WORLD TRADE  
ORGANIZATION  G/LIC/Q/IDN/16 
16 December 2010 
 (10-6778) 
Committee on Import Licensing Original:   English 
  
 
NOTIFICATION UNDER ARTICLES OF THE AGREEMENT ON  
IMPORT LICENSING PROCEDURES FROM INDONESIA
1 
 
Replies from INDONESIA to the follow-up questions from  
the EUROPEAN UNION2 
 
  The following communication, da ted 13 December 2010, is being ci rculated at the request of 
the delegation of Indonesia.  
_______________ 
 
  Indonesia wishes to refer to the follow up questions raised by the EU regarding Decree No. 56/M-DAG/PER/12/2008 (Decree 56) concerning Provision on Certain Product Import which 
replaces Decree No. 44/M-DAG/PER/10/2008 (Decree 44). 
 
 With regard to the additional information sought, Indonesia wishes to respond as follows in 
the order of the questions set:  1. Questions
: 
 Indonesia maintains that Decree 56/2008 is not an import licensing scheme but that its 
purpose "is only to register importers". Indonesia al so explains that "as long as the basic information 
stipulated under article 2 (3) is provided, regist ration is granted within 7 days" and that "once 
registered, import licenses are issued automatically".    (a) If the import licenses are automatically granted on the basis of the quantities mentioned in the 
"import plan" as referred to in Article 2 (3) f. of Decree 56/2008, we believe that such decree 
institutes licensing procedures and that is theref ore subject to the notification obligation of 
Article 5 of the WTO Agreement on Import Licensing Procedures. If Indonesia disagrees, please explain? 
 
(b) If the "import plan" as referred to in Article 2 (3) f. of Decree 56/2008 has no link to the 
subsequent (and allegedly automatic) issuing of the import licenses, could Indonesia please explain what is the legal basis for such licenses?  Could Indonesia list the documents that have 
to accompany the application for such licen ses? Could Indonesia please also describe the 
conditions under which the issuing of such licenses may be refused?  
 
                                                     
 
1 See Understanding on procedures for th e Review of Notifications (G/LIC/4). 
2 See document G/LIC/N/2/IDN/15. G/LIC/Q/IDN/16 
Page 2  
 
   Answer
: 
 
(a) Indonesia is of the view that Decree No. 56/2008 is not import licensing scheme, as it merely 
regulates importer registration. Although, this Decree requires “import plan” the purpose of such provision is to provide import database wh ich eventually will contribute in maintaining 
Indonesia economic growth. However Indonesia sees it is necessary to notify this Decree 
 (b) Companies importing certain products must obtai n the status of “Registered Importers of 
Certain Products” or (IT-Importir Terdaftar Produ k Tertentu). According to Article 2(3) of 
Decree 56/2008, the application to obtain the status as “Registered Importers of Certain 
Products” shall be submitted in writing to the Director of Import, Directorate General of 
Foreign Trade, Ministry of Trade by  enclosing the following documents : 
• Photocopy of Importer Identity Number (API- Angka Pengenal Importir ); 
• Photocopy of Company Registration Card ( TDP-Tanda Daftar Perusahaan ); 
• Photocopy of Taxpayer Code Number ( NPWP ); 
• Photocopy of Special Importer Identity Number (NPIK-Nomor Pengenal Importir 
Khusus) for certain products whose import is  subject to provision  regarding NPIK; 
• Photocopy of Customs Identity Number (NIK-Nomor Identitas Kepabeanan);  
• Import plan for one year, covering quantity, kinds of goods, tariff heading/ HS 10 (ten) 
digits and destination port. 
 
Applications would only be refused if the requi rements of Article 2 of Decree 56 are not met. 
  
2. Questions
: 
 Indonesia admitted that the "requirement for an importer to demonstrate past performance" 
under Decree 44/2008 "may have been considered to contribute to the impression of a non-automatic 
import licensing procedure". We consider the requi rement for an importer to demonstrate future 
performance via submitting an import plan of 1 (one) as referred to in Article 2 (3) f. of 
Decree 56/2008 as a factor characterising the import licensing procedure contained therein as non-automatic. If Indonesia disagrees, please explain?  
 
