How to Import Goods From Indonesia for Newbie

How to Import Goods

EASTURA – In this article, we will discuss how to import goods from Indonesia. Along with the development of technology and transportation, now we can easily do business across countries, we don’t even have to have a large capital. Many goods in Indonesia come from abroad.

As a result, imports of goods for sale (eg Shisha Cube) and private collections have become commonplace. But for those of you who just want to try importing goods, it is important to know the right steps as a beginner.

Importing from China has proven a successful global sourcing tactic for many businesses. This provides a huge opportunity for someone as a buyer and reseller.

However, it is not an easy task, especially for beginners. The import process can be very complicated, confusing, and expensive. Expected gains can often be erased by long transit times, rising or fluctuating shipping costs, regulatory fees, and unforeseen delays.

If you don’t know how to import goods from abroad, here are the steps you should take. Read the full article if you want to know how to import from Indonesia

13 Tips Import Quickly and Easily

1. Pricing and Trading System

The most important thing is that you have to determine the seller (seller/supplier) abroad. You have to be sure and aware of what you are paying a heavy price for. In exporting or importing, there must be many questions about how to import goods from Indonesia. Working at EXIM, of course, we often come across the terms FOB, CFR, CIF, and others. This is a term that signifies the obligation or burden of expenses received by whom. Can be borne by the seller or shipping costs borne by the buyer.

For example,

if the supplier uses FOB (Free on Board) then the purchase of goods where all Shipping Costs or O/F (Ocean Freight), Insurance, and Goods Prices are paid after the ship arrives at the port of unloading.

CFR (Cost and Freight) is a term for the delivery of goods where the supplier delivers the goods after the goods have passed the ship’s fence at the port of shipment in a state that has obtained an export permit, but the cost of transportation to the port of destination remains the responsibility of the Provider.

CIF (Cost Insurance and Freight) is a system of purchasing goods where you pay for Shipping, Insurance, and Price of Goods before the ship departs at the port of loading.

DDP (Delivered Duty Paid) is a term for the delivery of goods where the Supplier must deliver the goods at the place you specify and within your jurisdiction provided all customs formalities have been completed by the Supplier (door-to-door service).

FAS (Free Alongside Ship) is a term for the delivery of goods where the Supplier is obliged to bear the costs and risks until the delivery of the goods beside the ship at the port of shipment in a condition that has obtained an export permit, and so on.

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2. Determining The Way And The Shipping Cost

After knowing the price and terms of trade from your overseas Supplier, it is necessary to ascertain the amount of additional costs for the imported goods to reach your address.

To get the right shipping costs, every forwarder needs accurate data about the terms of trade, weight, and dimensions of the goods to be sent. As a good supplier, usually, this kind of information is automatically conveyed to prospective buyers so that they know it.

In fact, if you buying goods on the basis of Ex Works, i.e. the delivery of goods is carried out somewhere belonging to the supplier, either at the factory, warehouse, or another place, then you must clearly inform the forwarder of the address all of that must be calculated and informed regarding the taking of How to Import Goods from an area at the place of collection.

3. Choose Freight Forwarder

When importing goods from abroad, you must choose a professional freight forwarder who can assist you in managing and fulfilling documentation and customs clearance requirements.

Freight forwarders handle all your logistics needs as well as negotiate freight rates, customs clearance, and insurance, and then deliver the goods to your address. In this context, the main point is that the forwarder can easily deliver your order to the address you provided with the right destination and time. This serves to save your costs.

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4. Choose The Most Profitable Shipping Way

In order to save more on shipping costs, you must choose the right method or combination of shipping methods. It is very important to get your belongings at the desired time and place.

The following are the three delivery options:

1. By Sea (Ocean Freight): Ideal for larger or bulk shipments of goods or goods that do not require fast delivery.
2. Shipping By Air (Air Freight): Ideal for shipping smaller quantities or urgently needed items.
3. By Land (Trucks and Trains)

Because Indonesia is an archipelagic country that is separated by the sea from other countries, these two services are a combined shipping method with sea and air shipping.

You need to determine how quickly it will take for the goods to reach your address. Therefore, it is necessary to think about alternatives whether it needs to be sent by air or by sea. For example, for goods from Singapore, air shipments by Press Cargo can generally take 1-7 days, and sea shipments can take several days to 2 weeks, or even more.

