REGULATION OF THE MINISTER OF TRADE
NUMBER 54/M-DAG/PER/10/2009

CONCERNING
GENERAL PROVISIONS IN IMPORT

BY GRACE OF THE ALMIGHTY GOD,
THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA,

Considering:

• a. that imports trading activities are conducted not only because of the open market economy system that allows the import to continue but also because of the policy to meet the need for goods that cannot yet be produced domestically either in the interests of national industries or public consumption;
• b. that the rapid globalization and international trade liberalization which have on one hand encouraged the increasingly open global market while on the other hand they have led to the increasingly fiercer market competition, have had an impact on Indonesia's imports which will in the end disrupt the national economic development;
• c. that to protect the national economic development against the negative impact of the global market, improve the living standards of producer farmers, and encourage the creation of a fair domestic trade and market as well as a conducive business climate, efforts are needed to ensure orderly import activities by revising import regulations to make them more transparent, effective, efficient and sustainable;
• d. that based on the considerations in paragraph a, b and c, it is necessary to stipulate a Regulation of the Minister of Trade;

In view of:

• 1. Trade Ordinance of 1934 (Statute Book of 1938 No. 86);
• 2. Law No. 8/1962 concerning Trade in Goods Under Surveillance (Statute Book No. 42/1962, Supplement to Statute Book No. 2469);
• 3. Law No. 3/1982 concerning Company Compulsory Registration (Statute Book No. 7/1982, Supplement to Statute Book No. 3214);
• 4. Law No. 5/1984 concerning Industry (Statute Book No. 22/1984, Supplement to Statute Book No. 3274);
• 5. Law No. 16/1992 concerning Animal, Fish and Plant Quarantine (Statute Book No. 56/1992, Supplement to Statute Book No. 3482);
• 6. Law No. 23/1992 concerning Health (Statute Book No. 100/1992, Supplement to Statute Book No. 3482);
• 7. Law No. 7/1994 concerning the Ratification of Agreement Establishing The World Trade Organization (Statute Book No. 57/1994, Supplement to Statute Book No. 3564);
• 8. Law No. 10/1995 concerning Customs (Statute Book No. 75/1995, Supplement to Statute Book No. 3612) that is amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);
• 9. Law No. 7/1996 concerning Food (Statute Book No. 99/1996, Supplement to Statute Book No. 3656);
• 10. Law No. 23/1997 concerning Environmental Management (Statute Book of 1997 No 68, Supplement to Statute Book No. 3699);
• 11. Law No. 5/1999 concerning Ban on Monopoly and Unfair Business Competition (Statute Book No. 33/1999, Supplement to Statute Book No. 3806);
• 12. Law No. 8/1999 concerning Consumer Protection (Statute Book No. 42/1999, Supplement to Statute Book No. 3821);
• 13. Law No. 15/2001 concerning Brands (Statute Book No. 110/2001, Supplement to Statute Book No. 4131);
• 14. Law No. 3/2002 concerning State Defense (Statute Book No. 3/2002, Supplement to Statute Book No. 4169);
• 15. Law No. 19/2002 concerning Copy Rights (Statute Book No. 85/2002, Supplement to Statute Book No. 4220);
• 16. Law No. 32/2004 concerning Regional Government (Statute Book No. 125/2004, Supplement to Statute Book No. 4437) that is Amended by Law No. 8/2005 (Statute Book No. 108/2005, Supplement to Statute Book No. 4548);
• 17. Law No. 25/2007 concerning Investment (Statute Book No. 67/2007, Supplement .to Statute Book No. 4724);
• 18. Government Regulation No. 102/2000 concerning National Standardization (Statute Book No. 199/2000, Supplement to Statute Book No. 4020);
• 19. Government Regulation No, 38 of 2007 concerning the Sharing of Government Affairs between the Government, Provincial Governments and Regency/Municipal Governments (Statute Book No. 82/2007, Supplement to Statute Book No. 4737);
• 20. Government Regulation No. 32/2009 concerning Bonded Hoarding Place (Statute Book No. 61/2009, Supplement to Statute Book No. 4998);
• 21. Presidential Decision No. 260/1967 concerning the Affirmation of Tasks and Responsibilities of the Minister of Trade in the Field of Foreign Trade;
• 22. Presidential Decision No. 187/M/2004 concerning the Formation of United Indonesia Cabinet as has been several times amended the latest by Presidential Decision No. 171/M/2005;
• 23. Presidential Regulation No. 9/2005 concerning the Position, Task, Function, Organizational Structure and Work Mechanism of State Ministries of the Republic of Indonesia that is several times amended the latest by Presidential Regulation No. 20/2008;
• 24. Presidential Regulation No. 10/2005 concerning the Organizational Unit and Task of First Echelon Officials of State Ministries of the Republic of Indonesia that is several times amended the latest by Presidential Regulation No. 50/2008;
• 25. Regulation of the Minister of Trade No. 01/M-DAG/PER/3/2005 concerning the Organizational Structure and Work Mechanism of the Trade Ministry of the Republic of Indonesia that is several times amended the latest by Regulation of the Minister of Trade No. 24/M-DAG/PER/6/2009;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING GENERAL PROVISIONS IN IMPORT.

