Changes to Provisions on Importing Certain Products

After revamping Indonesia’s general import rules[1] and deleting the Special Importer Identification Number (Nomor Pengenal Importir Khusus – “NPIK”) requirement for all imports,[2] the Minister of Trade continues efforts to further simplify import procedures. Most recently, changes were made to the provisions on importing certain products through the issuance of Minister of Trade Regulation No. 87/M-DAG/PER/10/2015 on Import Provisions for Specific Products (“2015 Regulation”).

As mentioned above, the 2015 Regulation aims to simplify the rules of importing certain goods, such as food and beverages, traditional medicines and health supplements, cosmetics and household first-aid kits, apparels, footwear, electronic devices, and toys, as detailed in the Appendix to the 2015 Regulation (“Certain Products”).[3]

The 2015 Regulation will come into force on 1 January 2016,[4] revoking and replacing the previous framework on this matter under Minister of Trade Regulation No. 83/M-DAG/PER/12/2012, most recently amended by Minister of Trade Regulation No. 73/M-DAG/PER/12/2014 (“Previous Regulation”).[5]

Imports of Certain Products

Certain Products can only be imported by holders of a General Importer Identification Number (Angka Pengenal Importir Umum – “API-U”), meaning that companies holding a Manufacturer Importer Identification Number (Angka Pengenal Importir Produsen – “API-P”) are only allowed to import Certain Products for specific purposes (including as capital goods, raw materials, or auxiliary materials).[6]

The most major change under the 2015 Regulation is the removal of the determination from the Minister of Trade as a Registered Importer for Certain Products (Importir Terdaftar Produk Tertentu – “IT-Produk Tertentu”) as requirement that was also necessary to import Certain Products under the Previous Regulation. This documentation is no longer required under the 2015 Regulation.[7]

Specific Ports

Certain Products can only be imported through specific ports:[8]

  1. Dry ports: Cikarang Dry Port (Bekasi);
  2. Seaports: Belawan (Medan), Tanjung Priok (Jakarta), Tanjung Emas (Semarang), Tanjung Perak (Surabaya), Soekarno Hatta (Makassar), Dumai, Jayapura, Tarakan, Krueng Geukuh (Aceh Utara), and Bitung; and
  3. Airports: Kualanamu (Deli Serdang), Soekarno Hatta (Tangerang), Ahmad Yani (Semarang), Juanda (Surabaya), and Hasanuddin (Makassar).

A newly stipulated provision under the 2015 Regulation is that a number of these ports are limited for imports of specific Certain Products, as follows.[9]

Ports

Certain Products

Dumai, Jayapura, Tarakan Food and beverages
Krueng Geukuh (Aceh Utara) Food and beverages, apparels and other ready-made textile products, electronics, and footwear
Bitung Food and beverages, apparels and other ready-made textile products, and electronics

Verification Procedure

Imports of Certain Products, except for cosmetics, are required to undergo a verification procedure carried out by an official surveyor.[10] The following aspects will be examined:[11]

  1. Country and loading port of origin;
  2. Date of shipment;
  3. Port of destination;
  4. Certain Product’s Harmonized System (“HS”) code;
  5. Certification Number for the Affixing of Indonesian National Standard Labels (Nomor Sertifikasi Produk Penggunaan Tanda Standar Nasional Indonesia – “SPPT SNI”) for products subject to mandatory Indonesian National Standard (Standar Nasional Indonesia – “SNI”);
  6. Certificate of Analysis;[12]
  7. Goods Registration Number (Nomor Pendaftaran Barang­ – “NPB”);[13]
  8. Notification Letter or Distribution Permit Letter;[14] and
  9. Manual and guarantee/warranty documentation in Bahasa Indonesia.[15]

The surveyor will report their findings of the verification process into a surveyor report, which is a requirement for the importer to fulfil customs and levies obligations. This report must be submitted by the surveyor to the Director of Imports on the 15th date of each month at the latest. Failing to do so twice consecutively will result in the revocation of the determination as a surveyor issued by the Minister of Trade, resulting in being unable to continue carrying out verification of imports of Certain Products.[16]

Imports that are not secured with a surveyor report must be re-exported at the expense of the respective importer.[17]

Reporting Obligation

Imports of Certain Products, whether completed or not, must be reported via the Ministry of Trade’s INATRADE (http://inatrade.kemendag.go.id) addressed to the One-Stop Integrated Service Unit I (Unit Pelayanan Terpadu Perdagangan I – “UPTP I”). The deadline of this report is 15 days after the start of each quarter.[18]

Upon the second failure of this reporting obligation, the API-U of the respective importer will be suspended. Failing to remedy this non-compliance within 2 months since the suspension date will result in the revocation of the API-U.[19]

Exemptions

Imports of Certain Products are not subject to the 2015 Regulation under the following:[20]

