ANNOUNCEMENT 18 Feb 2009

In February 2009, the government of Indonesia announced a change in import formalities.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 18 Feb 2009 | Removal date: 31 Dec 2016
Still in force

Import-related non-tariff measure, nes

The "Provisions on Iron and Steel Importation" (Decree of the Minister of Trade No 08/M-DAG/PER/2/2009), announced on 18 February 2009, which expires on 31 December 2010, introduces new procedures for the import of iron and steel as follows:
 

      i. Registration of importers with Indonesia's Ministry of Trade: Under the decree, iron and steel imports may only be imported by Registered Importers (IP) or Producer Importers (IT) of Steel or Iron. This status is valid for 1 year and may be extended;

      ii. Pre-shipment import technical verification: This must be done by an independent state-appointed surveyor at the loading port. The import technical verification shall cover the type of goods, classification of goods, quantity, and port of destination; and

      iii. Submission of quarterly reports on the realisation of imports: The written reports must be submitted to Director-General of the Ministry of Trade via
http://inatrade.depdag.go.id
    . Repeated failure to abide by this article shall result in the revocation of the Registered Importers (IP) or Producer Importers (IT) of Steel or Iron status.

The regulation applies to 202 domestically produced steel products including Hot Rolled Coil (HRC), Hot Rolled Plate (HRP), Layered Sheet Iron, Welding Pipes, Wire Rods, and Coated-Steel Products. Some items excluded from the verification and import technical tracking regulation are: 

      a. Steel or iron imported by licensed importers (IPs) of steel or iron in the automotive industry, electronics industry, ship dock industry and their relevant components;

      b. Steel or iron imported that is already subjected to import verification based on the User Specific Duty Free Scheme (USDFS/BM-DTP); and

      c. Steel or iron imported for the industrial needs in Free Trade Zones, Free Ports and Bonded Zones.


Update 13 September 2012:

The revised Decree 21/2009 eliminates the requirement to submit a Goods Import Plan in the application by an importer-producer (IP) or an importer (IL) for importation of iron and steel products. Furthermore it enlisted the industries excluded from the scope of the Decree:

  1. the industries of automotive, electronics, ship building, heavy equipment and their components;
  2. importers in Priority Lane: user industry with SKVI (Industry Verification Reference Letter) through USDFS (User-Specific Duty Free Scheme), and the company owning SKVI through BM-DTP (Import Duty Paid by the Government; and
  3. contractors of Joint Operations in Oil & Gas and Mining, of development of power plants for public consumption, and operators of the development of Oil & Gas downstream for public services.

Decrees 8/2009 and 21/2009 were extended for two more years by Decree 54/2010 until 31 December 2012.
On 1 March 2012, the Minister of Trade prolonged the regulation until 31 December 2015 (see regulation No. 08/M-DAG/PER/2/2012).

Update 2 - 23 December 2015:
On 23 December 2015, the Indonesian Ministry of Trade issued regulation 113/M-DAG/PER/12/2015 further prologning the initial provisions until 31 December 2016.