WT/DS477/1, G/L/1068  
G/AG/GEN/118, G/LIC/D/47  
G/PSI/D/3  
15 May 2014  
(14-2978)  Page: 1/4  
  Original: English  
 
 INDONESIA – IMPORTATION OF HORTICULTURAL PRODUCTS,  
ANIMALS AND ANIMAL PRODUCTS 
REQUEST FOR CONSULTATIONS BY NEW ZEALAND  
The following communication, dated 8 May 2014, from the delegation of New Zealand 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 cons ultations 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. 
 
As described below, Indonesia: (1) imposes prohibitions or restrictions on imports of horticultural 
products, animals, and animal products; (2) imposes unjustified and trade-restrictive non-automatic import licensing requirements on imports of such products; (3) accords less 
favourable treatment to imported products than to like products of national origin; (4) has 
imposed unreasonable and discriminatory pre-shipment inspection requirements; and (5) has failed to notify and publish sufficient information concerning its import licensing measures.     
 
With respect to horticultural products, Indonesia's non-automatic import licensing regime involves at least three elements:  (1) designation from the Ministry of Trade ("MOT") as a Producer 
Importer ("PI") or Registered Importer ("RI") for Horticultural Products; (2) a horticultural product 
Import Recommendation ("RIPH")
3 from the Ministry of Agriculture ("MOA"); and (3) an Import 
Approval from the MOT.  The PI/RI designation restricts the uses for which horticultural products 
may be imported.  RIPHs and Import Approvals are valid for one six-month period. 4  Applications 
for these documents may only be submitted, and th e documents issued, during two time periods in 
the year.5 Import Approvals specify, inter alia , the total quantity and country of origin of a 
horticultural product that an importer may import during that period.    
                                               
1 The relevant Indonesian measure defines horticultu re as "all matters relating  to fruits, vegetables, 
plant medicinal materials, and floricul ture" and horticultural products as "a ll products originating from fresh or 
processed horticultural plant."  Ministry of Trade (MOT) Regulation 16/2013, Articles 1(1) and 1(2) as amended by MOT Regulation 47/2013. 
2 The relevant Indonesian measures define animal products as "all materials originating from animal 
that are fresh and/or processed for co nsumption, pharmaceutical, farming, an d/or other purposes for fulfilling 
the needs and welfare of human."  MOT Regulation 46/2013, Article 1(5).  The Indonesian measures at issue also cover "carcasses, meats, edible o ffals, and/or their derivati ves."  Ministry of Agriculture (MOA) Regulation 
84/2013. 
3 Rekomendasi Impor Produk Hortikultura.  
4 For chili and shallots, the Import Approval validity period is three months, see MOT Regulation 
16/2013, as amended by MOT Regulation 47/2013, Article 14, and the RIPH validity period is not specified, see 
MOA Regulation 86/2013, Article 13(4).   
5 The time periods for applications  vary for chili and shallots, see MOT Regulation 16/2013, as amended 
by MOT Regulation 47/2013, Article 14B. WT/DS477/1 • G/L/1068 • G/AG/GEN/118 • G/LIC/D/47 • G/PSI/D/3 
 
- 2 - 
 
   
With respect to animals and animal products, Indonesia's non-automatic import licensing regime involves at least four elements:  (1) satisfying the MOA requirements for importers; (2) a 
RI-Animals and Animal Products designation from the MOT;
6 (3) a Recommendation7 from the 
MOA; and (4) an Import Approval from the MOT.   Recommendations restrict the quantity, type, 
country of origin, and intended use of the imported  products.  They are valid for a specified period, 
up to the end of the current year, and may only be applied for during four time periods throughout 
the year.8  Import Approvals are valid for one three-month period, and applications may only be 
submitted and permits issued during four time windows throughout the year.  Import Approvals 
specify, inter alia , the total quantity and country of origin of product the holder may import during 
the specified period.    
Indonesia's import licensing regime is not an automatic licensing regime, and it cannot be justified 
as a non-automatic licensing regime implementing a WTO-consistent measure.   
 
