Importer Identification Numbers Reregulated
As a part of the Economic Policy Packages launched by President Joko Widodo, the Minister of Trade issued the Minister of Trade Regulation No. 70/M-DAG/PER/9/2015 on Importer Identification Numbers (the “New Regulation”) on September 28, 2015. This regulation replaces the previous Minister of Trade Regulation No. 27/M-DAG/PER/5/2012 on Provisions on Importer Identification Numbers as lastly amended by Minister of Trade Regulation No. 84/M-DAG/PER/12/2012 (collectively, the “Previous Regulation”). The issuance of the New Regulation is aimed for ease of trade and logistics. The New Regulation will be in force as of January 1, 2016.
Same as the provision under the Previous Regulation, under the New Regulation, a company may only hold one of the two types of the Importer Identification Number (Angka Pengenal Importir – “API”), which are:
- General Importer Identification Number (Angka Pengenal Importir Umum – “API-U”), which may only be granted to a company that imports goods to be traded; and
- Producer Importer Identification Number (Angka Pengenal Importir Produsen – “API-P”), which may only be granted to a company that imports goods to be used in its production process.
♦ No limitation on goods that may be imported by API-U holders
Previously, goods that may be imported by an API-U holder were limited to goods that are classified under one section in the Goods Classification System under the relevant laws and regulations or as commonly known as the Harmonized System (“HS”) Code. There was an exception to this limitation under the Previous Regulation, which was if the API-U holder is importing goods from overseas companies that have special relationship with the API-U holder or if the API-U holder is a state-owned company. Under the New Regulation, there is no limitation on the types of goods that may be imported by an API-U holder and there is no requirement to have special relationship with the overseas companies if an API-U holder wishes to import goods that are classified under more than one sections in the HS Code.
♦ API-P holders can no longer import certain industrial goods to be traded
Under the Previous Regulation, it is possible for an API-P holder, after being determined as an Importer Producer (Produsen Importir) to import certain industrial goods to be traded or transferred to other parties, provided that the goods are imported for the purpose of market test and/or complementary goods, not to be used in the production process of the importer. This provision no longer exists under the New Regulation. Therefore, under the New Regulation, API-P holders are only permitted to import goods to be used in their production process.
♦ Delegation of authority
Under the New Regulation, the Minister of Trade delegates the authority to issue the API to:
- the Chairman of the Capital Investment Coordinating Board (Badan Koordinasi Penanaman Modal – “BKPM”), for capital investment companies which licensing is under the authority of the central government (e.g., Foreign Capital Investment (Penanaman Modal Asing – “PMA”) companies);
- the Director General of Foreign Trade of the Ministry of Trade, for business entities or contractors in the energy, oil and gas, mineral and other natural resources sectors, which business is based on cooperation contracts with the Government of the Republic of Indonesia;
- the Heads of Free Trade and Free Port Zone Authorities, for companies that are established and domiciled in the free trade and free port zones; and
- the Chairman of Provincial Trade Department, for companies other than referred to in points a to c above.
The New Regulation also stipulates that the issuance of the API by the Chairman of BKPM is further regulated by the Chairman of BKPM. The procedures for the issuance of the API by the Chairman of BKPM is further regulated in the Chairman of BKPM Regulation No. 15 of 2015 on Guidelines and Procedures for Capital Investment Licensing and Non-licensing. The procedures including the requirement to attach a copy of Foreign Manpower Utilization License (Izin Mempekerjakan Tenaga Asing/IMTA), Limited Stay Permit (Kartu Izin Tinggal Terbatas/KITAS), Taxpayer Identification Number (Nomor Pokok Wajib Pajak/NPWP) and passport along with the application if the signatory of the API is a foreign citizen.
♦ Adjustment of API
After the entry into force of the New Regulation on January 1, 2016, the API-U and API-P that were issued pursuant to the Previous Regulation remain valid but have to be adjusted with the New Regulation by no later than June 30, 2016. The adjustment of the API shall be processed with the relevant institution in accordance with the delegation of authority from the Minister of Trade as explained above.
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November 9, 2015
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- November 9, 2015