DECREE OF THE MINISTER OF TRADE
No. 89/Kp/V/1995

GOODS SUBJECT TO IMPORT TRADE REGULATIONS

THE MINISTER OF TRADE,

Considering :

• a. that with the issuance of Law No.7/1994 on ratification of the Agreement Establishing the World Trade Organization, it is necessary to adjust provisions on imports;
• b. that in connection with the above matter and with a view to ensuring smooth procurement of goods and busi.ness certainty as well as providing proper protection for the domestic industry, it is deemed necessary to improve the composition of goods subject to import trade regulations.

In view of :

• a. The Customs Ordinance of 1931 (Statute Book of 1931 No.471) as already several times amended;
• b. Law No.7/1994 on ratification of the Agreement Establishing the World Trade Organization (Statute Book of 1994 No.57, Supplement to Statute Book No.3564);
• c. Government Regulation No.36/1977 on the termination of foreign business activities in trade;
• d. Government Regulation No.1/1982 on the realization of exports, imports and the flow of foreign exchange (Statute Book of 1982 No.1, Supplement to Statute Book No.3210) as already amended by Government Regulation No.24/1985 (Statute Book of 1985 No.33, Supplement to Statute Book No.3291);
• e. Government Regulation No.19/1988 on the amendment of Government Regulation No.36/1977 on the termi.nation of foreign business activities in trade;
• f. Presidential Decree No.260/1967 on the definition of the task and responsibility of the Minister of Trade in the field of foreign trade;
• g. Presidential Decree No.15/1984 on the organizational structures of ministries, as already several times amended the latest by Presidential Decree No.14/1994;
• h. Presidential Decree No.5/1988 on the procurement of explosives;
• i. Presidential Decree No.18/1988 on lubricant supply and service as well as the handling of used lubricants;
• j. Presidential Decree No.96/M/1993 on the establishment of the Sixth Development Cabinet;
• k. Presidential Decree No.103/1993 on the Board of Logistic Affairs;
• l. Presidential Decree No.86/1994 on the amendment of Presidential Decree No.5/1988 on the procurement of explosives;
• m. The Decree of the Minister of Trade and Cooperatives No.28/Kp/I/82 on general provisions in the import sector;
• n. The Decree of the Minister of Trade No.1460/Kp/XII/84 on the importer's identification number (API);
• o. The Decree of the Minister of Industry No.428/M/SK/12/1987 on the simplification of provisions concerning the approval and reduction of approval of sole agents of motor vehicles and heavy equipment as well as sole agents of electronic equipment and household electric appliances;
• p. The Decree of the Minister of Finance No.29/KMK.00/1989 on the import of samples;
• q. The Decree of the Minister of Industry No.84/M/SK/8/1990 on the compulsory application of Indonesian Industrial Standards to motor vehicle identification numbers (S11.1820-88);
• r. The Decree of the Minister of Trade No.91/Kp/IV/92 on the trading of domestic cloves;
• s. The Decree of the Minister of Trade No.326/Kp/XI/93 on the import of motor vehicles in CBU condition based on Government Regulation No. 19/1955 and Government Regulation No.8/1957;
• t. The Decree of the Minister of Trade No.127/Kp/VI/94 on the entry and release of goods into and from export oriented production entrepots (EPTE);
• u. The Decree of the Minister of Trade No.128/Kp/VI/94 on the entry and release of goods into and from bonded zones;
• v. The Decree of the Minister of Finance No.288/KMK.01/1994 on the improvement of classification of and the change of import duty rates on certain heavy duty equipment;
• w. The Decree of the Minister of Finance No.526/KMK.01/1994 on the improvement of classification of and the change of import duty rates on certain goods.

DECIDES :

To revoke :

The Decree of the Minister of Trade No.132/Kp/Vl/94 dated June 28, 1994 on goods subject to import regula.tions.

To stipulate :

THE DECREE OF THE MINISTER OF TRADE ON GOODS SUBJECT TO IMPORT TRADE REGULA.TIONS.

