ANNOUNCEMENT 09 Nov 2016

On 9 November 2016, the Indonesian Ministry of Trade published regulation 77/M-DAG/PER/11/2016 on the importation of tires. According to its preamble, the regulation is meant to push the local tire industry and raise national competitiveness.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Indonesian Ministry of Trade regulation 77/M-DAG/PER/11/2016 (in Bahasa Indonesia)
http://jdih.kemendag.go.id/files/regulasi/2016/11/09/ketentuan-impor-ban-id-1480010137.pdf

Inception date: 01 Jan 2017 | Removal date: open ended
Still in force

Import licensing requirement

The regulation introduces new import licenses for tires. Importers utilizing the tires in the production process will require a 1-year API-P license and will not be allowed to sell them directly to consumers. In other cases, importers will require a 6-months API-U license. Despite the different lengths of the licenses, the importation itself has to occur within a 30 day period.

In order to obtain either of the licenses, importers will also need to provide detailed information inter alia on the planned usage/sale, ports of origin, and ports of entry. They will also require an approval from the Director General for Chemistry and Textiles at the Ministry of Industry.

AFFECTED SECTORS

 
Inception date: 01 Jan 2017 | Removal date: open ended
Still in force

Technical barrier to trade

The regulation also introduces a technical verification requirement at the port of loading before the tires enter Indonesia. The verification shall be conducted by a "Surveyor" (art. 11(2) of the regulation), meaning a specialist company selected by the Trade Ministry which has to have:

  • a survey services business licence;
  • be experienced as a surveyor for at least five years;
  • possess branches or affiliates overseas and has the necessary network to facilitate an effective surveying;
  • has good "track records" (art. 12).

Furthermore, during the verification, the surveyor shall check at least the following points:

  • country of origin and port of loading;
  • corresponding tariff line or HS code;
  • type and quantities;
  • amount;
  • time of shipping;
  • port of destination and
  • the conformity of the product certificate of usage with the National Indonesian Standard for tires with the original document of the goods. (art. 13(1))