In Indonesia, import activities are tightly regulated to ensure compliance with national standards and policies. For businesses seeking to import goods, particularly in the health and cosmetic sectors, understanding the new regulatory framework on importation is important. This is because the Ministry of Trade of the Republic of Indonesia ("MoT") issued MoT Regulation No. 8 of 2024 on the Third Amendment to MoT Regulation No. 36 of 2023 on Import Policies and Regulation ("MoTR 8/2024") (together, as "MoTR 36/2023"). Through the introduction of MoTR 8/2024, several provisions were amended, particularly the provision of importing traditional medicine, health supplements, cosmetics, and household health supplies ("Health and Cosmetic Goods"). These changes, are aimed at simplifying the import process, which is crucial for businesses to navigate the importation of Health and Cosmetic Goods in Indonesia.
Requirement for Importers
Generally, to be able to carry out import activities, Importers are required to have a Business License Number (Nomor Izin Berusaha or "NIB"), which applies as an Importer Identification Number (Angka Pengenal Importir or "API"). Please note that there are 2 (two) types of API, namely:
a. General API (API Umum or "API-U"): API-U is given only to the companies that import certain goods for trading purposes.; and
b. Producer API (API Produsen or "API-P"): API-P is given only to companies that import goods to be used directly as capital goods, raw materials, auxiliary materials, and/or materials to support the production process.
(Article 2 of MoTR 36/2023).
The goods of categorized as Health and Cosmetic Goods are allowed to be imported by the businesses who holds either API-U or API-P.
Previously, the importation of Health and Cosmetic Goods require the Import Approval and Surveyor Report. In order to obtain the Import Approval, businesses, particularly for those who holds API-U shall obtain the Technical Consideration issued by the Ministry of Industrial.
Upon the issuance of MoTR 8/2024, the government provides relaxation on import licensing for the importation of Health and Cosmetic Goods. In this regard, the Import Approval requirement has been removed as the businesses is only required to acquire the Surveyor Report. For your reference, Surveyor Report is a prerequisite for customs area inspection of the goods (Article 24(7) of MoTR 36/2023).
Exemption of Surveyor Report
Although Surveyor Report is required to import these goods, MoTR 8/2024 provides 2 (two) new exemption provision regarding the requirement for Surveyor Report, which are:
1. The Health and Cosmetic Goods will be used by Importers (with API-P) as capital goods, raw materials, and/or supporting materials related to their Industry; or
2. Importers (with API-P) that have obtained a Decree from the Ministry of Finance and are recognized as an Authorized Economic Operator (AEO) and/or designation as a Primary Customs Partner (Mitra Utama Kepabeanan).
(Appendix I of MoTR 8/2024)
When the Health and Cosmetic Goods are to be used as capital goods as specified in point 1 above, the API-P Importers will only need to provide statement letters evidencing that such goods will be used as capital goods, raw materials, or supporting materials related to their industry.
Provision of Requirements of Import Approval for Importers
Although Import Approval is no longer required for the importation of Health and Cosmetic Goods, however, Import Approval is necessary if the purpose of such importation will be used as complementary goods and market test purposes (Appendix VII of MoTR 8/2024). In order to obtain Import Approval, businesses shall obtain Technical Consideration from the Ministry of Industry ("MoI") through SIINas, a licensing electronic system managed by MoI (MoI Regulation No. 4 of 2024 on Procedures for Issuing Technical Considerations for Imports of Traditional Medicine, Health Supplements, Cosmetics and Household Health Supplies or "MoI 4/2024"). Please note that the Technical Consideration for can only be issued 1 (one) time within 1 (one) calendar year for the same HS Code (Article 4 (2) of MoI 4/2024).
Conclusion
Navigating the importation process in Indonesia requires a thorough understanding of the relevant regulations and licensing requirements. The recent amendments introduced by MoTR 8/2024 offer significant relaxations, particularly for businesses involved in the importation of Health and Cosmetic Goods. By eliminating the need for Import Approval and introducing new exemptions for the Surveyor Report, the government has streamlined the process, making it more accessible for importers. However, certain conditions still apply, especially for goods intended for complementary use or market testing. Therefore, it is crucial for businesses to stay informed and comply with the current regulations to ensure a smooth import process.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.