Article 1

In this Ministerial Regulation:

• 1. "Import" refers to the act of taking goods into the customs area.
• 2. "Goods" refers to any article, tangible or intangible, movable or not movable, spendable or not spendable, that can be traded, used, consumed or utilized.
• 3. "Importer" refers to an individual or corporate body, either legal entity or non legal entity, that conducts import.
• 4. "Importer‘s Identity Number" hereinafter abbreviates as API, refers to importer's identification sign.
• 5. "Import regulations" refers to the regulations on import activities specially governed by the Minister.
• 6. "Minister" refers to the minister whose tasks and responsibilities cover the trade sector.

Article 2

The authority to set trade policies in the import sector shall rest with the Minister.

Article 3

(1) Import can only be done by importers holding API.

(2) Certain importers can conduct import without having to hold API based on the considerations and reasons set by the Minister.

(3) Provisions on and procedures of holding API for importers that will conduct the import as described in paragraph (1) and provisions on import without having to hold API as described in paragraph (2.) are to be set forth in a Ministerial Regulation.

Article 4

(1) The authority to issue API rests with the Minister.

(2) The authority to issue API as described in paragraph (1) can be delegated to other government agencies and/or regional government agencies handling the trade sector.

Article 5

In addition to the obligation to hold API as described in Article 3 paragraph (1) and exemption from the obligation to hold API as described in Article 3 paragraph (2), the importer that will conduct import shall meet other provisions set based on laws and regulations.

Article 6

(1) Imported goods shall be in new condition.

(2) In certain case the Minister can declare imported goods not news based on:

• a. the laws and regulations;
• b. the authority of the Minister; and/or
• c. proposal or technical considerations from other government agencies.

Article 7

(1) The import of certain goods may be governed in a separate import regulation, except the import of goods strongly prohibited based on the laws and regulations.

(2) Regulation on the import of certain goods as described in paragraph (1) shall be set based on and within the framework of:

• a. security protection;
• b. consumer safety protection;
• c. health protection related to the life of human beings, animals and plants;
• d. environmental protection;
• e. intellectual property rights protection;
• f. social, cultural and public moral protection;
• g. protection of other national economic development interests, including the efforts to improve the living standards of farmers, and create fair domestic trade and market as well as a conducive business climate; and/or
• h. the implementation of the law and regulation.

(3) Regulation on the import of certain goods as described in paragraph (1) shall be set forth in a Ministerial Regulation according to the authority of the minister and/or based on proposal and/or technical considerations from other government agencies.

Article 8

(1) Regulation on the import of certain goods as described in Article 7 shall be implemented through the following mechanism:

• a. recognition as an importer of certain goods conducting import to meet own needs;
• b. appointment of importer of certain goods conducting imports for the purpose of trade and/or transfer to other parties;
• c. import approval; and/or
• d. technical verification or trace on imports.

(2) Provisions and requirements for the importer of certain goods to obtain recognition, appointment, import approval and/or to conduct technical verification or trace on import as described in paragraph (1) are to be set forth in a Ministerial Regulation.

(3) The Minister shall appoint surveyor to conduct technical verification or trace on import as described in paragraph (1) d.

Article 9

(1) The process of issuing recognition, appointment, import approval and/or of conducting technical verification or trace on import as described in Article 8 paragraph (1) shall follow the standard operating procedure and service level agreement.

(2) The process of issuing recognition, appointment, import approval and/or of conducting technical verification or trace on import as described in paragraph (1) is to be set forth in a Ministerial Regulation.

Article 10

(1) Goods imported to the bonded hoarding place or goods of import origin released from the bonded hoarding place to other place in the customs area may be subject to import regulations.

(2) The application of import regulation as described in paragraph (1) is to be set forth in a Ministerial Regulation.

Article 11

(1) Import to certain areas and/or import conducted by certain importers declared receiving special treatment or facilities based on the laws and regulations may be exempted from the import regulations as described in Article 7 and Article 8.

(2) The implementation of provisions in paragraph (1) shall be separately governed or stipulated by the Minister or stipulated by the Minister based on proposals and/or technical considerations from other government agencies.

(3) Ban on import based on the laws and regulations shall remain valid for import to certain areas and/or import conducted by certain importers as described in paragraph (1).

Article 12

Importers violating provisions in Article 3 and Article 6 shall be liable to sanction by having their:

• a. API frozen or revoked; and/or
• b. recognition, appointment and/or import approval as described in Article 8 paragraph (1) frozen or revoked.

Article 13

When this Ministerial Regulation begins to take effect:

• 1. Decision of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 concerning General Provisions in Import shall be declared null and void; and
• 2. Decision of the Minister of Industry and Trade and Regulation of the Minister of Trade in the import sector shall remain valid so long as they do not contradict this Ministerial Regulation.

Article 14

This Ministerial Regulation shall come into force as from the date of stipulation,

For public cognizance, this Ministerial Regulation shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on October 9, 2009
THE MINISTER OF TRADE,
signed,
MARI ELKA PANGESTU