The definition of import and export is simple: if goods are transported from abroad across the country’s borders into Indonesia, this is called import. The transport of goods from within the country to abroad is called export. The process of importing and exporting is somewhat more complex than this definition.

If goods are imported from outside, customs play a decisive role. The customs authority monitors whether the imported goods comply with domestic law and the relevant regulations. The goods can only be disposed of after customs clearance. If import duties in the form of customs duty and/or taxes are payable on the goods, the customs authority collects these. The physical import process is completed when the goods arrive at the recipient.

When goods come to Indonesia from other countries, this is also referred to as an import. In principle, there is free movement of goods within the nations, which means that no customs clearance is necessary. However, statistical and tax aspects must be taken into account.

If you want to export goods abroad, they are subject to monitoring. An export declaration must be submitted for every export to a third country. The purpose of this is to monitor bans and restrictions (VuB), control embargoes and ensure compliance with the Dual-Use Regulation. The export declaration also fulfils statistical purposes and serves as proof of VAT exemption. In addition to the customs authority, the Federal Office of Economics and Export Control (BAFA) is also responsible.

It is also important for exporters to observe the laws and regulations applicable in the destination country. In principle, any type of goods can be exported as long as they are not subject to export restrictions. However, adjustments may need to be made to the products beforehand in order to be authorised in another country.