Definition of IMPORT: Meaning, Purpose, Benefits, Types, and Examples of Imports

What is the import ( import )? In general, the meaning of import is an activity of purchasing and entering goods / services or commodities from abroad into the country legally through the trade process.

Another opinion says the meaning of import is an international trade activity by entering goods into the Indonesian customs territory carried out by companies or individuals engaged in export-import activities by complying with the provisions of the prevailing laws and regulations.

A country carries out import activities usually because of the need for certain products in the country that cannot be fulfilled by itself, or to increase reserves. In addition, import activities are carried out to strengthen the balance of payments and reduce the potential for foreign exchange outflows.

Also read: Definition of Export

Definition of Imports According to Experts

In order to better understand what import means, we can refer to the opinions of the following experts:

1. Marolop Tandjung

According to Marolop Tandjung (2011: 379), the meaning of import is trading activities by entering goods from abroad into Indonesian customs areas in accordance with the provisions of the applicable laws and regulations.

2. Astuti Purnamawati

According to Astuti Purnamawati (2013: 13), the notion of import is the act of buying goods from abroad in accordance with government regulations, which are paid for in foreign currencies.

3. Susilo Utomo

According to Susilo Utomo (2008: 101), the meaning of import is an activity of importing goods from abroad into the domestic customs territory carried out by representatives of the two countries, both individuals and companies.

Also read: Definition of Infrastructure

Import Purpose and Benefits

As mentioned above, import is importing goods from other countries’ customs into the domestic customs area. In general, import activities will be related to customs, both in the sending and receiving countries.

The objectives and benefits of import activities are as follows:

1. Getting Raw Materials

A country’s production activities often require certain raw materials that are not available or limited within the country. To ensure the supply of raw materials for production activities, the country imports raw materials needed from other countries.

2. Getting the Latest Technology

In a variety of economic and business activities, for example to produce certain goods / services, often requires the support of tools with the latest technology that is not available domestically. To support the production of goods / services more efficiently, Indonesia imports the equipment from other countries.

3. Adding foreign exchange earnings

Besides exports, import activities can also increase a country’s foreign exchange income. This is influenced by various factors, for example from the value of import duty income of imported goods which is quite large.

Also read: Manufacturing Companies

Types of Imports

Based on its activities, imports can be divided into several types. The types of imports are as follows:

  1. Import for Use; activities of entering goods / services into Indonesian customs territory for the purpose of being used, owned or controlled by people domiciled in Indonesia.
  2. Temporary Imports; activities to enter goods / services into Indonesia’s customs territory where the aim is to be re-exported abroad for a maximum of 3 years.
  3. Further / Continuous Transport Imports; the activity of transporting goods using means of transporting through an office to another office without the first demolition process.
  4. Import to be stockpiled; the activity of transporting goods using means of transporting through an office to another office by carrying out the demolition process first.
  5. Import for Re-export; transporting imported goods that are still inside the customs territory to be exported back abroad. This is done for imported goods with conditions; not according to order, wrong delivery, damaged, does not meet technical requirements, changes in regulations occur.

Also read: The Meaning of Vendor

Example of Indonesian Imported Activities

Indonesia is a country that is active in international trade. Besides exporting, Indonesia also imports various products from other countries to meet the needs in Indonesia.

Following are some examples of products imported by Indonesia from other countries:

No. Imported Products Country of origin Country of destination
1 Beef , beef imports are carried out by the Indonesian government because local beef prices are higher due to the long trade chain. Australia, Mexico Indonesia
2 Food Commodities , there are quite a number of food ingredients imported by Indonesia from other countries. For example; rice, soy, sugar, salt, butter, chili, and others. United States, Malaysia, Paraguay, Argentina Indonesia
3 Fuel Oil , imported fuel oil is done to meet the needs of fuel in Indonesia, both for industry and motor vehicles. Saudi Arabia, Thailand, Malaysia, Africa Indonesia
4 Electronic Products , a very large community need for electronic products makes import activities in this sector quite large. Japan, South Korea, China Indonesia
5 Automotive Products , most of the automotive industry in Indonesia requires components originating from abroad, so they must import from other countries.

 

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