One of Indonesia Access’ aims is to assist Seller in obtaining and understanding the regulations and information on export.
Export activities in Indonesia can be carried out by individuals, institutions and business entities.
Sellers that want to become exporters must fulfill the following conditions:
- Have a legal entity (Company Registration Certificate (Tanda Daftar Perusahaan or TDP)), in the form of:
- CV (Vennotschap Commanditaire).
- PT (Limited liability company).
- Listed Company.
- Public Company.
- Company Service.
- Have a NPWP (Tax payer Registration Number) (Nomor Pokok Wajib Pajak).
- Possess permit issued by the Government such as:
Trading Business License (SIUP) from the Trade office or other business license from the relevant technical ministry/non-ministerial government agency/institution, for example Industrial license from the Department of Industry if the business is under the Industrial category.
Domestic Investment (PMDN) or Foreign Investment (PMA) business license issued by the Investment Coordinating Board (BKPM).
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 a 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.
Exporters can be classified as:
- Manufacturer Exporter :
As a producer exporter in an effort to obtain its legality, it should fulfill 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 periodic (every three months) reports on export transactions to the Ministry of Trade and Industry and other required institutions or appointed officials. The reports must be approved by the Foreign Exchange Banks (Bank Devisa) and should include clearance from tax and any other financial debt.
NIPER: an export-oriented manufacturing business entity that already has a NIPER (Company Parent Number) can use KITE facility.
To obtain a NIPER, the business entity must submit an application to the Head of the Regional Office or Main Service Office (KPU) who is in charge of the factory or processing site and must meet the requirements and criteria specified in the provision of NIPER as stipulated in PER-04 / BC / 2014 for NIPER Exemption and PER-05 / BC / 2014 for Returning NIPER.
What are the Import Facilities for Export Purpose (KITE)?
There are 2 KITE facilities, namely:
Import duty and VAT exemption facilities are not collected on the import of raw materials to be processed, assembled, installed and exported products.
Facilities for returning import duties on imported raw materials to be processed, assembled, installed and exported are defined. Definition of Import Duty including additional import duties such as anti-dumping import duties, retribution duty, safeguard import duties, and reward fees.
- Non-Manufacturer Exporter:
As a non-manufacturer exporter and in order 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 or Province Regional Government and the related technical agencies.
- Have a Trading Business License.
- Have a tax ID.
The general export process is as follow:
- Negotiatiation between buyer and seller.
- Incoterm decided.
- Prepare export packing list, as well as commercial invoices.
Arrange with an agent for the logistics: booking space for ships/ planes to carriers following the shipping instructions
Prepare PEB. Notification on the Export of Goods (Pemberitahuan Ekspor Barang or 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.
– 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.
– Documents from related technical institutions (in the case of exported goods subject to prohibition provisions and / or restrictions) are as well supplementary documents for PEB.
- Insuring Cargo.
- Bill of lading.
Preparing documents for certificate of origin (SKA) / COO to the ministry of trade (needed depending on the destination country).
- Customs inspection report (needed depending on the destination country).
- Notes / Draft bill of exchange (needed depending on the destination country).
- Customs management (custom formalities / custom clearance).
- Physical inspection of exported goods and document research.
- Approval and loading of exported goods to supporting facilities.
- Physical inspection of exported goods and document research.
- Approval and loading of exported goods to supporting facilities.
If the export goods are subject to export tax (for example Palm oil, wood, sand products and rattan), 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 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. The 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.
Food Export Regulations
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.
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 the following 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 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 conclusion, an exporter must have the following documents to export processed foods:
- Customs Identity Number (Nomor Identitas Kepabeanan or NIK)
- Registration Approval Letter from BPOM.
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 needed 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 import of processed foods are commonly related to the health standards of the processed items being imported.
For more information, please visit the following links:
If you don’t have NIB
IF you are a Seller looking to export and do not posses NIB (Company Registered Number), you can process it online at www.oss.go.id.
If you would prefer us to assist you on the process, please contact us!
Export Declaration (PEB) and Export Service Note (NPE)
Goods entering or exiting across the border of a custom area are under the supervision or authority of the Directorate General of Customs and Excise. Therefore, to export goods, a company (here in after referred to as an exporter) must fill in the Export Declaration Form (PEB).
Export Declaration (PEB) is a custom document used to notify export goods. PEB is made by exporters or their proxies by registering online via the EDI software. Exported goods must be notified to the Customs and Excise Office using this PEB.
