Indonesian Government Renews Import Provisions

Continuing the spirit of rejuvenating Indonesia’s trade legal framework after the enactment of Law No. 7 of 2014 regarding Trade (“Trade Law”), Minister of Trade Regulation No. 48/M-DAG/PER/7/2015 regarding General Provisions of Import (“New Regulation”) was recently issued, which will come into force on 1 January 2016, to replace the previous general import policies under Minister of Trade Regulation No. 54/M-DAG/PER/10/2009 regarding General Provisions of Import (“Previous Regulation”).

Imported Goods

Any type of goods can be imported into Indonesia, unless stipulated otherwise by prevailing laws and regulations to be either:[1]

  1. Prohibited;
  2. Subject to import restrictions; or
  3. Subject to a set of requirements, such as import approval, surveyor’s report, and so forth.[2]

As provided under the Trade Law, all imported goods must be new, unless the Minister of Trade regulates otherwise. An example of second-hand goods that can be imported are capital goods, which are goods that can be used to do business or produce other goods, provided that they are still functional, or can be reconditioned or remanufactured. The import of used capital goods is governed under Minister of Trade Regulation No. 75/M-DAG/PER/12/2013 regarding Import Provisions on Used Capital Goods, which also stipulates capital goods that are permitted to be imported under its Appendix.[3]

Import License

In most cases, an Importer Identification Number (Angka Pengenal Impor – “API”) is required to import goods in Indonesia. However, for certain goods and under specific circumstances, parties can import without first securing an API.[4]

As provided under Minister of Trade Regulation No. 27/M-DAG/PER/5/2012 regarding Provisions on Importer Identification Number, as lastly amended by Minister of Trade Regulation No. 84/M-DAG/PER/12/2012 (“API Regulation”), the following types of goods can be imported without an API:[5]

  1. Goods imported temporarily to be exported to other countries;[6]
  2. Goods for research and development purposes;
  3. Social grants;[7]
  4. Government supplied medicine and medical equipment;
  5. Re-imported goods that were exported to be repaired or tested;[8]
  6. Exported goods that were rejected;
  7. Not-for-trade sample items;[9]
  8. Goods imported by government institutions and diplomatic missions or representatives in Indonesia;
  9. For purposes of an international organization; and
  10. Personal property of individuals previously domiciled overseas (so-called barang pindahan).[10]

Bonded Warehouses No Longer Subject to Import Provisions

A provision under the Previous Regulation provides that imported goods stored at bonded stockpile locations, intended to be distributed to custom areas, may be subject to import provisions. This provision is no longer stipulated under the New Regulation.

This means that the following places will no longer be subject to import provisions:[11]

  1. Bonded warehouses;
  2. Bonded zones;
  3. Duty-free stores;
  4. Bonded auction houses; and
  5. Bonded recycling zones.

Prior to Import Requirement

As a response to the recent protest by the Indonesian president, Joko Widodo,[12] the New Regulation requires all importers to secure the necessary documents before they are allowed to enter a customs area. Failing to do so can result in suspension of the importer’s API or re-export of the imported goods.[13]

This provision was not stipulated under the Previous Regulation.

 


FOOTNOTES

[1] New Regulation, Art. 4

[2] New Regulation, Art. 5

[3] New Regulation, Art. 2

[4] New Regulation, Art. 3

[5] API Regulation, Art. 32

[6] See: Click here for official details

[7] See: Click here for official details

[8] See: Click here for official details

[9] See: Click here for official details

[10] See: Article 1 (1) of Minister of Finance Regulation No. 28/PMK.04/2008 regarding Import Duty Waiver for Imports of Move Goods

[11] See: Article 2 of Government Regulation No. 32 of 2009 regarding Bonded Stockpile Locations

[12] See: Kompas.com, “Tinjau Tanjung Priok, Ketua DPR Tanya Tempat Jokowi Marah-marah,” 7 July 2015, and Kompas.com, “Aturan Baru Perdagangan, Importir Tak Punya API Kena Sanksi Reekspor,” 3 July 2015

[13] New Regulation, Art. 7


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