The Important Role of Importers in International Trade

"In international trade, importers play an important role and offer quite attractive profits. If you are interested in trying out this profession, find out the types and benefits in the following article."

Importers are people or institutions who play an important role in the activity of importing goods from other countries into the country (importing) legally and officially. Importers play a role in providing goods and services that cannot be produced domestically, so that they can meet people's needs.

If you want to become an importer, you must have adequate knowledge and skills regarding the import process. So that the process of importing goods from abroad runs smoothly, you can take advantage of the CIMB Niaga Import Letter of Credit which can help you make payments to exporters if the documents presented comply with the letter of credit requirements .

Apart from the letter of credit , there are still requirements that you must prepare. See the complete discussion below.

Benefits of Being an Importer

The import business has large profit potential, because it can meet consumer needs for quality and affordable imported goods. Here are some of the benefits you can get from becoming an importer:

Big profit potential

The import business can generate huge profits. Because, you can resell imported products at a higher price than the purchase price.

Apart from that, competition in the import market also tends to be lower, so the opportunity to make big profits is greater.

Increase competitiveness

Import business can help increase the competitiveness of business people in Indonesia. By offering quality products at competitive prices, business people can compete with other business people in Indonesia.

Expanding market reach

This is because Indonesia is a very large country with a heterogeneous population. Each region in Indonesia has different needs and preferences. Therefore, importers can market their imported goods to various regions in Indonesia.

Access to a variety of products

Imports can be a solution to meet the need for goods that are not produced domestically, such as the latest electronic products or special food ingredients.

Apart from the advantages above, the import business also has its own challenges. One of the biggest challenges in the import business is intense competition. This is because more and more import businesses are emerging.

Therefore, you need to design the right strategy so that your business is not less competitive with other importers.

Types of Importers

Based on the nature and permits they have, importers can be grouped into several types, namely:

General importer

This type of importer can import all types of goods, except goods whose imports are restricted by the government. Goods whose imports are restricted by the government are generally goods that have a negative impact on the environment, health or public safety.

General importers are usually companies operating in the general trade sector, such as distributor companies, wholesale companies and retail companies .

Limited importers

This type of importer can only import certain types of goods that have been determined by the government. Limited importers must have special permission from the government to import certain types of goods.

This limited import permit is granted to individuals or companies that meet certain requirements, such as capital requirements, experience requirements and other licensing requirements.

Import merchants

Import merchants are a type of importer who imports special goods, such as goods containing patents or copyrights. Generally, import merchants are companies that have a license to import these goods.

Approved traders

Approved traders are importers appointed by the government to import certain goods, such as goods that have strategic value or goods needed for the public interest.

Generally, approved traders are companies that have the ability and experience in importing these goods.

Sole agent importer

Sole agent importer is an importer appointed by a foreign manufacturer to be its sole agent in Indonesia. The sole agent importer has the right to import and sell products from these foreign producers exclusively in Indonesia.

Terms and How to Become an Importer

To become an importer, a person or institution must have an import business permit from the Ministry of Trade. An import business permit can be in the form of an Import Recognition Identification Certificate (TAPPI) or a Trade Business Permit (SIUP) with the import business sector.

Apart from that, here are the ways you can become an importer:

Determine the country of origin of imports

One of the requirements to become an importer is to determine the country of origin of the import. This is important to do considering that each country has different import policies.

In Indonesia, the country of origin of imports is proven by a Certificate of Origin (SKA) which states the country of origin of a product. SKA is usually issued by the government of the country of origin and is used in the export and import process.

Determine the type of product to be imported

Make sure you know what products consumers in Indonesia need and are interested in. You also need to find out the market price and competition for the product you are going to import.

By determining the right type of product, you can increase your chances of business success and minimize the risk of loss.

Understand the procedures for sending goods from the country of origin

Each country has different shipping regulations and policies. Goods sent from the country of origin may not be able to enter the destination country if they do not comply with applicable import regulations and policies.

Therefore, it is important for you as an importer to know the import regulations and policies of the country of origin of the product to be imported before placing an order. That way, you can ensure the smooth and safe delivery of goods from abroad.

Prepare documents required for import

Imported goods that are not equipped with complete documents and comply with the specified requirements may be rejected by Customs and Excise. You need to complete import documents that comply with Customs requirements.

The main documents that you must prepare before carrying out import activities include the Goods Import Estimate (PIB), Certificate of Origin (SKA), as well as Import Duty and Tax Payment documents for Import (BM and PDRI).

You will also be asked to complete supporting customs documents which include an import permit (SIUP), packing list , invoice , bill of lading , sales and purchase contract, business registration certificate (TDP), and other documents which can be seen here .

These are several ways to become an importer that you can follow. Please remember that becoming an importer is not an easy thing. There are many challenges ahead that you have to face.

However, with the right planning and strategy, the import business can be a promising business opportunity to pursue.

Take advantage of the CIMB Niaga Import Letter of Credit

To become a successful importer, you need a payment guarantee in the form of an Import Letter of Credit. CIMB Niaga offers Import Letters of Credit as an international payment solution that provides security for you and exporters.

Letter of Credit Import (LC) is a banking instrument issued by CIMB Niaga to guarantee payment to exporters if the documents presented comply with the requirements. This service is available in IDR (Rupiah), USD, and other currencies approved by CIMB Niaga Bank.

Later, LC opening applications can be received via the nearest Bank CIMB Niaga Trade Desk Unit or BizChannel@CIMB . Apply for a CIMB Niaga Letter of Credit now for guaranteed international trade transactions. Find complete information on this page .