Frequently Asked Questions

An Importer of Record is a legally registered entity responsible for all customs compliance when importing goods into a country. In Indonesia, the IOR holds the required API (Angka Pengenal Impor) license and is accountable for duty payments, regulatory compliance, and proper documentation.

Indonesian law requires all imports to be cleared by a locally registered entity with a valid import license (API). Foreign companies without a local presence cannot directly import goods. An IOR like Kickrate acts as the legal importer on your behalf.

The Harmonized System (HS) code is an internationally standardized numerical classification system for traded products. In Indonesia, HS codes are 8 digits long and determine the applicable import duty rates, taxes, and regulatory requirements for your goods.

Import duties are calculated on the CIF (Cost, Insurance, Freight) value of goods. The total import cost includes: Import Duty (BM MFN), VAT/PPN (12%), Income Tax/PPH (2.5% with API, 7.5% without), and potentially luxury tax (PPnBM), excise, or anti-dumping duties depending on the product.

Free Trade Agreements (FTAs) are bilateral or multilateral agreements that reduce or eliminate import duties between member countries. Indonesia has 20 FTAs, and many allow 0% import duty if your goods originate from a member country. This can significantly reduce your import costs.

Beyond the basic import license (API), certain products require additional permits: BPOM approval for food, drugs, and cosmetics; SNI certification for products subject to national standards; quarantine certificates for animal/plant products; and various ministry-specific approvals depending on the product category.

Standard customs clearance typically takes 3-7 working days. However, this can vary based on the product type, required inspections, completeness of documentation, and the port of entry. With proper preparation and documentation, Kickrate can often expedite the process.

API-U (Umum/General) is for trading companies that import goods for resale. API-P (Produsen/Producer) is for manufacturing companies that import raw materials or components for their own production. The type of API affects the income tax rate applied to imports.

The consignee is the party named on the Bill of Lading as the receiver of goods. The Importer of Record is named on the customs declaration as the legal importer. In Indonesia, these must be the same entity — the consignee on your B/L must match the importer on the PIB declaration, and they must hold an active API license.

IOR stands for Importer of Record. In shipping, the IOR is the licensed entity that takes legal responsibility for importing goods into the destination country. They handle customs declarations, duty payments, permit acquisition, and regulatory compliance. For Indonesia, the IOR must be a locally registered company with an API import license.

Under DAP (Delivered at Place), the buyer is responsible for customs clearance and duty payment in Indonesia. Under DDP (Delivered Duty Paid), the seller handles everything including customs and duties. In both cases, a licensed local Importer of Record (IOR) with an API license is required since foreign companies cannot clear customs in Indonesia directly.

Lartas (Larangan dan Pembatasan) refers to Indonesia's restricted and prohibited goods regime. Many product categories require pre-import approvals from specific ministries: BPOM for food/cosmetics/pharma, SNI for products with mandatory national standards, SDPPI for telecom equipment, quarantine for animal/plant products, and others. Importing Lartas goods without the correct permits results in goods being held or seized at customs.

No. A freight forwarder handles the physical transport of goods but does not hold an import license (API) and cannot file customs declarations as the legal importer. In Indonesia, the entity named on the PIB customs declaration must have an active API license. You need a separate IOR service — your freight forwarder transports the goods, and the IOR clears them through customs.

Shipments get held at Indonesian customs for several reasons: HS code misclassification, missing or expired Lartas permits, no valid consignee/API license, customs valuation disputes, or incomplete documentation. While stuck, demurrage and storage charges accrue daily. An experienced IOR can often intervene to resolve the issue — contact us for emergency assistance.

An Exporter of Record (EOR) is the entity responsible for export compliance at the origin country — handling export licenses, sanctions screening, and export customs declarations. The EOR handles the export side; the IOR handles the import side. Every international shipment has both. They're separate compliance roles, typically handled by different entities.

When tracking shows 'customs clearance completed', it means the customs authority (DJBC in Indonesia) has reviewed all documentation, verified the HS classification and declared value, confirmed duty/tax payment, and authorized the goods for release. After clearance, goods are typically delivered within 1-3 business days for the Jakarta area, or 2-7 days for other Indonesian cities.