WT/DS455/7  
 
15 March 2013  
(13-1455)  Page: 1/3  
  Original: English  
 
 INDONESIA – IMPORTATION OF  HORTICULTURAL PRODUCTS, 
ANIMALS AND ANIMAL PRODUCTS 
REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE UNITED STATES 
 The following communication, dated 14 Ma rch 2013, from the delegation of the 
United States to the Chairperson of the Disput e Settlement Body, is circulated pursuant to 
Article 6.2 of the DSU. 
 
_______________ 
 
 
 On January 10, 2013, the United States requested consultations with the Government of 
Indonesia ("Indonesia") pursuant to Articles 1 and 4 of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes  ("DSU"), Article XXII of the General Agreement on Tariffs 
and Trade 1994  ("GATT 1994"), Article 19 of the Agreement on Agriculture  ("Agriculture 
Agreement"), and Article 6 of the Agreement on Import Licensing Procedures  ("Import Licensing 
Agreement"), concerning certain measures imposed by Indonesia on the importation of 
horticultural products, animals, and animal products.1  The United States held consultations with 
Indonesia on February 21 and 22, 2013.  Those consultations unfortunately did not resolve the 
dispute. 
 
1  IMPORT LICENSING REGIME FOR HORTICULTURAL PRODUCTS 
Indonesia imposes a non-automatic import licensing regime for horticultural products 
pursuant to which an importer must complete multiple steps prior to importing a horticultural 
product into Indonesia.  These steps include, first, an importer must obtain a Horticultural Product 
Import Recommendation ("RIPH")2 certificate from the Ministry of Agriculture.  When issuing the 
RIPH certificate, the Ministry of Agriculture consid ers factors such as production and availability of 
similar products domestically, domestic consumptio n of the product, and po tential of the imported 
product to distort the market.  Second, an importer must apply to receive a designation as a Producer Importer of Horticultural Products or Registered Importer of Horticultural Products from 
the Ministry of Trade.  Third, for each imported pr oduct, the importer must apply to the Minister of 
Trade for import license by submitting the RIPH certificate and the designation. 
 The United States understands that the means through which Indonesia has maintained this 
licensing regime include: 
 
 Law of the Republic of Indonesia Number 13  of Year 2010 Concerning Horticulture 
("Law 13"); 
 
 Regulation of the Minister of Agricu lture Number 60/Permentan/OT.140/9/2012 
Concerning Recommendation on the Importation of Horticultural Products ("MOA 
Regulation 60"); 
  Regulation of the Minister of Trad e Number 30/M-DAG/PER/5/2012 Regarding 
Provisions on Import of Horticultural Products ("MOT Regulation 30");  
 
                                               
1 WT/DS455/1. 
2 Rekomendasi Impor Produk Hortikultura . WT/DS455/7 
 
- 2 - 
 
   Regulation of the Minister of Trade Numb er 60/M-DAG/PER/9/2012 Regarding Second 
Amendment of Regulation of the Minister of Trade Number 30/M-DAG/PER/5/2012 Regarding Provisions on Import of Hortic ultural Products ("MOT Regulation 60");  
as well as any amendments, replacements, related measures, and implementing measures to 
date. 
The United States considers that these measures are inconsistent with Indonesia's 
obligations under the following provisions of th e GATT 1994, the Agriculture Agreement, and the 
Import Licensing Agreement: 
 
