How Import Business License Can Help Your Trading Company
If you are a company using product input from other countries, you must secure an import business license right away. This is to help you facilitate the incoming shipments without having to worry about customs clearance.
But first, let us define what import is. Importing is the process of shipping goods or commodities to your home country from another country. This should undergo legal processes, which sometimes require inspection.
In Indonesia, goods trading comprises a big chunk of the country’s gross domestic product. It is known for importing a large number of goods, only to be exported again to other countries.
Special permits considered as import business license. This license helps Indonesia regulate the import allowance and items permitted to be shipped to the country. It is deemed a non-tariff barrier to safeguard the local economy and local manufacturers and producers, among others, from potential flooding of imported goods in the market.
Requires import business license regardless of shipment size. This is something that you should not forego if you are relying on imports to operate or make profits.
What are the Different Kinds of Indonesian Import Business License?
Companies seeking import goods in Indonesia requires import identification number. according to the regulations set by the Minister of Trade.
The import identification number is the company’s record in the database of importers and their corresponding activities.
The types of import business license depending on the purpose of the imported items. These are the following:
General import license or Angka Pengenal Impor Umum
To put it simply, this type of import business license permits the company to bring in goods for general trading purposes. Companies with general import licenses were only allowed to import one specific group of goods following the trade regulation earlier. After amending the rules, these trading companies are now allowed to import more types of products.
The trading firms with general import licenses are not necessary to have special relationships with their outside suppliers anymore. Further, such a special relationship was mandatory before, requiring the parties to ink agreements like supplier agreement, agency or distributor agreement, and shared control, among others.
Producer Import License or Angka Pengenal Impor Produsen
This import business license, meanwhile, provides the manufacturers the right to bring in goods from a different country for internal use. In essence, utilized and processed products for something new. These imported goods are usually raw materials and supporting materials.
How to Acquire Import Business License
The Ministry of Trade is the one in charge of regulating trade activities, registration, and market development. Other stakeholders are the Investment Coordinating Board, Ministry of Agriculture, and Directorate General of Customs of Excise.
Here are the following steps you need to acquire an import business license in Indonesia.
- First of all, you must incorporate your trading company. This usually takes six weeks to make it happen.
- Secure permanent business license if you are seeking for a general import license.
- Obtain import license. Choose whether it is a general import license or producer import license.
- Apply for customs identification number. This usually takes around one month.
- Get a recommendation from the Ministry of Agriculture if you are importing food and children’s items, among others. The turnaround period for this is three weeks.
- Get approval from related authorities based on the product category of your import. For example, the National Agency of Drug and Good Control should greenlight your food products.
- Secure approval by the Ministry of Trade.
Setting Import Restriction
For the following items it requires a special importer identification number:
- textile and textile products
- electronics and components
With a special identification number. Item’s not allowed to enter Indonesia shores.
Meanwhile, Indonesia has completely banned items as import goods. These are the following:
- pornographic materials
- politically sensitive materials and paraphernalia
In addition, import weapons, explosives, firearms, and ammunition requires a special permit.
3E Accounting is the best partner you can ask to complete your Indonesia business license application. In every step of the way, our team is here to help you and your company. Contact us today.