Indonesia Access helps Seller to have information of export regulation. Seller as a company must fulfil the following conditions to become an exporter:
- Legal Entity, in the form of:
- CV ( Vennotschap Commanditaire)
- PT (Limited Liability Company)
- Listed Company
- Public Company
- Company Service
- Have a NPWP (Tax Payment Number)
- Possess a permit issued by the Government such as:
- Trading Business License (SIUP) from the Trade Office
- Industrial license from the Department of Industry if the it’s Industrial
- Domestic Investment (PMDN) Business License or Foreign Investment (PMA) issued by the Investment Coordinating Board (BKPM)
This exporter can be classified as:
- Manufacturer Exporter, with conditions:
- As a Producer Exporter in an effort to obtain its legality, it should fulfil the stipulated requirements, namely filling in the form provided by the Department of Industry and Trade in the Regency / City Government or Province, and related technical agencies.
- Have an Industrial Business License
- Have a tax ID
- Provide export transaction reports to the Department of Industry and Trade or agencies and appointed officials (periodically every three months) approved by Foreign Exchange Banks by attaching statements such as: not involved in tax arrears, not involved in bank arrears, not involved in customs issues.
- Non-Manufacturer Exporter, with conditions:
- As a non-Producer Exporter in order to obtain legality, it should fulfil the stipulated requirements, namely filling in the form provided by the Department of Industry and Trade in the Regency / City or Province Regional Government and the related technical agencies
- Have a Trading Business License
- Have a tax ID
Export Procedure Flow:
- Find out in advance whether the goods we are going to export include goods that are prohibited for export, are permitted to be exported but with restrictions, or goods that are freely exported (according to Indonesian laws and regulations). To find out, can be found at insw.go.id.
- Ensure also whether our goods are allowed to enter the export destination country.
- If you haven’t got buyers overseas, you can do the marketing strategy for export goods with various methods, both offline and online marketing.
- If you have got buyers, we agree to determine the payment system with the buyer, determine the quantity and specs of the goods to be exported, etc. then we prepare the goods we will export and the documents are in accordance with the agreement with the buyer.
- Conduct export customs notification to the government (Customs) by using the Goods Export Notification document (PEB) along with supplementary documents.
- After our export is approved by Customs, an NPE document will be issued (Export Approval Note). If an NPE has been issued, then legally our goods are considered as exported goods.
- In parallel, we can also do stuffing activities (packing and loading goods into containers) as well as carrying out the shipping process of our goods using air transportation modes (air cargo), sea (sea cargo), or land.
- Insure our goods / cargo (optional, if using the related Incoterm)
- Take payment at the Bank (If payment uses LC (Letter Of Credit) or payment at the end)
Documents used for export:
- Packing List
- Shipping Instruction
- Bill of Lading
- Certificate of Origin (depend the destination country)
- Export Declaration (PEB)
- Export Approval (PE)
- Customs Inspection Report (depend the destination country)
- Notes / Draft Bill of Exchange (depend the destination country)
The documents examined are of two types:
- Physically, the amount is the same or not
The Export Steps:
- Preparation / manufacture of export documents and preparing exported goods:
- Make a Shipping Instruction
- Making export Packing List Documents and Invoices
- Preparing PEB documents with EDI
- Prepare official documents for customs requirements
- Booking ship / plane and stuffing goods
- Booking space for ships / planes to carriers by submitting shipping instructions
- Contacting the EMKL / EMKU / PPJK company to take care of the transportation of containers and customs management (custom formalities / custom clearance)
- Attract empty containers to the factory warehouse and fill them (stuffing) if FCL, if the LCL load does not need to pull the container
- Customs Proccess
If the export goods are subject to export tax, the export tax must be paid off before being put into the transportation facilities. This export tax is calculated based on the export benchmark price (HPE) and the benchmark export price is determined by the Minister of Trade in the form of the Minister of Trade regulation that applies for a certain period of time taking into account the consideration of the Technical Minister and related associations. This HPE is based on international average prices and / or FOB average price prices in several ports in Indonesia.
