When you are running a business, there is nothing more frustrating than experiencing shipping delays due to mismanaged paperwork. Not only does it lead to delivery hold-ups and customer disappointment, but it also can put a strain on other areas of your operations. To ensure these issues don't spiral out of control, taking an organised approach to your business's crucial documents is key.
In this blog, we will explain the steps you need to take in order to guarantee successful international deliveries from Indonesia every time.
Types of shipping documents
In today's interconnected world, efficient overseas shipping plays a critical role in maintaining seamless trade operations. To guarantee that your consignments reach their destination without any hiccups or delays, it is imperative that you prepare and include all required documentation. Being well-versed in the various essential shipping documents ensures smooth processing at the various checkpoints involved in international trade. Such paperwork encompasses items such as the following:
1. Bill of lading
The bill of lading stands out as an essential tool for an efficient transportation process. This legally binding document serves as a contract between the shipper and the carrier. It details critical information such as the type and quantity of goods being transported, as well as the destination and consignee details. An adequately prepared bill of lading expedites the shipping process and offers legal protection to both parties involved, reducing possible disputes and misunderstandings. By diligently maintaining and monitoring your original bill of lading records, your business in Indonesia can significantly improve its efficiency and reliability in international shipping, ultimately enhancing your competitive standing in the global market.
2. Air waybill
For companies operating in Indonesia, shipping documents significantly facilitate a smooth shipping process across borders. Among these documents, the air waybill is of paramount importance. As a legally binding contract between the shipper and the carrier, it contains critical information regarding the shipment, including the weight, destination, and value of the goods. Furthermore, it outlines the terms and conditions of the shipment and serves as proof of receipt, confirming that the carrier has taken possession of the shipment. Like its name suggests, the air waybill is a transport document used in air shipments, and is not to be confused with the bill of lading, which is used in sea shipments. All in all, understanding and appropriately utilising air waybills can greatly contribute to your business's success in the international shipping landscape of Indonesia.
3. Commercial invoice
The commercial invoice is an important shipping document that can make or break the timeliness and integrity of your international transactions. A commercial invoice is a comprehensive summary of the deal, providing a detailed breakdown of the goods being shipped, their respective values, and the agreed-upon terms of sale. Additionally, it serves as a record for customs authorities, enabling them to determine the duties and taxes applicable to the shipment. To expedite international deliveries, businesses in Indonesia must ensure detailed, compliant, and accurate commercial invoices are prepared and utilised, positioning themselves as reliable and professional partners in the global marketplace.
4. Customs export declaration
A vital component of a smooth shipping operation is the proper management and use of shipping documents, with the customs export declaration being one of the key elements in this process. As a business owner seeking to make a global impact, understanding the importance of this document is crucial in guaranteeing seamless trade and transportation of goods across borders. The customs export declaration serves as official proof of shipment, detailing essential information about the export transaction, such as the product description, quantity, value, and destination. By meticulously preparing and submitting accurate customs export declarations, Indonesian businesses can minimise the risk of costly delays or penalties while ensuring their products reach foreign markets with ease, allowing them to focus on growing their international presence and maximising profitability.
5. Packing list
Streamlined shipping processes are essential to the success of any business, particularly in a burgeoning economy such as Indonesia. One critical aspect of ensuring seamless international deliveries is having the proper shipping documents in place, and a packing list is a crucial component that cannot be overlooked. A packing list, also known as a shipping list or delivery docket, is a detailed inventory of goods being shipped, including item descriptions, quantities, and corresponding weights, dimensions, and other vital details. It not only assists customs authorities in verifying cargo during the clearance process but also helps importers and delivery companies plan their logistics and receive the consignments accurately. As a result, integrating a detailed and accurate packing list is an indispensable step towards streamlining your business's overseas shipping operations in Indonesia and, ultimately, enhancing profitability and customer experience.
6. Export declaration of goods
Navigating the complex world of international shipping can be a daunting task for businesses in Indonesia aiming to deliver their products to customers across the globe. However, with a thorough understanding and management of the necessary shipping documents, you can ensure a successful transaction. One essential document is the export declaration of goods or Pemberitahuan Ekspor Barang (PEB). It serves as an official record of products being exported from the country. This mandatory document is issued by the Directorate General of Customs and Excise, and it streamlines the clearance process by providing crucial details such as a description of the products, their value, and the destination country. In addition, an Export Notification Note (NPE) will be issued upon the approval of the PEB document to prove the eligibility of the exporter and products, as well as the completeness and validity of the aforementioned document.
While the export declaration of goods document may sound similar to the customs export declaration document, it’s important to note that both shipping documents serve different purposes in the exporting process. The customs export declaration is a document used to declare the details of the goods being exported and determine the applicable customs duties and taxes, while the export declaration of goods document is used to notify the customs office in advance of the goods being exported as part of the customs procedures.
Adhering to the guidelines and requirements for preparing the export declaration of goods helps demonstrate compliance with Indonesian regulations and fosters trust with customs authorities and trading partners. By meticulously preparing and managing this pivotal document, businesses can maintain a smooth shipping process that paves the way for thriving international trade relationships.
7. Insurance certificate
Among the various shipping documents required to ensure a smooth and timely delivery, the insurance certificate plays a crucial role in securing your interests. This document proves that your shipments are adequately insured, providing safety against potential risks and unforeseen events during the transportation process. By having a comprehensive insurance policy in place, you can confidently safeguard the value of your products, providing both you and your clients with peace of mind. Moreover, an insurance certificate helps maintain credibility and trust within the global trade ecosystem, demonstrating your commitment to conducting business professionally and diligently.
8. Export permit
In the competitive world of international trade, businesses in Indonesia must prioritise implementing an efficient shipping process to guarantee successful deliveries worldwide. The export permit is a fundamental document issued by the Indonesian government that authorises businesses to export goods and services from the country. Moreover, obtaining an export permit also confirms the legitimacy of the exporting company, allowing for better coordination with importers, delivery companies, and customs authorities. As such, the export permit plays a key role in preventing potential delays and costs associated with international deliveries, which can significantly contribute to your business's long-term success and growth in the thriving export market.
9. Certificate of origin
The certificate of origin is an official shipping document that serves as undeniable proof of the origin of goods being shipped and is typically issued by the Indonesian Chamber of Commerce and Industry (KADIN). It provides customs authorities with essential information to correctly classify and assess duties and taxes on imported goods. The document also confirms that the consignment conforms to specific trade agreements or import regulations of the destination country. By effectively managing and complying with the requirements of this essential document, businesses in Indonesia can mitigate shipping delays, costly penalties, and disputes, thus ensuring streamlined, efficient shipping processes and timely international deliveries that facilitate their expansion and growth in the global market.
Familiarising yourself with vital shipping documents such as the commercial invoice and packing list and ensuring their accuracy and completeness will not only enhance the efficiency of your overseas shipments but also bolster confidence in your professionalism and reliability, resulting in successful international business ventures.