The required documents to obtain the Export Declaration (PEB) are:
- 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 purpose of the submission of PEB is to obtain the Customs Export Approval Note (NPE). The Export Service Note (NPE) is a note issued by the official Export Document Checker. Only when the NPE is issued then it can be used as a travel document for exported goods. The NPE serves to protect the exported goods transferring to customs area and / or loading to transport facilities.
The legal basis for the procurement of Goods Export Declarations Documents (PEB) is based on the Decree of the Director General of Customs and Excise No: KEP-152 / BC / 2003 concerning guidelines for 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. In the case of insufficient paper space or sheets for data goods, an additional sheet is submitted including numeric data 28.d. 32 with the signature, legal name and stamp of the exporter company on each supplementary 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
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 explanations about the Export Declaration (PEB) document and the Export Service Note (NPE) please visit this website http://www.beacukai.go.id/arsip/pab/ekspor.html.
Certificate of Origin (COO)
Certificate of Origin (COO) or commonly known as Surat Keterangan Asal (SKA) is a certificate of origin, in which is stated that exported goods / commodities are from the seller’s origin country.
Depending on bilateral, regional, multilateral, unilateral agreements or because of unilateral provisions from a buyer or destination country, the COO has to be included for Indonesian exported goods. This COO proves that the item is originated, produced and or processed in Indonesia.
There are 2 (two) types of COO:
Types of COO as a requirement in obtaining preferences in certain exported goods to obtain 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) are as follow:
- Register online https://e-ska.kemendag.go.id;
Copy of the Deed of Notary 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 Tax Payer Identification Number (NPWP);
Copy of KTP / Passport of management / directors;
Export Declaration (PEB);
Export Service Note (NPE);
Bill of Lading (BL), Airway Bill (AWB);
Note: number 1 until 6 only for first time management.
For more information about COO please visit https://e-ska.kemendag.go.id/home.php/home/rules.
HS Code Definitions and Benefits
The Harmonized Commodity Description and Coding System (HS code) code is an internationally standardized system of names and numbers aiming to classify and describe the type of traded goods. The HS code is declared to customs every time traded products enter and cross international borders. It facilitates the value, trade transactions and transportation of imported and exported goods.
The HS was compiled in a study group from the Customs Cooperation Council (now known as the World Customs Organization). It was ratified at the HS convention and signed by seventy countries, most of which were European countries, however almost all countries have now ratified the HS Code, including Indonesia which approved it through Presidential Decree no. 35 of 1993.
At present the classification of goods in Indonesia is based on the Harmonized System and mentioned into a tariff list called the Indonesian Customs Tarif Book (BTBMI).
The purpose of making this HS includes:
- Present uniformity in classifying systematic list of items.
- Facilitate data collection and analysis of world trade statistics.
Provide an official international system for coding, explanation and classification of goods for trade purposes.
How to use the HS Code
The HS code uses a numerical code in classifying traded items. The six-digit code include descriptions of items arranged systematically. The HS code has a six-digit number for classification, each numbering is divided into a 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 first two digit numbers relates to the chapter where the item is classified, 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 is 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.
Each country participating in signing the HS convention or contracting party can develop the six-digit classification to be more specific with their respective government policies. However the classification must still be based on the HS code six-digit provisions. In Indonesia, the Indonesian Customs Tariff Book (BTBMI) uses a 10-digit numbering system which is a further elaboration of the sub-posts in the six-digit HS code.
Steps to Interpret the HS Code
Identify the specification of the item by chapter.
Pay attention to what part or chapter the item is classified and to the explanations contained in the section notes or chapter notes related to the classified items. With this note, we can find out if the item is classified in another chapter or other section.
Then identify the post that may cover the item more in detail. Here we will determine the sub-post (6-digit), the AHTN sub-post (8-digit) and the tariff post (10-digit) of the loading goods that will enter/exit Indonesia.
For details using the HS code, please see the following link https://eservice.insw.go.id/.
Bill Of Lading Information
Definition and Function of the Bill of Lading
The Bill of Lading (B/L) is a receipt of goods to the ship or proof of ownership of goods containing the agreement to transport goods. B/L is used specifically for ships that carry traded goods. While Air Waybill is specific to aircraft transported goods. And the Railway Consignment Note is for traded goods 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 of its 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 requires B/L (Bill of Lading), but the receipt also needs B/L (Bill Of Lading). The B/L is required for traded items that have an official letter of ownership and if the item is not illegal. Illegal goods are not permitted to be marketed and on public consumption.
The B/L is also required for collecting goods. The B/L is very important for exported goods that are imported in Indonesia.