The export levy rate (Tarif pungutan ekspor/TPE) used as the basis for calculation is the TPE that applies when the export goods notification (PEB) is registered at the Customs and Excise Service Office, as well as HPE, the HPE used is HPE that applies when PEB is registered at the Service Office Customs and Excises. Payment of this export levy can be made at a Foreign Exchange Bank or at the Customs and Excise Service Office as following :
How to calculate export tax
- Exported goods subject to tariffs ad valorem (percentage), Export Tax is calculated as follows: Export Tax = Export Tax Rates x Export Benchmark Price x Number of Units of Goods x Exchange Rates
- Exported goods subject to tariffs ad naturam (specific), Export Tax is calculated as follows: Export Tax = Export Tax Rate x Number of Units of Goods x Exchange Rates
Customs Procedures for the Export of Goods
- Goods to be exported must be notified in advance to the customs office by filling out the export goods notification document (PEB)
- PEB registration is accompanied by a Company Registration Number (NIPER) and supplementary documents. PEB is submitted no later than 7 days before the estimated date of export and no later than before the exported goods enter the Customs Zone. Customs complementary documents:
- Invoice and Packing List
- PNBP Payment Proof (Non-Tax State Income)
- Proof of Payment of Customs (in the case of exported goods subject to Export Levy)
- Documents from related technical institutions (in the case of exported goods subject to prohibition provisions and / or restrictions)
- At the Customs Office that has implemented a customs PDE (Electronic Data Exchange) system, exporters / PPJK (Customs Services Processing Entrepreneurs) must submit PEB by using the Customs PDE system :
- Repayment of export tax if the exported goods are subject to export tax. Submission of this PEB can be done by the exporter or authorized by PPJK
- Physical inspection of exported goods and document research
- Approval and loading of exported goods to supporting facilities
- Completion of documents after Cargo on Board
- Take the original BL from the carrier
- Request customs documents (PEB) that have been filed by customs for archives
- Insuring Cargo
- Preparing documents for declaration of origin (SKA) / COO to the ministry of trade. Requirements: submit PEB / PE coffee, trade-specific BL coffee, Packing List, Invoice, SKA Application Letter, Statement of composition of raw materials used in production, any required documents from the import country
- Prepare export bills / Draft / Bill of Exchange
Food Export Regulations and Licenses in Indonesia
Export activities in Indonesia can be carried out by individuals, institutions and business entities. Export goods are classified as:
- Free Export Goods, which are goods that have no restrictions or prohibitions on their export from Indonesia;
- Export Restricted Goods, or goods on which there are restrictions on the type and/or amount of exports or on who can export such goods; and
- Export Prohibited Goods, which are goods that are prohibited to be exported.
Processed foods and beverages are generally classified as Free Export Goods. Given that, we will look here only at the licenses and documents required for Free Export Goods. Before exporting goods, an exporter must first obtain the required corporate documents and business licenses, which include:
- Trading Business License (SIUP) or other business license from the relevant technical ministry/non-ministerial government agency/institution;
- Company Registration Certificate (Tanda Daftar Perusahaan or TDP); and
- Taxpayer Registration Number (Nomor Pokok Wajib Pajak or NPWP).
For exports of processed foods in particular, exporters must also comply with the relevant regulations issued by the Indonesian Drug and Food Control Agency (BPOM). Any processed foods, whether produced domestically or imported to Indonesian territory for trading in retail packages, must have a Registration Approval Letter issued by the head of BPOM, except for processed foods:
- produced by a home industry;
- having a storage period of less than seven days at room temperature;
- imported into Indonesian territory in small volumes for the purpose of (i) sample for registration application; (ii) research; (iii) personal consumption; and/or (iv) to be used as raw material and not to be sold directly to end-consumers.
The head of BPOM will issue the Registration Approval Letter at least 150 working days from the receipt of the registration form accompanied by proof of payment of the evaluation and registration fees.
Home industries involved in the production of processed foods must have a Certificate of Home Industry Food Production (Sertifikat Produksi Pangan Industri Rumah Tangga or SPP-IRT) issued by their local regent/mayor. An SPP-IRT is issued to home industries that have obtained a Food Safety Counselling Certificate and Recommendation on the Examination of Home Industry Food Production Facility from the local health service office of their regency/city.
In addition, an exporter must have the following documents to export processed foods:
- Customs Identity Number (Nomor Identitas Kepabeanan or NIK), which is a private identity number from the Directorate General of Customs and Excise that allows exporters to access or connect to the customs system manually or electronically.
