Export-import often looks complicated because it involves many parties, many documents and two countries with different rules. The key is to understand who does what, and then to see that every transaction actually consists of three flows running at the same time: the flow of goods, the flow of documents and the flow of money.
The main parties
- Exporter (seller/shipper) — the party that sells and ships goods abroad. The exporter prepares the goods, packaging, invoice and packing list.
- Importer (buyer/consignee) — the party that buys and receives the goods in the destination country. The importer is responsible for import obligations in its country, such as import duty and import taxes.
- Freight forwarder — the shipment organiser. A forwarder books space on a vessel or aircraft, arranges trucking, consolidates small shipments and often helps with documents.
- PPJK (customs broker) — the party authorised to lodge customs declarations (PEB or PIB) on behalf of the exporter or importer. Many forwarders also hold a PPJK licence.
- Shipping line or airline — the carrier that actually moves the goods. The shipping line issues the bill of lading; the airline or its agent issues the air waybill.
- Bank — processes payment, for example by telegraphic transfer (T/T) or letter of credit (L/C). Under an L/C, the bank checks that the documents comply before paying.
- Insurer — covers the risk of damage to or loss of the goods in transit (marine cargo insurance), according to the policy.
Beyond this list there are also government authorities such as Customs (DJBC/Bea Cukai), quarantine and the port terminal operator.
Three flows in one transaction
| Flow | Content | Example parties |
|---|---|---|
| Goods | Exporter's warehouse → trucking → terminal/CFS → vessel or aircraft → destination terminal → importer's warehouse | Exporter, forwarder, shipping line, terminal |
| Documents | Invoice, packing list, PEB, B/L or AWB, certificate of origin, certificates → sent to the importer or the bank | Exporter, PPJK, shipping line, bank |
| Money | Payment for the goods, freight, duties and taxes, insurance premium | Importer, bank, exporter |
These three flows must stay in sync. Goods that have arrived but whose documents are incomplete will be held at the port and may incur storage charges. Conversely, an exporter who hands over the original B/L before being paid takes the risk of losing control of the goods.
A simple example flow
Hypothetical example: PT Contoh Ekspor sells roasted coffee to a buyer in Japan.
- Seller and buyer agree on price, quantity, payment terms and the Incoterms rule (for example FOB or CIF).
- The exporter prepares the goods, invoice and packing list, then appoints a forwarder.
- The forwarder books space with the shipping line and arranges the container and trucking.
- The PPJK lodges the PEB with Customs; once export approval is granted, the goods may be loaded.
- The vessel sails and the shipping line issues the B/L.
- Documents are sent to the buyer or through the bank; the buyer pays as agreed.
- In Japan, the importer handles import customs and collects the goods.
Overview of sea and air
Sea suits large volumes and goods that are not urgent. The cost per unit is generally lower, but transit time is longer. Cargo is shipped as FCL (one full container for one shipper) or LCL (consolidated with other shippers' cargo).
Air suits goods that are high-value, light, perishable or urgent. It is much faster, but rates are higher and are based on chargeable weight. The details are covered in the fourth lesson.
The split of costs and risks between seller and buyer is governed by Incoterms 2020, published by the ICC. Read the summary in the Incoterms 2020 Guide.
With this map of the parties and the three flows, the next lessons will be easier to follow: business legality, documents, then modes and costs.