HomeIndustriesLogisticDefinition of Import, Types, Purposes, and Benefits for the Business Sector

Definition of Import, Types, Purposes, and Benefits for the Business Sector

In international trade, the term import is familiar. Most of you must have heard of the term or have even done it. Export and import activities have an important role in a country. Both activities are closely related to the economic sector in a country. 

One of the benefits of Indonesian imported commodities is to obtain goods and services that cannot be produced by the state due to geographical factors or other limitations. Although it has several benefits for the country, there are also negative impacts from imports. The impact is that domestic products will experience tougher competition with imported products. To help import administration more efficiently you can use Document Management System.


What is Import? Here’s the Definition

Source: canva.com

Import is a process in terms of international trade which means an activity of buying products in the form of goods or services from other countries. This is done legally to meet basic domestic needs due to limiting factors. Apart from limitations, another reason is to get profit.

In general, imports occur in the trade process by business actors. An importer is a person or institution that brings goods into the country. Because the activity is running legally, it is necessary to process assistance by customs. The government will impose a tax rate on each imported good in accordance with applicable policies.

Since imported products are taxed, they are more expensive because they are already imposed by the tax rate. However, not all goods can enter as imported goods. The government, especially the Customs and Excise Directorate, has strict rules regarding this matter. Items that are not allowed include illegal drugs, animals, and firearms.

Terms in Import

The following are important terms in international trade, especially export and import activities,

  • FOB (Free on Board): does not include ship shipping costs, the price offer of goods is only until your goods are on the ship.
  • Custom Clearance: the process of examining customs documents, such as calculating total taxes, and releasing goods from the country of destination for the goods.
  • CNF (Cost and Freight): the price quote only includes the price of the goods and the delivery of the goods.
  • CIF (Cost, Insurance, and Freight): a price quote that includes the price of goods, ship/shipping costs, and insurance.
  • FOR (Ocean Freight Rate): the basic rate for shipping costs by sea. Generally, the price listed is per cubic meter or publication. How to calculate publication also based on W x L x H / 6000
  • AFR (Air Freight Rate): the basic rate for air shipping costs and generally the units used are kilograms or pounds (lbs)
  • PIB (Notice on Imported Goods): a notification document from the importer to the government in this case customs duty on imported goods.

Purpose of Import

  • Reducing the outflow of a foreign exchange abroad.
  • Strengthening the balance of payments position.
  • Meet the basic needs of the country.
  • Get raw materials.

The Benefits of Import

In addition to the purpose of import activities, there are also benefits generated for the country. Some of these benefits are: 

  • Obtain goods and services that cannot produced by the state due to geographical factors or other limitations.
  • Obtaining raw materials.
  • Get more sophisticated or modern technology.

Why Do We Need to Import?

Every country must have a limitation that results in not having sufficient availability for the country. This availability can be in the form of raw materials, modern technological tools, to vehicles. To meet these needs, a country will import goods into the country, this activity is called imports.

One of the impacts that may arise if a country has limitations but does not import is the high cost of domestic production. Whereas, the government carries out these activities so that the products or services needed by the population can be obtained at a cheaper or more efficient price. To optimize inventory levels across multiple locations you can use the best inventory management.

Types of Imports

Full Container Load

This type of shipping uses a container transportation service with only one shipper, not combining goods with other shippers. The cargo contains only the goods of the owner of one shipper to the destination country with one importer.

This shipping method has its advantages and disadvantages. The advantage is that because there is only one sender, you don’t have to worry about getting mixed up, because the contents of the cargo only contain goods from one importer. In addition, if there is damage to the goods it will be easy to control because the goods are not integrated with other people’s goods.

You don’t have to wait for a new full container to depart, because the container is fully rented. Delivery of goods also automatically becomes more efficient and faster to the destination.

This method is in great demand by large entrepreneurs who are concerned about delivery time because this type of delivery arrives faster. The drawback is that in comparison to the quality, the costs will be more expensive. 

Less Container Load

The opposite of the full container load method, this type of shipping uses containers that contain imported goods from more than one shipper. Less Container Load or LCL is a method of shipping goods using mixed containers with other shippers and less cargo.

In this shipment, the sender must know the dimensions of the cargo of the goods and only pay according to the cubication calculation. The advantage of FCL shipping is that it is not too expensive. Because the cost is cheaper, usually this method of shipping is more in demand by individuals.

The disadvantage is that the delivery time is longer because you have to wait for the container to be full before it will leave.

Also read: CIF and FOB: What are their Differences in International Trade?


Simplify the logistics process in import activities with Fleet Management software from HashMicro. Manage your freight transportation schedule efficiently and effectively. Track in real-time delivery of goods automatically and on time. Good time management is essential for successful entrepreneurs.


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Annastasya Berliana Dunda
Annastasya Berliana Dunda
Junior content writer at HashMicro's Company. If you have any questions or cooperation please kindly contact my email. My email: [email protected]


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