Regulation on Import of Non-New Lithium Batteries and Non-Hazardous Waste
On December 11, 2023, the Minister of Trade (the “MOT”) issued Regulation No. 36 of 2023 on Import Policies and Arrangements which Regulation was supposed to be effective on March 10, 2024 (“Regulation 36/2023”). However, on March 5, 2024, the MOT issued Regulation No. 3 of 2024 on the Amendment of Regulation 36/2023 (“Regulation 3/2024”). The amendments under Regulation 3/2024 do not change the effective date of Regulation 36/2023, i.e., March 10, 2024.
Regulation 3/2024 is issued to optimize the implementation of the import of certain goods under Regulation 36/2023. Regulation 3/2024 amends eight articles, adds four articles of Regulation 36/2023, and amends and restates Appendices I – VII of Regulation 36/2023 entirely.
Although Regulation 36/2023, as amended by Regulation 3/2024, regulates provisions for a variety of imported goods, this Newsflash focuses on the import provisions of Non-new Lithium Batteries and Non-Hazardous and Toxic Waste as Industrial Raw Materials (the “Non-hazardous Waste”).
♦ Import of Non-New Lithium Batteries
The allowance to import the non-new lithium batteries is made to support the acceleration of the battery electric vehicle (“BEV”) industry development as the non-new lithium batteries may only be imported by a manufacturer in the lithium battery and/or metal material goods recovery industry in the relation to the BEV development, e.g., non-new lithium batteries used as raw material in the lithium battery industry.
The types of non-new lithium batteries that may be imported are (i) non-new secondary lithium batteries in intact condition that may not be used as intended due to certain reasons, and (ii) remains and scrap generated during the production of lithium batteries.
We note that there are no substantial differences between Point V of Appendix II regarding the requirements for the import of non-new lithium batteries, including its scraps, under Regulation 3/2024 and previously regulated under Regulation 36/2023.
The non-new lithium batteries may only be imported by a company that holds a producer importer license in the form of a Producer Importer Identification Number (in Indonesian, Angka Pengenal Importir Produsen or an “API-P”). The API-P holder shall obtain a valid (i) environmental license or related, and (ii) Industrial Business License or related license, from the authorized institutions.
The issuance of the producer importer business license is made based on the result of the technical coordination meeting to ensure the capability of a company in managing the imported non-new lithium battery. The government institutions that organize and attend the technical coordination meeting will depend on the locations of the delivery of the imported goods in Indonesia, such as in a bonded zone, special economic zone, or any other area.
As an example, for the import of lithium batteries to a Free Trade Zone and Free Port (in Indonesian, Kawasan Perdagangan Bebas dan Pelabuhan Bebas or a “KPBPB”), the meeting shall be organized by the Head of KPBPB Authority Management and attended by the respective ministers responsible for administering governmental affairs in the field of trade, industry, investment, and environment and forestry.
♦ Import of Non-Hazardous and Toxic Waste as Industrial Raw Materials
Similar to the provisions for the import of non-new lithium batteries above, there are no substantial differences between Point VI of Appendix II regarding the requirements for the import of Non-hazardous Waste, including the scraps of its relevant groups (e.g., paper, metal, rubber, textile, and glass) under Regulation 3/2024 and previously regulated under Regulation 36/2023.
As a reference, Appendix II of Regulation 3/2024 stipulates that Non-hazardous Waste is the residue of a business/activity in the form of scrap or residues that are not classified or categorized as hazardous and toxic waste.
The import approval for Non-hazardous Waste is subject to the requirement in commodity balance. If the commodity balance has yet to be determined, the requirement for an import approval by the API-P holder are (i) documents proof as a registered exporter, (ii) a statement letter from the originating country of the exporter, (iii) a statement letter from the importer, (iv) a recommendation/verification result report from the Ministry of Environment and Forestry, and (v) a recommendation/master list/verification result report from the Ministry of Industry.
In addition, the criteria of Non-hazardous Waste that may be imported are (i) it does not originate from landfill activities, (ii) it is not garbage and not mixed with garbage, (iii) it is not contaminated with hazardous waste, and (iv) it is homogeneous.
Further, the import of Non-hazardous Waste shall only originate from exporters registered in their respective originating country and shall only be imported through certain ports, among others, Tanjung Priok Port in Jakarta, Tanjung Emas Port in Semarang, and Tanjung Perak Port in Surabaya.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Radiansyah S. Yamin (ryamin@aksetlaw.com), Andi Manggoana Wira Tenri (atenri@aksetlaw.com), or M. Fatih Satria Kasmaliputra (mkasmaliputra@aksetlaw.com) for further information.
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