Step by step shipping guide to ship your pallet from Singapore to Indonesia.
How do I ship from Singapore to Indonesia?
Before shipping from Singapore to Indonesia, kindly ensure Indonesian counterpart is registered as an importer with an The Customs Identification Number (NIK). NIK is a personal identity number given by the Directorate General of Customs and Excise to Indonesia Importer and Exporter.
What is NIK?
According to The Director-General of Population and Civil Registration of the Home Affairs Ministry, Zudan Arif Fakrulloh, “In the future, the Taxpayer Identification Number (NPWP) will be removed and integrated and replaced with the Population Identification Number (NIK)”.
“In the future, the optimisation of the NIK will be more intensive where the Directorate General of Taxes has agreed with the Home Affairs Ministry that later, the NPWP will be removed and completely replaced with NIK,” said Zudan.
Indonesia Importer is a company.
In the event that, the importer in Indonesia is an organisation or company, A Business Identification Number or Nomor Induk Berusaha (NIB) is a number required. Kindly note that, businesses operating in healthcare, medical devices, and cosmetics products are mandatory to apply for additional licenses before starting their operations in Indonesia.
What if Indonesian Importer does not register NIK nor obtain NIB number?
The process of getting a NIB number can be daunting and the process for successful applicant can take 3 months or more. Traders who do not wish to spend the time and effort may consider the use of Gudang Shipping as Importer in Indonesia which acts as the importer on your behalf, and maintains all the importation and customs clearance.
Having said that, not all commodities going through Gudang Shipping can be imported into Indonesia. It is important for trader to visit Indonesia Prohibited and Restricted Goods to check if their goods fall under Prohibited and Restricted list.
Indonesia Prohibited and Restricted Goods
Indonesia is a profitable market and has made serious efforts to improve its import and export procedures to ensure safety and up to standard. There are many of products that require additional import license over the existing API license.
Those products can be ranging from toy, household appliance, clothing, electronic products, beverages, to gadgets are heavily regulated.
No, there is no such ONE SIZE FIT ALL license to cover all import commodities into Indonesia. Aside from lengthy and complex registration and licensing procedures, the Indonesian government places some significantly burdensome restrictions and regulations on importers.
The good news is that with these strict barriers, traders who overcome and go through those requirements enjoy a market in which competitive challenges are fewer than elsewhere.
Ocean Freight Forwarding to Indonesia
Generally, all goods imported into Indonesia are subject to import duty and tax. Goods from oversea will first landed into Indonesian customs territory (Indonesian customs warehouse).
A Customs territory is an area with borders at a harbour designated for flow of goods, which is fully under the monitoring of the Indonesian Directorate General of Customs and Excise (DGCE).
Goods imported are subject to customs verification, verification included verification of documentation such as invoice and packing list, Bill of lading, Certificate of Origin, NIB of the importer and Customs import declaration and physical inspection of goods.
Customs import declaration Forms
Upon the importation, the importer must prepare a Customs declaration Form (PIB).
Supporting document are required to be attached:
- Commercial Invoice
- Packing List
- Bill of lading
- Airway bill
- Insurance Certificate
- Form D
- Certificate of Origin
After the importer successfully obtains PIB registration number, these supporting customs documents can be submitted within 24 hours.
Type of customs declaration form:
|Form Code||Customs Declaration Form|
|BC.1.6||Declaration for Importing Goods to Bonded Logistics Center (PLB)|
|BC 2.0||Declaration for Importing Goods (PIB Form)|
|BC 2.1||Declaration for Importing Particular Goods (PIBK Form)|
|BC 2.2||Declaration on the Import of Goods Belonging to Passengers or Transport Facility Crew|
|BC 2.3||Declaration on the Import of Goods to be Stored in a Bonded Storage Place|
|BC 2.4||Declaration on the Settlement of Imported Goods Receiving Import Facility for Export Purpose (previously known as KITE)|
|BC 2.5||Declaration to release the Goods from Bonded Storage Place to the TLDDP|
|BC 2.6.1||Declaration on the Temporary Release of Goods from Bonded to TLDDP Storage Place with Guarantee|
|BC 2.6.2||Declaration on the Reintroduction of Goods to Bonded that were Previously Released from Bonded to TLDDP|
|BC 2.7||Declaration on the Release of Goods to be transferred from one Bonded Storage Place to another Bonded Storage Place|
|BC 2.8||Release from Bonded Logistics Center (PLB) to be imported or to be used|
|BC 3.0||Notification of Export of Goods|
|BC 4.0||Declaration on the Entry of Goods Originating from Other Places Within Indonesian Customs Area (TLDDP) to Bonded Storage Place|
|BC 4.1||Declaration on the Re-release of Goods Originating in TLDDP from Bonded Storage Place|
Indonesia Import license
Importer must fulfil its customs obligations to register to Directorate General of Customs & Excise (DGCE). The licensing services can be obtained through the Indonesia National Single Window (INSW) portal that is integrated with the OSS system.
