With a total of NZ$1.63 billion of goods and services exported to Indonesia, it's ranked 9th for export value and 12th for total trade value. This presents a lucrative opportunity for Kiwi businesses, especially with the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) in place. As a New Zealand-based business looking to tap into Indonesia's market, it's crucial to understand the regulations and customs procedures for importing goods. This means that customs documents for import, tax & duty rates, prohibited items, and other regulations must be taken into account for those looking to grow their business overseas in Indonesia. To avoid any delays or issues when you ship to Indonesia, it's essential to follow the Indonesian customs clearance and declaration procedures. Read on to learn more about considerations when exporting goods to the country.
All imports into Indonesia, including personal items, are subject to various duties and taxes, including Cost, Insurance, and Freight (CIF) duty, Value-Added Tax (VAT), excise, and sales tax.
The CIF considers the complete shipping value of products and comprises the sum total of the cost of goods, freight and insurance. Goods with a total product value up to US$50 are free from CIF duties, but VAT, excise, and sales taxes may still apply if they are applicable.
Duty costs in Indonesia vary between 0% to 40% depending on the type of goods or product being shipped. Duty-free imports include books, laptops, and electronic products. However, certain goods may be subject to additional taxes on top of the CIF, such as luxury cars (150% - 200%), alcoholic beverages (5 % - 20%), and branded shoes (40%).
All imported goods are further subject to 11% VAT, or a reduced rate of 0% - 5% calculated based on the CIF value and duty. Certain products such as ethyl alcohol (Ethanol), beverages containing ethyl alcohol and tobacco products are also subject to excise rates, which are intended to curb their import and consumption.
Sales taxes differ greatly in the country based on the type as well quantity of imports. A Sales Tax on Luxury Goods (STLG) also applies to selected luxury products at a rate of 10% - 75% of the sum of CIF value and duty.
Indonesian customs and import laws can be complex, but DHL Express’ Customs Services can help with international clearance authorisation, multiline entry for shipments with multiple products, and export declarations for controlled goods or shipments exceeding certain value or weight thresholds.
Our experts can also assist you in identifying the HS Codes of your goods to accelerate the classification and tax and duty assessments. But as the shipper, it's businesses’ responsibility to ensure all necessary licences or permits required are filled out before our couriers pick up the shipments. Payment of these tariffs and taxes are borne by the receiver, but exporters with a MyDHL+ account are able to pay these fees on the receiver’s behalf.
Before shipping to Indonesia, it is crucial to understand which products are prohibited or restricted. Both countries have their own rules and regulations on what can and cannot be imported, and it is the shipper's responsibility to ensure they comply with these regulations. It is important to note that prohibited items are strictly forbidden, while restricted items may require special permits or licences. Prohibited items include live animals, fish, or birds, as well as blank, cancelled, or cashier cheques, and electronic cigarettes.
It is recommended to check with the customs authorities of both countries before shipping to avoid any delays or legal issues.
All goods must have labels in Bahasa Indonesia, with only a few exceptions such as when no Indonesian words can be used as a replacement or to express a similar meaning.
Food products must indicate the expiration date, the importer's complete name and address, whether the product is halal, and the registration number supplied by the National Agency of Drugs and Food Control (BPOM). Businesses can take note that halal labelling is under the purview of the Halal Product Assurance Agency (BPJPH) and BPOM.
For food supplements, screening for various substances is needed. Safety and test certificates, as well as a toxicity test certificate from a laboratory appointed by BPOM are required. Alternatively, the toxicity test certificates can be taken from New Zealand too.
Pharmaceutical drugs must display information such as the product's country of origin, composition, importer's complete name and address, recommended dosage and direction of use, quantity and KL registration number from the Ministry of Health, energy value per serving, alcohol content, and side effects (if applicable).
Cosmetics and hygiene products require a Free of Sale certificate from a government regulatory authority in the country of origin before it can be legalised by the Indonesian authorities, such as the Indonesia Embassy or Consul General of the Republic of Indonesia in New Zealand. A valid certificate of Good Manufacturing Practice or an equivalent document issued by the country of origin and legalised by the Indonesian authorities is required too. By following these guidelines and regulations, you can ensure a smoother customs clearance process when you ship from New Zealand to Indonesia.
Prepare multiple copies of your commercial invoice to facilitate a seamless customs regulation process in Indonesia, with up to seven copies needed if payment is made through a letter of credit (LC). Ensure that you have the manufacturer or supplier’s signature and take note that the fax signatures are not allowed.
The invoice must include details such as the shipper, buyer & consignee names, purchase order number, port of loading and discharge, carrier/vessel, date of departure, country of origin, exact details of contents, freight charges, tariff code number, insurance premium, marks, number and packing (including gross & net weight), LC-issuing bank, number & date of invoice or LC where applicable.
To pass customs, other documents you must provide are a certificate of origin, master airway bill or bill of lading, packing list, payment receipt of import duty and taxes, and other necessary permits.
Shipping to Indonesia from New Zealand may seem daunting, but with the right logistics partner, it can be a worry-free process. DHL Express is an industry-leading logistics expert with a wealth of experience in shipping to Indonesia and navigating its import regulations. Open a DHL Express business account and expand your business to this overseas market now.
Share New Zealand products such as Merino Wool and other high-quality Kiwi goods with the world by leveraging DHL Express’s expertise and New Zealand’s free trade agreements today. So, whether you're looking to ship to Indonesia, the United Kingdom or any other destination around the world, trust DHL Express to help you grow your business and reach new heights of success.