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Export: at a Glance. Hangga Fathana Email : hangga.fathana @haef.co.id International Program for International Relations Faculty of Political and Social Sciences. Basic Definition.

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export at a glance

Export: at a Glance

Hangga Fathana

Email: hangga.fathana@haef.co.id

International Program for International Relations

Faculty of Political and Social Sciences

basic definition
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
Commodities Classification
  • BarangDilarang
  • BarangDiatur
  • BarangDiawasi
  • BarangBebas
exporters eligibility
Exporters Eligibility

Export can be organized by any company that owns legal and administrative documents. These include:

  • SIUP (SuratIzin Usaha Perdagangan)
  • TDP (TandaDaftar Perusahaan)
export procedures
Export Procedures
  • Exporter and Importer negotiation process. This includes quality, price and delivery.
  • Dealing and sales contract.
  • Importer created Letter of Credit.
  • Exporter prepared the goods, as ordered.
  • Exporter registered for PEB to the Customs prior to the shipment.
export procedures1
Export Procedures
  • Exporter made reservation for shipment.
  • Exporter may use freight forwarder and or Customs broker to send the goods, if possible.
  • Shipment proceeded.
  • Exporter proposed for Certificate of Origin and redeemed L/C at the local banks.
export procedures2
Export Procedures
  • Nominated bank in the country of exporter sent the export documents to the issuing bank in the destination.
  • Issuing bank in the country of destination forwarded the documents to the importer.
  • Importer picked up the goods at the Customs.
export related documents
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
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 origin1
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
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

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
Payment Methods
  • L/C: Red Clause/Green Clause; Sight; Usance
  • Non L/C: Advance Payment; Collection; Open Account
delivery methods
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
Case Study
  • Shipment of 50,000 pcs Batik Tulis (Hypothetical)
  • Shipment of 1,000 pcs Caps