THE MINISTER OF INDUSTRY AND TRADE,
No. 14/MPP/SK/I/1996

ON
GOODS SUBJECT TO THE IMPORT TRADE SYSTEM

THE MINISTER OF INDUSTRY AND TRADE,

Considering :

• a. that with the issuance of Government Regulation No. 19/1994 on the management of hazardous and toxic waste as already amended by Government Regulation No. 12/1995, it is necessary to adjust provisions on goods subject to the import trade control system so that they cover waste whose import is allowed and banned;
• b. that in connection with the above matter, with a view to ensuring smooth procurement of goods and business certainty as well as providing proper protection for domestic companies/industries, it is necessary to improve the provisions on goods subject to the import trade system.

In view of :

• 1. The East Indies Tariff Law of 1873 (Statute Book of 1873 No. 35) as already amended and supplemented;
• 2. The Customs Ordinance of 1931 (Statute Book of 1931 No. 471) as already several times amended;
• 3. The Trade Ordinance of 1934 (Statute Book of 1938 No. 86) as already several times amended and supplemented;
• 4. Law No. 7/1994 on ratification of the Agreement Establishing the World Trade Organisation (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3564);
• 5. Law No. 3/1982 on the obligation of corporate registration (Statute Book of 1982 No. 7, Supplement to Statute Book No. 3214);
• 6. Government Regulation No. 36/1977 on the termination of foreign business activities in trade (Statute Book of 1977 No. 60, Supplement to Statute Book No. 3113) as already amended by Government Regulation No. 19/1988 (Statute Book of 1988 No. 39, Supplement to Statute Book No. 3380);
• 7. Government Regulation No. 1/1982 on the realisation 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);
• 8. Government Regulation No. 19/1994 on the management of hazardous and toxic waste (Statute Book of 1994 No. 26, Supplement to Statute Book No. 3551) as already amended by Government Regulation No. 12/1995 (Statute Book of 1995 No. 29);
• 9. Presidential Decree No. 260/1967 on the definition of the task and responsibility of the Minister of Trade in the field of foreign trade;
• 10. Presidential Decree No. 5/1988 on the procurement of explosives, as already amended by Presidential Decree No. 86/1994;
• 11. Presidential Decree No. 18/1988 on lubricant supply and service as well as the handling of used lubricants;
• 12. Presidential Decree No. 61/1993 on ratification of the Basel Convention of the Control of Transboundary Movements of Hazardous Wastes and their Disposal;
• 13. Presidential Decree No. 96/M/1993 as already amended by Presidential Decree No. 388/M/1995;
• 14. Presidential Decree No. 103/1993 on the Board of Logistic Affairs;
• 15. Presidential Decree No. 77/1994 on the Agency for the Control of Impacts on the Environment;
• 16. Presidential Decree No. 2/1996 on the amendment of Presidential Decree No. 15/1984 on the organisational structures of ministries, as already twenty-five times amended the latest by Presidential Decree No. 61/1995;
• 17. The Decree of the Minister of Trade No. 1458/Kp/XII/84 on the trade licence (SIUP);
• 18. The Decree of the Minister of Trade No. 1460/Kp/XII/84 on the importer's identification number (API);
• 19. The Decree of the Minister of Trade No. 91/Kp/IV/92 on the trading of domestic
• 20. 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;
• 21. The Decree of the Minister of Industry and Trade No. 13/MPP/SK/I/1996 on general provisions in the import sector;
• 22. The Decree of the Minister of Industry and Trade No. 17/MPP/SK/I/1996 on the entry and release of goods into and from bonded zones;
• 23. The Decree of the Minister of Industry and Trade No. 18/MPP/SK/I/1996 on the entry and release of goods into and from export oriented production entrepots (EPTE);
• 24. 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;
• 25. 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 (SII.1820-88);
• 26. The Decree of the Minister of Industry No. 150/M/SK/III/1995 on the procedure for industrial business licensing;
• 27. 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;
• 28. 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;
• 29. The Decree of the Minister of Finance No. 220/KMK.01/1995 on the import of samples.

