Export Procedure in Indonesia for Goods You Need to Know

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Export Procedure in Indonesia for Goods You Need to Know – Exporting business products to foreign countries is not a strange thing anymore, the Indonesian government always gives appreciation to entrepreneurs who have exported their products.

The basics for the export of goods must be understood as a reference. This will serve as an example for other exporters to improve export performance. Following are the procedures for exporting goods that must be known, including the following:


What are the procedures for exporting goods in Indonesia?

1. Create a Sales Contract

The first way that needs to be done is to make a sales contract. This is an agreement document between the exporter and the importer to carry out the buying and selling process, this document contains the terms of payment, quality, price, quantity along with the method of transportation, delivery, insurance and so on.

Before entering the sales contract letter phase, things that need to be done are promotions, inquiries, offer sheets (information according to the importer’s request), order sheets, sale contracts, and sale confirmations. After that, then move on to the second ordinance.


2. Opening Process

If the sales contract or sale and purchase letter has been completed, the next step that needs to be taken is that the importer will ask the foreign exchange bank to open a letter of credit or guarantee letter for the money to be paid to the prospective exporter. This letter of credit will be obtained at a foreign exchange bank that has a network in the exporting country.

The term foreign exchange bank is an advising bank, the advising bank will check the validity of the letter of credit from the foreign exchange bank of the prospective importer and then send a letter of credit as collateral for the goods to be exported.

3. Goods Exporting Ship

If the exporter receives a letter of credit from an advising bank, the prospective exporter must order a ship at an export – import shipping company. While this process refers to the provisions in the sales contract. After that, the prospective exporter must make a PEB or notification of Export of Goods at the customs office at the port.

Usually, these prospective exporters are required to pay additional export taxes and export taxes at the bank used in export – import services. The proof of shipment document will be submitted to the advising bank to forward it to the foreign exchange bank.

4. Shipping Document Negotiation Process

The last process that needs to be done is the Shipping Document Negotiation Process. This is the process of withdrawing money that has been paid by the importer. There is one condition for claiming money for the goods that have been sent. The condition is a document from the shipping company that has sent the goods to the importer.
The exporter will prepare other documents required in the letter of credit after receiving the documents from the shipping company. These documents are invoice, packing list, country of origin certificate, packing list and other documents.

When these requirements are complete, it will be submitted to the advising bank to get payment according to the letter of credit. Advising bank will check the completeness and accuracy of shipping documents to issue payment money.

After everything is complete, the documents will be sent to the foreign exchange bank in the importing country so that they can get payment money for the exporter. The bank will check the completeness of the documents received.