Indonesian Palm Kernel Shells Export Process – Biomass energy is a newly invented way to manage providing enough fuel that less impact on the environment. One of the favorite choices of this option is by using palm kernel shells. It is believing that the shells provide a similar result with the wooden pellet combustion so that in terms of resulted energy and fuel can be slightly different. Moreover, the use of this commodity provides extra care to the environment, since it has been proven giving less impact to the air and fewer pollution effects. Therefore, so far choosing the palm kernel shell is one of the most suitable options for many industries around the world.
Of course, there are many suppliers of this commodity around the world. One of the best suppliers listed in the world is coming from Indonesia. There are several reasons why the country is known as one of the best supplier countries in the world. The first is for the finest quality, second is for the easy trade process. For further information on the quality nor the trade process of the commodity, the next following paragraphs will help to inform further.
Indonesian Palm Kernel Shell Quality
Many countries around the world notice the quality of Indonesian palm kernel shells. Therefore, no wonder if Indonesia successfully manages a quite huge supply for many other countries in the world. If we look further, it was found that the Indonesian shells quality contain a quite complete composition such as listed below:
Moisture content equal to 15-25% for the as-received condition or 8 – 11% for the air-dried base condition.
Consist of approximately 1-3% ash content.
Evaporation levels are around 68 – 70% which can consider quite high.
Pure activated carbon around or fixed carbon of approximately about 20-22%.
Consist of minimum 4,200 Kcal Calories
Besides the above composition, the next important thing to consider is the type of Indonesian palm kernel shells. For information, there are two available types in the market. The first is Dura, and the second one is Tenera. The main difference between these types is the thickness. While when we look at the overall compositions, those types are almost similar.
Read more : Palm Kernel Shells Price 2020
Trade Via Association
It is an interesting fact that buying and selling the commodity in Indonesia will need to consider government regulation plus to manage the trade via legal association. That is why there are several legal associations in Indonesia that manages to help buyer from another country to deal with the local suppliers. This is a purpose to help both parties on getting the right tax and following the suitable legal regulations. It also helps the local supplier to provide a good stable price overseas.
The most famous association is APCASI, which stands for Asosiasi Pengusaha Cangkang Sawit Indonesia. As the first association who works to manage all the important things related to the PKS trade, the association has successfully helped buyers and suppliers meet the demands at a good reasonable price.
For a newcomer on this PKS trade, it must be quite confusing to understand the basic trading process of the commodity. That is why those that planning to use and import the palm kernel shells need to consider the legal regulation and the official process too. Such as the trade process in Indonesia, it is a quite specific process to perform an export for this commodity to another country. As a preliminary overview, commonly the export-import trade process of the commodity in Indonesia consists of the following steps:
The buyer will fill in the requested form to the legal association and wait for price confirmation.
PKS Association will give offering price per metric ton. This price will have multiplied with the requested quantities in the form. Furthermore, the levy cost and the custom tax will be added for each metric ton. The number then return to the buyer for approval and payment.
The buyer performs official payment and informs the valid receipt of the payment.
PKS Association will manage a local supplier to provide quantity according to the demands. All rates and prices will refer to the agreed cost as received and paid by the buyer.
The export process then performs and a valid shipping number will be informed to the buyer.
Read more : Palm Kernel Shell Suppliers in The World
Tax and Regulatory
One of the important things to consider when deciding to perform an export-import trade of this commodity is to know the tax and regulatory from the government. Many buyers might not familiar with this thing. Especially if it is the first trade to perform by buying the PKS commodity from Indonesia. For a general overview, the following lists are the official tax of the export-import activities of palm kernel shells.
Levy cost for each metric ton of exported PKS, as per 1 June 2020 the levy cost is about $15 per metric ton.
Official tax, according to the government regulation, PKS commodity shall pay for a custom tax as much as $7 to $10. This value changes every month depends on the benchmark prices of the commodity.
Not only to understand the tax calculation but to notice the legal regulation by the Indonesian government is also important. It is to avoid further problems in the overall administration and the trade process. There are several important points to note from the Indonesian regulatory. The main consideration is to make sure that tax and levy costs were paid, and the supplier shall be legally listed in the Minister of Trade. Otherwise, the trade transaction wouldn’t be able to proceed.
Those all several lists of information related to the Indonesian palm kernel shells export process. Overall the process is not as difficult as it thinks. Therefore, to manage a trade from the country is one of the best choices to get from another country that needs the commodity quite much and constant. Considering that the overall price and cost from Indonesia is quite low compare to other supplying countries, it will bring extra benefit for those that trust Indonesian supplier to help with the demands of the shell of palm kernel. By selecting the most suitable supplier at a reasonable good price, then it can be a guarantee that the needs of this commodity can be fully achieved with huge savings on the overall cost.