Coffee raw materials or half processed, is it

Coffee industries that wish to export coffee from Indonesia to Japan

1.0   Introduction.

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The purpose of this report is to be used as a references for exporters in the field of coffee who wants to export their coffee products into Japan market. In this report, it will be provide what are the relevant law and regulations for exporters in Indonesia as well as the importers from Japan. It will also provide the requirements of products before exporting and relevant documents needed during the transactions.

Coffee is a well-known beverages in the world. It is also been defined as a drink consisting of an infusion of the roasted and ground or crushed seeds of the coffee tree (Anon., 2012). According to a survey, it is stated that the population in this world consume 2.25 billion cups of coffee per day (Lovers, 2012). The history of coffee could be trace back to era where a man name Kaldi discover when his goats eat a fruit and will become more energetic (Association, 2013).

In 17th century, it began to spread in to Europe and became the famous drink in that era.  Due to introduction of coffee, it quickly generates the business of coffee houses by becoming a social place where people will gather around and have a small conversation. Furthermore, people in Europe start to replace their daily drinks for breakfast which is the beer or wine and the efficiency of work become better (Association, 2013).

2.0   The primary requirements for exporting contracts

In this component, there are several requirements needed to be focus by exporters before exporting their products. This is important as this section will help exporter avoid any further losses when exporting products.

2.1   Specification and classification of products.

Exporter have to determine what type of products they are exporting to other countries. For examples, is it raw materials or half processed, is it been modified before it export to other countries? These specifications are vital as many export procedures will be banned if the statement of products are not certainty. Besides, licenses regarding to export is important too such as Trading Business License (SIUP) from the Department of Commerce (DGNED, 2011). Furthermore, coffee products is under regulated trade system products. This means it can only be export by the exporter registered and recognized by the Ministry of Trade. (DGNED, 2011)

2.2   The quantities of products

The goods that will be exported shall be declared by using the Customs Declaration. The Customs Declaration as referred, shall not be required for goods taken out by passengers, border crossers, or consignment of a certain customs value and/or a certain amount (PRESIDENT OF THE REPUBLIC OF INDONESIA, 1995). An acceptable amount could be exported after purchased through online or physically. Larger amount of products require specific documents, procedures including relevant certification from local authority, carrier agreement and distributor appointment once the cargo reached.

2.3 Classification of manufacturer

There are two classification in Indonesia as an exporter (DGNED, 2011).

1.      Manufacturer Exporter:

(i)                 Requirements has to be meet by manufacturer.

(ii)               Forms provided by Department of Industry and Commerce in District/City or Provincial level, and related technical institutions are required to be filled

(iii)             Having Industrial Business License.

(iv)             Having NPWP (Taxpayer Identification Number)

(v)               Export realization reports require to be submitted into Department of Industry and Commerce or appointed institution and officials.

(vi)             Verified by foreign exchange bank through attaching a letter of statement: Non-involvement of tax arrears, banking arrears, and custom issues.

2.      Non-manufacturer Exporter

(i)                 Requirements has to be meet by exporter.

(ii)               Forms provided by Department of Industry and Commerce in District/City or Provincial level, and related technical institutions are required to be filled

(iii)             Having Trading Business License.

(iv)             Having NPWP (Taxpayer Identification Number)

(v)               Export realization reports require to be submitted into Department of Industry and Commerce or appointed institution and officials.

(vi)             Verified by foreign exchange bank through attaching a letter of statement: Non-involvement of tax arrears, banking arrears, and custom issues.

2.4  Intellectual Property Rights

IPR consists of two categories, which are the copyrights and industrial property rights. In Indonesia, they are not very aware of intellectual property rights. It is important for exporters to prepare the products in relation to the IPR before conducting Export activities so that the products receive legal protection. As the member of World Trade Organization (WTO), Indonesia shall adjust any rules and legislation related to Intellectual Property Rights with the standard of Trade Related Aspects of Intellectual Property Rights (TRIPs) (DGNED, 2011).

2.5  Method of payments

There are several methods of payment in order to secure the rights of exporters. There is the advance payment method. In this method, exporter will receive money in cash before goods are delivered. Open account method is where goods are delivered first and the payment will be settle later. For Letter of Credit (L/C) method, it guarantee the payment for exporters from Banks once delivered document is verify with (L/C) (DGNED, 2011).

2.6  Trade barrier

Exported goods are divided into 4 different categories.

