The Ministry of Trade (MOT) issued Minister of Trade Regulation No. 59/M-DAG/PER/8/2016 on Export and Import of Animal and Animal Products on 15 August 2016 (Regulation 59). Regulation 59 came into force on 16 August 2016 and revoked Minister of Trade Regulation No. 05/M-DAG/PER/1/2016 on Export and Import of Animal and Animal Products as amended by Minister of Trade Regulation No. 37/M-DAG/PER/5/2016 (Previous Regulation).

Key Changes and Their Implications

I. Importer Identification Number (API) Holders May Import Animal and Animal Products in Certain HS Codes that Previously Could Only be Imported by State/Regional Owned Companies

Under Regulation 59, there is no longer a provision on Animal and Animal Products that can only be imported by State Owned Companies (BUMN) and Regional Owned Companies (BUMD), which was listed in Appendix II of the Previous Regulation. Those Animal and Animal Products, which currently can also be imported by API holders as they are included in Appendix II of Regulation 59, are as follows:

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However, if the country of origin of the Animal or Animal Products is not completely free from certain animal diseases, then a BUMN company may import the Animal or Animal Products from a certain country or certain area of a country for sustainability of national livestock purposes.

Generally the procedure and requirements to obtain an Export or Import Approval in the frame work of Regulation 59 are the same as the procedure and requirements provided in the Previous Regulation.

II. Additional Sections of HS Codes

Generally, Animal and Animal Products which are restricted (and therefore needs a prior Import Approval) are as listed in Appendix II (for cattle) and Appendix III (for non cattle and other processed animal products) of Regulation 59. There are several sections of HS Codes included in Regulation 59 which are not listed in the Previous Regulation, namely:

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III. Application for Import Approval

Under the Previous Regulation, there was a certain period in which an Import Approval application for certain Animal and Animal Products could be applied for. There were three periods in a year and for the relevant quarter the application could only be submitted one month prior to that quarter. Under Regulation 59, any application for Import Approval can be submitted at any time.

Moreover, Regulation 59 provides that the validity of the Import Approval for Animal and Animal Products (which was regulated only for 4 months under the Previous Regulation for items categorized above) is in accordance with the recommendation to obtain the Import Approval.

However, Regulation 59 does not provide an extension of Import Approval mechanism. Therefore, a new application needs to be made if the validity period of a certain Import Approval has lapsed.

Conclusion

Regulation 59 is likely to be welcomed by API holders, as it allows certain Animal and Animal Products (which previously could only be imported by BUMN and BUMD) to be imported by API holders and it also provides flexibility on when an application for Import Approval can be submitted.