IMPORTATION PROCESS OF HORTICULTURE FOR ONION COMMODITIES

Introduction

In the interest of a smooth importation process, the Minister of Trade issued Regulation of the Minister of Trade Number 44 of 2019 concerning Provisions for the Import of Horticultural Products (“Permendag 44/2019”). Permendag 44/2019 is issued to provide effectiveness in the implementation of the import policy of Horticultural products and support the implementation of imports of Horticultural products. 

Importers and Types of Horticultural Products

The Attachment to Permendag 44/2019 regulates the import for several horticultural products, by specifying that such horticultural products can only be imported by:

1. Importers who hold Business Identification Numbers (“NIB”) which are valid and termed Import Identity Numbers (“API”); and[1]
2. State Owned Enterprises (“BUMN”) assigned by the Minister to administer government affairs in the BUMN sector.[2]

Importers and BUMN must obtain import approval from the Minister of Trade,[3] who has delegated the authority to issue import approvals to the Director General of Foreign Trade.[4]

The various types of import approval consist of:[5]

1. Import Approval for Horticultural Products for Consumption.Import approval for consumption is only issued to the importers who are holding NIBs which are valid as General Import Identification Number (“API-U”) and BUMNs which are assigned by the Minister who administer government affairs in the BUMN sector.
2. Import Approval of Horticultural Products for Raw MaterialsAn Import approval for industrial raw materials is only issued to the importers who hold NIBs which are valid as Import-Producer Identification Number (“API-P”).[6]

Application for Import Approval

This Permendag 44/2019 stipulates that importers who intend to obtain Import Approval should do so electronically via the https://inatrade.kemendag.go.id page by uploading the required documents as regulated in Permendag 44/2019. Application for Import Approval is intended for (i) Importers holding NIBs who wish to act as API-U; (ii) Importer holding NIBs who apply for API-P; and (iii) a BUMN that has been assigned by the Minister to administer government affairs in the BUMN sector.

Importers holding NIBs acting as API-Us and Importers holding NIBs acting as API-Ps must upload the following required documents: (i) an NIB that applies as API-U; (ii) Proof of Control over Cold Storage; (iii) Proof of Mastery of Transportation Equipment; (iv) a statement letter regarding the capability and feasibility of cold storage and transportation equipment; (v) a Horticultural Product Import Recommendation (“RIPH”).[7]

Meanwhile, BUMNs must upload the following required documents: (i) an NIB that is

valid as an API-U; (ii) Letter of Assignment from the Minister; and (iii) RIPH.[8]

The Director General of Foreign Trade will issue an Import Approval by using an Electronic Signature (Digital Signature) no later than 2 (two) working days after the application is received completely and correctly. If the application is incomplete and correct, it will be rejected electronically within 2 (two) working days from the date the application is received.[9]

Importation Reporting and Sanctions for Importers

Importers are required to report the results of the importation of types of horticultural products, which includes the import that has been conducted or not, through the https://inatrade.kemendag.go.id page every month no later than the 15^th (fifteenth) of the following month.[10]

Meanwhile, importers who do not report the results of the implementation of the import of types of horticultural products will be subject to sanctions in the form of withholding of the import approvals.[11]

[1] Article 3 paragraph (1) letters a and b Permendag 44/2019

[2] Article 3 paragraph (2) Permendag 44/2019

[3] Article 3 (2) Permendag 44/2019

[4] Article 3 (3) Permendag 44/2019

[5] Article 5 (1) letters a and b Permendag 44/2019

[6] Article 5 paragraph 2 and 3 Permendag 44/2019

[7] Article 6 jo Article 7 Permendag 44/2019

[8] Article 8 paragraph a until e Permendag 44/2019

[9] Article 9 paragraph 1 and 2 Permendag 44/2019

[10] Article 21 paragraph 1 and 2 Permendag 44/2019

[11] Article 23 Permendag 44/2019