Take note, here are the requirements and how to apply for an import business license

The activity of shipping goods into the territory of Indonesia, known as imports, is an activity in the field of trade that has long been carried out by entrepreneurs in Indonesia. Of course, beforehand, they must understand the various licensing requirements in carrying out import activities in accordance with applicable regulations. In this case, the government issued the latest provisions regarding import activities in the Minister of Trade Regulation Number 36 of 2023 concerning Import Policy and Regulation (Permendag 36/2023). So, what are the requirements and licenses to conduct import activities according to the latest regulation?

Overview of Import Activities

Import activities, according to MOT 36/2023, are the activities of entering goods into the customs area. The customs area in question is the territory of the Republic of Indonesia which includes land, waters and airspace above it, as well as certain areas that apply in the Exclusive Economic Zone and continental shelf in which customs laws apply. Importers themselves consist of individuals, institutions, or business entities, both in the form of legal entities and non-legal entities that import. In addition to meeting the needs of a country, imports also aim to build good relations with other countries, one of which is in economic activity. Not only that, another purpose of imports is to strengthen the balance of payments and reduce foreign exchange abroad. Through importing goods from abroad, entrepreneurs can also adopt their innovations into the industrial sector in accordance with the development of trends and market needs. That way, the products produced will be able to compete in the global market.

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Imports also allow entrepreneurs to obtain products at more competitive prices from the international market. By taking advantage of differences in prices and production costs between countries, entrepreneurs can optimize profit margins and maintain competitive selling prices in the local market.

Types of Goods Prohibited from Import

Before discussing further about import business requirements and licenses, it is important to know that there are several kinds of goods that are prohibited by the state to be imported. This has been stipulated in MOT 18/2021 concerning Export Prohibited Goods and Import Prohibited Goods, some of whose provisions are amended by MOT 40/2022. The prohibited import goods in question include:

1. Sugar of a certain type;
2. Rice of a certain type;
3. Ozone layer depleting substance;
4. Used bags, used sacks, and used clothes;
5. Goods based on refrigeration systems that use Chlorofluorocarbon (CFC) and Hydrochlorofluorocarbon 22 (HCFC-22), both empty and filled;
6. Certain medicinal and food ingredients;
7. Hazardous and toxic materials (B3);
8. Hazardous and toxic waste (B3 waste) and non-hazardous and toxic waste (non-B3 waste) are registered;
9. Hand tools (finished form); and Medical devices containing mercury.

Requirements for Conducting Import Activities

In accordance with Article 2 of MOT 36/2023, entrepreneurs who will carry out import activities must fulfill the following basic requirements:

1. Importers are required to have a Business Identification Number (NIB) which applies as an Import Identification Number (API), and consists of:
   • API-U or General Importer Identification Number, which is given to business entities for the purpose of trade or transfer;
   • API-P or Producer Importer Identification Number, which is given to business entities with the aim of importing goods for their own use as capital goods, raw materials, auxiliary materials and/or materials to support production.
2. Importers can only choose NIBs that apply as API-U or NIBs that apply as API-P.
3. A NIB that acts as an API can only be owned by the head office of a business entity.
4. NIB that applies as an API owned by the head office of a business entity can be used by all branch offices of the API owner if they have similar business activities.
5. NIB that applies as API-U is only given to business entities that import goods for the purpose of trade or transfer.
6. NIB that applies as API-P is only given to business entities that import goods for their own use as capital goods, raw materials, auxiliary materials and/or materials to support the production process.

Procedure for obtaining an import business license

Entrepreneurs who want to import or importers can take care of their business licenses through the Ministry of Finance’s Indonesia National Single Window System (INSW System), namely https://insw.go.id. Please note that the INSW System is an electronic system that integrates systems and/or information related to the process of handling customs documents, quarantine documents, licensing documents, port/airport documents, and other documents related to exports and imports (MOT 20/2021). The INSW system has integrated various other ministry service systems, including the Ministry of Investment/Investment Coordinating Board’s Online Single Submission (OSS) system and the Ministry of Trade’s INATRADE system. To apply for and be issued with an import license, businesses must have access by registering through the INSW System and uploading scanned original documents with details:

1. Individual importers are at least a Taxpayer Identification Number (NPWP) or Population Identification Number (NIK);
2. Importers of state-owned enterprises and foundations, at least in the form of NPWP;
3. Cooperative and business entity importers, at least in the form of NIB and NPWP;
4. Importers who do not get a NIB then at least a TIN.
5. In the event that the documents mentioned above are already available electronically at ministries or non-ministerial government agencies that have been integrated with SINSW, importers do not upload the required documents to SINSW.

If all requirements have been met and uploaded through the INATRADE system or INSW System, the minister will assess and verify the completeness of the data. Business licenses in the import sector will be issued if the data is complete and appropriate through the INATRADE System which is forwarded to the INSW System.

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That is the explanation about the requirements and management of import business licenses. That way, it is hoped that KH Pals can carry out legal trading activities according to applicable regulations so as not to get legal problems in the future.

KH Contact

How about KH Friend, are you ready to run an import business activity? Or are you still confused and don’t really understand the requirements and procedures for licensing? You don’t have to do it alone! With Kontrak Hukum, you can consult the steps and processes that entrepreneurs must do when they want to import. Not only that, Kontrak Hukum also provides complete solutions for your business needs, including the fulfillment of legalities that facilitate the processing of import business licenses such as business entities, 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.