Customs Guarantee for Import & Export
Custom Bond Batam
As a Free Trade Zone (FTZ) city, import-export activity in Batam is intense — and nearly every customs facility requires a guarantee. Custom bond lets your company secure OB 23, KITE, or Bonded Zone facilities without locking up cash as collateral the way a bank guarantee does.
Benefits & Coverage
What does this insurance policy cover?
OB 23 – Temporary Import
Guarantee for import duty exemption and VAT deferral on goods imported temporarily and re-exported later — exhibitions, seminars, expert equipment, and project needs.
KITE (Import Facility for Export Purposes)
Guarantee for exemption/refund of import duty and VAT on imported raw materials processed into export commodities — yarn, leather, garments, and similar goods.
Bonded Zone (Kawasan Berikat/EPTE)
Guarantee for companies in Batam's Bonded Zone that move goods out for repair, sorting, or subcontracted processing before returning them to the zone.
PPJK (Customs Brokerage License)
Mandatory guarantee for Customs Brokerage Service Providers (PPJK) to obtain their registration number from the local Customs Office.
SPKPBM / Notul (Duty Appeal)
Guarantee required as a condition for filing an objection against a Customs Underpayment Notice (SPKPBM) issued by Customs.
Vooruitslag & Onward Transport
Guarantee for early release of goods from the port/customs office with deferred duty, excise, and tax payment — including onward transport between customs offices.
What Is a Custom Bond?
A custom bond (customs bond) is a type of guarantee issued by an OJK-licensed general insurance company on behalf of the guaranteed party (Principal) — typically an importer, exporter, or customs broker (PPJK) — to the Directorate General of Customs and Excise (Obligee). It is governed by Law No. 10 of 1995 as amended by Law No. 17 of 2006 on Customs, and Ministry of Finance Regulation No. 259/PMK.04/2010 on Customs Guarantees.
If the Principal fails to meet its obligations under a granted customs facility — for example, failing to re-export temporarily imported goods on time — Customs can claim the custom bond directly without first pursuing the Principal. The insurance company (Surety) that pays the indemnity then seeks recovery from the Principal under the Indemnity Agreement (SPGR) signed at the outset.
Case Example
An industrial exhibition organizer in Batam imports display equipment worth IDR 2 billion from Singapore for a two-week trade show. Since the goods will be taken back out of the country, the company applies for the OB 23 (Temporary Import) facility to avoid paying full import duty upfront. Customs requires a guarantee equal to the potential duty and VAT exempted. Instead of depositing cash or tying up a bank credit line, the company issues a custom bond for that amount — keeping working capital free for other exhibition needs.
Once the goods are re-exported on schedule and proven with an export declaration (PEB), the custom bond is closed with no claim ever triggered.
Custom Bond vs Bank Guarantee
Both are recognized by Customs — but the impact on company finances is very different.
✅ Custom Bond (Insurance)
- • Generally no 100% cash collateral required
- • Does not tie up your bank credit line
- • Premium is far lighter than the cost of tied-up bank collateral
- • Relatively fast issuance, 3–7 business days
- • Accepted at every Customs Office in Indonesia
🏦 Bank Guarantee
- • Usually requires cash/deposit collateral up to 100%
- • Locks up your company's credit facility with the bank
- • Funds remain tied up for the entire guarantee period
- • Relatively slower due to bank credit analysis
- • Must be managed separately from working capital loans
Documents Required for a Custom Bond Application
Prepare these documents in advance to avoid delays in issuance.
Custom Bond Issuance Process
- 1
Apply for a facility with Customs
The Principal applies for an import/export facility (OB 23, KITE, etc.) with the Directorate General of Customs and Excise.
- 2
Receive the facility decree (SKEP)
Customs issues a decree granting the facility along with the required guarantee value.
- 3
Apply for Custom Bond issuance
The Principal applies to the insurance company, attaching the SKEP and other supporting documents.
- 4
Custom Bond certificate is issued
The Surety issues the guarantee certificate and signs the Indemnity Agreement together with the Principal.
- 5
Submit to Customs
The Custom Bond certificate is submitted to the Customs Office to obtain a Guarantee Receipt (BPJ), and the goods can then be processed further.
Custom Bond Premium Estimate
Premium is calculated as a percentage of the guarantee value (not the goods value), depending on facility type, tenor, and the company's risk profile.
| Guarantee Value | Facility Type | Estimated Premium/Year |
|---|---|---|
| IDR 100 million | OB 23 (Temporary Import) | IDR 0.8–2 million |
| IDR 500 million | KITE / Bonded Zone | IDR 4–9 million |
| IDR 1 billion | KITE / Bonded Zone | IDR 8–18 million |
| IDR 150 million (min. Tj. Priok) | PPJK | IDR 1.2–2.7 million |
* General illustrative estimate based on market rates (roughly 0.8%–1.8% of the guarantee value per year). Actual premium is determined by underwriters based on facility type, tenor, and your company's risk profile — contact us for an official quote.
Other Guarantees Often Needed Alongside Custom Bond
Import-export businesses in Batam often need more than one type of guarantee at once.
OB 23 Guide
How to handle temporary import for exhibitions and projects, plus common mistakes to avoid.
Bid Bond
Pre-tender guarantee for government and private procurement.
Advance Payment Bond
Guarantee for down payment recovery in construction and procurement contracts.
Marine Cargo
Protect the value of your import/export goods against loss or damage in transit.
Frequently Asked Questions
Answers to commonly asked questions
What is a Custom Bond and who is involved?+
What is the difference between Custom Bond and OB 23?+
Can Custom Bond fully replace a Bank Guarantee?+
How long is a Custom Bond valid?+
What documents are most often rejected by Customs during application?+
What happens if a company fails to re-export temporarily imported goods (OB 23)?+
Ready to Protect Your Assets?
Consult with Rio, your trusted insurance consultant in Batam. Free, fast, and tailored to your needs.