INDONESIA – IMPORTATION OF HORTICULTURAL PRODUCTS, ANIMALS AND ANIMAL PRODUCTS REQUEST FOR CONSULTATIONS BY THE UNITED STATES
Document: REQUEST FOR CONSULTATIONS BY
Date: 9 September 2013
Document codes: WT/DS465/1; G/L/1037; G/AG/GEN/112; G/LIC/D/45; G/PSI/D/1
Complainant: U.S.
Respondent: Indonesia
Dispute stage: Consultation
Agreements cited: Art. III:4, X:1, X:3(a), XI:1, XIII:2  GATT 1994Art. 4.2  AgricultureArt. 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 THE UNITED STATES
 The following communication, dated 30 Au gust 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"), Article 6 of the Agreement on Import Licensing Procedures ("Import Licensing
Agreement"), and Articles 7 and 8 of the Agreement on Preshipment Inspection concerning certain
measures imposed by Indonesia on the importation of horticultural products, 1 animals, and animal
products2 into Indonesia.

 Indonesia subjects the importation of horticul tural products, animals, and animal products
into Indonesia to non-automatic import licenses and quotas, thereby restricting imports of goods.
Indonesia's measures restrict the importation of these products whenever domestic production is
deemed sufficient to fulfill domestic demand. Under the measures, Indonesia also sets quotas
both annually and semi-annually through ministerial-level coordination meetings followed up by
inter-ministerial technical meetings. The Ministry of Agriculture allocates the quotas, and specifies
the quantity of each product allocated to each importer.

 With respect to horticultural products, Indonesia's non-automatic import licensing regime
involves multiple steps. First, an importer must obtain a Horticulture Product Import
Recommendation ("RIPH")
3 certificate from the Ministry of Agriculture. The RIPH certificate
restricts the quantity, type, and country of origin of the imported horticulture product per six-
month period. RIPH certificates do not permit the importation of fresh horticulture products for
consumption that were harvested more than six months ago. 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 product, the
importer must apply to the Ministry of Trade for Import Approval by submitting the RIPH certificate
and the designation.

1 The relevant Indonesian measure defines horticultural products as “all products derived” from “fruits,
vegetables, medicinal plants ingredients, and floriculture including mushrooms, mosses, and water plants that
serve as vegetables, medicinal plants ingredients, and/or aesthetic materials” that are still “fresh” or have been
“processed.” Ministry of Trade Regulation 16, Art. 1(1), 1(2).
2 The relevant Indonesian measure defines animal products as including “all materials originating from
animals that are still fresh and/or have been treated or processed for the purpose of consumption,
pharmaceutical, agricultural, and/or other uses for fulfillment of human needs and welfare.” Ministry of Trade
Regulation 22, 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.
WT/DS465/1 • G/L/1037 • G/AG/GEN/112 • G/LIC/D/45 • G/PSI/D/1

 With respect to animals and animal products, Indonesia's non-automatic import licensing
regime likewise involves multiple steps. Firs t, importers must receive an Import Approval
Recommendation ("RPP")4 from the Ministry of Agriculture to import animals or animal products.
Second, importers who import for the business purpose of trading or transferring to another party
must apply to receive a designation as a Registered Importer for Animals and Animal Products.
Third, an importer must then apply to the Ministry of Trade for an Import Approval by submitting
the RPP and the designation.

Indonesia's non-automatic import licenses and quotas restrict imports, without any apparent
justification other than to protect Indonesian producers. The multi-step licensing process is more
administratively burdensome than necessary to administer the measures. The Indonesian
licensing measures failed to provide relevant information sufficient for governments and traders to
become acquainted with them, including overall quota details, country shares of quotas, and the
basis for granting and allocating 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. And, the licensing measures fail to allow license holders to choose the source
of imports.

Indonesia's measures limit the purchase, sale, or use of imported horticultural products,
animals, and animal products, without posing comparable restrictions on domestic products. For
example, Indonesia's measures limit the sale of imported horticulture products to distributors, and
limit the sale of imported beef to the hotel, restaurant and catering sectors.

Indonesia's measures impose preshipment inspection requirements. Indonesia failed 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

Finally, Indonesia's measures impose import restrictions contingent upon trigger domestic
prices.

 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 47/Permentan/OT.140/4/2013
Concerning Recommendation on the Importation of Horticulture Products ("MOA
Regulation 47"), which repeals and repl aces Regulation of the Minister of
Agriculture Number 60/Permentan/OT.140/9/2012 ("MOA Regulation 60");

• Regulation of the Minister of Trade Number 16/M-DAG/PER/4/2013 Concerning
Provisions on Horticulture Product Import ("MOT Regulation 16"), which repeals
and replaces Regulation of the Minister of Trade Number 30/M-DAG/PER/5/2012
Concerning the Provisions on Import of Horticultural Products ("MOT Regulation
30") and Regulation of the Minister of Trade Number 60/M-DAG/PER/9/2012
Regarding Second Amendment of Regulati on of the Minister of Trade Number
30/M-DAG/PER/5/2012 Regarding Provisions on Import of Horticultural Products
("MOT Regulation 60");

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

• Regulation of the Minister of Agriculture Number 50/Permentan/OT.140/9/2011
Concerning Recommendation for Approval on Import of Carcasses, Meats, Edible
Offals and/or Processed Products Thereof to Indonesian Territory ("MOA Regulation
50") as amended by Regulation of th e 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

4 Rekomendasi Persetujuan Pemasukan.
WT/DS465/1 • G/L/1037 • G/AG/GEN/112 • G/LIC/D/45 • G/PSI/D/1

Approval Recommendation of Carcass, Meat, Offal, and/or their Derivatives into
the Territory of the Republic of Indonesia ("MOA Regulation 63);

• Regulation of the Minister of Trade Number 22/M-DAG/PER/5/2013 Concerning
Import and Export of Animals and Animal Products ("MOT Regulation 22"), which
repeals and replaces 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");

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

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

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

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 III:4, X:1, X:3(a), XI:1, XIII:2(a), XIII:2(c), and XIII:2(d) of the GATT 1994;

(ii) Article 4.2 of the Agriculture Agreement;

(iii) Articles 1.3, 3.2, 3.3, 3.5(a), 3.5(b), 3.5(c), and 3.5 (k) of the Import Licensing
Agreement;

(iv) Articles 2.1 and 2.15 of the Agreement on Preshipment Inspection.

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