DECIDES :

To stipulate :

THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON GOODS SUBJECT TO THE IMPORT TRADE SYSTEM.

Article 1

Hereinafter referred to as :

• a. IU (general importers) shall be companies holding general importer's identification numbers (API-U) for the import of non-waste goods which are not subject to the import trade system.
• b. IU (general importers) of waste shall be general importers recognised by the Director General of International Trade and approved to import waste.
• c. IP (producer importers) shall be producer importers approved to import non-waste goods they need solely for their own production process.
• d. IP (producer importers) of B3 waste shall be producers recognised by the Minister of Industry and Trade and approved to import B3 waste they need solely for their own production process.
• e. IP (producer importers) of non-B3 waste shall be producers recognised by the Director General of International Trade and approved to import non-B3 waste they need solely for their own production process.
• f. IT (approved importers) shall be importers holding general importer's identification numbers (API-U) and assigned special tasks to import certain commodities according to government direction.
• g. 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.
• h. IT/AT shall be approved importers/sole agents as determined by the Minister of Industry and Trade.
• i. DAHANA shall be Dahana public corporation, which based on Presidential Decree No. 86/1994 is assigned to procure and distribute military explosives and industrial (commercial) explosives and/or their components in the entire territory of Indonesia.
• j. MNK (Multi Nitrotama Kimia) shall be the limited liability company which based on Presidential Decree No. 86/1994 is assigned to procure and distribute industrial (commercial) explosives and/or their components in the entire territory of Indonesia.
• k. 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.
• l. BULOG shall be the board of logistic affairs, which pursuant to Presidential Decree No. 103/1993 is assigned the task of maintaining the stability of prices of several basic necessities.
• m. BPPC (Clove Bufferstock 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 system of trading of domestically produced cloves.
• n. BAPEDAL (Agency for the Control of Impacts on the Environment) shall be the institute which based on Presidential Decree No. 77/1994 has the basic task of controlling impacts on the environment, covering the prevention and restriction of environmental pollution and damage, as well as the rehabilitation of environmental quality pursuant to the laws in force.

Article 2

(1) The companies appointed as approved importers (IT) for foods and beverages as contained in Attachment I to this decree 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 Industry and Trade.

Article 3

(1) The companies appointed as IT for:

• a. basic materials of milk for non-milk industries/factories shall be:
• 1. PT (Persero) Pantja Niaga;
• 2. PT (Persero) Kerta Niaga;
• b. basic materials of milk for milk processing industries shall be :
• 1. PT Nestle 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 realised 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 International Trade.

(3) Applications for the import of mil!; 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 DAHANA and PT Multi Nitrotama 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 realised by the IT as meant in paragraph (1) of this article shall obtain prior approval from the Director General of International 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 ISO.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 Chemical Industries.

(3) The import of motor vehicles in CBU condition whose types and trade marks have been domestically produced shall be realised 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 and Trade.

(5) The import of motor vehicles in CBU condition whose types and trade marks are not yet domestically produced shall only be realised by approved importers/sole agents (IT/AT).

Article 7

(1) In order to be approved as IU of waste, the relevant companies shall file applications to the Director General of International Trade, by attaching :

• a. trade licences (SIUP);
• b. general importer's identification numbers (API-U);
• c. corporate registration certificates (TDP);
• d. taxpayer code numbers (NPWP);
• e. evidence of ownership/control of storage warehouses approved by relevant technical ministries/non departmental government agencies.

(2) The models of approval of IU of waste as well as import reports shall be as contained in Attachments II and III to this decree.

Article 8

(1) In order to be approved as IP (producer importers), the relevant companies shall file applications to the Director General of International Trade, by attaching:

• a. industrial business licences/industrial registration certificates or similar documents from relevant technical ministries /non departmental government agencies.
• b. producer importer's identification numbers (API-P) or limited importer's identification numbers (APIT);
• c. corporate registration certificates (TDP);
• d. taxpayer code numbers (NPWP).

