INDONESIA – IMPORTATION OF HORTICULTURAL PRODUCTS, ANIMALS AND ANIMAL PRODUCTS REQUEST FOR CONSULTATIONS BY NEW ZEALAND
Document: REQUEST FOR CONSULTATIONS BY
Date: 9 September 2013
Document codes: WT/DS466/1; G/L/1038; G/AG/GEN/113; G/LIC/D/46; G/PSI/D/2
Complainant: New Zealand
Respondent: Indonesia
Dispute stage: Consultation
Agreements cited: Art. 4.2  AgricultureArt. III:4, XI:1, X:3(a), XIII:2  GATT 1994Art. 1.3, 3.2, 3.3, 3.5(a), 3.5(b), 3.5(c), 3.5(k)  Import LicensingArt. 2.1, 2.15  Preshipment Inspection

INDONESIA – IMPORTATION OF HORTICULTURAL PRODUCTS,
ANIMALS AND ANIMAL PRODUCTS
REQUEST FOR CONSULTATIONS BY NEW ZEALAND
 The following communication, dated 30 August 2013, 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 consultations 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 , Article 6 of the
Agreement on Import Licensing Procedures ("Licensing Agreement"), and Articles 7 and 8 of the
Agreement on Preshipment Inspection concerning certain measures imposed by Indonesia
affecting the importation of animal products, animals and horticultural products into Indonesia.

Indonesia imposes prohibitions and restrictions affecting imports of a range of animal
products, animals and horticultural products. 1 These prohibitions and restrictions include quotas,
import restrictions, and discretionary or non-automatic import licensing schemes.

The Indonesian Government's stated basis for these measures is to restrict imports of
certain agricultural products where domestic production is deemed sufficient to satisfy domestic
demand. Quotas are set and allocated annually at ministerial-level coordination meetings followed
up by inter-ministerial technical meetings. For instance, Indonesia has introduced diminishing
import quotas for frozen beef of 73,000 tonnes (2010), 50,000 tonnes (2011), 34,000 tonnes
(2012) and 32,000 tonnes (2013) with similar quotas applied to other products. These quotas and
restrictions are administered through discretionary and non-automatic import licensing schemes
that restrict the quantity, type
2, and country of origin of imports during upcoming "semesters".

Indonesia does not appear to administer these quotas and restrictions in a uniform,
impartial or reasonable manner as they are applied inconsistently and unpredictably. Indonesia
has also failed to publish or provide relevant information, including overall quota details, sufficient
for governments and traders to become acquainted with them.

1 The animal products and animals are listed in the various laws and regulations referred to in this
request. They include, but are not limited to, carcasses, meats, edible offals and/or processed products thereof
as well as all materials derived from fresh, processed or prepared animals for the purpose of consumption,
pharmaceutical, agricultural, and/or other uses. The horticultural products are also listed in the various laws
and regulations referred to in this request. They include, but are not limited to, fruits, vegetables, medicinal
plant ingredients, floriculture, aesthetic materials and all products derived from fresh or processed horticultural
crops.
2 Including prohibiting imports of fresh horticultural products for consumption that were harvested more
than six months previously.
WT/DS466/1 • G/L/1038 • G/AG/GEN/113 • G/LIC/D/46 • G/PSI/D/2

Indonesia's discretionary and non-automatic import licensing procedures require importers
to complete multiple steps prior to importing into Indonesia. First, an importer must obtain an
Import Approval Recommendation ("RPP"
3 or "RIPH"4) from the Ministry of Agriculture. Second, an
importer must apply and receive a designation as a "Registered Importer for Animal and Animal
Products", "Registered Importer for Horticultural Products" or "Producer Importer of Horticultural
Products" from the Ministry of Trade. 5 Finally, for each product, the importer must apply for an
import licence from the Ministry of Trade.

These licensing procedures have trade-restrictive and -distortive effects and are broader in
scope, and more administratively burdensome, than necessary. They do not allow licence holders
to choose the source of imports, and do not appear to be administered in a uniform, impartial or
reasonable manner as they are applied inconsistently and unpredictably. Indonesia has also failed
to publish or provide relevant information regarding the measures, including the basis for granting
and allocating licences, sufficient for governments and traders to become acquainted with them.

Furthermore, Indonesia imposes measures affecting the internal sale, offering for sale,
purchase, distribution and use of agricultural products that accord less favourable treatment to
imported products than to like domestic products , including restrictions limiting the sale of
imported beef to the hotel, restaurant and catering sectors and of imported horticultural products
to distributors.

Finally, as of June 2013, Indonesia's preshipment inspection authority, PT. Surveyor
Indonesia (Persero) dan PT. Sucofindo (Persero) , has limited the provision of preshipment
inspection activities in New Zealand to a sole company, Bureau Veritas, resulting in delays and
further impediments to trade.

The trade impact of these various measures is significant. Since the introduction of these
restrictions, New Zealand's exports to Indonesia of beef and a range of horticultural products,
including apples and onions, have fallen by up to 80 per cent at considerable commercial cost to
New Zealand industries.