1.      Types of goods subject to export trade system

This type of goods are only allow to be exported with the name of exporters who are recognized and register under the Ministry of trade. This includes plantations products, forestry products, industrial products and mining products.

2.      Controlled export goods

These goods are only allow to be exported by those exporters who get the approval from Minister of trade being appointed as an Officials to export these products. These products included livestock, fish products, agricultures, mining and manufacturing products.

3.      Prohibited types of goods

These types of goods are not allow to exports as they might not meet the quality for standards. It is an act for preserving nature. It is a type of good with culture and historical values. These type of goods included Agricultural products (Arowana fish), forestry products (round wood) and mining products (precious stones and metal). (DGNED, 2011)

4.      Free goods  

Any goods that are not fall under the three categories of exporting goods mentioned above are consider free export good. Certain requirements and standards has to be achieved before exporting these type of goods.

2.7  Vocabulary

In Indonesia, certain words need to be clarify and stated clearly when exporting goods to other countries. This includes the way of transportation and the description of the goods. Although there are many English speakers, the preferable languages for them is their mother tongue which is the Bahasa Indonesia. It is important as failure of using correct sentences or words might cause the loss of profits or have legal issues in the future (DGNED, 2011).

3.0Laws and regulations

Laws regarding import to Japan market

In this section, for importers who wish to import coffee into Japan market, the sections will be support on what and how importers shall follow the Acts. In this section, there will be mainly focus on the the Plant Protection Act, the Food Sanitation Act, and the Customs Act.

3.1 Plant Protection Act (Article 1)

The purpose of this Act is to filter imported and export plants, and domestic plants, and to control animals and plants injurious to plants, and to prevent them from spreading and thereby ensure the safety and promotion of agricultural production (acts, 1950 ). According to the Article 2, plants in this article are flowering plants, as well as (stem, seeds, fruits, parts) and handled products like straw hat or straw bale, excluding injurious plan  (JETRO, 2011) ts.  For Article 7, it is stated following plants are prohibited to import into Japan unless it has an approval from the Ministry of Agriculture, Forestry and Fisheries for the purpose of test and research or any other research purpose. Those prohibited plants are provided in specific areas and sending through within a specific areas, quarantine pests, soils or plants to which soil is attached or anything mentioned as above (JETRO, 2011).

3.1.1 Food Sanitation Act

According to Food Sanitation Act, with the agreement of No.370 of the Ministry of Health, Labour and Welfare, Standards and Criteria for Food and Additives” issued under the Food Sanitation Act (JETRO, 2011), coffee is control under the food hygiene. In Japan, they will ban the import goods if goods imported had exceed the limitation set by Acts which includes chemical, pesticide remains or other content that are not allow in Japan. Coffee beans is under Food Sanitation Acts and a test has to be conducted yearly under the monitor of the Ministry of Health, Labour and Welfare Quarantine station. In 2011, coffee beans are required to do a testing before enter to Japan market. Coffee beans imported from Indonesia is tested for carbaryl (JETRO, 2011)

3.1.3 Customs Acts.

It is stated that any imported goods that are not matching with the origins of content or totally not relevant will be banned.

3.2 Standards and Laws at the Time of Sale

There are no specific rules or regulation for coffee beans when it came to sales.

3.2.1 Acts of Product Liability

This Act is to provide the responsibility of manufacturers such as the defection of imported goods. According to this Act, importers are considered as a manufacturer too. This is due to the reason coffee drinks are sells under the category of processed food and it should be taken care in terms of food poisoning, containers and packaging (JETRO, 2011).

3.2.2 Acts on Specified Commercial Transactions

In this Acts, it is to protect the rights of purchasers when they are interested in buying goods and contact with their customers in a direct commercial method. This included direct sales marketing, the mail order and telemarketing are all govern under the Acts of Specified Commercial Transactions.


3.3.3 Introduction of classification of Garbage collection and Recycling containers and packaging method.

According to this Acts, importers who sell any products that will use container and packaging for their goods are liable and govern under this Law Acts. This including paper, plastics containers and packaging. Importers have to follow this Acts and recycle according to their materials of containers and packaging they used. There is an exemption where small scale business are not liable to this Acts.

4.0  Marks & Labelling and Procedures

4.1  Plant Inspection

Due to the Plant Protection Acts, it is stated that the bulk importing of coffee can only be handled on certain airports and ports that are capable and sufficient materials for preventing diseases and pests to enter in to Japan. Goods that control under this acts shall send to specific airports or ports to testing before they could export and import their goods into Japan. Furthermore, importers must submit all required documents after enter to ports. Rejection will occur if there is a detection on disease and pests in terms of quarantine, fumigation or other factors.

