Export: at a GlanceHangga Fathana

Email: hangga.fathana@haef.co.idInternational Program for International RelationsFaculty of Political and Social Sciences

Basic Definition

Export is any good or commodity, transported from the customs area of one country to the customs area of another country.

Commodities Classification

• Barang Dilarang• Barang Diatur• Barang Diawasi• Barang Bebas

Exporters Eligibility

Export can be organized by any company that owns legal and administrative documents. These include:• SIUP (Surat Izin Usaha Perdagangan)• TDP (Tanda Daftar Perusahaan)

Export Procedures

1. Exporter and Importer negotiation process. This includes quality, price and delivery.

2. Dealing and sales contract.3. Importer created Letter of Credit.4. Exporter prepared the goods, as

ordered.5. Exporter registered for PEB to the

Customs prior to the shipment.

Export Procedures

6. Exporter made reservation for shipment.

7. Exporter may use freight forwarder and or Customs broker to send the goods, if possible.

8. Shipment proceeded.9. Exporter proposed for Certificate of

Origin and redeemed L/C at the local banks.

Export Procedures

10.Nominated bank in the country of exporter sent the export documents to the issuing bank in the destination.

11.Issuing bank in the country of destination forwarded the documents to the importer.

12.Importer picked up the goods at the Customs.

Export-related Documents

• Sales Contract• Commercial Invoice• Letter of Credit• Certificate of Origin/SKA• Packing List• Quality Statement• Custom Declaration/Cusdec/PEB

Certificate of Origin

• CO is an important international trade document attesting that goods in a particular export shipment have been wholly obtained, produced, manufactured or processed in a particular country. It is also a declaration by the exporter. – International Chamber of Commerce

Certificate of Origin

There are two major kinds of COs:• Non-preferential COs, issued for goods

which will not enjoy any preferential treatment.

• Preferential COs, issued in the context of preferential trade agreements which will enable exporters to benefit from tariff exemption or reduction for eligible exports

Custom Declaration

Cusdec or PEB is a customs document used to inform the implementation of export goods. PEB can be made by exporters by using PEB software online. Goods to be exported shall be notified to the Customs using PEB.

Letter of Credit

Letter of Credit is a document issued mostly by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment undertaking. The letter of credit can also be payment for a transaction, meaning that redeeming the letter of credit pays an exporter.

Payment Methods

• L/C: Red Clause/Green Clause; Sight; Usance

• Non L/C: Advance Payment; Collection; Open Account

Delivery Methods

• EXW (Ex Work)• FAS (Free Along Ship)• FOB (Free on Board)• CFR (Cost and Freight)• CIF (Cost Insurance and Freight)• DES (Delivered Ex Ship)

Case Study

• Shipment of 50,000 pcs Batik Tulis (Hypothetical)

• Shipment of 1,000 pcs Caps

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