To obtain an NIK, an exporter must submit a customs registration application to the Directorate General of Customs and Excise or the appointed Customs and Excise officials, along with the required supporting documents. These supporting documents include deed of establishment of the company and its legalization or registration with the relevant institution, TDP, NPWP and Certificate of Domicile (Surat Keterangan Domisili Perusahaan or SKDP). The NIK will be issued within 14 working days from the receipt of the application and required supporting documents.
- Notification on the Export of Goods (Pemberitahuan Ekspor Barang or PEB). A PEB is prepared by an exporter based on the supporting documents for customs, including invoices, packing lists and proof of payment of Non-Tax State Revenue (Penerimaan Negara Bukan Pajak or PNBP).
The PEB must be submitted to the Customs Office where the goods are loaded no earlier than seven days before the estimated date of export and at the latest before the goods are brought into the Customs Area where they will be loaded.
- Statement Letter of Export from BPOM in the form of Certificate of Health (COH). This is a statement letter issued by BPOM or the local technical implementing unit of BPOM, known as Balai Besar/Balai Pengawas Obat dan Makanan, stating that the food products to be exported are safe/suitable for human consumption. A COH is commonly required if the processed foods to be exported are not registered with BPOM.
- Certificate of Free Sale (CFS) is a statement letter issued by BPOM or Balai Besar/Balai Pengawas Obat dan Makanan stating that the processed foods registered at BPOM can be distributed in Indonesia. A CFS is required for the export of processed foods registered with BPOM.
Other documents may be required depending on the requirements of the destination country, and the importer in the destination country must comply with the applicable provisions in that country. Requirements related to the importation of processed foods are commonly related to the health standards of the processed items being imported.
For more information, please find the following link :
If you don’t have your NIB
As a Seller for export in Indonesia Access you need to have your NIB (Company Registered Number), if you don’t have it, Indonesia Access will help you, please contact us or you can see the link to register by yourself www.oss.go.id
Export Declaration (PEB) and Export Service Note (NPE)
goods entering or exiting across the border of a customs area are under the supervision or authority of Customs and Excise. Therefore, to export goods, a company (hereinafter referred to as an exporter) must fill in the Export Declaration Form (PEB).
Export Declaration (PEB) is a customs document used to notify the implementation of export of goods. PEB is made by exporters or their proxies by using EDI software online. Goods to be exported must be notified to the Customs and Excise Office using this PEB. To have Export Declaration (PEB) documents need some document such as:
- Packing list;
- Export Licensing Letter, for goods subject to restrictions on restrictions (lartas);
- Excise and Tax in the Context of Export;
- Customs Deposit Letters;
- Other documents needed according to the characteristics of the goods.
The final goal of the submission of this PEB is to obtain a response from the Customs Export Approval Note (NPE). It was only then that the NPE was used as a travel document to include exported goods to the customs area or region under the supervision of customs prepared for export. The Export Service Note (NPE) is a note issued by the official Export Document Checker or computer system service for Goods Export Notification (PEB) submitted, to protect the importation of goods to be exported to the customs area and / or loading to transport facilities.
The legal basis for the procurement of Goods Export Notification Documents (PEB) is based on the Decree of the Director General of Customs and Excise No .: KEP-152 / BC / 2003 concerning Guidelines for the implementation of Customs Procedures in the Export Sector for Exported Goods which have the Import Export Facility.
PEB export documents have a BC 3.0 code. Each PEB notification is only for one exporter (sender) and one importer (recipient). Each PEB document can contain more than one type of item. If in the case of paper space or sheets for goods data is insufficient, an advanced sheet can be made that only contains numeric data 28.d. 32 with the signature, clear name and stamp of the exporter company on each follow-up page. The first sheet for the customs office, the second sheet for the Central BPS and the third sheet for BI.
The procedures for submitting PEB by exporters are as follows:
- Include a Customs and Excise Inspection Report (LPBC) in the event that exported goods must be inspected by the surveyor.
- Photocopy of Deposit Proof (STBS) or photocopy of the Payable Letter (SSB) in case the export goods are subject to export levies.
- Photocopy of invoice and photocopy of packing list.
- Photocopy of other customs complementary documents required as fulfillment of customs provisions in the export sector.
- Exporters or their proxies pay off all levies in the context of exports to foreign exchange banks or DGCE officials (Directorate General of Customs and Excise).
- Exporters or their proxies submit PEB to DGCE officials, equipped with all required documents.
