On November 15, 2024, Canada and Indonesia announced the substantive conclusion of negotiations for a Comprehensive Economic Partnership Agreement (CEPA).
This agreement aims to enhance bilateral trade and investment between the two nations, with the official signing anticipated in 2025.
This guide dives into:
- Key aspects CEPA
- Indonesia’s market
- Halal certification
- Export steps
- CHB support
Check Out: Halal Certification Requirements and Process
Key Aspects of the Canada-Indonesia CEPA
Here are the key aspects of the CEPA deal:
| Key Aspects of the Canada-Indonesia CEPA | Details |
| Market Access | Designed to eliminate or reduce tariff and non-tariff barriers, facilitating smoother trade flows for goods and services between Canada and Indonesia. |
| Investment Protections | Establishes a framework to protect investors, including provisions against expropriation without fair compensation and ensuring non-discriminatory treatment. |
| Services Trade | Enhances access for service providers, covering sectors such as financial and professional services, promoting greater economic integration. |
| Regulatory Cooperation | Emphasizes good regulatory practices, ensuring transparent and predictable regulatory systems while allowing regulation in the public interest. |
| Sustainable Development | Addresses labor rights, environmental sustainability, and cooperation on critical minerals to promote inclusive economic growth. |
Indonesian Economic Context for Canadian Manufacturers
Indonesia, the largest economy in Southeast Asia with a population of 280 million, is a dynamic market for food, agriculture, and consumer goods. In 2023 alone, bilateral trade between Canada and Indonesia reached $5.1 billion, with Canadian exports valued at $2.3 billion. The CEPA aims to:
- Eliminate Tariff Barriers: Open up Indonesian markets for Canadian agricultural products, food, and halal-certified goods.
- Enhance Investment Protections: Provide a secure framework for Canadian businesses expanding in Indonesia.
- Facilitate Service Trade: Broaden access for sectors like logistics, financial services, and professional consulting.
With these enhancements, Canadian businesses are better positioned to meet Indonesia’s rising consumer demand, especially in sectors like halal-certified food, cosmetics, and pharmaceuticals.
How to Export from Canada to Indonesia?
Exporting goods from Canada to Indonesia involves the following key steps to ensure compliance with both Canadian and Indonesian regulations:
Step 1. Export Controls and Regulations
- Identify if your product is subject to export controls under Canadian law. Certain goods may require permits or licenses (Canada Border Services Agency).
Step 2. Obtain Necessary Certifications
- Given Indonesia’s significant Muslim population, halal certification is essential for food products, cosmetics, and pharmaceuticals.
- Ensure your products meet Indonesian standards and quality requirements.
Step 3. Register Your Business
- Register for a BN and an RM export program identifier with the Canada Revenue Agency (Canada Border Services Agency).
- Depending on your business model, you may need to register with Indonesian authorities or appoint a local agent.
Step 4. Prepare Export Documentation
- Submit an export declaration to the Canada Border Services Agency (CBSA) through the Canadian Export Reporting System (CERS) or G7 Electronic Data Interchange (EDI).
- Provide detailed information about the goods, including value, description, and terms of sale.
- List all items in the shipment, including weights and dimensions.
- Certify the origin of the goods to qualify for any preferential tariff treatments.
Step 5. Arrange Shipping and Logistics
- Consider hiring a freight forwarder experienced in Indonesian shipments to handle logistics and documentation.
- Define the responsibilities of buyer and seller regarding shipping, insurance, and tariffs.
Step 6. Comply with Indonesian Customs Procedures
- Ensure all required documents are submitted to Indonesian customs authorities before the goods arrive.
- Be prepared to pay any applicable import duties, value-added tax (VAT), and other fees.
Check Out: Halal Certification for Exports
Halal Certification Process
The Canadian Halal Bureau (CHB) offers a streamlined halal certification process to help you meet Indonesia’s stringent halal compliance standards. Here’s how it works:
Step 1: Application & Documentation
- Initial Consultation: Begin with a consultation to determine the halal certification requirements for your specific products and industry.
- Submit Application: Fill out our comprehensive application form with details about your company, product range, and production process.
- Documentation Review: Provide key documents, including:
- Ingredient lists and product specifications
- Material safety data sheets (MSDS) for additives
- Supplier certifications for raw materials
- Halal product assurance system (HPAS) documentation, if available
Step 2: On-Site Audit
- Inspection of Facilities: A trained halal auditor visits your production site to assess:
- Raw materials and supply chain integrity
- Hygiene and sanitation practices
- Equipment used in production and potential cross-contamination risks
- Production Process Review: Ensure your manufacturing processes align with halal standards, focusing on critical control points (CCPs).
Step 3: Halal Compliance Testing (Optional)
- Product Testing: If required, samples of your products are sent to a certified lab for analysis, ensuring compliance with halal regulations.
- Validation of Ingredients: CHB verifies that all ingredients and additives meet halal criteria, especially for sensitive products like gelatin, emulsifiers, and flavorings.
Step 4: Certification Approval
- Certification Decision: Once all requirements are met, CHB issues a globally recognized halal certificate valid for export to Indonesia.
- Labeling and Packaging Approval: Ensure your products are labeled according to halal certification guidelines, making them market-ready for Indonesian consumers.
Step 5: Post-Certification Support
- Annual Renewal: Maintain halal certification with an annual review and renewal process.
- Market Expansion: CHB provides support for expanding your halal-certified product line and entering new markets.
- Ongoing Compliance: Stay updated with changes in halal regulations in Indonesia and other export destinations.
Explore Halal Certification for Exports
The Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) opens a world of opportunities for Canadian exporters, especially in halal-sensitive industries.
The Canadian Halal Bureau (CHB) is your trusted partner in navigating this journey, offering globally recognized certification and expert support.
If you’re interested in exploring halal certification for exports to Indonesia, get in touch with an expert at +1-(514)-907-0983 or email us at [email protected].
Frequently Asked Questions (FAQs)
1. What is halal certification, and why is it important?
Halal certification verifies that a product complies with Islamic dietary laws and ethical standards. For Indonesia, halal certification is mandatory for many products, including food, cosmetics, and pharmaceuticals.
2. Is halal certification mandatory for exports to Indonesia?
Yes, under Indonesia’s Halal Product Assurance Law, halal certification is mandatory for various product categories. Without it, your products may face restrictions in entering the Indonesian market.
3. How long does the halal certification process take?
The timeline depends on the complexity of your products and production processes. On average, certification takes between 3-6 weeks, including audits and document reviews.
4. Do I need halal certification for non-food products?
Yes, halal certification is required for a range of non-food products such as cosmetics, personal care items, and pharmaceuticals if they are marketed to Muslim consumers in Indonesia.
5. What happens if my product fails the halal audit?
If any non-compliance issues are identified during the audit, the CHB team will provide detailed feedback and recommendations to address them. Once the necessary changes are made, your product can be reassessed for certification.
6. Can CHB help with ongoing compliance and renewals?
Yes, CHB offers post-certification support, including annual renewals and updates on any changes to halal regulations in Indonesia or other markets.
7. Is CHB recognized in Indonesia?
Absolutely! CHB is accredited by Indonesia’s halal authorities, ensuring that your certification is valid and accepted in the Indonesian market.
8. How can I start the halal certification process with CHB?
You can begin by filling out our online application form or contacting our experts for a free consultation. From there, we’ll guide you through every step of the certification process.