A comprehensive guide to Indonesian customs clearance for sea freight: SNI certification and import regulations for various product categories
As the largest economy in ASEAN and with a huge market of over 270 million people, Indonesia is becoming an increasingly important destination for Chinese businesses looking to expand overseas. However, the complex customs procedures and stringent product certification requirements in Indonesia, particularly the mandatory SNI certification, pose challenges for many companies. This article will comprehensively analyze the key points of customs clearance for shipping to Indonesia, especially the SNI certification process and the entry requirements for various product categories, helping your business successfully enter the Indonesian market. I. SNI Certification: The Pass to the Indonesian Market 1. What is SNI Certification? SNI (Standard National Indonesia) is the Indonesian national standard, and the only standard applicable within Indonesia. The Indonesian government implemented national standard certification for certain products on September 7, 2007, stipulating that all controlled products exported to Indonesia must bear the SNI mark; otherwise, they cannot enter the Indonesian market. Products without SNI certification are not only prohibited from sale, but those already on the market will be forcibly removed. This regulation aims to protect consumer interests, improve product quality, and safeguard the development of local industries in Indonesia. 2. Which Products Require SNI Certification? The scope of SNI certification is extensive, mainly covering four categories: Household Electrical Appliances (46 items): Including electric fans, refrigerators, washing machines, air conditioners, televisions, laptops, cordless phones, and mobile phones. Building Materials and Related Products: Electric meters, lighting fixtures, circuit breakers, switches, plugs and sockets, galvanized steel sheets, reinforced concrete, flat glass, sanitary ceramics, cement, ceramic tiles, etc. Motor Vehicle Components (24 items): Tires, car batteries, bearings, brake pads, motor vehicle brakes, safety glass, filters, seat belts, etc. Other Goods: Footwear, leather products, eyeglass frames, detergents, pesticides/insecticides, clocks/watches, electrical wires, toys, clothing, plastic products, fertilizers, etc. 3. SNI Certification Application Process and Requirements The SNI certification application process is rigorous and complex, typically taking 3-4 months: The manufacturer or importer registers the product trademark in Indonesia. Submit an application to the SNI certification body. The manufacturer, importer, and SNI sign an agreement. SNI sends officials to conduct an initial audit of the manufacturers factory; samples are collected. Products are sent to the Indonesian national laboratory for testing. After passing the initial audit and product testing, submit relevant technical documents for review. SNI issues the certificate. SNI authorizes the manufacturer to affix the label to the approved product. Ongoing monitoring and periodic inspections. There are three prerequisites for applying for SNI certification: The applicant company must have a legal representative in Indonesia. The trademark must be registered in Indonesia. The factory must have ISO 9001 or a similar certification. This is because the importers name, trademark, and certification number are required information on the SNI certificate and must be prepared in advance. The SNI certificate is valid for 4 years, but requires an annual review. Every year, an Indonesian auditor from the SNI certification body will conduct an audit at the factory and collect samples for testing in Indonesia. The annual review is only passed if both the factory audit and sample testing are successful. II. Detailed Explanation of Indonesian Customs Clearance Process Understanding the Indonesian customs clearance process is crucial for successful market entry. Here are the main steps for sea freight clearance in Indonesia: Chinese Export Customs Declaration: Initiate the export customs declaration process at the Chinese port, preparing necessary documents such as the commercial invoice, packing list, and certificate of origin, ensuring accurate product information. Loading and Shipping: After customs clearance, the goods are loaded into containers and shipped from the Chinese port to Indonesia. Preparing Indonesian Import Documents: During transit, prepare the required import documents for Indonesia, such as the bill of lading, insurance documents, packing list, and commercial invoice. Arrival at the Indonesian Port: Upon arrival at the Indonesian port, the logistics company or agent will handle the container receipt and conduct initial cargo inspection. Indonesian Import Customs Declaration: Submit the customs declaration documents to Indonesian customs for import declaration, paying import duties and other related taxes. Customs Inspection and Sampling: Indonesian customs may randomly inspect shipments to verify the accuracy of the declared information. Payment of Customs Clearance Fees: Based on the customs clearance results, pay the corresponding clearance fees and any applicable fines or additional charges. Goods Release and Delivery: After obtaining the customs clearance documents, collect the goods and arrange for land transportation to the destination. Receipt Confirmation: Upon receiving the goods, check the quantity and quality. After confirming that everything is correct, sign the delivery receipt. III. Other Important Certifications and Requirements Besides SNI certification, the following certifications and requirements also need to be considered when exporting to Indonesia: FORM E Certificate of Origin: This is a preferential certificate of origin used within the ASEAN Free Trade Area for tariff reductions. It must be applied for at the local inspection bureau 3 working days before shipment, and the exporters name on the certificate must exactly match the shippers name on the bill of lading. SGS Pre-shipment Inspection: Indonesia mandates SGS inspection for machinery and electronic products valued over USD 5,000, including document review, on-site inspection, and report issuance, taking approximately 15 days. Halal Certification: Food and cosmetic products require Halal certification, issued by the Indonesian Ulema Council (MUI), which takes 2-3 months. Product Labeling Requirements: Labels must include Indonesian language instructions (minimum font size 3mm), importers name, address, and NIB (Indonesian Import License number). New regulations in 2023 require all electronic products to have an EAC certification label. IV. Characteristics of Indonesian Customs Policies Indonesian customs policies have several characteristics that require special attention: Dynamic Policies: Indonesian customs regulations are complex and subject to frequent changes. New SNI product requirements often appear monthly. Three-Lane System: Indonesian customs has three processing channels for imported goods: Green Lane: Document review and release Yellow Lane: Additional documentation required for release Red Lane: Physical inspection of each shipment Prohibited Import Items: Indonesia restricts the import of certain goods, such as scrap metal, cultural artifacts, some agricultural products, subsidized fertilizers, and minerals. Non-compliance with regulations will result in administrative penalties. Customs Tariff Rates: Indonesian tariffs range from 0% to 170%, with most imported goods falling between 0% and 15%. V. Practical Tips and Risk Prevention To help businesses smoothly clear customs in Indonesia and reduce trade risks, we offer the following suggestions: Thoroughly research before shipment: Always understand the local customs regulations before shipping. This is especially important for products requiring SNI certification; make preparations in advance. Choose a reliable customs clearance agent: The main difficulty in Indonesian customs clearance is related to SNI certification. For products requiring SNI certification, its best to use a local agent. While larger companies with Indonesian customs clearance licenses may cost 15-20% more, the increased security is significant. Ensure accurate documentation: Indonesian customs data shows that about 32% of detained shipments are due to document discrepancies. Ensure all documents are accurate, especially the exporters name on the Form E Certificate of Origin, which must match the shippers name on the bill of lading exactly. Consider the risks of DDP (Door-to-Door Delivery) services: While DDP simplifies the process, it carries hidden risks. Some companies have had their shipments detained by customs due to agents under-declaring the value, resulting in additional tariffs and fines totaling 40% of the declared value. Pay attention to payment security: Use T/T (Telegraphic Transfer) with a 30% prepayment and 70% payment against a copy of the bill of lading. For Letters of Credit (L/C), be wary of soft clause traps. Respect local culture and customs: Indonesian businesspeople value face-to-face communication; a physical visit is recommended for initial business relationships. During Ramadan (dates vary annually), business activity efficiency drops by 30-50%; plan your inventory accordingly.
Sep 09, 2025, 02:07:07 PM