- Exporters prepare items for physical examination (if needed). Each PEB is only for one sender or recipient. Each PEB can contain more than one type of export item
For further explanation about the Export Declaration (PEB) document and the Expo Service Note it can be traced to the address of this website http://www.beacukai.go.id/arsip/pab/ekspor.html.
Certificate of Origin (COO)
Certificate of Origin (COO) or commonly called Surat Keterangan Asal (SKA) is certificate of origin, which is stated in the certificate for goods / commodities exported are from the origin country (seller).
The underlying this is in bilateral, regional, multilateral, unilateral agreements or because of unilateral provisions from a buyer or destination country, which requires that COO be included in Indonesian exported goods. This COO proves that the item originated, produced and or processed in Indonesia.
There are 2 (two) types of COO:
- Preference COO
Types of COO as a requirement in obtaining preferences included in certain exported goods to obtain facilities in the form of exemption of all or part of the import duty granted by a country / group of destination countries.
- Non Preference COO
Types of COO documents that function as supervisory documents and / or participation documents from export goods to be able to enter a certain country.
Application for Issuance of Online Certificate of Origin (COO) is the following:
- Register online https://e-ska.kemendag.go.id;
- Copy of the Notary Deed of establishment of the company and its amendments;
- Copy of trading business permit or other similar business permit issued by the technical agency / office authorized in the field of trade;
- Copy of Company Registration Certificate (TDP);
- Copy of the Company’s Taxpayer Identification Number (NPWP);
- Copy of KTP / Passport of management / directors;
- Export Declaration (PEB);
- Export Service Note (NPE);
- Bill of Lading (BL), Airway Bill (AWB);
- Packing List.
Note: number 1 d. 6 only for first time management.
For more information about COO please see this link : https://e-ska.kemendag.go.id/home.php/home/rules
HS (Harmonized System) code is a list of classifications of goods that are made systematically with the aim of facilitating valuation, trade transactions, transportation and improved statistics from the previous classification system for international.
Definitions & Benefits
The Harmonized System or commonly referred to as HS is a list of classifications of goods made systematically with the aim of facilitating the assessment, trade transactions, transportation and statistics that have been improved from the previous classification system. At present the classification of goods in Indonesia is based on the Harmonized System and poured into a tariff list called the Indonesian In Customs Tarif Book (BTBMI).
The Harmonized Commodity Description and Coding System, better known as the Harmonized System, was compiled in a study group from the Customs Cooperation Council (now known as the World Customs Organization), and was ratified at the HS convention signed by seventy countries, most of which were European countries , but now almost all countries have joined in ratifying, including Indonesia which ratified it through Presidential Decree no. 35 of 1993.
The purpose of making this HS includes:
- Provide uniformity in classifying systematic list of items
- Facilitate data collection and analysis of world trade statistics
- Providing an official international system for coding, explanation and classification of goods for trade purposes
How to use HS Code
HS uses a number code in classifying items. The number codes include descriptions of items arranged systematically. The numbering system in HS is divided into Chapter (2-digit), post (4-digit), and sub-post (6-digit) with the following explanation:
Suppose the HS code 0101.11.xx.xx is taken from BTBMI (10 digits)
01 01 11 xx xx
__ Chapter (Chapter) 1
_____ Heading 01. 01
________ Sub-heading (Sub-heading) 0101. 11
___________ Sub-post of ASEAN, ASEAN Harmonized Tariff Nomenclature (AHTN)
______________ Post Tariff for Indonesian Import Duty (BTBMI)
- The chapter where a classified item is shown through the first two digit numbers, the example above shows that the item is classified in Chapter 1
- The next two digit number or the first four digit number indicates the heading or heading in the previous chapter, this example shows the item classified in heading 01.01
- The first six digits indicate sub-headings or sub-headings in each post and chapter in question. In the example above, the item is classified in sub-heading 0101.11
- The first eight digit numbers are posts originating from the AHTN text
- These ten digits indicate the national tariff post taken from BTBMI, this tariff heading shows the amount of loading (BM, PPN, PPnBM or Excise) as well as the presence or absence of regulations on the trade system
HS has a six-digit number for classification, each country participating in signing the HS convention or contracting Party can develop the six-digit classification of these numbers to be more specific in accordance with the respective Government policies but still based on six-digit HS provisions. In Indonesia, the classification system uses a 10-digit numbering system in the Indonesian Customs Tariff Book (BTBMI) which is a further elaboration of sub-posts in six-digit HS.