 Article X:3(a) of the GATT 1994, because Indonesia does not administer the import 
licensing regime in a uniform, impartial, or reasonable manner. 
 Article XI:1 of the GATT 1994, because the import licensing regime constitutes a 
prohibition or restriction on imports, other than in the form of duties, taxes, or other charges. 
 Article 4.2 of the Agriculture Agreement, because the import licensing regime 
constitutes "measures of the kind which ha ve been required to be converted into 
ordinary customs duties" which Members may not maintain, resort to or revert to 
under that Agreement. 
 Article 3.2 of the Import Licensing Agreement, because the import licensing regime 
includes non-automatic import licensing procedures that have trade-restrictive or -distortive effects on imports additional to those caused by the imposition of any 
restriction that these requirements purport to implement; because the non-automatic 
import licensing procedures are broader in scope and duration than any measure they are used to implement; and because these procedures are more administratively 
burdensome than absolutely necessary to administer any such measure. 
 Article 3.3 of the Import Licensing Agreem ent, because Indonesia has not published 
sufficient information for other Members and traders to know the basis for granting 
and/or allocating licenses. 
2  IMPORT LICENSING REGIME AND QUOTAS FOR ANIMALS AND ANIMAL PRODUCTS 
Indonesia imposes a non-automatic import license regime and quotas for animals and 
animal products pursuant to which an importer must complete multiple steps prior to importing an 
animal or animal product into Indonesia.  These steps include, first, importers must receive an 
Import Approval Recommendation ("RPP")
3 from the Ministry of Agriculture to import animals or 
animal products.  After receiving the RPP, the importer must then apply for an import license with 
the Ministry of Trade.  The Ministry of Trade on ly allows the importation of the product if, among 
other factors, domestic production and supply of the product do not meet "demand for public consumption at reasonable price."
4 
 
Indonesia's government sets the quotas for animals and animal products twice a year.  The 
Ministry of Agriculture allocates the quotas, specifying the quantity of each animal and animal product allocated to each importer.       
 
The United States understands that the means through which Indonesia has maintained 
these measures include: 
 
 Law of the Republic of Indonesia Number 18/2009 on Animal Husbandry and Animal 
Health ("Law 18"); 
                                               
3 Rekomendasi Persetujuan Pemasukan . 
4 MOT Regulation 24, Art. 3(2). WT/DS455/7 
 
- 3 - 
 
   Regulation of the Minister of Agricu lture Number 50/Permentan/OT.140/9/2011 
Concerning Recommendation for Approval on Im port of Carcasses, Meats, Edible Offals 
and/or Processed Products Thereof to Indonesia Territory ("MOA Regulation 50");  
 Regulation of the Minister of Trade Number 24/M-DAG/PER/9/2011 Concerning 
Provisions on the Import and Export of An imal and Animal Product ("MOT Regulation 
24"); 
as well as any amendments, replacements, related measures, and implementing measures to 
date.   
 
The United States considers that these measures are inconsistent with Indonesia's 
obligations under the following provisions of th e GATT 1994, the Agriculture Agreement, and the 
Import Licensing Agreement: 
 
 Article X:3(a) of the GATT 1994, because Indonesia does not administer the import 
licensing regime in a uniform, impartial, or reasonable manner.  
 Article XI:1 of the GATT 1994, because the import licensing regime and the quotas 
constitute a prohibition or restriction on imports, other than in the form of duties, 
taxes, or other charges. 
 Article 4.2 of the Agriculture Agreement, because the import licensing regime and the 
quotas constitute "measures of the kind whic h have been required to be converted into 
ordinary customs duties" which Members may not maintain, resort to or revert to 
under that Agreement. 
 Article 3.2 of the Import Licensing Agreement, because the import licensing regime 
constitutes a non-automatic import licensing procedure and has trade-restrictive or -
distortive effects on imports additional to those caused by the imposition of any 
restriction that these requirements purport to implement; because the non-automatic import licensing procedures are broader in scope and duration than any measure they 
are used to implement; and because these procedures are more administratively 
burdensome than absolutely necessary to administer any such measure. 
 Article 3.3 of the Import Licensing Agreem ent, because Indonesia has not published 
sufficient information for other Members and traders to know the basis for granting 
and/or allocating licenses. 
******* 
 
Therefore, the United States respectfully reques ts, pursuant to Article 6 of the DSU, that the 
Dispute Settlement Body establish a panel to examine this matter, with standard terms of reference as set out in Article 7.1 of the DSU. 
 
  
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