On 3 July 2015, the Ministry of Trade issued Regulation No. 48/M- DAG/PER/7/2015 on General Provisions in the Import Sector ("Regulation 48"), which will come into effect in January 2016. Regulation 48 supersedes Ministry of Trade Regulation No. 54/M-DAG/PER/10/2009 ("Previous Regulation") on the same subject.
Several Comparisons between Regulation 48 and the Previous Regulations
- Similar to the Previous Regulation, Regulation 48 provides a broad definition of "products" which may fall under Regulation 48. Under Regulation 48, "products" are defined as goods that are tangible or intangible, moveable or immovable, and spendable or un-spendable, and that can be traded, used, consumed or utilized by consumers or business actors.
- Both Regulation 48 and the Previous Regulation stipulate that importation can only be conducted by importers who have Angka Pengenal Impor - "API" or The Importer Identity Number. Only in certain circumstances as will be regulated in a further regulation can importation be done without API.
- The basic principle of importation required under the Previous Regulation still applies under Regulation 48, i.e. the imported products must be in new condition.
- In the Previous Regulation, there was a specific provision under which goods imported to a Bonded Piling Place or imported goods which are released from a Bonded Piling Place to other places in the customs area may be subject to import regulation. But this provision is not reflected in Regulation 48.
Import Licenses Awareness
In Regulation 48, it is specifically stated that importers must already possess import licenses for products which importation is limited before the imported products enter into the customs area.
The import requirements for products which their importation is limited is conducted through the following import licenses mechanism:
- acknowledgement as an Importer Producer;
- determination as a Registered Importer;
- import approval;
- surveyor report; and/or
- other import licenses mechanism.
Regulation 48 is intended to substantially reduce the amount of time imported goods have to spend at Indonesian ports. Currently, some importers are still processing their licenses even after the arrival of imported products to the Indonesian customs area. The requirement to prepare/obtain all the required licenses before the goods enter into the Indonesian customs area is expected to expedite the customs clearance process, because if all the import requirements have been met in advance, the imported goods can be directly cleared from the customs area.
For instance, several licenses that must be secured are:
- Importer Producer → a specific license given to a manufacturing company to import certain products for its manufacturing process;
- Registered Importer → a determination for importers to import certain products.
In addition, generally the requirement to possess import requirements before the products enter into the Indonesian port has been implemented in daily practice even before Regulation 48 is issued, as several regulations (e.g. labeling in Bahasa Indonesia and Registered Importer) require the import requirements to be fulfilled before the imported products enter into the Indonesian customs area.
Conformity with the Trade Law
The requirements under Regulation 48 are basically in line and in harmony with the requirements under the Trade Law. For instances, the Trade Law requires importers to fulfill the import requirements before the imported goods enter into Indonesia (e.g. Article 32 of the Trade Law). Moreover, as well as Trade Law stipulates that the imported goods must be in new condition, Regulation 48 also requires the same on this basic principle for import.
Regulation 48 states that importers that fail to meet the import requirements before the products enter into Indonesia will be subject to sanctions, that include suspension of their APIs or other sanctions according to the prevailing regulations.
Moreover, importers must re-export products that are imported without obtaining the required import licenses.