Steps of HS Interpretation
- Identification of items to be classified, the way is to know the specifications of the goods, with this identification we can choose the chapter relating to the specifications of the item
- Pay attention to the explanations contained in the section notes or chapter notes related to items that have been classified. If there are records that issue items from the selected chapter or section, pay attention to what part or chapter the item is classified. With this note, we can find out the item is classified in a chapter or other section
- After the part or chapter is in accordance with the specifications of the item, then it is to identify the post that may cover the item more specifically. Here we will determine the sub-post (6-digit), the AHTN sub-post (8-digit) and the tariff post (10-digit) if you want to know the loading of goods that will enter Indonesia. If problems arise in the classification, it is better to return to the 10 points of the provision of interpreting the HS contained in HS
For details using HS code, you see the following link https://eservice.insw.go.id/.
Bill Of Lading Information
Definition and Function of Bill of Lading
Definition of B/L (Bill of Lading) is a receipt of goods to the ship or proof of ownership of goods containing the agreement to transport goods. B/L is used for especially ships that carry goods and exports. While Air Waybill for transporting goods using aircraft. And Raillway Consignment Not for transportation using land transportation, such as trains, and others.
In the Indonesian language B/L is also called connosement, which is the most important shipping document because it has a guarantee / security nature. B/L shows ownership rights of goods, without a B/L someone or a designated party cannot receive goods mentioned in B/L.
Not only shipping that requires B/L (Bill of Lading), but the receipt also needs B/L (Bill Of Lading). It is activity done if the item has an official letter of ownership, the item is not illegal. Illegal goods are not permitted to be marketed and on public consumption.
Collecting goods must also show the B/L (Bill Of Lading) letter that has been made. So it is very important for a B of Lading letter for export of goods imported in Indonesia.
The Function of Bill Of Lading (B/L)
The following are some of the functions of B/L (Bill of Lading), including:
- Evidence of the Agreement to transport and deliver goods to the carrier
- Proof of official ownership of goods
- Proof of receipt and delivery of goods
- Goods insurance
- Safekeeping of goods
- As an intermediary between the owner and the recipient
- As a form of cooperation between owner, anchor, and recipient
Who will be Involved in Bill of Lading (B/L)
In the export-import trade the use of B/L involves several parties, including:
- Carrier, the transportation party or shipping company
- Shipper, acts as a beneficiary
- Consignee, the party notified of the arrival schedule of goods
- Notify Party, the party applied in the Letter of Credit.
Types of Bill of Lading
The Bill of Lading can be distinguished based on the statement contained in the B/L document. For that B / L can be divided into several types, among others.
- Charter Party B/L
B/L is used when transporting goods using “charter” (leasing a portion of the ship or the entire ship)
- Combined Transport B/L
B/L is used in the event of a transhipment which is then followed by land transportation
- Liner B/L
B/L is used for transporting goods with ships that already have travel routes and scheduled stops
- Long Form B/L
B/L which contains all the detailed transport conditions
- Received for Shipment B/L
B/L which shows that the goods for shipment have been received by the shipping company but have not been fully loaded or shipped until the time limit specified in the L/C. Risks that may occur in this type of B/L as following :
- Possible items will be loaded with other vessels
- If a strike occurs, the items may be neglected or damaged
- The possibility of additional costs or other costs such as warehouse rental and others
- Shipped on Board B/L
B/L issued if the shipping company concerned acknowledges that the items to be shipped are actually already present or loaded on board
- Short Form B/L
B/L which only includes a brief note about the goods shipped (and does not include transportation terms)
- Throught B/L
B/L is issued in the event of transhipment due to unavailability of services directly to the destination port
Import Regulation In South Africa
- Find out more about import control and regulations in South Africa: https://www.cma-cgm.com/static/eCommerce/Attachments/South%20Africa%20111115.pdf.
- Here is a comprehensive customs procedure when importing products from Indonesia: https://en.portal.santandertrade.com/international-shipments/south-africa/customs-procedures,
- Shipment customs information https://www.aramexglobalshopper.com/en/faqs/50964/When-do-I-need-to-provide-an-Importers-Code-for-customs-clearance-of-my-shipments,
- Duties and taxes: https://www.sars.gov.za/ClientSegments/Customs-Excise/DutiesTaxes/Pages/Duties-and-Taxes-for-Importers-.aspx.
