. /.   WORLD TRADE  
ORGANIZATION  G/LIC/Q/IDN/8/Add.2 
8 May 2007 
 (07-1909) 
Committee on Import Licensing Original:   English 
  
 
NOTIFICATION UNDER ARTICLES OF THE AGREEMENT ON  
IMPORT LICENSING PROCEDURES FROM INDONESIA
1 
 
Responses from INDONESIA to Ques tions from the UNITED STATES2 
 
Addendum  
   The following communication, dated 30 April 2007, has been received fr om the delegation of 
Indonesia. 
 
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   We refer to the US questions as containe d in G/LIC/Q/IDN/7/Add.1, 8 January 2007, 
therefore we hereby would like to provide our clarif ication in order to satisfy the US concerns as 
follows: 
 Question
: 
 
 The United States requests that Indonesia clar ify in what ways the Decree constitutes either 
“automatic licensing”, as defined  in Article 2 of the Agreement on Import Licensing Procedures or 
“non-automatic licensing”, as defined in Article 3 of that Agreement. Indonesia’s response to the 
United States and in G/LIC/Q/IDN/5 (6ii) and Australia in G/LIC/Q/IDN/6 specifically states that the 
10 day period required for licensing is “much less than provided for in Article 3.5(f) of the Agreement 
on Import Licensing procedures which requires 30 working days to be approved,” an indicator that non-automatic licensing should be applicable.  However, in G/LIC/Q/IDN/8 Indonesia states that the 
license is “automatic”.  In addition to responses to the foregoing questions, we request that Indonesia 
report to the Committee as soon as possible on th e results of the Government of Indonesia's studies on 
this issue as soon as possible. 
 
Reply
: 
 
 Indonesia has amended the Decree of the Minister of Industry and Trade No. 732/MPP/Kep/10/2002 regarding Certain Textile Products with Decree of the Minister of Trade No. 19/M-DAG/PER/9/2005 regarding Regulati on on Import Textile and Textile Products
3.  
Therefore, the questions being raised by the US relate to a decree which is no longer in force. 
 
 Indonesia applies automatic licensing procedures as the measures stated in the Decree of the 
Minister of Trade No. 19/M-DAG/PER/9/2005 regarding the Regulation on Import Textile and 
                                                      
1 See document G/LIC/N/2/IDN/1 
2 See document G/LIC/Q/IDN/7/Add.1 
3 Full text of Decree of the Mi nister of Trade No. 19/M-DAG/PER/ 9/2005 is available at the WTO 
Secretariat (Market Access) (English only). G/LIC/Q/IDN/8/Add.2 
Page 2  
 
  Textile Products meet the requirement stated in  Article 2 of the Agreement on Import Licensing 
Procedures.   Article 2 of the Agreement states: 
 "Automatic import licensing is defined as import licensing where approval of the 
application is granted in all cases, and which is in accordance with the requirements of 
paragraph 2(a)".  
Paragraph 2:  
"The following provisions, …, shall appl y to automatic import licensing procedures: 
 (a) automatic licensing shall not be admin istered in such a manner as to have 
restricting effects on imports subject to automatic licensing.  Automatic 
licensing procedures shall be deemed to have trade-restricting effects unless, 
inter alia, 
 
(i) any person, firm or institution which fulfils the legal requirements of the 
importing Member for engaging in import operations involving products subject to automatic licensing is equally eligible to apply for 
an … to obtain import licenses; 
 (ii) applications for licenses may be submitted to any working day prior to 
the customs clearance of the goods; 
 
(iii) application for licenses when subm itted in appropriate and complete 
form are approved immediately on receipt, to the extent administratively feasible, but within a maximum period of 10 working days. 
 
 The above requirements have been met by the following articles of the Decree of the Minister 
of Trade No. 19/M-DAG/PER/9/2005 regarding Regul ation on Import Textile and Textile Products, 
which state that in order to obtain a license as the Importer of Textile Producer ( Importir Produsen 
Tekstil or IP-Textile ), a company (either a local company or company established as a 
foreign/domestic investment company – PMA/PMDN ) should fulfil the legal requirements stated in 
Article 3(2) of the Decree of the Minister of Trade No. 19/M-DAG/PER/9/2005 regarding Regulation 
on Import Textile and Textile Products .  This is in accordance and is within the requirements provided 
for in Article 2(a)(i) of the Agreement.   In addition to that the requirements of Article 2(a)(ii) and (iii) are met by Article 4 of the 
Decree of the Minister of Trade No. 19/M-DAG/PE R/9/2005 regarding Regula tion on Import Textile 
and Textile Products, which provides that …. " Director General shall issu e an acknowledgement or 
refusal of acknowledgement as IP-Textile to the s ubmission mentioned in Article 3 within the period 
at the latest 10(ten) working days  commencing from the receipt of such submission ". 
  In view of the above, the import licensing procedures provided for in the Decree of the Minister of Trade No. 19/M-DAG/PER/9/2005 regarding the Regulation on Import Textile and 
Textile Products is an automatic import licensing, b ecause applications are granted in all cases where 
all the legal requirements have been met.  
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