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Indonesia’s middle class is expected to double by 2025, creating a promising opportunity for foreign businesses to import and distribute their products in the country. However, complying with local import regulations can be difficult and failure to do so can lead to penalties and delays.
In this article, we explore how working with an Importer of Record in Indonesia helps you import and distribute your products with ease.
What is an Importer of Record?
The Importer of Record (IOR) is a crucial player in the process of importing and distributing goods in Indonesia. It takes full responsibility for all necessary documentation and handles all entry requirements related to importing and distributing goods. By managing the required paperwork and complying with all relevant regulations, the IOR ensures that the process is conducted legally and efficiently, reducing the risk of any legal issues or delays.
Why use an Importer of Record (IOR) to import and distribute products in Indonesia?
Foreign businesses can simplify the process of importing and distributing goods into Indonesia by using an IOR. Here are some reasons why:
Using an IOR’s import license to import products
To import products into Indonesia, a company must obtain an Import License, which can be a time-consuming and resource-intensive process. Additionally, foreign companies must establish an official presence in the country.
However, by utilizing an Importer of Record (IOR), a foreign company can bypass the lengthy process of obtaining an Import License and use the IOR’s license to import products into Indonesia. This is a significant advantage for companies seeking to do business in Indonesia.
Products classification
When using an Importer of Record (IOR), the classification of products according to Indonesian regulations is ensured. This is an important aspect of the IOR’s role as it aids in determining the type of imported goods and is necessary for calculating the appropriate taxes and duties. By ensuring compliance with local regulations, an IOR can help businesses avoid legal complications and financial penalties while ensuring a smooth importation process.
Faster clearance times
By managing all the required paperwork with customs officials, an Importer of Record (IOR) can expedite the customs clearance process, resulting in faster clearance times and fewer delays. This can be of significant benefit to companies by ensuring that their products reach their intended destination promptly and efficiently, ultimately improving their bottom line.
Improved logistics and supply chain management
An Importer of Record (IOR) collaborates with local logistics providers and warehouses to guarantee proper storage and transportation of products. By doing so, the IOR mitigates the risk of damage or delays, while also aiding in inventory management and order fulfillment.
Emerhub acts as an IOR for businesses looking to import goods into Indonesia. With our comprehensive knowledge and market experience, we handle all necessary documentation and entry requirements.
How Emerhub handles the Import and distribution process in Indonesia
As your importer of record, Emerhub streamlines the import process by offering comprehensive assistance, from product registration and import licenses to logistics and customs clearance. Our team also helps with distribution by providing storage facilities and transportation to retail stores.
Step 1: Emerhub checks the shipping documents. It includes the HS code (Indonesia HS classification) for imported goods and the standardized names for defining every category of the products.
Step 2: Emerhub prepares all the necessary information and documents related to your import business. These include commercial invoices, packing lists, and certificates of origin.
Step 3: Emerhub evaluates and verifies the imported goods. It ensures compliance with all local regulations and customs clearance procedures.
Step 4: Emerhub prepares all necessary documents for customs clearance and shipment. These include the import declaration and extra permits required by the Indonesian government.
Step 5: Emerhub provides updated tracking information to you for complete transparency.
Step 6: A smooth import process requires handling the customs clearance process. Emerhub does this on behalf of the foreign company.
Step 7: Emerhub processes all payments on behalf of your company after receiving them from you. These include customs fees and duties.
Step 8: Once the shipment is cleared at the port, Emerhub assists with transportation and logistics. This includes the shipment of products from the port to your warehouse.
Step 9: Emerhub handles storage and inventory management for the imported products. It ensures that the stored products are in compliance with local regulations.
Step 10: Emerhub handles the order fulfillment process. It includes picking and packing the product and shipping it to the customer.
Import in Indonesia with Emerhub
At Emerhub, we offer detailed and reliable product registration and import solutions. Our main goal is to assist businesses with the technical aspects of setting up their presence in Indonesia. Our team of consultants provides them with guidance to understand the regulations involved. We take care of the entire import and distribution process for you in Indonesia.
Emerhub has the expertise and resources to ensure a smooth product import process.
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