Steps and Requirements for Export Documents of Goods to Foreign Countries

Did you know that more than 80% of international trade (by volume), or 11 billion tons, is conducted by sea? 

In terms of value, maritime trade contributes goods worth $4.5 trillion per year. 

Therefore, it can be said that shipping is the backbone of international trade, because it connects countries, markets, businesses, products, and people around the world. 

With very high volume and frequency of shipments, timely and efficient delivery of goods may be difficult to achieve.

International shipping of goods can be done in two ways: via sea or air routes. 

When shipping via sea route, exporters have two shipping mode options – Full Container Load (FCL) or Less than Container Load (LCL). 

When the shipment quantity requires the entire container space, it is called FCL shipping. This mode is suitable for large shipments that need to be transported as quickly as possible by sea. 

Exporters with smaller shipments can share containers with other exporters and only pay for the volume they use. This is called LCL shipping and is suitable for cargo with low or medium volume that is not time-sensitive.

Alternatively, exporters seeking the fastest transportation mode can ship by air. Air transport is very suitable for cargo that is time-critical and valuable, although air shipping is more expensive than sea shipping.

Not only the transportation mode, there are various requirements and steps that must be taken to export from Indonesia. This article will discuss them all!

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What is Export?

In global trade, export is the process where companies from one country sell their goods and services to companies or consumers in another country.

Export is one way companies can quickly expand their potential market, generate more revenue, and develop their business.

Exports are very important for modern economies to reach more markets for their goods. The opposite of export is import, which are goods and services purchased from abroad. Exports and imports are components of international trade, which is the exchange of goods and services between countries. 

Trade barriers such as tariffs, taxes on imports, and subsidies, funding provided to domestic businesses, can affect a country's export flow.

A country's trade balance is the difference between the value of its exports and imports. In macroeconomics, which studies the global economy, a country's export value minus its imports is gross domestic product (GDP).

If a country's exports are greater than its imports, the country has a trade surplus. If its imports exceed its exports, it experiences a trade deficit. 

GDP or a country's trade balance can measure a country's fiscal health because it represents the value of goods and services produced by a country in a certain period of time.

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Documents Required for Exporting Goods from Indonesia

When exporting goods from Indonesia, several documents are generally required, such as:

1. NPWP (Taxpayer Identification Number)

2. TDP (Company Registration Certificate)

3. SIUP (Trading License Certificate)

4. NIK (Customs Identity Number)

5. Invoice

Invoice contains information about the goods to be shipped. The sender or exporter will create this for the goods recipient.

6. Packing list

Packing list contains information about the goods to be shipped. However, unlike the invoice, the information in this document is not related to the price of goods listed in the invoice.

7. Bill of Lading (B/L)

Receipt of goods transportation as an intermediary between the sender and recipient of goods. It also serves as proof of the transportation contract. 

8. Shipping Order

A letter addressed by the sender or exporter to the shipping company to receive and load the specified goods. This letter contains the identity of the sender and complete information about the cargo to be shipped.

9. PEB (Export Goods Notification)

Next, PEB is a customs document used to provide information about the export of goods. In the PEB, the sender or exporter creates this document using online EDI software.

10. Certificate of Origin (COO)

Next, COO contains information about the origin of goods based on agreement in an international treaty.

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Steps to Export Goods from Indonesia

Exporting goods from Indonesia will go through the following steps, namely :

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1. Sales of Contract

The importer will send a sales confirmation to the exporter as confirmation of the transaction. When both parties agree with the offer made, the importer and exporter then create and sign a commercial contract. 

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2. Issuance of Letter of Credit (L/C)

Letter of Credit is the second step when you carry out export. The importer will open a letter of credit through a correspondent bank in their country. After that, they send the letter of credit to the designated foreign exchange bank to inform the exporter that the letter of credit has been received.

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3. Registration of Export Goods Notification (PEB)

The exporter registers the Export Goods Notification (PEB) with the foreign exchange bank, attaching a promissory note if the export goods are subject to export duties.

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4. Contact Cargo Shipping Services

After registering the PEB, the exporter contacts cargo shipping services and then consults on the best shipping mode for the goods to be shipped.

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5. Filling and Shipping of Goods

Cargo shipping companies like ABC Express can help exporters manage permits for goods to the port and ship.

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6. Customs Inspection

At the port, customs will inspect the export documents. If necessary, customs will also inspect the goods. If the goods and accompanying documents are in order, customs will sign the loading permit on the PEB.

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7. Loading of Goods onto Ship

After customs signs the PEB, the goods can be loaded onto the ship. Then, the shipping authority issues a bill of lading (B/L) to the exporter

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8. Encashment of L/C

When the goods have been shipped, the exporter can go to the bank to encash the L/C. Additionally, the documents submitted to the bank are B/L, Commercial Invoice, Packing List and PEB.

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9. Shipping of Goods to Importer

The final step, the importer will receive their goods.

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Conclusion

Expanding market reach through exports is a strategic business step, but it must also be accompanied by a well-planned shipping plan.

All documents and shipping steps must be done carefully so that the shipped goods arrive at their destination on time and safely.

However, we understand that managing export-import documents requires a lot of time and effort. ABC Express is a cargo shipping solution that can save you a lot of time and effort.

ABC Express has a range of shipping services from retail to export-import that help you manage many logistics services smoothly.

You will also enjoy precision and accuracy in order fulfillment and cost-effective shipping options from various shipping services.

At ABC Express, we are proud to be experts in heavy and large-scale shipping. We are happy to help you find ways to ship your large packages at affordable prices. Just contact us here!