The following are the three delivery options:

1. By Sea (Ocean Freight): Ideal for larger or bulk shipments of goods or goods that do not require fast delivery.
2. Shipping By Air (Air Freight): Ideal for shipping smaller quantities or urgently needed items.
3. By Land (Trucks and Trains)

This obviously has an effect on shipping costs. In some cases, for goods in small quantities (up to 100 kg, depending on volume) it is often cheaper to ship by air because the minimum cost for sea freight is often greater than the overall cost of shipping by air.

You also need to determine the required transit time. In most cases, shipping costs for slow transit times or indirect routes are lower than for fast transit or direct routes. For example, direct air transportation from Singapore – Jakarta will usually be more expensive than Singapore – Pangkal Pinang – Jakarta.

The same applies to sea transportation, usually direct transportation from Tokyo to Jakarta will be faster and more expensive than Tokyo to Jakarta via Singapore where the cargo will be unloaded first from the ship from Tokyo, then reloaded onto another ship for delivery to Jakarta. In this case, if you don’t need your goods to arrive as quickly as possible.

Then why pay for more expensive services when there are slower services that are more profitable? Vice versa, you can choose a direct route with fast delivery at a higher cost, because instead of keeping money (capital) on goods for too long, even though the goods really have to be at the location on a certain date.

5. Insurance Your Goods

This time into the insurance point. We recommend for importers from a country use insurance. This will ensure the safety of your product to the address of the importer from abroad. Suppliers/Suppliers (exporters) abroad may often give up after the goods are no longer in their possession, while you can be at risk before the goods are received.

Cargo Insurance products provide protection for your goods (goods shipped by ship) against fire, explosion, fall and drowning, storm, and damaged goods caused by sea/weather as stated in the agreement you made with the Supplier. Provisions about this are usually stated in the sales contract or Letter of Credit.

6. Understand Customs Regulations

Before importing your goods, it is advisable to check whether there are any import restrictions or restrictions on the goods you wish to import. Also, make sure, maybe these goods require special treatment or need to be accompanied by certain documents from the country of origin before they can enter Indonesia, or maybe they are prohibited from importing. You can get information about this from the Customs or Freight Forwarder you know.

7. Determining The Payment Way

After receiving confirmation of prices and terms of trade from your Supplier and the total shipping costs (including, import duties, taxes, etc.) for the goods to arrive at your address, then you can make payments to overseas Suppliers by one of the following methods: following way:

• Bank Transfer

A bank transfer or Telex transfer is a means to transfer funds abroad. The funds are transferred to the Supplier’s account and they will then ship the goods to you. This payment method is the most commonly used but carries risks if the overseas Supplier breaks their promise.

• Credit Card

Payment by Credit Card can be made if the Supplier has a trade transaction agreement with an international credit card company. The smoothness of purchases related to online shopping or other forms of remote selling is highly dependent on the question of whether the users provide a valid Credit Card Number.

In remote purchases using Credit Card, you must provide Credit Card details via fax/phone or email. This can pose a risk for both parties because Credit Card details can be intercepted so that there is a chance for fraudulent transactions to harm the cardholder. Although using a credit card is an option, sometimes it can be a problem. So you must be more careful.

• Wesel Inkaso

In this system, the Supplier has the right to control the goods until your draft is paid (accepted). The Supplier or Drafter ships the goods while the ownership documents for the shipment of goods are sent directly or through the Importer’s Bank to you

Submission of documents to you is based on: D/P (Document Against Payment), namely the submission of documents to you if you have paid.

• Letter of Credit (L/C)

Letter of Credit (L/C) is a payment method that is often used in international trade and has advantages and disadvantages. A Letter of Credit is basically a promise you make to a Supplier stating that you will pay at a certain time. This promise is usually backed (guaranteed) by the Bank. Payment by L/C provides the highest level of security, but is more expensive than other payment systems and can cause delivery delays.

• Later Payment (Open Account)

Payment system where you have not made any payment to the Supplier before the goods are shipped or before the goods you receive or before a certain period as agreed. In this payment, after the Supplier makes the shipment of goods, they will send an Invoice to you, whereas in the Invoice the Supplier will include a specific date and time when you must make payment.

This payment method is widely used by most companies that conduct transactions with companies abroad where they have long-established trading relationships so that they have mutual trust. Even though import. On average, sellers will ask for a DP with a certain nominal before the deal for the delivery of the goods you need.

