IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: No inception date

Import-related non-tariff measure, nes

 On 29 June 2015, the Indonesian Trade Ministry published regulation 45/M-DAG/PER/6/2015 introducing further restrictions on the imports of tires.
With the new provisions, importers of tires specified in the annex of the regulation will be required to obtain specific licenses:

  • if the imported tires will be further used in the production process, a producer's licence (IP-Ban) will be required. The license will be valid for one year and during the application the importer shall inter alia present a recommendation from the Director General for Chemistry and Textiles at the Ministry of Industry.
  • if the imported tires will be sold or traded, a trading license (IT-Ban) will be required. The license will be valid for three years and during the application the importer shall inter alia provide proof on sufficient transport and storage capacities.

In general, an entity will not be allowed to obtain both licenses, thus prohibiting companies to import tires for both production and trading purposes. This particular restriction may be seen as a concrete example for the implementation of regulation 45/M-DAG/PER/9/2009, prohibiting companies from importing goods for both production and trading (cf. Related Measures).
In this particular regulation, IP-Ban holders may import tires for trading only in the case of market testing (art. 12 of regulation 45/M-DAG/PER/6/2015). Even then, the permission will be restricted to six years with a maximum prolongation of another six years.
Furthermore, the new provisions restrict the ports of entry for tires to one of five sea ports and to international airports (art. 16).
The regulation comes into force 3 months after its implementation, i.e. on 7 October 2015. It revokes the previous regulation on tires 40/M-DAG/PER/12/2011 (cf. Related Measures).
Similarly to the previous regulation, the technical inspection or verification (art. 17 of regulation 45/M-DAG/PER/6/2015) shall be conducted in the loading port.
Due to the unavailability of trade data in the UN COMTRADE database for the year 2014, the list of affected trading partners is based on 2013 volumes.
Update
On 29 September 2015, the Indonesian Ministry of Trade published regulation 78/M-DAG/PER/9/2015 scrapping the regulation at hand. Hence, these additional import restrictions on tires never went into force. Regulation 78/M-DAG/PER/9/2015 was part of the reform package announced by the Indonesian president on 9 September 2015.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

361 Rubber tyres & tubes
4011 New pneumatic tyres, of rubber.
401110 Of a kind used on motor cars (including station wagons and racing cars)
401120 Of a kind used on buses or lorries
401130 Of a kind used on aircraft
401140 Of a kind used on motorcycles
401150 Of a kind used on bicycles
401161 Of a kind used on agricultural or forestry vehicles and machines
401193 Of a kind used on construction or industrial handling vehicles and machines and having a rim size not exceeding 61 cm
401194 Of a kind used on construction or industrial handling vehicles and machines and having a rim size exceeding 61 cm
401199 Other
4013 Inner tubes, of rubber.
401310 Of a kind used on motor cars (including station wagons and racing cars), buses or lorries
401390 Other
491 Motor vehicles, trailers & semi-trailers; parts
8708 Parts and accessories of the motor vehicles of headings 87.01 to 87.05.
870810 Bumpers and parts thereof
870830 Brakes and servobrakes; parts thereof
870840 Gear boxes and parts thereof
870850 Driveaxles with differential, whether or not provided with other transmission components, and nondriving axles; parts thereof
870870 Road wheels and parts and accessories thereof
870880 Suspension systems and parts thereof (including shock absorbers)
870891 Radiators and parts thereof
870892 Silencers (mufflers) and exhaust pipes; parts thereof
870893 Clutches and parts thereof
870894 Steering wheels, steering columns and steering boxes; parts thereof
870895 Safety airbags with inflater system; parts thereof
870899 Other
492 Motor vehicle bodies; trailers & parts thereof
8708 Parts and accessories of the motor vehicles of headings 87.01 to 87.05.
870821 Safety seat belts
870829 Other

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