AMENDMENTS OF MINISTRY OF TRADE REGULATION NUMBER 20 OF 2021 WITH MINISTRY OF TRADE NUMBER 25 OF 2022 CONCERNING IMPORT POLICY AND ARRANGEMENTS

On 24th May 2022, the Ministry of Trade established amendments of Ministry of Trade Regulation Number 20 of 2021 (MoTR 20/2021) with Ministry of Trade Regulation Number 25 of 2022 concerning Import Policy and Arrangements (MoTR 25/2022).

Some amended articles that are regulated in the form of adjustment of right to access that was not regulated under MoTR

MoTR 20/2011 is an implementing regulation which regulates the import trade system to provide convenience and certainty in doing business, especially for business licensing to support business policies in obtaining raw materials.

Three main things that were amended in the Import Licensing Issuance Regulation are the export and import licensing based on the commodity balance.

First, suppose the commodity balance has not been determined then the import or export approval issuance is based on available data and export and import recommendations based on the provisions of laws and regulations. Second, implement export and import licensing application through a single integrated system, Single Submission (SSM). Lastly, positive fictitious arrangements for export and
import permits will be issued automatically if they pass the Service Level Agreement (SLA).

Ever since MoTR 25/2022 was enacted, there have been several evaluations based on the input of business actors and system performance, so it is necessary to make changes to this regulation to
be more implementable.

Amendments include the Harmonized System tariff post changes with the Buku Tarif Kepabeanan Indonesia (BTKI/2022 custom tariff book).

Amendments of data elements on the requirements and the terms of the provisions and/or approval of import divisions.

And the addition of new requirements to show non-Badan Usaha Milik Negara (non-BUMN) business actors to import animal products for purposes and assessment criteria in determining the appointment of business actors.

Provisions on the validity period of amendment or extensions to issued permits and applications submitted before the entry into force of this amended regulation, in the event of amendment or the terms and conditions, adjustments have been made to the system and previously issued permits
so as not to create obstacles in the implementation of imports.

In MoTR 25/2022, there was an amendment regarding Access Rights in which it stated that specifically for importers who are BUMN, there would be an additional document in the form of Nomor Pokok Wajib Pajak (NPWP) to obtain Access Rights Permits to apply for Business License.

With the amendments of Government Regulation Number 4 of 2016 (GR 4/2016) to Government Regulation Number 11 of 2022 (GR 11/2022), performing Specific Imported Goods for Availability
of Goods and price stability that is previously applicable for BUMN, is now available for other
business actors.

To be designated as implementing the Import of Certain Goods, other business actors
must register electronically to the Minister through SINSW per the requirements as mentioned in Attachment I of the MoTR 25/2022.

The application is submitted to the Minister through SINSW, which is integrated with INATRADE.

Furthermore, administrative sanctions are given as a recommendation to freeze the Nomor Induk Berusaha (NIB) that applies as an Angka Pengenal Impor (API). It will be revoked if the Importer has carried out the realization report obligation within 30 days from the date the recommendation to freeze the NIB is given or proven innocent or acquitted based on a court final verdict. Administrative sanctions are more detailed for each sanction of revocation of Business Licenses in the field of Import.

Importers are subject to administrative sanctions in the form of recommendations to revoke the NIB that applies as API if they do not carry out the obligation to report the realization of Imports,
commit violations in the field of customs based on information from Directorate General of Customs and Excise (DGCE), or are found guilty based on a final verdict on criminal acts related to the misuse of NIB. Importers are subject to administrative sanctions in the form of revocation of Business Licenses in the field of Import if the Importer:

a. proven to trade and/or transfer imported goods that have been imported (API-P)

b. proven to trade and/or transfer Goods that have been imported that are not in accordance with the sales contract or proof of order (API-U)

Subject to sanctions in the form of revocation of certificate if Importer:

a. did not carry out the realization report;

b. discrepancies are found in the required documents and data or information on the
application for a certificate;

c. importing Goods with types and/or quantities that are not by the data or information contained in the certificate.

Lastly, Article 42 of MoTR 20/2021 is amended such that there is an additional provision regarding the goods that are not in accordance with the provisions of MoTR 25/2022 that they shall be re-exported, destroyed, withdrawn from distribution, or may be treated otherwise in accordance with the provisions of laws and regulations and that the importers bear the cost of withdrawal from distribution. On top of that, in the event that INATRADE and SINSW system not functioning, then an additional day of 15
working days shall be given to issue for amend or extend business license in the field of import. (JXR)

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