Trade Minister Issues Regulation to Reduce Consumer Goods Imports
Minister of Trade Agus Suparmanto has signed Minister of Trade Regulation Number 68 of 2020 on Provisions for the Import of Footwear, Electronics, Bicycle, and Tricycle.
The Regulation aims to reduce Indonesia’s imports of consumer goods. It was issued on 19 August 2020 and came into effect on 28 August 2020.
“In May-June 2020 there was an increase in imports of consumer goods by 50.64 percent. The products including tanks, food, and beverages, footwear, electronics, etc. There were also several items with growth value above 70 percent. Ministry of Trade needs to regulate imports of the products,” Minister of Trade explained.
The Regulation stipulates that there are three types of goods trade system with 11 HS (Harmonized System) code. The Regulation regulates rubber sole shoes with HS code 6404.11.10, 6404.11.20, 6404.11.90, 6404.19.00, and 6404.20.00, air conditioning machine with HS code 8415.10.10 and 8415.10.90, as well as bicycles and tricycles with HS code 8712.00.10, 8712.00.20, 8712.00.30, and 8712.00.90.
“Regulation of Minister of Trade Number 68 of 2020 requires business entities to get an Import Approval (PI) and Surveyor Report (LS) as the import requirements for the commodities. In addition, the monitoring mechanism has changed, from being carried out outside the customs area (post border) to being carried out in the customs area (border),” the Minister added.
The Regulation also stipulates ports that can be used as entry points, including Belawan port in Medan, Tanjung Priok port in Jakarta, Tanjung Emas port in Semarang, Tanjung Perak port in Surabaya, Soekarno-Hatta port in Makassar, Dumai port in Dumai, Jayapura port in Jayapura, Tarakan port in Tarakan, Krueng Geukuh port in North Aceh, Bitung port in Bitung, Merak Mas port in Cilegon, and Kuala Langsa port in Langsa.
The Regulation also stipulates that dry port that can be used is Cikarang dry port in Bekasi. For airports, the entry points are Kualanamu airport in Deli Serdang, Soekarno-Hatta airport in Tangerang, Ahmad Yani airport in Semarang, Juanda airport in Surabaya, and Hasanuddin airport in Makassar.
In the meantime, Director General of Foreign Trade of Ministry of Trade Didi Sumedi said that the Regulation also requires importers to submit reports on the implementation of their imports.
“The report can be submitted electronically no later than the 15th day every following month via website http://inatrade.kemendag.go.id page,” Didi explained.
The Surveyor Report for footwear that has been issued based on Regulation of Ministry of Trade Number 87/M-DAG/PER/10/2015, which has been amended several times, most recently by Regulation of Ministry of Trade Number 28/2020, is declared to remain valid until the completion of import by the importer.
In addition, the Surveyor Report for air conditioning machine that has been issued based on Regulation of Ministry of Trade Number 84/M-DAG/PER/10/2015, which has been amended several times, most recently by Regulation of Ministry of Trade Number 18/2018, is declared to remain valid until the completion of import by the importer.
Didi further said that imports of bicycle and tricycle that were shipped before the Minister of Trade Regulation came into force, proven by the date of the bill of lading, are exempted from the Regulation of Ministry of Trade. (Public Relations of Ministry of Trade/EN)
Translated by: Ridwan Ibadurrohman
Reviewed by: Mia Medyana