WT/DS465/1, G/L/1037  
G/AG/GEN/112, G/LIC/D/45  
G/PSI/D/1  
9 September 2013  
(13-4703)  Page: 1/3  
  Original: English  
 
INDONESIA – IMPORTATION OF HORTICULTURAL PRODUCTS,  
ANIMALS AND ANIMAL PRODUCTS 
REQUEST FOR CONSULTATIONS BY THE UNITED STATES 
 The following communication, dated 30 Au gust 2013, from the delegation of the 
United States to the delegation of Indonesia and to the Chairperson of the Dispute Settlement 
Body, is circulated in accordance with Article 4.4 of the DSU. 
 
_______________ 
 
 
 My authorities have instructed me to request consultations with the Government of the 
Republic of Indonesia ("Indonesia") pursuant to Articles 1 and 4 of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes , Article XXII of the General Agreement on Tariffs 
and Trade 1994  ("GATT 1994"), Article 19 of the  Agreement on Agriculture  ("Agriculture 
Agreement"), Article 6 of the Agreement on Import Licensing Procedures  ("Import Licensing 
Agreement"), and Articles 7 and 8 of the Agreement on Preshipment Inspection   concerning certain 
measures imposed by Indonesia on the importation of horticultural products,1 animals, and animal 
products2 into Indonesia. 
  Indonesia subjects the importation of horticul tural products, animals, and animal products 
into Indonesia to non-automatic import licenses and quotas, thereby restricting imports of goods.  
Indonesia's measures restrict the importation of these products whenever domestic production is deemed sufficient to fulfill domestic demand.  Under the measures, Indonesia also sets quotas 
both annually and semi-annually through ministerial-level coordination meetings followed up by 
inter-ministerial technical meetings.  The Ministry of Agriculture allocates the quotas, and specifies the quantity of each product allocated to each importer.   
 
 With respect to horticultural products, Indonesia's non-automatic import licensing regime involves multiple steps.  First, an importer must obtain a Horticulture Product Import Recommendation ("RIPH")
3 certificate from the Ministry of Agriculture.  The RIPH certificate 
restricts the quantity, type, and country of origin of the imported horticulture product per six-
month period.  RIPH certificates do not permit the importation of fresh horticulture products for consumption that were harvested more than six months ago.  Second, an importer must apply to 
receive a designation as a Producer Importer for Horticultural Products or a Registered Importer 
for Horticultural Products from the Ministry of Trade.  Third, for each imported product, the importer must apply to the Ministry of Trade for Import Approval by submitting the RIPH certificate 
and the designation. 
 
                                               
1 The relevant Indonesian measure defines horticultura l products as “all produc ts derived” from “fruits, 
vegetables, medicinal plants ingredients, and floriculture including mushrooms, mosses, and water plants that 
serve as vegetables, medicinal plants in gredients, and/or aestheti c materials” that are still “fresh” or have been  
“processed.”  Ministry of Trade Regulation 16, Art. 1(1), 1(2). 
2 The relevant Indonesian measure defines animal pr oducts as including “all materials originating from 
animals that are still fresh and/or  have been treated or processed for the purpose of consumption, 
pharmaceutical, agricultural, and/or ot her uses for fulfillment of human n eeds and welfare.” Ministry of Trade 
Regulation 22, Art. 1(5).  The Indonesi an measures at issue also cover “carcasses, meats, edible offals, and/or 
processed products thereof.”  Ministry of Agriculture Regulation 50, Art. 2(1). 
3 Rekomendasi Impor Produk Hortikultura.  WT/DS465/1 • G/L/1037 • G/AG/GEN/112 • G/LIC/D/45 • G/PSI/D/1 
 
- 2 - 
 
   With respect to animals and animal products, Indonesia's non-automatic import licensing 
regime likewise involves multiple steps.  Firs t, importers must receive an Import Approval 
Recommendation ("RPP")4 from the Ministry of Agriculture to import animals or animal products.  
Second, importers who import for the business purpose of trading or transferring to another party 
must apply to receive a designation as a Registered Importer for Animals and Animal Products.  
Third, an importer must then apply to the Ministry  of Trade for an Import Approval by submitting 
the RPP and the designation.  
 
Indonesia's non-automatic import licenses and quotas restrict imports, without any apparent 
justification other than to protect Indonesian producers.  The multi-step licensing process is more administratively burdensome than necessary to administer the measures.  The Indonesian 
licensing measures failed to provide relevant information sufficient for governments and traders to 
become acquainted with them, including overall quota details, country shares of quotas, and the 
basis for granting and allocating licenses.  The licensing regimes do not appear to be administered 
in a uniform, impartial and reasonable manner, because the measures are applied inconsistently 
and unpredictably.  And, the licensing measures fail to allow license holders to choose the source of imports. 
 
