International trade has been carried out for thousands of years. It involves trade activities between residents of one country and residents of another country.
International trade participants may include:
- Individuals
- Legal entities
- Business entities
- Governments
In practice, international trade is commonly associated with export and import activities.
Export refers to the activity of sending or selling goods and/or services from one country to another.
Meanwhile, import refers to the activity of bringing or purchasing goods and/or services from another country into the domestic market.
In many countries, including Indonesia, export and import activities are regulated by the government.
Why Does the Government Regulate Export and Import Activities?
The government regulates export and import activities to help control the domestic economy, meet public needs, and encourage the development and innovation of domestic industries.
Several policies that may be used to regulate export and import activities include:
- Import taxes and duties
- Price regulations
- Export and import restrictions
- Export and import quota arrangements
- Other policies related to international trade
Export and import activities also contribute to GDP (Gross Domestic Product) and national revenue.
In addition to profits and foreign exchange generated through international trade, government revenue can also come from various charges, including taxes related to import activities.
Documents and Requirements in the Import Process
At the technical level, the government establishes a number of requirements that exporters and importers need to comply with.
These requirements are used to help regulate and supervise goods entering and leaving Indonesia.
Several important documents that need to be understood include the following.
1. Import Approval
Import Approval is a permit or approval granted to an importer to import certain commodities.
This document is issued by the Ministry of Trade.
Import Approval is intended to help control the entry of imported products into Indonesia while also protecting domestic products.
This document is required when an importer plans to import commodities subject to Prohibitions and Restrictions (LARTAS) under the applicable import regulations.
2. Surveyor Report
A Surveyor Report is a supporting customs document used in the customs clearance process for imported commodities with certain HS Codes that are subject to Prohibitions and Restrictions (LARTAS).
For importers planning to import goods whose HS Codes fall under the LARTAS category, the goods may be required to undergo verification in the country or port of loading.
The results of this verification are then used in the issuance of the Surveyor Report.
3. Technical Consideration
Technical Consideration is a document issued by the Directorate General responsible for industrial development to confirm the fulfillment of certain requirements for the importation of goods or the acquisition of specific facilities.
This document is one of the instruments used by the government to help control the entry of imported goods into Indonesia.
Technical Consideration may also become one of the requirements that importers need to fulfill before obtaining certain import licensing documents.
4. Customs Clearance
Customs Clearance is an administrative procedure related to the handling of shipping and cargo activities.
This procedure needs to be completed before imported or exported goods pass through the official customs territory under Customs and Excise supervision.
Through the customs clearance process, goods may undergo administrative and customs inspections before they can be released and distributed within a country.
Other Supporting Export and Import Documents
In addition to the documents above, exporters and importers may also need to prepare several other supporting documents.
These documents include:
- Commercial Invoice
- Bill of Lading
- Airway Bill
- Certificate of Origin
- Export Packing List
- Insurance Certificate
Each of these documents serves a specific purpose in supporting international trade transactions, shipping, and administrative processes.
However, not all of these documents are directly related to government policies for controlling exported or imported goods.
Processing Export and Import Documents
Processing documents such as Import Approval, Surveyor Report, Technical Consideration, and Customs Clearance generally requires additional time and resources.
During the process, importers may need to coordinate with various parties, including:
- Exporters or suppliers
- Government institutions
- Surveyor institutions
- Overseas surveyor affiliates
- Customs and Excise
- Logistics and transportation providers
The number of parties involved can make export and import administration more complex, especially for companies that are not familiar with the procedures.
Export and Import Documentation Services with PT. Alpha Romeo Teknologi
PT. Alpha Romeo Teknologi is an agency that assists businesses with various export and import licensing requirements in Indonesia.
We can help with the fulfillment of export and import requirements so that you can focus more on developing your business.
Our services include assistance with:
- Import Approval
- Technical Consideration
- Surveyor Report
- Customs Clearance
- Other supporting import documents
Read more to learn more about PT. Alpha Romeo Teknologi’s services.