Minister of Industry Allows Import of Second-hand Capital Goods

Minister of Industry to Allow Import of Second-hand Capital Goods

In order to make it as a capital for business to produce something, still usable, or to be reconditioned, remanufactured, Minister of Industry Saleh Husin allowed import of second-hand capital goods as long as theymeet the requirements.

The requirements is written in Minister of Industry Regulation Number 14 of 2016 on Technical Criteria of Second-hand Capital Goods Import, signed by Minister of Industry Saleh Husin on 23 February 2016 and has been promulgated by Director General of Laws and Regulations of Ministry of Laws and Human Rights, Widodo Ekatjahjana, on 25 February 2016.

“This regulation is issued as a follow-up of Minister of Trade Regulation Number 127 of 2015 on Provisions of Second-hand Capital Goods Import,” said the press release of the Ministry of Industry, yesterday.

Minister Saleh Husin said that capital goods means the goods used as capital for business or to produce something produce something, still usable, or to be reconditioned, remanufactured, as well as refurbished, and not for scrap. “Therefore, second-hand capital goods may only be imported  by direct user companies, reconditioning companies, as well as manufacturing companies,” he said.

Meanwhile, the list of second-hand capital goods that may be imported shall include the goods to be used in land transportation industry, maritime industry, electronics and telematics industries, as well as machinery industry. The list of capital goods classified based on Harmonized System (HZ), has been attached in this Minister of Industry Regulation and can be downloaded in www.regulasi.kemenperin.go.id. “These capital goods have, among others, the following HS code: 84, 85, 87, 89, and 90,” the Minister said.

The Minister added that second-hand capital goods for land transportation industry, in particular, can be imported if the age is 15 years in maximum. “Moreover, import for generator and alternator shallbe given for export purpose only,” he said.

The Regulation also mentions that the companies allowed to import second-hand capital goods shall, among others, have industrial business license, company profile, plan and reason to use second-hand capital goods, machinery and equipment facilities that in line with the type of production, warranty, and competent human resources.

Moreover, direct user companies that include in machinery industry group and have started their production are obliged to have production report forthe last two years. Meanwhile, direct user companies that include in maritime industry group must also have builder certificate and gross tonnage certificate.

“The copies of these requirements shall be submitted to Ministry of Trade when applying for import approval,” Minister Saleh said.

The report must also be completed with technical consideration from Director General of Metal, Machinery, Transportation Equipment, and Electronic Industries. At the process of import approval issuance, the compulsory administrative requirements must be included in the report of of the surveyresults. This Regulation shall apply as of the date of its enactment, on 25 February 2016. (Biro Humas Kemenperin/EN) (MMB/YM/Naster)