To import Indonesian products, here are some references regarding permission guidelines
- food and agricultural products: https://hortintl.cals.ncsu.edu/articles/south-africa-food-and-agricultural-import-regulations-and-standards,
- cosmetics: https://www.gov.za/documents/foodstuffs-cosmetics-and-disinfectants-act-regulations-governing-hygiene-requirements-food,
- textiles https://www.gov.za/trade-and-industry-labelling-imported-goods-and-textiles-regulation, https://www.couriersplease.com.au/Portals/0/images/Textile_Sample_Guideline_Dec2017.pdf.
Product tariff information:
Useful tips in strategizing an importing procedure to South Africa
Import Regulation In Europe
- A useful link about the details that relate to procedures, type of the products, and also the customs,: https://trade.ec.europa.eu/tradehelp/eu-import-procedures
Import Regulation In China
- Legalities regarding import regulations in China, elaborated by the Chinese government http://english.mofcom.gov.cn/aarticle/lawsdata/chineselaw/200211/20021100053726.html Customs information: http://english.customs.gov.cn/Statics/d30338b4-2f6a-47ea-a008-cff20ec0a6d2.html, http://www.asianlii.org/cn/legis/cen/laws/roiaedotproc679/, https://www.wto.org/english/thewto_e/acc_e/chn_e/WTACCCHN43_LEG_1.pdf, http://www.npc.gov.cn/englishnpc/Law/2007-12/12/content_1383624.htm, http://english.gov.cn/archive/laws_regulations/2014/08/23/content_281474983043542.htm, http://ec.europa.eu/environment/forests/pdf/Country_overview_China__03_10_2018.pdf, http://english.cnca.gov.cn/lawr/201512/t20151208_42265.shtml,http://english.cnca.gov.cn/lawr/201512/t20151208_42266.shtml ,http://www.lehmanlaw.com/resource-centre/laws-and-regulations/customs-importexport-and-trading.html, https://www.dhl.ie/content/dam/downloads/gb/express/customs_regulations_china/import_guidelines_to_china.pdf.
Import Regulation In Russia
- Legalities regarding import regulations in Russia, elaborated by the government https://www.export.gov/article?id=Russia-Import-Requirements-and-Documentation
- For customs regulation & standards in Russia please click here https://www.russia-briefing.com/news/customs-procedures-import-goods-russia.html/,https://schneider-group.com/en/services/import-customs-certification/
- Customs guidelines https://www.dhl.com/content/dam/downloads/g0/express/customs_regulations_russia/export_import_guidelines_to_russia.pdf .
- Import requirements & documentation and information about prohibited & restricted goods: https://itsartlaw.org/2019/01/02/russia-expands-on-import-and-export-of-art-objects/, https://www.business-sweden.se/globalassets/international-markets1/europe/russia/russia-an-overview-of-the-russian-import-procedures-labelling-and-certification.pdf, http://www.russian-customs.org/ftravelers/Currencyexportimportregulations/index.html , http://agriexchange.apeda.gov.in/IR_Standards/Import_Regulation/Food%20and%20AgriculturalImportRegulationsandStandardsNarrativeMoscowRussianFederation12222017.pdf.
Import Regulation In the Netherlands
- Legalities regarding import regulations in the Netherlands, elaborated by the government https://howtoexportimport.com/How-to-import-to-Netherlands-step-by-step-process-8916.aspx,
- Customes information https://www.government.nl/topics/export-import-and-customs ,
- visa https://www.holland.com/id/pariwisata/tentang-belanda/visa-imigrasi.htm ,
- business information in Holland https://www.belandadananda.nl/melakukan-usaha/informasi-bisnis-tentang-belanda , http://www.itto.int/files/itto_project_db_input/2537/Technical/TR-8.pdf , https://business.gov.nl/running-your-business/international-business/import/?gclid=EAIaIQobChMIooKi2tCp4gIVFCUrCh0m_QSCEAAYASAAEgIPT_D_BwE ,
- restricted product import and export https://www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/individuals/abroad_and_customs/restricted_prohibited_import_export/restricted_prohibited , https://www.indonesia-investments.com/id/bisnis/kolom-bisnis/pasar-besar-untuk-produk-produk-makanan-indonesia-di-belanda/item5364, https://business.gov.nl/running-your-business/international-business/import/checklist-for-importing-products/.
