In 2023, the Minister of Trade (“Minister”) issued Regulation No. 36 of 2023 on Import Policy and Provisions (“Regulation 36/2023”) which, as its title suggests, is currently serving as the most recent framework to address the applicable prerequisites and licenses required to engage in importation activities.[1] However, in an effort to further optimize the implementation of imports of certain goods, the Minister has now decided to issue Regulation No. 3 of 2024 on the Amendment to Regulation 36/2023 (“Amendment”), which has been in force since 10 March 2024.[2]

Upon the enforcement of the Amendment, the list of certain types of goods that will require permits for their importation and goods that are restricted terms of their importation, as originally outlined under the Appendices to Regulation 36/2023, can now be found in the updated lists of goods that are outlined under the Appendices to the Amendment.[3] Furthermore, the Amendment has now clarified that import sector business permits (“Import Permits”) that take the form of import approvals (Persetujuan Impor) for imports of manufactured goods as complementary goods for market testing purposes and aftersales services (collectively referred to as “Supporting Goods”) that were issued prior to the enforcement of the Amendment will remain valid until their relevant expiration dates.[4]

In this edition of Indonesian Legal Brief (“ILB”), we offer a concise analysis of the various matters that are addressed under the Amendment. However, due to the broad nature of the provisions set out therein, our discussion has been limited to the following topics:

1. Adjusted and Clarified Import-Permit Amendment and Extension Mechanisms;
2. Adjusted Procedures for Imports of Supporting Goods; and
3. Limitations on Imports via Hand-Carry Goods.

Adjusted and Clarified Import-Permit Amendment and Extension Mechanisms

While broadly speaking, the Amendment has introduced no significant changes to the applicable mechanism for the securing of Import Permits that was originally set out under Regulation 36/2023, the former framework has now clarified that amendments and/or extensions are available for issued Import Permits. The allowed amendments and/or extensions break down as follows:[5]

The Amendment states that if a given importer has only secured one import approval for imports of certain goods and said importer has secured an extension to the issued import approval, then the importer may secure a new import approval during the extension period.[6] In terms of the extension of import approvals, the Amendment has  now clarified that said extensions may only be granted in relation to goods that have already been loaded into transportation vessels and that are experiencing arrival delays as a result of the following conditions:[7]

It should be noted that the above-described delayed goods that are subject to the granting of import approval extensions should be outlined under the relevant Airway Bills (AWB) and/or Bills of Landing (B/L) documents that are enclosed as a part of the requirements for the securing of Import Permit extensions.[8] Moreover, it should also be noted that any importers who wish to amend their import approvals after the relevant import approvals and/or surveyors’ reports (which serve as complementary customs documents) have been examined by the Directorate-General of Customs-and-Excise at the Ministry of Finance (“Directorate-General”) are now required to submit the following documents:[9]

The Amendment has now clarified that surveyors’ reports that are utilized for the technical verification or examination of imports of certain goods may only be used for single shipments and/or single Customs Notifications. Moreover, said surveyors’ reports may only be used for one-time releases of certain goods from bonded storage areas (Tempat Penimbunan Berikat/TPB), free trade areas and free ports (Kawasan Perdagangan Bebas dan Pelabuhan Bebas/KPBPB) and special economic zones (Kawasan Ekonomi Khusus/KEK) (collectively referred to as “Special Areas”) into customs areas and single Customs Notifications if technical verifications or examinations are carried out within said Special Areas.[10]

Ultimately, the Amendment states that provisions on import approvals and/or surveyors’ reports will not be enforced in relation to margins of weights and/or volumes for bulk imports of certain goods (i.e. goods that do not exceed 0.5% of the weights and/or volumes outlined in the relevant Customs Notifications), based on examinations that are conducted by the Directorate-General.[11]

Adjusted Procedures for Imports of Supporting Goods

Newly featured under the Amendment, Supporting Goods that are classified as import-free goods and that are imported by holders of business license numbers (Nomor Induk Berusaha/NIB) that serve as manufacturer importer identification numbers (Angka Pengenal Importir – Produsen/API-P) within Special Areas are exempted from the obligation to have statement letters secured for them from the Director-General of Foreign Trade at the Ministry of Trade.[12] Moreover, as imports of Supporting Goods may only commence after import approvals have first been secured, the Amendment has now clarified that said Supporting Goods, including those that are restricted in terms of their importation, may also be subject to technical verifications or examinations.[13]

It should also be noted that imports of Supporting Goods that are restricted in terms of their importation within Special Areas and that are not classified as goods for the purpose of consumer protection, as well as goods that relate to security, safety, health and the environment, will be exempted from the obligation to have import approvals secured for them. In this regard, Supporting Goods that do meet the aforementioned criteria will still have to have import approvals secured for them. Said goods are comprehensively outlined under Appendix VII to the Amendment.[14]

Limitations on Imports via Hand-Carry Goods

In addition to the above matters, limits on the entry of non-commercial goods that comprise the personal belongings of passengers, transportation crews or border crossers (collectively referred to as “International Travelers”) who are traveling from overseas have now been set. Said limitations are comprehensively outlined under Appendix IV to the Amendment. In this regard, the following table highlights several of the hand-carry goods that are subject to limitations in terms of their importation into Indonesia by International Travelers:

Source : hukumonline.com