Indonesia's measures limit the purchase, sale, or use of imported horticultural products, 
animals, and animal products, without posing comparable restrictions on domestic products.  For example, Indonesia's measures limit the sale of imported horticulture products to distributors, and 
limit the sale of imported beef to the hotel, restaurant and catering sectors.  
 
Indonesia's measures impose preshipment inspection requirements.  Indonesia failed to 
ensure that preshipment inspection activities do not result in unreasonable delays, are carried out 
in a non-discriminatory manner, and are applied on an equal basis to all exporters  
Finally, Indonesia's measures impose import restrictions contingent upon trigger domestic 
prices.   The legal instruments through which Indonesia imposes and administers these measures 
include, but are not limited to, the following instruments: 
 
• Law of the Republic of Indonesia Number 13 of Year 2010 Concerning Horticulture 
("Law 13");  
 
• Regulation of the Minister of Agriculture Number 47/Permentan/OT.140/4/2013 
Concerning Recommendation on the Importation of Horticulture Products ("MOA 
Regulation 47"), which repeals and repl aces Regulation of the Minister of 
Agriculture Number 60/Permentan/OT.140/9/2012 ("MOA Regulation 60"); 
 
• Regulation of the Minister of Trade Number 16/M-DAG/PER/4/2013 Concerning 
Provisions on Horticulture Product Import ("MOT Regulation 16"), which repeals and replaces Regulation of the Minister  of Trade Number 30/M-DAG/PER/5/2012 
Concerning the Provisions on Import of Horticultural Products ("MOT Regulation 
30") and Regulation of the Minister of Trade Number 60/M-DAG/PER/9/2012 Regarding Second Amendment of Regulati on of the Minister of Trade Number 
30/M-DAG/PER/5/2012 Regarding Provisions on Import of Horticultural Products 
("MOT Regulation 60"); 
 
• Law of the Republic of Indonesia Number 18/2009 on Animal Husbandry and 
Animal Health ("Law 18");  
 
• Regulation of the Minister of Agriculture Number 50/Permentan/OT.140/9/2011 
Concerning Recommendation for Approval on Import of Carcasses, Meats, Edible 
Offals and/or Processed Products Thereof to Indonesian Territory ("MOA Regulation 50") as amended by Regulation of th e Minister of Agriculture Number 
63/Permentan/OT.140/5/2013 Concerning Amendment of Regulation of the 
Minister of Agriculture Number 50/Permentan/OT.140/9/2011 Concerning Import 
                                               
4 Rekomendasi Persetujuan Pemasukan . WT/DS465/1 • G/L/1037 • G/AG/GEN/112 • G/LIC/D/45 • G/PSI/D/1 
 
- 3 - 
 
  Approval Recommendation of Carcass, Meat, Offal, and/or their Derivatives into 
the Territory of the Republic of Indonesia ("MOA Regulation 63);  
 
• Regulation of the Minister of Trade Number 22/M-DAG/PER/5/2013 Concerning 
Import and Export of Animals and Animal  Products ("MOT Regulation 22"), which 
repeals and replaces Regulation of the Minister of Trade Number 24/M-DAG/PER/9/2011 Concerning Provisions on the Import and Export of Animal and 
Animal Product ("MOT Regulation 24"); 
 • Decree of the Minister of Trade Number 699/M-DAG/KEP/7/2013 Concerning Beef 
Price Stabilization ("MOT Decree 699"); 
 
• Law of the Republic of Indonesia Number  18/2012 Concerning Food ("Food Law"); 
 
• Law of the Republic of Indonesia Number 19/2013 Concerning Protection and 
Empowerment of Farmers ("Farmers Law"); 
 
as well as any amendments, related measures, or implementing measures. 
  Indonesia's measures appear to be inconsistent with Indonesia's obligations under the following provisions of the covered agreements: 
 
(i) Articles III:4, X:1, X:3(a), XI:1, XIII:2(a) , XIII:2(c), and XIII:2(d) of the GATT 1994; 
 
(ii) Article 4.2 of the Agriculture Agreement; 
 
(iii) Articles 1.3, 3.2, 3.3, 3.5(a), 3.5(b), 3.5(c), and 3.5 (k) of the Import Licensing 
Agreement; 
 
(iv) Articles 2.1 and 2.15 of the Agr eement on Preshipment Inspection. 
 
 We look forward to receiving your reply to the present request and to fixing a mutually 
convenient date for consultations.  
 
 
__________