The Function of the 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 the 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. It can be divided into several types:
- 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 specified in the L/C. Risks that may occur in this type of B/L are 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 concerned shipping company 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 shipped goods (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,
- 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 ,
- 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
Import Regulation In New Zealand
- A guide on how to import goods to New Zealand https://www.asb.co.nz/international-business/importing-into-new-zealand-guide.html
- Learn about importing commodities to New Zealand https://www.mpi.govt.nz/importing/
- Here’s an overview on the importing process to New Zealand: https://www.mpi.govt.nz/importing/overview/overview-of-the-importing-process/
- Find out the requirements you need to import to New Zealand: https://www.customs.govt.nz/business/import/
- What do you need to do to custom clearance imported goods: https://www.customs.govt.nz/business/import/start-importing/
- Prohibited and restricted imported goods to New Zealand: https://www.customs.govt.nz/business/import/prohibited-and-restricted-imports/
- Determine your customs value for imported goods: https://www.customs.govt.nz/business/import/valuation-for-import/
- Submit your import entry: https://www.customs.govt.nz/business/import/lodge-your-import-entry/
- Preferential duty tariff duty rates for goods manufactured and produced in certain countries: https://www.customs.govt.nz/business/import/preferential-tariff-duty-rates/
- Information about custom rulings: https://www.customs.govt.nz/business/import/customs-rulings/
- Customs exchange rate: https://www.customs.govt.nz/business/import/customs-exchange-rates/
- Import payments and refunds: https://www.customs.govt.nz/business/import/import-payments-and-refunds/
- Import forms documents: https://www.customs.govt.nz/business/import/import-forms-and-documents/
- Everything you need to know about excise https://www.customs.govt.nz/business/excise/
- Overview on fees and charges by the Ministry of Prime Industries https://www.mpi.govt.nz/importing/overview/fees-and-charges-general/
- Important information about customs in New Zealand http://youngenterprise.org.nz/assets/Previews/YES-Importing-fact-sheet-1.pdf
- Learn about New Zealand’s diagnostic testing laboratories https://www.mpi.govt.nz/protection-and-response/laboratories/
- General information regarding the trade single window (TSW): https://www.customs.govt.nz/business/trade-single-window/
- Information regarding penalties, fines and fees: https://www.customs.govt.nz/business/penalties-fines-and-fees/
- Learn about import tariffs in New Zealand: https://www.customs.govt.nz/business/tariffs/
- What goods are prohibited or restricted to enter New Zealand: https://www.customs.govt.nz/globalassets/documents/tariff-documents/the-working-tariff-document-prohibitions-and-restrictions.pdf
- The requirements for wood packaging entering New Zealand
- Here are the steps to importing wooden packaging https://www.biosecurity.govt.nz/importing/forest-products/wood-packaging/steps-to-importing-wood-packaging/
- General information about importing food to New Zealand: https://www.mpi.govt.nz/importing/food/ https://www.mpi.govt.nz/importing/overview/food-imports/
- What do you need to know before importing food to New Zealand < https://www.mpi.govt.nz/dmsdocument/10823-what-you-need-to-know-before-importing-food-into-new-zealand
- Searching for food importers in New Zealand click here: http://mpiportal.force.com/publicregister/FoodImporterSearch?
- Information regarding imported food notice https://www.mpi.govt.nz/dmsdocument/10685-food-notice-importing-food
- List of food products that have been recalled from shops and supermarkets https://www.mpi.govt.nz/food-safety/food-recalls/recalled-food-products/
- Here’s a guide to labelling for food products in New Zealand: https://www.mpi.govt.nz/dmsdocument/2965-a-guide-to-food-labelling
- How to register as a food importer in New Zealand https://www.mpi.govt.nz/dmsdocument/26278-how-to-register
- Step-by-step guide to import processed food to New Zealand https://www.mpi.govt.nz/importing/food/processed-food/
- Forms and templates for importing processed food products https://www.mpi.govt.nz/importing/food/processed-food/forms-and-templates/
- A guideline to importing supplement food to New Zealand https://www.mpi.govt.nz/importing/food/supplemented-foods/ https://www.mpi.govt.nz/importing/food/supplemented-foods/steps-to-importing/
- Forms and templates for importing supplemented foods https://www.mpi.govt.nz/importing/food/supplemented-foods/forms-and-templates/
Home & Living
- Overview on importing wooden goods to New Zealand https://www.biosecurity.govt.nz/importing/forest-products/
- General information about importing wood products to New Zealand https://www.biosecurity.govt.nz/importing/forest-products/wood-products/
- Step-by-step guide to importing wood products https://www.biosecurity.govt.nz/importing/forest-products/wood-products/steps-to-importing-wood-products/
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