New Zealand understands that the legal instruments through which Indonesia imposes and
administers these measures include, but are not limited to, the following:

For Animal Products and Animals

 Law of the Republic of Indonesia Number 18 of 2009 on Animal Husbandry and Animal Health
("Animal Law");

 Regulation of the Minister of Agricultur e Number 50/Permentan/OT.140/9/2011 Concerning
Recommendation for Approval on Import of Carcas ses, Meats, Edible Offals and/or Processed
Products Thereof to Indonesian Territory ("Mi nistry of Agriculture Regulation 50/2011") as
amended 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 ("Ministry
of Agriculture Regulation 63/2013");

 Regulation of the Minister of Trade Number 22/M-DAG/PER/5/2013 Concerning Import and
Export of Animals and Animal Products ("Ministry of Trade Regulation 22/2013") which repeals
and replaces Regulation of the Minister of Trade Number 24/M-DAG/PER/9/2011 ("Ministry of
Trade Regulation 24/2011");

 Law of the Republic of Indonesia Number 18 of 2012 Concerning Food ("Food Law");

3 Rekomendasi Persetujuan Pemasukan. RPPs are required to import certain animal products and
animals, currently listed in Appendices I to III of Ministry of Agriculture Regulation 50/2011 as amended by
Ministry of Agriculture Regulation 63/2013.
4 Rekomendasi Impor Produk Hortikultura. RIPHs are required to import certain horticultural products,
currently listed in Appendix II of Ministry of Agriculture Regulation 47/2013.
5 In order to import the animal products currently listed in Appendix I of Ministry of Trade Regulation
22/2013 and the horticulture products currently listed in Appendix I of Ministry of Agriculture Regulation
16/2013.
WT/DS466/1 • G/L/1038 • G/AG/GEN/113 • G/LIC/D/46 • G/PSI/D/2

 Law of the Republic of Indonesia Number 19 of 2013 Concerning Protection and
Empowerment of Farmers ("Farmers Law");

 Decree of the Minister of Trade Number 699/M-DAG/KEP/7/2013 Concerning Beef Price
Stabilization ("Ministry of Trade Decree 699/2013");

 As well as any amendments, replacements, related measures and implementing measures.

For Horticultural Products

 Law of the Republic of Indonesia Number 13 of 2010 Concerning Horticulture ("Horticulture
Law");

 Regulation of the Minister of Agricultur e Number 47/Permentan/OT.140/4/2013 Concerning
Recommendation on the Importation of Horticultural Products ("Ministry of Agriculture
Regulation 47/2013") which repeals and replaces Regulation of the Minister of Agriculture
Number 60/Permentan/OT.140/9/2012 ("Ministry of Agriculture Regulation 60/2012");

 Regulation of the Minister of Trade Number 16/M-DAG/PER/4/2013 Concerning Provisions on
Horticultural Products Import ("Ministry of Trade Regulation 16/2013") which repeals and
replaces Regulation of the Minister of Trad e Number 30/M-DAG/PER/5/2012 ("Ministry of
Trade Regulation 30") and Regulation of the Minister of Trade Number 60/M-DAG/PER/9/2012
("Ministry of Trade Regulation 60/2012");

 The Food Law;

 The Farmers Law;

 As well as any amendments, replacements, related measures and implementing measures.

Indonesia's measures appear to be inconsistent with Indonesia's obligations under the WTO
Agreements, including:

 Article 4.2 of the Agreement on Agriculture as the quotas, import restrictions, licensing
schemes and similar measures are of a kind "required to be converted into ordinary customs
duties" and which Members shall not maintain, resort to, or revert to.
6

 Article XI:1 of the GATT 1994 as the quotas, import restrictions, licensing schemes and other
measures7 are "prohibitions or restrictions on imports other than duties, taxes or other
charges".

 Article 3.2 of the Licensing Agreement as the non-automatic import licensing procedures have
trade-restrictive and -distortive effects, are br oader in scope and duration than any measure
they purport to implement, and are more ad ministratively burdensome than absolutely
necessary.

 Article X:3(a) of the GATT 1994 and Article 1.3 of the Licensing Agreement as Indonesia does
not administer the laws, regulations, decisions and rulings pertaining to the quotas, import
restrictions or licensing schemes in a uniform, impartial and reasonable manner.

 Article X:1 of the GATT 1994 as the quotas and basis for their allocation are not promptly
published in a manner so as to enable governments and traders to become acquainted with
them.

 Articles 3.3 and 3.5(a) to (c) of the Licensing Agreement due to failure to publish or provide
relevant and sufficient information, including overall quota details, country shares of quotas,
and the basis for granting and allocating licences.

6 New Zealand would also like to consult with respect to import restrictions contingent upon “trigger”
domestic prices that appear to be inconsistent with Article 4.2 of the Agreement on Agriculture and Article XI:1
of the GATT 1994.
7 Including limiting the provision of preshipment inspection activities in New Zealand to a sole company.
WT/DS466/1 • G/L/1038 • G/AG/GEN/113 • G/LIC/D/46 • G/PSI/D/2

 Articles XIII:2(a), (c) and (d) of the GATT 1994 and Article 3.5(k) of the Licensing Agreement
due to failure to fix and give appropriate notice of quotas and failure to permit licence holders
to choose the source of imports.

 Article III:4 of the GATT 1994 as Indonesia's laws, regulations and requirements affecting the
internal sale, offering for sale, purchase, distribution and use of agricultural products accord
less favourable treatment to imported products than to like domestic products.

 Articles 2.1 and 2.15 of the Agreement on Pres hipment Inspection due to failure 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.

We look forward to receiving Indonesia's 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 30 August 2013, New Zealand proposes that
consultations be held jointly with the United States. New Zealand would be amenable to holding
consultations in Jakarta.