Badan POM stands for Badan Pengawas Obat dan Makanan, which means Indonesian FDA in English. This agency was established, and it’s tasked with monitoring all imports of food and drugs that enter the country. Imports must meet certain criteria before being cleared to be sold in Indonesia, and in this article, we’ll go over those criteria so you can import your products without any problems! So, here we will discuss how we can import the products to Indonesia.
Step 1: Establish a Foreign Corporation in Indonesia
The most basic thing you need to do before importing products is to form a company in Indonesia. This is known as establishing a branch, which is when you operate your company through an existing local business. It’s crucial that you retain ownership of at least 51% of your business, otherwise, it may not be considered foreign by officials. To maintain status as a foreign corporation, you must keep all profits within your branch and make sure it does not pay taxes in Indonesia.
Step 2: Register your Company in the Trade System (DPI)
This will enable you to start importing your products. Any entrepreneur can register as a DPI importer as long as they meet certain criteria. Once registered, every transaction will require a permit from BPOM. The rest of our procedures are easy and streamlined for your company’s convenience!
Step 3: Get a Taxpayer Identification Number (NPWP)
Once you’ve completed your business plan, formed your company, and received a registration number from Kepatihan, you must open a Bank BCA account to deposit funding from buyers. You’ll also need a taxpayer identification number (NPWP), which can be obtained through Tax Amnesty Centers located throughout Jakarta.
Step 4: Create a Product Declaration
All products imported into Indonesia require a Product Declaration before they are cleared by customs. A product declaration is a document that serves as an official Customs receipt and certifies that your items meet all required import guidelines. It will be used as supporting documentation when applying for regulatory approvals and export/import licenses, which you must obtain prior to importing your product. Therefore, it is highly recommended that you take your time completing it and fill out every section accurately.
Step 5: Register your products with the Directorate General of Customs and Excise
Once you have your products listed on a bill of lading and it has been given a country of destination, you are ready to register your product(s) at the Directorate General of Customs and Excise. It’s very important that you do this before shipping your products or you risk getting fined.
Step 6: Shipments from countries participating in Global GSP should be registered through Electronic System for Trade Facilitation (e-Sutef)
Electronic System for Trade Facilitation (e-Sutef) has become mandatory as of May 1, 2018. By registering your products on e-Sutef you can track their status until it reaches their final destination and confirms that any duties and taxes have been paid by customers.
Step 7: Keep all Invoices and Documents in Order
Always keep a copy of your invoices and other documents in a folder so that you always have them available should you ever need them. You may want them for tax purposes, or if you’re asked to present proof of purchase by a third party. If they are not up-to-date, print off an updated version and put it away in your folder until you need it again.
Step 8: Assemble your Export Documents
Before shipping your products overseas, you will need to compile and review a number of important documents. These documents are often referred to as export documents and include Commercial Invoice, Packing List, Bill of Lading, Certificate of Origin and Certificate of Free Sale.