• Other Payment Ways

Another payment methods that you can make are Barter, which is the payment of the price of the goods you import (in exchange) for the goods you export of the same value (without any payment in cash); Bartering on Consignment is the same as Bartering, the difference is only that if the value of the exported goods is higher or lower, then the value of the difference in price must be paid; Advance Payment (Advance Payment) less than 100%.; and Cash Payments.

From the explanation above, when we look at it from a risk perspective and then decide on the best payment method, then in our opinion: Bank Transfers, Money Orders, and Open Accounts are simpler and cheaper than L/C, but less secure. However, so that you are not harmed in Import activities, you must often ask questions and exchange ideas with experienced importers.

8. Arrange Delivery Of Import Goods

After paying the price of the goods, you immediately take care of the delivery. If your purchase of goods does not include transportation costs. You need to contact the Freight Forwarder to provide the Supplier’s address. Such as name, telephone number, copy of the Invoice, Packing List, and several other documents. That prove the purchase of goods. Usually, the forwarder or shipping party sends a representative in a certain country to make a shipping schedule. At the same time, you need to contact the Supplier to deliver the goods to your Freight Forwarder Representative according to the name and address you provided.

9. Complete Documents

After your goods are shipped, you will be given (sent) certain documents for customs clearance, and for other purposes so that the goods can arrive at your address.

These documents, namely:

Commercial Invoice, which is a list of values/prices of goods listed in the Packing List. This commercial invoice is a letter containing data on the price of each item to the total of all the groceries you buy.

Bill of Lading (B/L), which is a letter/document issued by the Shipping Line/Freight Forwarder for each shipment of Export goods. This Bill of Lading is issued on the ship’s departure date. Bill Of Lading will later be given to you to pick up the import goods at the destination (collection of imported goods). The function of the Bill of Lading is very much. That is, apart from being proof of picking up goods at the destination. It is also attached to the COO manufacturing process.

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Airway Bill (AWB),

its functions, and its uses are the same as a Bill Of Lading.

Bill of Lading/Airway Bill, Packing List, and Commercial Invoice is a letter that usually a package that must be included in EXIM activities. This document is a must-have package of letters.

Other supporting documents,

namely: A certificate of Origin is a Certificate of Origin of Goods. Published by the relevant agency in the country of origin. Its use is as proof of the authenticity of goods. From the country of origin as stated in the Bill of Lading. The Certificate of Origin can be included in the Commercial Invoice but on a separate document.

Packing List is a Packing System List. Packing List is issued by each exporter (Eg: EASTURA The leading Indonesia coconut Supplier) every time they will export. This Packing List data will be loaded on the Bill of Lading and Airway Bill. The Packing List contains data on the Shipper’s name and address.

The Consignee’s name, and address, and Notify Party’s name and address (if any). The Goods Name, Amount and Type of Packaging, Number of goods, Net Weight, Gross Weight, Kubikasi. Shipping Marks and Numbers / Information written on the packaging, Name of Vessel, Port of Loading. Port of Unloading. (For this stage, the minimum documents you need are a Commercial Invoice. And a copy of the Bill of Lading or Air Waybill)

10. Managing Import License

After your goods have been shipped and all export documents. From the country of origin have been received before the goods arrive in Indonesia. It is recommended that import duties and all import permits begin to be taken care of. You can take care of yourself or use the services of another party.

11. Paying Import Duty And Other Fees

All imported goods entering Indonesia must be inspected and approved by Customs. And are subject to Import Duties, Excise, Income Tax Article 22, and other taxes. Imported goods that are not subject to duty are goods for gifts, spiritual welfare, cultural purposes, charity, etc.

12. Removing Goods From The Customs Area

After completing all the processing at customs and your goods have been able to go out. We recommend that the goods are immediately transported to your address.s

13. Receive Goods And Insurance Claims

When the goods have arrived at the place, you must check for damage or possible lost goods. Any damage must be clearly recorded and kept for your records.

When receiving the goods, you or your staff must ensure. That you have correctly counted the quantity of the goods you have received. If your item is damaged or lost, you must immediately notify the Freight Forwarder and the Insurance Company.

Freight Forwarder will submit a claim to the right party and assist you in getting an insurance claim. It is recommended to send photos and other supporting data regarding the condition of the damage. Do not dispose of damaged items or remove them from their packaging. Until they have been inspected by the Insurance Company or Carrier.