License such as:
- Customs Registration
- Licensing of Bonded Warehouse (TPB)
- Licensing of Ease of Import for Export (KITE)
- Licensing of Excisable Goods Entrepreneur Registration Number (NPPBKC)
Procedure to Import into Indonesia
- 24 hours before the arrival of a goods, the carrier (vessel) must notify the Indonesia Customs Office of the arrival.
- Once the vessel arrived at the port, the carrier must proceed customs declaration (endorsed by the carrier) by submitting a list of the containers and break-bulk amount to be discharged to the Head of the Customs Office within 24 hours.
- Discharge of Container from the vessel into container yard (Customs Free Trade Zone area) after approval from the Head of Investigation or customs officer.
- Before arrival of vessel, Indonesia freight forwarder will receive “Arrival Notice” from carrier. Indonesia Freight forwarder will then prepare all documentation for customs approval.
- The freight forwarder shall complete and submit the PIB, compute the import duty and import taxes, and make payment by purchasing a demand draft, get a queue number and pay at the counter.
- Cargo Clearance procedure from Customs Area. Supporting documents that require are commercial invoice, packing list, Bill of lading or Airway bill, import duty and import taxes payment evidence, etc., are submitted to the Indonesia Customs Authority for approval.
- After Indonesia Customs approved this importation, goods can be released from customs area, for LCL cargo, goods released from customs warehouse.
Indonesia Import Duty, VAT and Tax
Indonesia Import duty is calculated based on Cost, Insurance and Freight (CIF) value. With the formular, Import Duty = Customs Duty Tariff x CIF Value (Cost, Insurance and Freight)
Indonesia Value Added Tax (VAT) is calculated 10% on top of Cost, Insurance and Freight (CIF) value. With the formular: Value Added Tax (VAT) = 10% x [CIF Value plus import duty]
Depending of goods, certain goods required additional income tax of 2.5%, 7.5% and 10%. With the formular Article 22 Income Tax = Tariff x [CIF plus import duty]
If the imported goods classified as luxury goods, there will be a Luxury Goods Sales Tax (LGST) imposed on the goods. The calculation as Luxury Goods Sales Tax (LGST) = Tariff x [CIF Value plus import duty] LGST
If the imported goods are excisable goods, the calculation as Excise = charged based on excise value per unit.
All imported goods are subject to customs duty and tax. The value is based on transaction from invoice and packing list at the time of declaration submission of PIB. Indonesia Authority will use the value to calculate Duty, VAT and Tax.
If the customs value cannot be determined from the transaction, then the customs value should be based on customs method.
Below are the 6 methods to get customs value:
- Transaction Value – based on Invoice and packing list
- Identical Goods – based on two goods are deemed identical if both are the same.
- Similar Goods – based on two goods are deemed similar if both of them have the same physical characteristics and material components so that they can perform the same function.
- Deduction Method – The deduction method is a method for calculating the customs value of import goods based on the selling price of the goods in the market minus duty and tax or expenses incurred after importation.
- Computation Method – based on adding up the prices of raw materials, costs for the manufacturing process, and other costs/ expenses up to the time the goods arrive at the port.
- Repeating Method – Repeating the principles points (1), (2), (3), (4) or (5) using fair and consistent procedures.
Tariff Classification HS code
Indonesia adopts the 8-digit HS Codes in the ASEAN Harmonised Tariff Nomenclature (AHTN), for use by all ASEAN member countries. Trader can visit https://intr.insw.go.id/ to check and obtain the HS code for their product.
Harmonised System (HS) as a global tool for collecting trade statistics and monitoring trade, therefore, it is important to classify your product prior importation. HS Codes such as agricultural, chemical, wood, textile, base metal, machinery, transport and other sectors
ASEAN Trade in Goods Agreement (ATIGA) (Form D)
ATIGA is a preferential tariff based on the agreement between Indonesia and the ASEAN countries. This tariff is applicable for the import of goods from ASEAN countries into Indonesia.
The ASEAN countries are Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Viet Nam.
The import duty tariffs for ATIGA range from 0% to 5%. In order to apply a preferential tariff under ATIGA, the importer should obtain a certificate of origin (C/O) in a Form D legalized by the Customs Authority of the country of origin (where the goods are produced).
Free Trade Zones – Batam Islands
The Indonesian Government has officially declared Batam as a Free Trade Zone (FTZ) in January 19, 2009 to boosted economy in that region. A company that operates in Batam is not required to register for VAT (non-PKP status).