Article 1

Hereinafter referred to as :

• a. IT (approved importers) shall be holders of general importer's identification numbers (API) assigned special tasks to import certain commodities according to government direction.
• b. IP (producer importers) shall be producers approved to import goods they need solely for their own produc.tion process.
• c. AT (sole agents) shall be companies holding letters of approval of sole agents pursuant to the Decree of the Minister of Industry No.428/M/SK/12/1987 on the simplification of provisions concerning the approval and reduction of approval of sole agents of motor vehicles and heavy duty equipment as well as sole agents of electronic equipment and household electric appliances, along with its amendments.
• d. IU (general importers) shall be holders of general importer's identification numbers (API) for the import of goods into the territory of Indonesia.
• e. IT/AT shall be approved importers/sole agents as determined by the Minister of Trade with the suggestions of the Minister of Industry.
• f. DAHANA shall be Dahana public corporation based on Presidential Decree No.86/1994, which is assigned to procure and distribute military explosives and industrial (commercial) explosives and/or their in the entire terri.tory of Indonesia.
• g. MNK (Multi Nitrotama Kimia) shall be the limited liability company which pursuant to Presidential Decree No.86/1994 is assigned to procure and distribute particularly industrial (commercial) explosives and/or their components in the entire territory of Indonesia.
• h. PERTAMINA shall be the state oil and gas mining corporation, which pursuant to Presidential Decree No.18/1988 is assigned to make available and serve the domestic need for petroleum based lubricants.
• i. BULOG shall be the board which pursuant to Presidential Decree No.103/1993 is assigned the task of main.taining the stability of prices of several basic necessities.
• j. BPPC (Clove Buffer Stock and Marketing Agency) shall be the agency/institute which according to the Decree of the Minister of Trade No.91/Kp/IV/92 is assigned to implement the clove trade system.

Article 2

(1) The companies appointed as approved importers (IT) for foods and beverages shall be :

• a. PT (Persero) Rajawali Nusantara Indonesia;
• b. PT (Persero) Tjipta Niaga.

(2) The quantities and types of foods and beverages that can be imported by the IT as meant in paragraph (1) of this article shall be stipulated by the Minister of Trade.

Article 3

(1) The companies appointed as IT for :

• a. basic materials of milk for non-milk industries/factories shall be PT (Persero) Pantja Niaga;
• b. basic materials of milk for milk processing industries shall be :
• 1. PT Food Specialities Indonesia;
• 2. PT Indomilk;
• 3. PT Friesche Vlag Indonesia;
• 4. PT Foremost Indonesia;
• 5. PT Ultra Jaya;
• 6. PT Dafa;
• 7. PT Sari Husada;
• 8. PT Mirota;
• 9. PT Nutricia Indonesia;
• 10. PT Sugizindo.
• c. finished milk products shall be :
• 1. PT (Persero) Pantja Niaga;
• 2. PT (Persero) Kerta Niaga.

(2) Any import realized by the IT as meant in paragraph (1) points a, b and c of this article shall obtain prior approval from the Director General of Foreign Trade, Ministry of Trade.

(3) Applications for the import of milk basic materials as meant in paragraph (1) points a and b of this article shall attach documents as evidence of absorption of domestic fresh milk according to the effective ratio.

(4) The finished milk products that can be imported as meant in paragraph (1) point c of this article shall be those whose trade marks and types are registered at the Ministry of Health.

Article 4

The companies appointed as IT for ammonium nitrate shall be PT (Persero) Dahana and PT Multi Nitro.tama Kimia.

Article 5

(1) The companies appointed as IT for certain other goods shall be:

• a. PT (Persero) Dharma Niaga;
• b. PT (Persero) Kerta Niaga;
• c. PT (Persero) Mega Eltra;
• d. PT (Persero) Pantja Niaga;
• e. PT (Persero) Sarinah;
• f. PT (Persero) Tjipta Niaga.

(2) Any import realized by the IT as meant in paragraph (1) of this article shall obtain prior approval from the Director General of Foreign Trade, Ministry of Trade.

Article 6

(1) Motor vehicles in completely built up (CBU) condition to be imported shall be subject to the application of SNI No.1411-89-A or IS0.3779-77 and 3780-76 on vehicle identification numbers (VIN).

(2) All types and trade marks of motor vehicles in CBU condition to be imported shall be those already registered at the Directorate General of Metal, Machine and Electronic Industries, Ministry of Industry.

(3) The import of motor vehicles in CBU condition whose types and trade marks have been domestically pro.duced shall be realized by general importers (IU) without certificates of non objection from trade mark holder sole agents.

(4) The types and trade marks already domestically produced as meant in paragraph (3) of this article shall be determined by the Minister of Industry.