- import requirements and documentation https://www.export.gov/article?id=Netherlands-Import-Requirements-and-Documentation , https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regulations%20and%20Standards%20Report_The%20Hague_Netherlands_12-18-2018.pdf ,
- the step by step of importing to the Netherlands https://www.kvk.nl/english/international-trade/standard-steps-of-importing-into-the-netherlands/ , http://www.worldstopexports.com/netherlands-top-10-imports/ , http://www.worldsrichestcountries.com/top-dutch-imports.html.
- For special products, food and agricultural items: https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regulations%20and%20Standards%20Report_The%20Hague_Netherlands_12-18-2018.pdf
Incoterms or International Commercial Terms is a collection of terms that are made to equalize the understanding between sellers (sellers) and buyers (buyers) in international trade. Incoterms explain the rights and obligations of buyers (sellers) and sellers (sellers) related to the delivery of goods. The things described include the process of shipping goods, the person in charge of the export-import process, the insurer of costs incurred and the insurer if there is a change in the condition of the goods that occur due to the shipping process.
Incoterms are issued by the International Chamber of Commerce (ICC), the latest version issued on January 1, 2011 is referred to as Incoterms 2010. Below are the details:
EXW – Ex Works (named place of delivery)
The seller makes the goods available at their premises. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a buyer incurs the risks for bringing the goods to their final destination. Either the seller does not load the goods on collecting vehicles and does not clear them for export, or if the seller does load the goods, he does so at buyer’s risk and cost. If the parties agree that the seller should be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale.
The buyer arranges the collection of the freight from the supplier’s designated ship site, and is responsible for clearing the goods through Customs. The buyer is also responsible for completing all the export documentation, although the seller does have an obligation to provide information relating to the goods on request.
These documentary requirements may result in two principal issues. Firstly, the stipulation for the buyer to complete the export declaration can be an issue in certain jurisdictions (not least the European Union) where the customs regulations require the declarant to be either an individual or corporation resident within the jurisdiction. If the buyer is based outside of the customs jurisdiction they will be unable to clear the goods for export, meaning that the goods may be declared in the name of the seller, in breach of the EXW term.
Secondly, most jurisdictions require companies to provide proof of export for tax purposes. In an EXW shipment, the buyer is under no obligation to provide such proof to the seller, or indeed to even export the goods. In a customs jurisdiction such as the European Union, this would leave the seller liable to a sales tax bill as if the goods were sold to a domestic customer. It is therefore of utmost importance that these matters are discussed with the buyer before the contract is agreed. It may well be that another Incoterm, such as FCA seller’s premises, may be more suitable, since this puts the onus for declaring the goods for export onto the seller, which provides for more control over the export process..
FCA – Free Carrier (named place of delivery)
The seller delivers the goods, cleared for export, at a named place. This can be to a carrier nominated by the buyer, or to another party nominated by the buyer.
It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller’s premises, the seller is responsible for loading the goods on to the buyer’s carrier. However, if delivery occurs at any other place, the seller is deemed to have delivered the goods once their transport has arrived at the named place; the buyer is responsible for both unloading the goods and loading them onto their own carrier.
CPT – Carriage Paid To (named place of destination)
CPT replaces the venerable C&F (cost and freight) and CFR terms for all shipping modes outside of non-containerised seafreight.
The seller pays for the carriage of the goods up to the named place of destination. Risk transfers to buyer upon handing goods over to the first carrier at the place of shipment in the country of Export. The seller is responsible for origin costs including export clearance and freight costs for carriage to named place of destination (either final destination such as buyer’s facilities or port of destination has to be agreed by seller and buyer, however, named place of destination is generally picked due to cost impacts). If the buyer does require the seller to obtain insurance, the Incoterm CIP should be considered.
CIP – Carriage and Insurance Paid to (named place of destination)
This term is broadly similar to the above CPT term, with the exception that the seller is required to obtain insurance for the goods while in transit. CIP requires the seller to insure the goods for 110% of their value under at least the minimum cover of the Institute Cargo Clauses of the Institute of London Underwriters (which would be Institute Cargo Clauses (C)), or any similar set of clauses. The policy should be in the same currency as the contract.
