Before importing goods from abroad, KH pals need to know what is called the Import Identification Number (API). Yes, API is a collection of numbers that serves as an identification that must be owned by the party making the import. With this official identification, it will facilitate the supervision and management of goods flowing across the border. So, only individuals or business entities that have an API are allowed to carry out imports. So, what is an API? How to get it? Here’s the review.
What is an API?
Reporting from the indonesia.go.id page, an importer identification number (API) is an identity number as an importer. API is owned by an individual (individual) or a business entity that carries out import activities. By having an identification number, it shows that the importer already has a guarantee of its business activities. API was previously regulated in the Minister of Trade Regulation No. 70/M-DAG/PER/9/2015 of 2015. However, the regulation has been replaced by Regulation of the Minister of Trade Number 36 of 2023 concerning Import Policy and Regulation. Each importer can only have one type of API. This aims to provide official identification of importers so that the authorities can control and monitor the flow of goods entering the country.
Types of APIs
In running their business, importers can only choose one of two types of APIs, which are as follows:
API-U (General Import Identification Number)
In this case, API-U is chosen for importing goods for trading or resale. Based on Article 1 point 13 of MOT 36/2023, API-U is an importer identification that is only given to business entities that import certain goods for the purpose of trade or transfer.
API-P (Producer Import Identification Number)
Meanwhile, API-P is chosen for importing goods that are used as capital goods, raw materials, auxiliary materials, and/or materials to support the production process. Referring to Article 1 point 14 of MOT 36/2023, API-P is an importer identification mark that is only given to business entities that import certain goods for their own use as capital goods, raw materials, auxiliary materials and / or materials to support the production process.
What is the Importance of APIs?
The Import Identification Number (API) provides a number of significant benefits to companies or individuals involved in importing activities. Some of the key benefits include:
Official Identification
APIs provide official identification for companies or individuals conducting import activities. This creates a level of clarity and certainty in the international trading environment.
Customs Inspection Efficiency
Importers with APIs tend to experience a faster and more efficient customs inspection process. APIs facilitate easier identification and verification of documents, reducing the time required for physical inspection.
Clarity and Transparency
API creates clarity and transparency in import activities, both for authorities and other stakeholders.
Requirements and Procedures for Obtaining an API
Previously, APIs could only be obtained if importers had met various requirements and fulfilled certain procedures. However, currently, importers find it easy to take care of the API. You only need to have a Business Identification Number (NIB). This is as outlined in the provisions of Article 176 paragraph (5) of Government Regulation Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing (PP 5/2021), that NIB can also apply as an API. In addition, NIBs that have been listed as APIs will also apply as customs access rights. Therefore, business actors must know what requirements are needed to issue a NIB.
READ ALSO: Take note!
In addition, NIB can be processed through the Online Single Submission (OSS) system. Some of these requirements are regulated in Investment Coordinating Board Regulation Number 4 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities (BKPM Regulation 4/2021). The requirements referred to consist of:
Business Actor Data
Data on business actors for individual businesses consists of (Article 19 paragraph (2) of BKPM Regulation 4/2021):
- Name and National Identification Number (NIK);
- Taxpayer Identification Number (NPWP) of an individual;
- Capitalization plan; and
- Cell phone number and/or e-mail address.
Meanwhile, data on business actors in the form of business entities at least includes (Article 19 paragraph (6) of BKPM Regulation 4/2021):
- Name of business entity;
- Type of business entity;
- Investment status;
- The deed of establishment number or registration number and its authorization;
- Correspondence address;
- Magnitude of capitalization plan;
- Management and shareholder data;
- The investor’s home country, in the case of FDI;
- Purpose and objectives of the business entity;
- Phone number of the business entity;
- Electronic mail addresses of business entities and
- TIN of the business entity.
General Plan of Business Activities
In addition to data on business actors, there is also a general plan of business activities submitted by individuals or business entities, including (Article 19 paragraph (7) of BKPM Regulation 4/2021):
- Line of business according to the Indonesian Standard Industrial Classification (KBLI);
- Business location;
- Customs access;
- API;
- Participation in health and employment insurance (BPJS Health and BPJS Employment); and
- Status of employment report.
KH Contact
That was the explanation about API as an identification mark for individuals or business entities that carry out import activities. KH friends want to import, but still don’t understand the licensing? Kontrak Hukum is ready to help!
READ ALSO: Income Tax 22 on Import Exports.
As a digital legal platform, we provide a complete solution for your business needs, from consultation to legality fulfillment that makes it easier to obtain import licenses such as business entity, NIB, NPWP, and others.
What are you waiting for? Start your business successfully and confidently with Kontrak Hukum by visiting the KH Services – Business Licensing page. If you have any questions, don’t hesitate to consult with us at Ask KH or via direct message (DM) to Instagram @kontrakhukum.