(2) In order to be approved as IP of B3 waste and IP of non-B3 waste, the relevant companies shall file applications to:

• a. the Minister of Industry and Trade, in the case of B3 waste;
• b. the Director General of International Trade, in the case of non-B3 waste;

by attaching the documents as referred to in paragraph (1) of this article plus the following:

• (a) evidence of ownership of waste and waste residue management installations including storage warehouses approved by:
• i. BAPEDAL, in the case of B3 waste;
• ii. relevant technical ministries/non departmental government agencies, in the case of non-B3 waste;
• (b) recommendations from relevant technical ministries/non departmental government agencies that the producers concerned need waste for their process of production.

(3) The models of approval of IP of goods subject to the import trade system as well as import reports shall be as contained in Attachments IV and V.

(4) The models of approval of IP of B3 waste and IP of non-B3 waste as well as import reports shall be as contained in Attachments VI, VII and III to this decree.

Article 9

Approval or rejection of the applications as meant in Article 7 paragraph (1) and Article 8 paragraphs (1) and (2) shall be decided upon within 7 (seven) working days as from the receipt of complete and correct application documents.

Article 10

(1) The quantities and types of non-waste goods which can be imported by IP shall be stipulated by the Director General of International Trade.

(2) The quantities and types of waste which can be imported by IU of waste per annum shall be stipulated by the Director General of International Trade.

(3) The quantities and types of waste which can be imported by IP of B3 waste per annum shall be stipulated by the Minister of Industry and Trade after consultation with the Head of BAPEDAL.

(4) The quantities and types of waste which can be imported by IP of non-B3 waste per annum shall be stipulated by the Director General of International Trade.

Article 11

The companies already approved as IP shall submit import reports to the Director General of International Trade and relevant technical agencies every 6 (six) months as from the granting of approval of IP.

Article 12

(1) The import of waste containing hazardous and toxic materials as stipulated in Government Regulation No. 19/1994 as already amended by Government Regulation No. 12/1995, except waste and scrap of primary cells, primary batteries, used electric accumulators under HS 8548.10.000 and waste and scrap of lead under HS 7802.00.000, shall be prohibited.

(2) Exeptions to the ban on the import of waste containing hazardous and toxic materials as meant in paragraph (1) of this article shall be determined by the Minister of Industry and Trade after consultation with the Minister of Industry and the Head of BAPEDAL.

(3) The import of other non-B3 waste excluded from Attachment I to this decree shall be further stipulated by the Minister of Industry and Trade.

Article 13

(1) Excepted from the import trade system 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 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 licences of the PPDKB or EPTE;
• e. goods and/or materials entering bonded zones for piling, storage, placing or packaging.

(2) The provision as meant in paragraph (1) of this article shall not apply to goods subject to import bans, motor vehicles as personal effects and waste.

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

• a. as meant in Article 23 of the Customs Ordinance of 1931;
• 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. 220/KMK.01/1995;
• 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 14

With the issuance of this decree, seven tariff headings are exempted from the import trade system (IU) so that the goods subject to the Import trade system involve 201 tariff headings and two categories of waste/elements, as contained in Attachment I to this decree.

Article 15

(1) 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.

(2) The approval of IP granted to import goods exempted from the import trade system under this decree, shall be declared ineffective.

Article 16

Any violation of the provisions in this decree and its implementation rules shall be liable to revocation or freezing of importer's identification numbers (API), of approval of producer importers, producer importers of waste, general importers of waste, or of appointment of approved importers.

Article 17

With the enforcement of this decree, the Decree of the Minister of Trade No. 155/Kp/VII/95 on goods subject to trade regulations, shall be declared null and avoid.

Article 18

This decree shall come into force as from the date of stipulation.

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

Stipulated in Jakarta
On January 25, 1996
THE MINISTER OF INDUSTRY AND TRADE,
sgd
T. ARIWIBOWO

Attachment I

Attachment II (II, III, IV, V, VI, VII)