INDONESIA – IMPORTATION OF HORTICULTURAL PRODUCTS, ANIMALS AND ANIMAL PRODUCTS REQUEST FOR CONSULTATIONS BY THE UNITED STATES
Document: REQUEST FOR CONSULTATIONS BY
Date: 14 January 2013
Document codes: WT/DS455/1; G/L/1022; G/AG/GEN/108; G/LIC/D/44
Complainant: U.S.
Respondent: Indonesia
Third parties: Australia, China, Canada, EU, Japan, South Korea, Taiwan, Paraguay, Thailand, Argentina, New Zealand
Dispute stage: Panel
Agreements cited: Art. X:3(a), XI:1  GATT 1994Art. 4.2  AgricultureArt. 3.2, 3.3  Import Licensing

INDONESIA – IMPORTATION OF HORTICULTURAL PRODUCTS,
ANIMALS AND ANIMAL PRODUCTS
REQUEST FOR CONSULTATIONS BY THE UNITED STATES
 The following communication, dated 10 Ja nuary 2013, from the delegation of the
United States 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 ("Agriculture
Agreement") and Article 6 of the Agreement on Import Licensing Procedures ("Import Licensing
Agreement"), concerning certain measures imposed by Indonesia on the importation of
horticultural products
1, animals and animal products2 into Indonesia.

Indonesia subjects the importation of horticultural products, animals and animal products
into Indonesia to non-automatic import licenses and quotas, thereby restricting imports of goods.

Indonesia imposes a non-automatic import licensing regime for horticultural products
pursuant to which an importer must complete multiple steps prior to importing a horticultural
product into Indonesia. First, an importer must obtain a Horticulture Product Import
Recommendation ("RIPH") 3 certificate from the Ministry of Agriculture. When issuing the RIPH
certificate, the Ministry of Agriculture considers the production and availability of similar products
domestically, domestic consumption of the product, and the potential of the imported product to
distort the market. Second, an importer must apply to receive a designation as a Producer
Importer for Horticultural Products or a Registered Importer for Horticultural Products from the
Ministry of Trade. Third, for each imported prod uct, the importer must apply to the Ministry of
Trade for Import Consent/Approval by submitting the RIPH certificate and the designation.

Indonesia also imposes a non-automatic import licensing regime for animals and animal
products pursuant to which an importer must complete multiple steps prior to importing an animal
or animal product into Indonesia. First, importers must receive an Import Approval
Recommendation ("RPP")
4 from the Ministry of Agriculture to import animals or animal products.
Quotas are set by the Indonesian government twice a year, and the Ministry of Agriculture
allocates the quota, specifying the quantity of each animal or animal product allocated to each
importer. After receiving the RPP, an importer must then apply for an import license with the
Ministry o f Trade. The Ministry o f Trade only allows the importation of the product if domestic

1 Including products originating from fruits, vegetables, vegetable ingredients, and floriculture, therein
including fungi, mosses, and aquatic plants that serve as vegetable, vegetable ingredients, and/or aesthetic
materials, that are still fresh or have been processed/manufactured. Ministry of Trade Regulation 60,
Art. 1(1), 1(2).
2 Including all materials derived from fresh and/or processed or prepared animals for the purpose of
consumption, pharmaceutics, agricultural, and/or other uses for fulfillment of human needs and well-being.
Ministry of Trade Regulation 24, Art. 1(5). The Indonesian measures at issue also cover carcasses, meats,
edible offals, and/or processed products thereof. Ministry of Agriculture Regulation 50, Art. 2(1).
3 Rekomendasi Impor Produk Hortikultura.
4 Rekomendasi Persetujuan Pemasukan.
WT/DS455/1 • G/L/1022 • G/AG/GEN/108 • G/LIC/D/44

production and supply of the product do not meet "demand for public consumption at reasonable
price."5

These licensing regimes have significant trade-restrictive effects on imports and are used to
implement what appear to be WTO-inconsistent measures. The multi-step licensing process is
more administratively burdensome than absolute ly necessary to administer the measure. The
issuance of RIPH and RPP recommendations, a critical part of the licensing process, appears to be
delayed or refused by the Indonesian authoritie s on non-transparent grounds. The Indonesian
licensing measures do not inform traders of the ba sis for granting licenses. The licensing regimes
do not appear to be administered in a uniform , impartial and reasonable manner, because the
measures are applied inconsistently and unpredictably.

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

 Law of the Republic of Indonesia Number 13 of Year 2010 Concerning Horticulture
("Law 13");
 Regulation of the Minister of Agriculture Number 60/Permentan/OT.140/9/2012 ("MOA
Regulation 60");
 Regulation of the Minister of Trade Numb er 30/M-DAG/PER/5/2012 Regarding Provisions
on Import of Horticultural Products ("MOT Regulation 30");
 Regulation of the Minister of Trade Number 60/M-DAG/PER/9/2012 Regarding Second
Amendment of Regulation of the Minister of Trade Number 30/M-DAG/PER/5/2012
Regarding Provisions on Import of Horticultural Products ("Regulation 60");
 Law of the Republic of Indonesia Number 18/2009 on Animal Husbandry and Animal
Health ("Law 18");
 Regulation of the Minist er of Agriculture Number 50/Permentan/OT.140/9/2011
Concerning Recommendation for Approval on Im port of Carcasses, Meats, Edible Offals
and/or Processed Products Thereof to Indonesian Territory ("MOA Regulation 50"); and
 Regulation of the Minister of Trade Number 24/M-DAG/PER/9/2011 Concerning
Provisions on the Import and Export of Animal and Animal Product
("MOT Regulation 24");
as well as any amendments, 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 X:3(a) and XI:1 of the GATT 1994;

(ii) Article 4.2 of the Agriculture Agreement; and

(iii) Articles 1.2, 3.2 and 3.3 of the Import Licensing Agreement.

We look forward to receiving your reply to the present request and to fixing a mutually
convenient date for consultations.