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It’s not uncommon for foreign companies to have goods stuck in Indonesian customs. There are several reasons why goods can get stuck in customs.
Keep reading to find out why goods get stuck in customs and how to prevent it. We will also provide you with solutions to get your goods out of customs in Indonesia.
There are several reasons why goods get stuck in customs. Some of the most common reasons include:
- No license. If the consignee does not have an import license, their goods cannot go through customs.
- Incomplete or incorrect supporting documents. Your shipment’s documents must be complete and accurate. For example, if the goods don’t match the goods declared in the documents, customs will hold the shipment. They will also hold goods if they suspect that the shipment value declared is incorrect.
- Additional permits are required. Some types of goods require additional import permits. Some examples include cosmetics, medicine, IT equipment, and steel among others.
- Red channel inspection. Customs personnel will physically inspect each item in red channel inspection. They will also verify relevant documents. We discuss the inspection of goods further below.
Getting the Import Declaration Form (Persetujuan Impor Barang)
The importer must declare imported goods to the customs authorities. After processing the shipment, the customs office will release the Persetujuan Impor Barang (PIB) or import declaration form.
The import declaration form indicates the following:
- Import duties
- Value-added tax
- Income tax
Getting the import declaration form does not guarantee the release of your shipment. Paying the duties and taxes also does not guarantee customs clearance.
Verification and Inspection of Goods and Documents in Indonesian Customs
Once a shipment arrives in Indonesia, it goes through one of three inspection channels. These are the green, yellow, and red channels.
Customs authorities will not physically inspect goods passing through the green channel. They will only verify the shipment’s documentation.
Shipments that go through the yellow channel need additional documents. You must submit the missing documents to get the approval letter for the release of goods. If your shipment under the yellow channel, Emerhub can help you. We will assist in securing the missing documents for your shipment.
Customs personnel will physically inspect each item in shipments under red channel inspection.
Some reasons why shipments go through the red channel include:
- Changes in taxes;
- Changes in regulations;
- Changes in HS codes
If customs authorities put your shipment in the red channel, you will receive a Pemberitahuan Jalur Merah (PJM) or notice of the red channel.
#1 Prepare the Packing List and Commercial Invoice
Your packing list and commercial invoice must accurately reflect your shipment. Indonesian customs officers will use these documents to calculate your taxes and duties. In line with this, inaccurate documents will lead to incorrect calculations.
Failure to declare the actual value of your shipment will cause problems for your shipment. It may even lead to the detention of your goods.
Your shipment documentation must also include the contents of your shipment. You must also indicate the dimensions and net and gross weight of all items shipped.
#2 Appoint a Consignee or an Importer of Record in Indonesia
Only Indonesian companies with the following can proceed to goods clearance:
- Relevant import licenses
- Customs identification number
Without these, you will not be able to have your goods cleared by customs. Customs authorities may detain your goods or have them re-exported.
If your company does not have these, you can appoint a consignee. The consignee will use its own documents to facilitate the importation on your behalf. Emerhub can act as your consignee through our importer of record service.
The importer must also have the Standar Nasional Indonesia (SNI) or National Standardization license for certain products.
Products that need an SNI license include the following:
- Cacao powder
- Instant coffee
- Glass for building
Emerhub can also act as your nominee product holder through our importer of record service. As your nominee product holder, we will handle getting the necessary SNI licenses for you.
A hassle-free way to import goods into Indonesia.
Importer of record by Emerhub.
#3 Start a company and acquire import licenses
If you intend on importing regularly, you can also set up an import company in Indonesia.
The following are examples of businesses open to foreign ownership which can apply for import licenses:
|Business activities||Percentage of allowed foreign ownership|
*The company cannot distribute the imported goods
Emerhub can facilitate company registration for you. We will also facilitate the application for import licenses and your customs identification number.
The amount of time that a shipment remains in customs varies depending on the specific issue.
If you have a shipment stuck in customs, Emerhub will be able to assist you. Whether you are using our importer of record service or not, our consultants are ready to help. It typically takes us one week to get shipments out of customs. Fill out the form below and our consultants will be happy to assist you.
There are three possible solutions to get your goods out of the customs.
#1 Coordinating clearance with a consignee and customs officials
One option is to have a consignee take over your shipment for you. Your consignee must be able to coordinate with customs on your behalf. Your consignee will also take care of any relevant taxes, fines, and fees.
Emerhub can be your consignee for shipments in Indonesia. If your shipment is stuck in the red channel, Emerhub can also take care of that for you. Fill out the form below and one of our consultants will be happy to assist you with your importing and customs concerns.
#2 Obtain the goods through an auction
The customs office will put a shipment up for auction if:
- It remains unclaimed;
- There is no information on exporting
The goods will go to the highest bidder. Should Indonesian customs put your shipment up for auction, Emerhub can buy it out for you.
#3 Export the shipment
In some cases, customs authorities may forbid the goods from entering Indonesia. In these instances, you will have to export the shipment. In doing this, you will be able to retain ownership of the goods. You can try to import your goods into Indonesia again with the help of an importer of record.
You must have an import license. Alternatively, Emerhub can facilitate the entry of your shipment into Indonesia using our licenses.
For some products, you might need product registration approval. Examples of such products include cosmetics, medical devices, and IT equipment, among others.
It will depend on the specific reason why customs is holding the shipment. For shipments stuck in customs, Emerhub’s typical turnaround time to get them out of customs is 1 week.
The most common reasons for shipments to get stuck in customs are: not having an import license, incomplete or incorrect documents, not having the necessary permits, or your goods must go through red channel inspection.
You must first set up a company that can engage in the importation of goods. For example, e-commerce, distribution or trading, import-export, and direct selling.
If your business will not engage in regular shipments, use Emerhub as your importer of record instead of applying for an import license.
You can assign a consignee, like Emerhub. to coordinate with Indonesian customs to get your shipment.
Alternatively, you can export your goods to retain ownership of the items. If a shipment remains unclaimed or the owner does not have plans of exporting it, Indonesian customs will put it up for auction. You can also get a consignee to buy out your shipment in the auction.
There are three types of taxes to pay prior to goods clearance.
Import duties. This ranges from 0 to 20% of the shipment value depending on the goods. You can check the relevant import duties for your goods with Indonesian customs.
Value-added tax (VAT). VAT for imports is 10%.
Import Tax. The import tax is 2.5% if the consignee has an import license, or 7.5% if the consignee does not have an import license.
Note that only Indonesian companies can proceed to goods clearance for their shipments.
Need help with your imports? We are ready to assist you with your concerns regarding goods and customs clearance in Indonesia. Fill out the form below or send us an email at [email protected].
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