(5) The import of motor vehicles in CBU condition whose types and trade marks are not yet domestically pro.duced shall only be realized by approved importers/sole agents (IT/AT) as meant in Article 1 point e of this decree.

Article 7

(1) In order to be approved as IP (producer importers) as meant in Article 1 point b of this decree, the relevant companies shall file applications to the Director General of Foreign Trade, Ministry of Trade, by attaching :

• a. fixed /provisional business licenses or similar licenses from technical ministries concerned with relevant business lines;
• b. producer's or limited API/provisional API;
• c. corporate registration certificates (TDP);
• d. taxpayer code numbers (NPWP).

(2) The companies submitting applications for approval as IP as meant in paragraph (1) of this article shall not be required to obtain recommendations from relevant technical agencies.

(3) Approval or rejection of the applications as meant in paragraph (1) of this article shall be decided upon within 7 (seven) working days as from the receipt of complete and correct application documents.

(4) The quantities and types of goods that can be imported by IP shall be stipulated by the Director General of Foreign Trade, Ministry of Trade.

(5) The companies already approved as IP shall submit reports as evidence of import realization to the Director General of Foreign Trade, Ministry of Trade, and the Directors General of relevant technical ministries every 6 (six) months as from the granting of approval of IP.

(6) The models and contents of approval of IP as well as reports shall be as contained in Attachments II and III to this decree.

Article 8

(1) Excepted from the import trade regulations as stipulated in this decree shall be:

• a. personal effects;
• b. goods granted by other countries/aid agencies to the government of Indonesia;
• c. goods which are financed with foreign aid to the government of Indonesia;
• d. goods and/or materials entering manufacturing companies in bonded zones (PPDKB) or export oriented production entrepots (EPTE) for further processing into manufactures according to industrial licenses of the PPDKB or EPTE;
• e. goods and/or materials entering bonded zones for piling, storage,' placing or packaging.

(2) The exception from import trade regulations for the goods as meant in paragraph (1) of this article shall ex.clude goods subject to import bans and motor vehicles as personal effects.

(3) Exceptions to the import trade regulations as stipulated in this decree can also be granted with the approval of the Director General of Foreign Trade, Ministry of Trade, or authorized officials, for the import of goods :

• a. as meant in Article 23 of the Customs Ordinance;
• b. for the purpose of scientific and technological research and development;
• c. for the purpose of grants and other social aid not meant for resale;
• d. as reimports after overseas repair, previously being indeed of import origin;
• e. for samples pursuant to the Decree of the Minister of Finance No.29/KMK.00/1989;
• f. for the motor vehicles of foreign ambassadors, foreign diplomatic missions and international agencies pursuant to the Decree of the Minister of Trade No.326/Kp/XI/93.

Article 9

The import of goods subject to this decree whose L/Cs or RIBs bear the date of stipulation of this decree or a previous date, can be realized on the following conditions :

• a. the goods concerned shall arrive at Indonesian ports of destination not later than 3 (three) months starting from the date of this decree;
• b. exceptions to the provision in point a. above shall only be granted by the Director General of Foreign Trade, Ministry of Trade.

Article 10

With the enforcement of this decree:

• a. 81 tariff headings are exempted from import trade regulations;
• b. it is confirmed that 1 tariff heading is not subject to import trade regulations;
• c. 189 tariff headings are subject to trade regulations.

Article 11

Except for the tariff headings exempted from import trade regulations, with the enforcement of this decree the approval of producer importers (IP) granted before the issuance of this decree shall remain valid as long as the companies concerned are still engaged in their business activities.

Article 12

Any violation of the provisions in this decree and its implementation rules shall be liable to revocation or freezing of the importer's identification number (API) or approval of producer importers or appointment of ap.proved importers.

Article 13

Other matters which are not yet sufficiently regulated in this decree shall be further stipulated.

Article 14

This decree shall come into force as from the date of stipulation and proper improvements shall be intro.duced in the case of errors being discovered in this decree.

For public cognizance, this decree shall be announced by publishing it in the State Gazette of the Repub.lic of Indonesia.

Stipulated in Jakarta,
On May 23, 1995

THE MINISTER OF TRADE,
sgd
S.B. JOEDONO

Attachment
The Minister of Trade No. 89/Kp/V/95
Date : May 23, 1995