CIP can be used for all modes of transport, whereas the equivalent term CIF can only be used for non-containerised seafreight.
DAT – Delivered At Terminal (named terminal at port or place of destination)
This term means that the seller covers all the costs of transport (export fees, carriage, unloading from main carrier at destination port and destination port charges) and assumes all risk until destination port or terminal. The terminal can be a Port, Airport, or inland freight interchange. Import duty/taxes/customs costs are to be borne by Buyer.
DAP – Delivered At Place (named place of destination)
Incoterms 2010 defines DAP as ‘Delivered at Place’ – the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. Under DAP terms, the risk passes from seller to buyer from the point of destination mentioned in the contract of delivery.
Once goods are ready for shipment, the necessary packing is carried out by the seller at his own cost, so that the goods reach their final destination safely. All necessary legal formalities in the exporting country are completed by the seller at his own cost and risk to clear the goods for export.
After arrival of the goods in the country of destination, the customs clearance in the importing country needs to be completed by the buyer at his own cost and risk, including all customs duties and taxes.
Under DAP terms, all carriage expenses with any terminal expenses are paid by seller up to the agreed destination point. The necessary unloading cost at final destination has to be borne by seller under DAP terms. If unloading can not be carried out by the seller, it might be better to ship under DAT (Delivered At Terminal) terms instead.
DDP – Delivered Duty Paid (named place of destination)
Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. The seller is not responsible for unloading. This term is often used in place of the non-Incoterm “Free In Store (FIS)”. This term places the maximum obligations on the seller and minimum obligations on the buyer. All the risks and responsibilities are not transferred to the buyer upon delivery of the goods at the named place of destination.
Rules for sea and inland waterway transport
To determine if a location qualifies for these four rules, please refer to ‘United Nations Code for Trade and Transport Locations (UN/LOCODE)’.
The four rules defined by Incoterms 2010 for international trade where transportation is entirely conducted by water are as per the below. It is important to note that these terms are generally not suitable for shipments in shipping containers; the point at which risk and responsibility for the goods passes is when the goods are loaded on board the ship, and if the goods are sealed into a shipping container it is impossible to verify the condition of the goods at this point.
Also of note is that the point at which risk passes under these terms has shifted from previous editions of Incoterms, where the risk passed at the ship’s rail.
FAS – Free Alongside Ship (named port of shipment)
The seller delivers when the goods are placed alongside the buyer’s vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the seller to clear the goods for export, which is a reversal from previous Incoterms versions that required the buyer to arrange for export clearance. However, if the parties wish the buyer to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale. This term should be used only for non-containerised seafreight and inland waterway transport.
FOB – Free on Board (named port of shipment)
Under FOB terms the seller bears all costs and risks up to the point the goods are loaded on board the vessel. The seller must also arrange for export clearance. The buyer pays cost of marine freight transportation, bill of lading fees, insurance, unloading and transportation cost from the arrival port to destination. Since Incoterms 1980 introduced the FCA incoterm, FOB should only be used for non-containerised seafreight and inland waterway transport. However, FOB is still used for all modes of transport despite the contractual risks that this can introduce.
CFR – Cost and Freight (named port of destination)
The seller pays for the carriage of the goods up to the named port of destination. Risk transfers to buyer when the goods have been loaded on board the ship in the country of Export. The Shipper is responsible for origin costs including export clearance and freight costs for carriage to named port. The shipper is not responsible for delivery to the final destination from the port (generally the buyer’s facilities), or for buying insurance. If the buyer does require the seller to obtain insurance, the Incoterm CIF should be considered. CFR should only be used for non-containerized seafreight and inland waterway transport; for all other modes of transport it should be replaced with CPT.
CIF – Cost, Insurance & Freight (named port of destination)
This term is broadly similar to the above CFR term, with the exception that the seller is required to obtain insurance for the goods while in transit to the named port of destination. CIF requires the seller to insure the goods for 110% of their value under at least the minimum cover of the Institute Cargo Clauses of the Institute of London Underwriters (which would be Institute Cargo Clauses (C)), or any similar set of clauses. The policy should be in the same currency as the contract. CIF can be used by any transport by sea and air not limited to containerized or non-containerized cargo and includes all charges up to the port/terminal of entrance. CIP covers additional charges at the port/terminal of entrance. See incoterm picture here Incoterm