 Answer
: 
 
 Article 12.4 of Decree 56/2008 stated that Decree 44/2008 has been revoked, thus the 
requirement for importers to demonstrate past performance is no longer required and conversely the 
Decree of 56/2008 requires importer to demonstrat e future performance for statistical purposes 
instead of quantitative arrangement. Therefore, I ndonesia sees that this requirement should not be 
defined as non-automatic import licensing procedure. 
 
3. Questions : 
 Could Indonesia please describe the conditions under which an importer can obtain a "Special 
Importer Identity Number" whose submission is required pursuant to Article 2 (3) d. of 
Decree 56/2008? 
  Answer
: 
 
 The Special Importer Identity Number ( NPIK - Nomor Pengenal Importir Khusus ) can be 
obtained by submitting the Import Identity Number ( API-Angka Pengenal Importir ) and the 
photograph of person in charge.  G/LIC/Q/IDN/16 
 Page 3 
 
 
  4. Questions : 
 Indonesia states that Decree 56/2008 "is designed to address illegal trade and safeguard health 
through the development of an effective tracki ng system". Would Indonesia qualify Decree 56/2008 
as a measure necessary to secure compliance with other Indonesian  laws and regulations? If so, could 
Indonesia please provide the references of such laws and regulations? 
 
 Answer : 
 
 Decree 56/2008 is not related to any ot her Indonesian Laws and Regulations.  
 
5. Questions : 
 Indonesia states that "the selection of products is based on items that are the most sensitive to 
smuggling". Could Indonesia please explain the criteria on the basis of which it has concluded that the selected products are "most sensitive to smuggling"? 
 
 Answer
: 
 
 Indonesia believes that the selected products are considered as the most sensitive products to 
smuggling. It is impossible to provide figures, data, and studies of such issue. Therefore, Indonesia sees that the most effective instrument to comb at that problem is to monitor import through 
registration. Additionally, Indonesia also sees that  the growth of the selected products should be 
maintained.   
 
6. Questions
: 
 Could Indonesia please provide the quantitative data on the basis of which it has concluded 
that the five selected ports "represent the v ast majority of imports into Indonesia"? 
 
 Answer : 
 
 The 5 (five) loading ports are selected on the basi s of its adequate infrastructure and the fact 
that they represent the vast majority of imports to Indonesia.  
 
7. Questions : 
 We understand that in addition from being s ubject to the import licensing requirements 
contained in Decree 19/2005, textiles and appare l (HS 61-63) are simultaneously subject to the 
provisions of Decree 65/2008. We also note that "the Government [of Indonesia] will ensure that there 
are no duplicates of procedures". Could Indonesia please  explain how concretely does it plan to avoid 
duplication?   
 
 Answer : 
 
 Decree 19/2005 has been revoked and no longer  applied. Meanwhile, Decree 65/2008 does 
not regulate importation. Therefore, it can be assure d that there is no duplication of procedures. 
 
8. Questions : 
 While describing the content of the "Import T echnical Investigation", Indonesia states that 
"verification of the quality of the goods will be conduc ted if it is necessary, such in the case of food 
and beverages". Could Indonesia please explain the procedures according to which such verification G/LIC/Q/IDN/16 
Page 4  
 
  of the quality of the goods will be carried out? Coul d Indonesia please also clarify whether the same 
quality controls are carried out in relation to  the sale of like domestic food and beverages? 
 
 Answer
: 
 
 In general, the technical verification at the port of exportation only covers the quantity and 
specification of the goods to be exported to Indon esia, but does not include quality control. However, 
whenever necessary, verification of the quality control could be conducted for the TBT and SPS 
purposes. The quality control is not carried out in  relation to the sales of like domestic food and 
beverages.  
9. Questions
: 
 We note that Article 2.22 of the WTO Agreement on Preshipment Inspection states in 
relevant parts that " […] user Members shall provi de that […] shipments w hose value is less than a 
minimum value applicable to such shipments as defi ned by the user Member shall not be inspected, 
except in exceptional circumstances. This minimum va lue shall form part of the information furnished 
to exporters under the provisions  of paragraph 6". Could Indonesia please explain how does it fulfil 
such obligation? 
 
 Answer : 
 
 Indonesia is of the view that Article 2.22 of  the Preshipment Inspection (PSI) Agreement does 
not apply with Decree 56/2008 since the purpose of verification is only to fulfil the supplementary customs documents.   
__________