Getting to Know Exporters More Deeply

Friends must have heard the terms export and import. These activities play an important role in a business and are closely related to economic activities in a country.

In short, export is the activity of sending or moving goods from within to outside the country. The export process begins with an offer from one party accompanied by the approval of another party through the sales contract process, in this case, the Exporter and Importer.

Export activities are usually related to the large-scale shipment of goods abroad. The process also involves Customs, which acts as a supervisor of the traffic of movement in and out of the country.

All goods to be exported have their own provisions depending on the type of goods. It should be noted that not everyone can export or become an exporter, as there are several rules or regulations that must be adhered to.

Reasons for Export Activities

In the business world, exports are one of the benchmarks for industrial development. The goal is to stimulate demand for a product and also to give rise to other industries.

Some reasons for conducting export activities are as follows:

1. Traditional Commodities

Usually, a company produces a commodity as a continuation of the colonial economy such as rubber, coffee, tea, pepper, tengkawang, tin, copper, and other similar mining products. This is likely to continue as export activities today.

2. Profit Optimization

In addition to selling a product domestically, through exports, a company can expand its sales area to foreign countries, and the types of goods offered become unlimited for domestic consumers.

3. Market Exploration

For companies with a strong domestic market, exports are an opportunity to diversify markets that can strengthen the position of the traded commodities.

4. Utilization of Excess Capacity

If the production capacity of an industry has not exceeded the machine capacity, then the remaining capacity (idle capacity) can be used to meet the export market.

5. Export-Oriented Products

There are labor-intensive industries that are deliberately relocated from industrial countries such as Japan, Korea, Taiwan, or Singapore to Indonesia with the aim of relocating shoe, garment, and similar industries.

This fifth point aligns with the goal of exports, which is to give rise to several other industries.

6. Highly Competitive Commodities

Products made from original Indonesian materials that have their own advantages (absolute advantage) or other products that have comparative advantages have opportunities for export markets.

For example, materials such as natural rubber, tropical forest wood, agribusiness, handicrafts, and others all have quite high competitiveness in the export market,

Meanwhile, an exporter is a person or a specific company/agency that sells their goods abroad.

What are the requirements to become an exporter?

To become an exporter, at least your business must have a legal entity and other requirements. Various provisions must also be adhered to, here are some requirements to become an exporter.

1. Legal Entity, in the form of CV (Commanditaire Vennootschap), Firm, PT (Limited Company), Persero (State-Owned Company), Perum (Public Company), Perjan (Government Agency), and Cooperatives.

2. Have a Tax Identification Number (NPWP)

3. Have one of the permits issued by the Government such as:

Trade Business License (SIUP) from the Trade Office
Industrial License from the Industry Office
Domestic Investment Business License (PMDN) or Foreign Investment (PMA) issued by the Investment Coordinating Board (BKPM).

Classification of Exporters

Exporters are divided into two classifications. For example, producer exporters and non-producer exporters. Both have differences regarding the provisions and requirements when sending goods.

1. Producer Exporters, with the requirements:

As a Producer Exporter, in order to obtain legality, they must meet the established requirements, namely filling out the forms provided by the Trade and Industry Office in the Regional Government of the District/City or Province, and the relevant technical agencies.
Have an Industrial Business License.
Have a Tax Identification Number (NPWP).
Provide export realization reports to the Trade and Industry Office or designated agencies and officials (periodically every three months) certified by the Foreign Exchange Bank by attaching a statement letter such as: not involved in tax arrears, not involved in banking arrears, not involved in customs issues.

2. Non-Producer Exporters, with the requirements:

As a Non-Producer Exporter, to obtain legality, they should meet the established requirements, namely filling out the forms provided by the Trade and Industry Office in the Regional Government of the District/City or Province and the relevant technical agencies.
Have a Trade Business License
Have a Tax Identification Number (NPWP) and provide export realization reports to the Trade and Industry Office or designated agencies/officials (every three months) certified by the Foreign Exchange Bank by attaching a statement letter such as not involved in tax arrears, banking, not involved in customs issues.

If you are interested in becoming an exporter, you must also understand the customs permit steps. In general, the customs procedure for the export of goods is as follows:

1. Goods to be exported must be notified in advance to the customs office by filling out the export goods notification document (PEB).

2. PEB registration is accompanied by a Company Identification Number (NIPER) and supplemented with supporting documents.

3. Payment of export tax if the exported goods are subject to export tax. The submission of PEB can be done by the exporter or authorized to the PPJK.

4. Physical inspection of exported goods and document examination.

5. Approval and loading of exported goods onto the transport vehicle.

Thus, information about exporters that you need to know. So, are you interested in expanding your business and becoming an exporter?

Author: Dinno Baskoro

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