IMPORT
LICENSING SYSTEM OF INDONESIA
QUESTIONS FROM THE United States to INDONESIA
The following communication, dated 7 May 2024,
is being circulated at the request of the delegation of the United States.
_______________
The
United States understands that on 10 March 2024, Indonesia began implementing a
new import licensing regulation MOT 36/2023 (amended by MOT 3/2024) as
well as implementing regulations MOI 1/2024 - MOI 6/2024[1]. The new
import licensing requirements apply to a range of products within over 3800 HS
codes.
·_
What objective is
Indonesia hoping to achieve through these import licensing requirements?
·_
Did Indonesia
carry out a public notice and comment period ahead of publication and
implementation of this measure? If so, please describe your process.
The United States understands
that importers are required to register through the INSW system, which has not
been functioning properly, and undergo a lengthy verification process in order
to apply for an import license. Indonesia also requires importers to submit certain
sensitive and business confidential data to even considering the application.
·_
Considering that
the new import license application process is a computer-based system, has
there been thorough testing conducted to validate the functionality and
reliability of the computer systems before the implementation?
·_
Please provide an
estimated time of the overall process to obtain an import license?
·_
Please explain
why Indonesia requires sensitive and confidential information[2] as a precondition
to apply for Pertek (technical consideration) and
processing of import approvals.
The United States understands
that Indonesia also introduced a quota system for products causing great
uncertainty for importers.
·_
Please explain a
rationale for establishing quota;
·_
Please explain
who sets the overall quota and how the quota is determined for a particular
product.
Indonesia did not notify MOT
36/2023 or its implementing regulations in accordance with Article 5 of
the Agreement on Import Licensing Procedures.
·_
Please explain
when Indonesia will notify this measure to the Committee on Import Licensing.
Considering the broad scope of MOT 36/2023 impacting
a large number of products, challenges with the system, concerns with data
collection, uncertainty with import allocation and the lack of transparency,
the United States asks Indonesia to delay its implementation for at least 12
months until Members and stakeholders have a better understanding of
Indonesia’s new requirements.
__________
[1] MoI Regulation No. 1/2024 on procedures for the import of iron or steel, steel alloys, and
derivative products
MoI Regulation No. 4/2024 on procedures for the import of traditional
medicine, health supplements, cosmetics and household health supplies
MoI Regulation No. 5/2024 on procedures for the import of textiles,
textile products, bags and footwear
MoI Regulation No. 6/2024 on procedures for the import of electronic
products
MoI Regulation No. 7/2024 on procedures for the import of valves and
other machinery
MoI Regulation No. 8/2024 on procedures for the import of certain
upstream chemical industry commodities.
[2] Few examples include importers' flow chart of production processes; raw materials, including
details on Sales Order System (SOS) inventory; proof of contract with end-users,
details on distributors and sales order; SNI-compliant certificate; trademark
certificates from the Ministry of Law and Human Rights; proof of license
agreement recordation with the Ministry of Law and Human Rights.