  1. Imports of Certain Products that have been granted with import facilities;[21]
  2. Personal delivery of apparels (10 pieces per delivery at most), or the personal belongings of aircraft passengers or crew (maximum value of USD$ 1,000 per person);
  3. Personal delivery of electronics (2 units per delivery at most), or the personal belongings of aircraft passengers or crew (maximum value of USD$ 1,500 per person);
  4. Personal delivery or the personal belongings of aircraft passengers or crew of Certain Products other than those mentioned above (maximum value of USD$ 1,500 per person); and
  5. Imports of Certain Products by entities in the oil and gas, geothermal, mineral or other energy sectors;
  6. Imports of Certain Products by API-P holders that are used as capital goods, raw materials, or auxiliary materials; and
  7. Temporary imports.[22]

 


FOOTNOTES

[1] For more information, see: Andin Aditya Rahman, “Indonesian Government Renews Import Provisions,” 30 July 2015

[2] For more information, see: Andin Aditya Rahman, “Special Importer Identification Number (NPIK) Deleted,” 25 August 2015

[3] 2015 Regulation, Art. 1 (1)

[4] Previously, the enforcement date of the 2015 Regulation was 1 November 2015. However the Minister of Trade decided to push it back to 1 January 2015 as announced through Director General of Foreign Trade Circular Letter No. 1827/DAGLU/SD/10/2015, stating also that the change in the enforcement date of the 2015 Regulation has been stipulated under Minister of Trade Regulation No. 94/M-DAG/PER/10/2015 (supposedly an amendment to the 2015 Regulation). Currently, none of these are available publicly. See: CNN Indonesia, “Kemendag Tunda Pelaksanaan Aturan Impor Produk Tertentu,” 30 October 2015, and Hukumonline English, “Imports of Specific Products Reregulated,” 10 November 2015

[5] First amendment is under Minister of Trade Regulation No. 61/M-DAG/PER/9/2013, and the second amendment is under Minister of Trade Regulation No. 36/M-DAG/PER/7/2014

[6] 2015 Regulation, Art. 3

[7] Previous Regulation, Art. 3

[8] Previous Regulation, Art. 4 (1)

[9] 2015 Regulation, Art. 4 (1), (2) and (3)

[10] Surveyors of imports of Certain Products are companies that have secured licenses to perform verifications or technical investigations having satisfied the following requirements: 1) be in possession of a Survey Business License (Surat Izin Usaha Jasa Survey – “SIUJS”), 2) have at least five years’ experience of working as import surveyors, 3) have subsidiaries, representatives, or affiliates located outside Indonesia, as well as having the necessary network to support an effective verification process. See: Article 7 of the 2015 Regulation

[11] 2015 Regulation, Art. 8 (1)

[12] Examples of products requiring a Certificate of Analysis include food and beverages, traditional medicines and health supplements, cosmetics, and household first-aid kits. See: Head of National Agency of Drug and Food Control Regulation No. 27 of 2013 regarding Supervision of Imports of Medicine and Food into the Territory of Indonesia, and Head of National Agency of Drug and Food Control Regulation No. 28 of 2013 regarding Supervision of Imports of Medicine Ingredients, Traditional Medicine Ingredients, Health Supplement Ingredients, and Food Ingredients into the Territory of Indonesia, as amended by Head of National Agency of Drug and Food Control Regulation No. 8 of 2014

[13] A Goods Registration Number is the number stated in a Goods Registration Letter (Surat Pendaftaran Barang – “SPB”), which is an import document of goods that are subject to mandatory SNI required to secure an Import of Goods Notification (Pemberitahuan Impor Barang – “PIB”). See: Minister of Trade Regulation No. 14/M-DAG/PER/3/2007 regarding Services Standard in the Trade Sector and Supervision of Mandatory Indonesian National Standard (SNI) of Trade of Goods and Services, as lastly amended by Minister of Trade Regulation No. 47/M-DAG/PER/8/2014

[14] Required for imports of food and medicine. See: Head of National Agency of Drug and Food Control Regulation No. 39 of 2013 regarding Public Service Standards at the National Agency of Drug and Food Control

[15] Required for telecommunication products and electronics. See: Minister of Trade Regulation No. 19/M-DAG/PER/5/2009 regarding Registration of Manual and Guarantee/Aftersales Warrantee in Bahasa Indonesia for Telecommunication Products and Electronics

[16] 2015 Regulation, Arts. 8 (2), 11, and 16 (b)

[17] 2015 Regulation, Art. 15

[18] 2015 Regulation, Art. 10

[19] 2015 Regulation, Arts. 12, and 13 (d)

[20] 2015 Regulation, Art. 19

[21] See: Articles 25 (1) and 26 (1) of Law No. 10 of 1995 regarding Customs, as amended by Law No. 17 of 2006

[22] Goods that are temporarily imported are those intended to be re-exported. These goods are not allowed to be stored in a customs area for more than 3 years. See: Minister of Finance Regulation No. 142/PMK.04/2011 regarding Temporary Imports


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3 thoughts on “Changes to Provisions on Importing Certain Products”

  1. Pak Andin, this article is useful specially for foreign people who need the clarification of Indonesia Customs Regulation in English, so I can give little explanation to my boss about this Trade Ministry’s regulation no.87 – 2015

    Thank you very much

    Budi Amarul

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