Exports are the activity of sending goods or services from one country to another for trade purposes. Imports are the activity of buying goods or services from other countries to be sold or used domestically.

To start an import-export business, you need:

• Have a valid business license.
• Register your company with an authorized government body, such as the Directorate General of Customs and Excise.
• Have a Customs Identification Number (NIK) for export-import activities in Indonesia.
• Understand international trade regulations and rules, including tariffs, customs, and trade agreements.

Import-export agents assist companies in managing the logistical, administrative, and legal compliance processes associated with international trade. They can handle export-import documents, customs clearance, freight forwarding, and provide consultancy for overseas markets.

Determining export destination markets involves careful market research. Consider factors such as:

• Market demand in the destination country.
• Trade regulations and tariff/non-tariff barriers.
• Economic conditions and political stability in the destination country.
• Local competition and market prices.

Incoterms (International Commercial Terms) are a set of internationally recognised rules that define the responsibilities of sellers and buyers in international trade. Incoterms determine who is responsible for the shipment of goods, insurance, customs clearance and risks during transport.

Import-export documents are important to ensure legal compliance and a smooth trade process. Some important documents include:

• Commercial invoice
• Bill of Lading (B/L) or Air Waybill (AWB)
• Packing List
• Certificate of Origin
• Customs documents such as Notice of Export of Goods (PEB) and Notice of Import of Goods (PIB)
• Insurance documents (if required)

You can liaise with a shipping agent or logistics company to help take care of these documents.

Some risks in the import-export business include:

• Exchange rate fluctuations that may affect profits.
• Regulatory changes in origin or destination countries that may affect trade.
• Payment risk, such as a buyer’s delay or inability to pay.
• Damage or loss of goods during shipment.
• Political risks, such as embargoes or changes in trade policies.

Some methods to protect businesses from payment risk include:

• Using Letter of Credit (L/C) to guarantee payment from the buyer’s bank.
• Apply prepayment before delivery of goods.
• Insure receivables to protect against buyers’ inability to pay.
• Check the buyer’s credit background before making a transaction.

Customs clearance is the process of inspection and approval carried out by government authorities in countries of origin and destination to ensure that exported or imported goods comply with applicable laws and regulations. This includes document inspection, duty calculation, and import/export tax arrangements.

A Free Trade Agreement (FTA) is an agreement between two or more countries to reduce or eliminate tariffs and other trade barriers. The benefits of FTAs for businesses include:

Reduced tariffs or elimination of import duties, which can lower import or export costs.
Greater market access with more favourable terms of trade.
Increased product competitiveness in the international market.

The selection of the freight shipping method depends on factors such as:

• Type of goods being shipped (e.g. bulk, dangerous, or perishable goods).
• The required delivery speed.
• Shipping costs.
• Distance and accessibility of the destination country.

Common options include shipping by sea (cargo ship), air (plane), land (truck or train), or a multimodal combination.

Packaging of goods for export should take into consideration:

• Protection from damage during transport, especially if the goods are fragile or of high value.
• Compliance with international regulations on packaging and labelling.
• Space efficiency to reduce freight costs.
• Safety to prevent theft or loss.