Indonesia's non-automatic import licensing regime prohibits and restricts imports in the following 
ways:    
• With respect to horticultural products, RIPH certificates do not permit the importation 
of fresh horticultural products for consumption that were harvested more than six 
months ago.   
 
• With respect to animals and animal products, any animal products not listed in the 
appendices to the import licensing regulations may not be imported at all.
9   
 
• With respect to horticultural products, animals and animal products, importers may 
apply for Import Approvals only during specified time periods that can be months ahead of the time of importation, and, once issued, an Import Approval restricts imports during the specified time periods to set products, in set quantities, from set 
countries, and under set conditions. 
 
• Importers must predict in advance the quanti ty of product they will wish to import 
during a given period, and apply accordingly for a specific amount, to be stated on 
their Import Approval covering that three- or six-month period.  Importers face having their designation as a RI/PI suspen ded or revoked if the actual quantity 
imported is less than a certain percentage of the stated quantity.   
 
• The importation of horticultural products and animals and animal products with 
respect to certain types of intended use, sale, purchase, and/or distribution is 
prohibited or restricted. 
 
• The importation of horticultural products, animals, and animal products is prohibited 
when domestic production is deemed su fficient to fulfill domestic demand.   
 
• Imports of certain horticultural products, animals and animal products are prohibited 
or restricted when the prices of those products falls below certain reference prices, 
which are set by a ministerial body (either the Price of Horticulture Product Monitoring Team or the Beef Price Monitoring Team).
10  
 
                                               
6 With respect to animals and animal products listed in Appendix II, this requirement appears to apply 
only to importers that are business operators and not to other categories of importers, such as social 
institutions or State Owned Enterprises.  See MOT Regulation 46/2013, Articles 4, 9, and 10; MOA Regulation 
84/2013, Article 22. 
7 Rekomendasi Persetujuan Pemasukan . 
8 The timeframes appear to apply only to business  operators and not to ot her types of importers.  See 
MOA Regulation 84/2013, Article 21. 
9 This applies to all animals and animal products not listed in the appendices to MOA Regulation 
84/2013 and MOT Regulation 46/2013. 
10 These products include the animals and animal pr oducts listed in Appendix I of MOT Regulation 
46/2013 and the horticultural products listed in Article 14B of MOT Regulation 16/2013, as amended by MOT Regulation 47/2013. WT/DS477/1 • G/L/1068 • G/AG/GEN/118 • G/LIC/D/47 • G/PSI/D/3 
 
- 3 - 
 
  • For the above reasons, and due to the regime's complexity, Indonesia's import 
licensing regime is a restriction on imports, is not as simple as possible, is more administratively burdensome than absolutely necessary, unnecessarily requires approaches to more than one administrative body, and is trade-restrictive.     
 
In connection with its import licensing regime, Indonesia also has adopted measures limiting the internal sale, offering for sale, purchase, distribution, or use of imported horticultural products, 
animals, and animal products, in a manner that accords less favourable treatment than that 
accorded to like domestic products.  For example, Indonesia's measures limit the internal sale of imported horticultural products to distributors, and limit the sale of imported beef to use in industry and the hotel, restaurant and catering sectors.  Indonesia does not impose similar 
limitations on like domestic products.  
 
Indonesia's measures include preshipment inspection requirements. Such requirements, which 
duplicate information already provided in the phyto-sanitary certificate, are more trade-restrictive 
than necessary, as is the administration of pre-shipment inspection activities which Indonesia has restricted to a sole company in New Zealand, Bureau  Veritas.   Indonesia has 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, New Zealand understands that Indonesia, with respect to its import-licensing regime, has 
failed to comply with notification obligations under Article 5 of the Import Licensing Agreement and 
with publication requirements under Article 3 of the Import Licensing Agreement.  
The legal instruments through which Indonesia imposes and administers the above-described 
measures include, but are not limited to, the following instruments:  
• Law of the Republic of Indonesia Number 7 of Year 2014 Concerning Trade ("Trade 
Law");  
 
