released immediately after document verification.
• Yellow Lane: Additional documents are required before release.
• Red Lane: Physical inspection is mandatory before clearance.

Once approved, the customs office issues an SPPB (Goods Release Letter), and the goods can be collected.

Finalizing the Import

After clearance, the freight forwarder submits all original import documents, including the bill of lading, duty payment receipts, and other customs documents, to the undername company. Copies are also shared with the company that borrowed the name.

This method is not only legal but also highly efficient, especially for companies that want to avoid the complexities of obtaining their own import licenses. By using an under-name importer of record service, you streamline your supply chain and enter the Indonesian market faster, with fewer administrative hurdles.

Whether you’re planning a one-time shipment or recurring imports, the under-name importer of record service provides a reliable and compliant solution tailored for international businesses looking to expand into Indonesia with ease.

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 under-name importer of record service. 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!