4.2  Inspection on Food Hygiene

Under this law Acts, one must submit relevant documents to Quarantine Station at the Ministry of Health, Labour and welfare when he filing a form regarding the inspection with authority about foods import. The purpose of inspections is to ensure the quality of imported goods meet the standards and requirement set by Japan government in the initial stage. If there is no any issues to be found during inspection, certificate will be returned to importers and he need to submit it with customs documents. If there are issues to be found, destruction of goods will be conducted or goods will be return to shippers and ban from Japan (JETRO, 2011).





4.3  Customs Acts

Under this Acts, declaration for importing goods must be made by importers or those who are appointed as Official to declare. Importers should report to Customs office where the cargo is located if they wish to accept the goods for entering to Japan. Customs office will inspect the goods and payment such as taxes for local and national consumption, customs duty and import permit had to be settle before accepting goods (JETRO, 2011).

4.4  The Name of the Products

The name of the imported products must be provided in the labelling of products under the Act for Standardization and Proper Labelling of Agricultural and Forestry Products and Food Sanitation Act (JETRO, 2011).

4.5  Ingredients of Products

Under the Act for Standardization and Proper Labeling of Agricultural and Forestry Product and Food Sanitation Act, ingredients of products had to be labelled according to the sequences from highest to the lowest.

4.6  Additives

Any additional substances that used in the imported goods had to be mentioned from the highest content to the lowest content of addition ingredients use in the products. This included colouring, sweetener, preservatives, whitener and etc. According to the notification from the Ministry of Health, Labour and Welfare “Standards and Criteria for Food and Additives”, it allows a certain percentage of additives to be used in products (JETRO, 2011).

4.7  Content weight

For processed coffee products, importers has measure the weight of the product under the Measurement Acts and must label the weight in units of grams. This is vital as importers can use it as a references when he compare to the actual weight and the figure stated in the label of the products (JETRO, 2011).

4.8  Expired date

The expired date of products has to be stated on the label of the products under the law Acts for Standardization and Proper Labeling of Agricultural and Forestry Products and Food Sanitation Act. Since coffee is not an easily spoiled product, the label should indicate the “best before” (JETRO, 2011).

. 4.9 Preservation method

Preservative method must be indicate on the label of the products according to the Act for Standardization and Proper Labeling of Agricultural and Forestry Products and Food Sanitation Act. Since coffee is a products that can be stored, the method to preserve will be found on the label (JETRO, 2011).


Details of importers such as name, address and contact numbers has to be listed in label. For Japan, the products produced locally but involve ingredients from foreign countries, the details of that company had to be listed on label too (JETRO, 2011).

4.11 Container and Packaging of products

The Act on the Promotion of Effective Utilization of Resources requires labeling for promoting sorted collection on specified containers and packaging. This means every products imported has to meet the standards and conditions and are required labeling for identification by law.

4.12 Description

Every description that misinterpretation or false details will banned by the Health Promotion Acts. This Acts is applicable to all articles in addition to food products (JETRO, 2011).



As a conclusion, it takes extra steps to export coffee from Indonesia to Japan. This is because there are procedures had to been gone through before entering the market of Japan. A specimen had to been deliver to Japan and do a testing before they are allow to import into Japan. The details regarding the products and method of packaging products are important too as failure of perform for these two criteria will cause the restriction of entering the market of Japan. Furthermore, when importing to Japan there are several Acts need to be concerned. There are the customs Acts, the Plant Protection Acts and the Packaging and Labelling Acts.  For customs Acts, it is vital as this is the step that importers are allow to accept the goods from ports after settling all payments. Failure to achieve this step will cause a major loss for importer as their products will be lock at the ports. For the Plant Protection Acts, it is important too as they restrict any pests or disease that will harm their local plants to enter to their country. In this case, it consumes time and might affect the confident of importers as waiting for an uncertain result will influence the smoothness of their operations as well as business too. The third Acts will be Packaging and Labelling Acts. In japan, they are very concerned on how their food packaging made of. Could it be reuse? Could it be recycle? Japan are very concerned as they are very concern about the pollution f their country. Thus, any wastages that will affect their environment and cause pollution will be restricted to be imported in to Japan.


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