Tax & Trade
Amendment to Regulation on Importation of Certain Products - Cosmetics are Now Subject to Verification and Technical Inspection
The Ministry of Trade of the Republic of Indonesia issued Regulation No.61/M-DAG/PER/9/2013 on the Amendment of Ministry of Trade Regulation No.83/M-DAG/PER/12/2012 regarding Importation of Certain Products (“Permendag 61/2013”). Through this regulation, the government is aiming to increase stability, improve the business climate, and improve importation administration.
Permendag 61/2013 introduced several changes to the preceding regulation, in particular related to product verification, a new designated port of loading and new product exemptions.
I. Product Verification
Every importation of certain products must be verified and/or go through a technical inspection by the surveyor at the port of loading. Under Article 10 of Regulation No.83/M-DAG/PER/12/2012, product verification and technical inspection was not required for import of cosmetic products. However, in Permendag 61/2013, this exemption has been removed. So cosmetic products would be subject to below verification and technical inspection.
The verification and technical inspection cover the following areas:
information or data on state and the port of loading;
time of shipment;
port of destination;
HS and description of goods;
number of SNI Marking Product Certificate (SPPT-SNI) for the compulsory SNI products; and
number of Certificate of Analysis (CoA) for certain required products.
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2 Amendment to Regulation on Importation of Certain Products - Cosmetics are Now Subject to Verification and Technical Inspection
The last two items in this list were not in the previous regulation. They were added to increase the supervision of goods and service circulation with the aim of protecting consumers and securing the domestic market from unfair competition. Goods with poor quality and that are not in accordance with Indonesian standards cannot be imported. As a consequence, imported products must be adjusted with the prevailing SNI before they can be marketed in Indonesia.
II. New Designated Port
Since the preceding regulations, certain products could only be imported by registered importers through designated ports. Previously, there were only 8 designated seaports, which were Belawan in Medan, Tanjung Priok in Jakarta, Tanjung Emas in Semarang, Tanjung Perak in Surabaya, Soekarno Hatta in Makassar, Dumai in Dumai, Jayapura in Jayapura and Tarakan in Tarakan.
Permendag 61/2013 introduced Krueng Geukuh seaport in North Aceh as the new designated seaport for importation, which makes 9 designated seaports for the purpose of importation of certain products in Indonesia. However, Krueng Geukuh seaport may only be used for importation of food and beverages, apparel, footwear, and electronic products.
With respect to designated airports, Permendag 61/2013 replaced Polonia Airport in Medan with Kuala Namu Airport in Deli Serdang. Therefore, there are 5 designated airports for importation purposes in Indonesia, which are Soekarno-Hatta in Tangerang, Achmad Yani in Semarang, Juanda in Surabaya, Hasanuddin in Makassar, and Kuala Namu in Deli Serdang. However, Kuala Namu airport may only be used for importation of food and beverage products, apparel, footwear, and electronics.
III. New Product Exemption
Permendag 61/2013 introduces an additional product exemption to those that already existed, an exemption for electronic products. The exempted products stated in article 19 are:
1. products referred to in Article 25 paragraph (1) and Article 26 paragraph (1) of Law Number 10 of 1995 on Customs as amended by Law Number 17 of 2006, such as goods for research and scientific purposes, goods for international bodies and their officials who work in Indonesia, goods and materials for the establishment and development of industry for a specified period of time;
2. apparel for shipment in the maximum of 10 pieces and apparel which are personal belongings of aircraft passengers or crew members worth US$1,000 per person;
3. electronic products for shipment in the maximum of 2 units and electronic products which are personal belongings of aircraft passengers or crew members worth US$1,500 per person;
4. products other than apparel and personal belongings of aircraft passengers or crew members worth US$1,500 per person;
Tax & Trade
3 Amendment to Regulation on Importation of Certain Products - Cosmetics are Now Subject to Verification and Technical Inspection
5. products for the purpose of upstream oil and gas, geothermal and
other minerals and the energy sector;
6. products imported by producer importers used as capital goods and
raw materials related to the industry; and
7. temporary imported products.
IV. Implementation Issues
Considering this regulation was issued only more two months ago (became
effective on 30 September 2013), the Ministry of Trade as the issuer is still
socializing it, especially the introduction of the new airport and port. The
government, especially the governments of Aceh and Deli Serdang, still
needs to build up facilities and infrastructure to support Krueng Geukuh
seaport and Kuala Namu airport as new designated port of certain
products import. So, we may still see some hurdles in the actual
implementation of Permendag 61/2013.