Batam is exempt from import duties, sales tax, VAT and tax on luxury goods. Moreover, if a manufacturer makes products in Batam, they will have a lot of export incentives from Indonesia government.
Traders who wish to import or export into / from / through Batam can obtain business license from Badan Pengusahaan Kawasan Perdagangan Bebas dan Pelabuhan Bebas Batam (BP Batam)
With approval from BP Batam, company can operate import or export from/to Batam.
Mandatory Import documents required for Indonesia
Generally, documents that required to import to Indonesia are:
- Packing List
- Bill of Lading
- Air waybill
- Import permit
- Import license API
- Population Identification Number (NIK)
- Nomor Induk Berusaha (NIB)
- Certain product required additional license such as medical / cosmetic / supplement
How much does it cost to ship to Indonesia?
For Sea shipping door to door to Indonesia or Indonesia to Singapore, generally cost about SGD $250/CBM.
For Air cargo door to door Indonesia to Singapore or vice versus, generally cost about SGD $6 – 8 /KG depending on the cargo weight. Airline minimum charges 100KG onwards
How long does it take to ship from Singapore to Indonesia?
Generally, Door to door from Singapore to Indonesia or Indonesia to Singapore, took around 3 – 7 days to reach destination in Indonesia.
Common Incoterms for Indonesia shipping.
DDU / DAP: DELIVERED AT PLACE
The goods (not unloaded) are made available by the seller in the foreign country at the agreed place. The buyer bears the cost of unloading and import customs clearance.
DDP: DELIVERED DUTY PAID
The seller delivers the goods to the buyer, cleared through customs on import and not unloaded on arrival of any transport vehicle at the agreed destination. The goods are therefore delivered to the place of destination, ready for unloading. The seller normally also bears the costs of unloading. The seller must bear all costs and risks to transport the goods there, including, where applicable, any “duty” on import into the country of destination.
Shipping Mode: Singapore Indonesia
Air freight could be more expensive, but for smaller shipments, however, air freight can be cheaper. Moreover, Air freight have the fastest lead time compared to other shipping mode.
Suitable for time sensitive commercials goods like machinery spare parts and materials with 100 kg onwards
Volumetric weight formula:
Volumetric weight = Length x Width x Height (cm) / 5000
Airline calculate volumetric weight on every shipment, and compare that to its actual weight, and use the greater of the two to determine shipping cost.
|CGK||Soekarno–Hatta International Airport|
|SUB||Juanda International Airport|
|BDO||Husein Sastranegara International Airport|
|JOG||Adisucipto International Airport|
|SRG||Jenderal Ahmad Yani International Airport|
Sea freight is less costly than air freight, but the transit time from Singapore to Indonesia take up to 3 – 7 days. Sea freight suitable for heavy and bulky commercials goods like machinery and materials.
LCL – Less than container load
LCL lets you ship in smaller volumes so that you can keep your inventory lean.
FCL – Full container load
FCL is ideal for larger shipments, a Full Container Load is the cheapest in terms of unit per cost. 20’GP and 40’HQ available
Port of Jakarta
Name: Port of Tanjung Priok
Port Code: IDJKT
Volume: >50% Indonesia’s trans-shipment cargo
Container shipping rates to Jakarta
Port of Surabaya
Name: Port of Tanjung Perak
Port Code: IDSUB
Volume: Second busiest sea port in Indonesia
Container shipping rates to Surabaya
Port of Semarang
Name: Port of Tanjung Emas
Port Code: IDSRG
Volume: Central of Java, Shipment to Yogyakarta
Container shipping rates to Semarang
Prohibited goods not to ship to Indonesia
Any materials printed that are anti-Muslim in nature or promote communism or disturb public order or Fireworks of all type, Dangerous Goods as defined by IATA, IMO, Narcotics, Alcohol, Radar/Telecommunications equipment.
Any flammable, butane gas lighters and refills; inflammable films, non-manufactured celluloid or articles made of celluloid. All articles bearing batik motif.
Acoustic appliances, alcoholic beverages, artificial flowers, used clothes, rags, Hazardous waste, fresh or frozen meat, Coins, banknotes, money, lottery tickets, bonds, vouchers, cheques or foreign currency, currency notes or securities of any kind payable to bearer, traveller’s’ cheques, platinum, gold, silver, whether manufactured or not, diamonds, precious stones or other valuable articles.
Animals, counterfeited/ faked goods, coal, drug, narcotics, dead body, including the cremated one, negotiable goods/instruments, pornographic materials, jewellery, diamond, and other precious stones, fireworks, plantation, tobacco, antiques, feather, ivory, precious metal, stone.
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