• Law of the Republic of Indonesia Number 13 of Year 2010 Concerning Horticulture 
("Horticulture Law");  
 
• Regulation of the Ministry of Agriculture Number 86/Permentan/OT.140/8/2013 
Concerning Import Recommendation of Horticulture Products ("MOA Regulation 
86/2013"), which repeals and replaces Regulation of the Minister of Agriculture Number 47/Permentan/OT.140/4/2013 Concerning Recommendation on the 
Importation of Horticulture Products ("MOA Regulation 47/2013"), which repealed and 
replaced Regulation of the Mi nister of Agriculture Number 
60/Permentan/OT.140/9/2012 ("MOA Regulation 60/2012"); 
 
• Regulation of the Minister of Trade Number 16/M-DAG/PER/4/2013 Concerning 
Provisions on Horticulture Product Import ("MOT Regulation 16/2013"), 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 
30/2012") 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 60/2012"); 
 
• Regulation of the Ministry of Trade Number 47/M-DAG/PER/8/2013 Concerning 
Amendment of Regulation of the Minister  of Trade Number 16/M-DAG/PER/4/2013 
Concerning Import Provision of Horticul ture Product ("MOT Regulation 47/2013"); 
 
• Law of the Republic of Indonesia Number  18/2009 on Animal Husbandry and Animal 
Health ("Animal Law");  
 
• Regulation of the Ministry of Agri culture Number 84/Permentan/PD.410/8/2013 
Concerning Importation of Carcass, Meat, Offal and/or Their Derivatives into the Territory of the Republic of Indonesia (" MOA Regulation 84/2013"), which repeals and 
replaces Regulation of the Minister of Agriculture Number 
50/Permentan/OT.140/9/2011 Concerning Recommendation for Approval on Import of WT/DS477/1 • G/L/1068 • G/AG/GEN/118 • G/LIC/D/47 • G/PSI/D/3 
 
- 4 - 
 
  Carcasses, Meats, Edible Offals and/or Processed Products Thereof to Indonesian 
Territory ("MOA Regulation 50/2011") as amen ded by Regulation of the 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 Approval Recommendation  of Carcass, Meat, Offal, and/or their 
Derivatives into the Territory of the Republic of Indonesia ("MOA Regulation 63/2013");  
 
• Regulation of the Minister of Trade Number 46/M-DAG/PER/8/2013 Concerning Animal 
and Animal Product Import and Export Pr ovision ("MOT Regulation 46/2013"), which 
repeals and replaces Regulation of  the Minister of Trade Number 
22/M-DAG/PER/5/2013 Concerning Import and Export of Animals and Animal Products 
("MOT Regulation 22/2013"), which repealed and replaced Regulation of the Minister 
of Trade Number 24/M-DAG/PER/9/2011 Conc erning Provisions on the Import and 
Export of Animal and Animal Product ("MOT Regulation 24/2011"); 
 
• Law of the Republic of Indonesia Number  18/2012 Concerning Food ("Food Law"); and 
 
• Law of the Republic of Indonesia Number 19/2013 Concerning Protection and 
Empowerment of Farmers ("Farmers' Law"); 
 
as well as any amendments, replacements, 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,  XI:1 of the GATT 1994; 
 
(ii) Article 4.2 of the Agriculture Agreement; 
 
(iii) Articles 1.2, 1.5, 1.6,  2.2, 3.2, 3.3, 5.1, and 5.2 of the Import Licensing Agreement; 
and 
 
(iv) Articles 2.1 and 2.15 of the Ag reement on Preshipment Inspection. 
 
We look forward to receiving your reply to the present request and to fixing a mutually convenient date and location for consultations.  In light of the request by the United States for consultations 
on the same measures, dated May 8, 2014, we propose that consultations be held jointly with the 
United States.      
__________