. /.  WORLD TRADE  
ORGANIZATION  G/LIC/Q/IDN/7/Add.2 
10 April 2007 
 (07-1432) 
Committee on Import Licensing Original:   English 
  
 
 
NOTIFICATION UNDER ARTICLE 5 OF THE AGREEMENT ON IMPORT LICENSING 
PROCEDURES FROM INDONESIA
1 
 
Questions from the UNITED STATES to INDONESIA2 
 
Addendum  
   The following communication, dated 2 April 2007, is being circulated at the request of the 
delegation of the United States. 
 
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United States’ Questions regarding Ce rtain Textile Products in Indonesia 
 
under Decree No. 732/2002  
   The United States again reiterates its request  that the Government of Indonesia either 
eliminate or modify its existing import licen sing regime under Decree No. 732/2002, remove 
provisions that restrict or distort trade, and brin g its import licensing regime into conformity with 
WTO requirements.     We remain concerned that importers face an  undue burden in attempting to obtain import 
licenses for textiles.  The Government of Indonesia’s requires that all importers submit a monthly report to the Minister of Trade to track all importa tion of applicable fabric s by date, destination, 
quantity, duty, and country of origin, and furt her requires that all importers submit an annual 
Statement of Plan in order to receive an import license.  The United States is concerned that these submission requirements may unduly deter legitimate trade.   We believe that the Decree restricts and distorts trade.  It requires only manufacturers may 
import fabric, and that this impor ted fabric may not be sold or otherwise transferred to other 
legitimate buyers.  These requirements unnecessaril y limit the market for imported fabric, allow 
domestic producers to limit import competition, and unfairly restrict access to imported fabrics for retail customers and other distributors.  Meanwhile, domestic fabrics identical to those listed in Attachment 1 of the Decree may be freely sold or otherwise transferred, without suffering the 
burdensome procedures and pape rwork requirements imposed on purchasers of imported fabric, 
e.g., monthly reports or submission of a yearly Statement of Plan.   
                                                     
 
1 G/LIC/N/2/IDN/1 
2 See Understanding on Procedures for the Review of Notifications (G/LIC/3) G/LIC/Q/IDN/7/Add.2 
Page 2  
 
   Previous responses by the Government of I ndonesia (see Indonesia’s response to the United 
States and in G/LIC/Q/IDN/5 (6ii) and Australia in  G/LIC/Q/IDN/6)specifically state that the 10-day 
period required for licensing is “much less than provid ed for in Article 3.5(f) of the Agreement on 
Import Licensing procedures which requires 30 working days to be approved,” which indicates that 
these licenses are in fact non-automatic.  However, in G/LIC/Q/IDN/8 Indonesia states that the license 
is “automatic”.   
  Please clarify whether this Decree constitutes “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. 
 
 We would like Indonesia to report to the Co mmittee on the results of the its studies on this 
issue as soon as possible.  
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