Non-new capital goods
- Document symbol
- G/LIC/N/3/IDN/13
- Original language
- English
- Published on
- 18/03/2022
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The import licensing system for non-new capital goods is administered by Ministry of Trade and governed under the Regulation of Minister of Trade No. 118 year 2018 concerning the Provisions for Import of Non-New Capital Goods and the Regulation of Minister of Trade No. 76 year 2019 as its amendment. Both regulations are mandated by Article 47 of Law No. 7 Year 2014.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The required license is Import Approval. The licensing covers 260 products for direct-user company, 184 products for reconditioning company, and 20 products for remanufacturing company, each identified by 8-Digit HS Code, which is stipulated in the Annex of the Regulation of Minister of Trade No. 76 year 2019 and the Annex of the Regulation of Minister of Trade No. 118 year 2018.
Q3. The system applies to goods originating in and coming from which countries?
The licensing system applies to goods originating in and from all countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
This licensing system is not intended to restrict the quantity or value of imports. It is designed to improve the effectiveness of the import policy on non-new capital goods and to support the post-border survaillance on the import of non-new capital goods. Due to the latest provisions for import of non-new capital goods had been expired on 18 December 2018, it is necessary to set up the new regulation to govern the importation of non-new capital goods.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The import licensing system for non-new capital goods is governed under the Regulation of Minister of Trade No. 118 year 2018 and the Regulation of Minister of Trade No. 76 year 2019 as its amendment. The licensing system regulated in the regulation is statutorily required. Both regulations are available on:
MoT Regulation No.118/2018: http://jdih.kemendag.go.id/peraturan/detail/1748/2
MoT Regulation No.76/2019: http://jdih.kemendag.go.id/peraturan/download/1883/2
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
The Import Approval can be applied at any times prior to the importation.
Q7.b. Can a licence be granted immediately on request?
It cannot.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
No.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Import license is issued by Director General of Foreign Trade – Ministry of Trade.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
An application of Import Approval may only be refused under the ordinary criteria or when the application is incomplete or incorrect. Reasons for refusal will be advised and will be communicated to applicants electronically.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
The non-new capital goods which are stipulated in the annex of both regulations can be imported by direct-user company, reconditioning company, and remanufacturing company.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
In applying for Import Approval for Non-New Capital Goods, direct-user company shall submit written request to DG of Foreign Trade by attaching following documents:
- The valid NIB that applies as The Producer Importer Identity Number (API-P)
- Business permit
- Import Plan which covers type of goods, tariff/8-Digit HS Code, volume and unit of goods, country of origin, and destination port
- Class Certificate, Builder Certificate, Nationality, Certificate, and Tonnage Certificate
- Sufficiently sealed statement stating the correctness of documents
- Sufficiently sealed statement stating that BMTB included in Tariff Post/HS 8901.20 will be converted to storage vessels as listed in Annex IV of the Regulation
- Proof of replacement of the flag in the form of a national identity certificate and letter of temporary measurements issued by the ministry in charge of government affairs in the field of transportation, for BMTB which is included in Tariff Post/HS 89.
In applying for Import Approval for Non-New Capital Goods, reconditioning company shall submit written request to DG of Foreign Trade by attaching following documents:
- The valid NIB that applies as The Producer Importer Identity Number (API-P)
- Industrial Business permit for reconditioning industry or repair service or similar business permit
- The report of survey result in regard to technical feasibility of recondition and/or repair/recovery in accordance with technical guidelines from relevant Ministries
- Proof of reconditioning workshop possession
- Import Plan which covers type of goods, tariff/8-Digit HS Code, volume and unit of goods, country of origin, and destination port
In applying for Import Approval for Non-New Capital Goods, remanufacturing company shall submit written request to DG of Foreign Trade by attaching following documents:
- The valid NIB that applies as The Producer Importer Identity Number (API-P)
- Industrial Business Permit for remanufacturing industry
- Appointment letter from the brand holder company
- Proof of remanufacturing workshop possession
- The report of survey result in regard to technical feasibility of remanufacturing and/or repair/recovery business in accordance with technical guidelines from relevant Ministries
- Import Plan which covers type of goods, tariff/8-Digit HS Code, volume and unit of goods, country of origin, and destination port
Q11. What documents are required upon actual importation?
Importers are required to prepare:
(a) Import Declaration.
(b) The importers should attach a copy of import approval for custom clearance purposes.
(c) Surveyor Report.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
No.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
No.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The validity period of the import approval is at the maximum for 1 (one) year. The import approval can be extended 1 (one) time for a maximum period of 60 (sixty) days. The request for the extension shall be submit to Director General of Foreign Trade – Ministry of Trade at latest 30 (thirty) days before the expired date of import approval.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
No.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No. The Import Approval is not transferable.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
No.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
The report of survey result for both reconditioning company and remanufacturing company.