List of Goods Prohibited from Being Imported and Exported Updated Under Single Regulation
The Indonesian government via the Ministry of Trade disseminated the regulation on Goods Prohibited from Being Imported and Exported (“Regulation 18/2021”) that replaced three different former regulations that are relevant to this issue.
The detail overview is as follows (source: Indonesian Legal Brief “Hukum Online”). Please kindly note that in order to click the hyperlinks of the relevant clause and/or other regulation, one must have a membership access on the said Legal Brief platform.
In an attempt to implement certain provisions originally introduced under Regulation of the Government No. 29 of 2021 on the Organization of the Trade Sector, the Minister of Trade (“Minister”) recently issued Regulation No. 18 of 2021 on Goods Prohibited from Being Imported and Exported (“Regulation 18/2021”). Previously, the various goods that were prohibited from being imported and exported were addressed under three different regulations, all of which have now been repealed and replaced, specifically:
- Decree of the Minister of Industry and Trade No. 520/MPP/Kep/8/2003 on the Prohibition on Imports of Hazardous and Toxic Waste (Limbah Bahan Berbahaya dan Beracun – “B3 Waste”);
- Regulation of the Minister No. 45 of 2019 on Goods Prohibited from Being Exports (“Regulation 45/2019”); and
- Regulation of the Minister No. 12 of 2020 on Goods Prohibited from Being Imported (“Regulation 12/2020”).
In essence, Regulation 18/2021 sets out the various categories of commodities and types of goods that are subject to the prohibition on import and export activities, along with the applicability of said provisions. This edition of Indonesian Legal Brief (ILB) will summarize the various provisions that have now been introduced under Regulation 18/2021 and has been divided up as follows:
- Goods prohibited from being imported;
- Goods prohibited from being exported; and
- Applicability of prohibitions.
Goods Prohibited from Being Imported
Under Regulation 18/2021, a total of 149 goods across 10 categories of commodities are now prohibited from being imported. In contrast, under the previous framework of Regulation 12/2020, only 116 goods across six categories were subject to this prohibition.
In order to offer a clearer comparison, the table below breaks down the various types of goods prohibited from being imported under the current and previous frameworks:
In essence, importers are prohibited from engaging in any import activities in relation to any of the goods listed under Appendix II to Regulation 18/2021. However, under certain circumstances, all of the above-listed goods prohibited from being imported may be re-imported after having been previously exported. If this is the case, then the re-importation of said goods will be subject to the provisions set out under the prevailing laws and regulations on customs. By way of comparison, Regulation 12/2020 previously addressed various specific requirements that had to be met prior to the re-importation of any goods prohibited from being imported.
It is worth noting that the prohibition on the importation of certain types of ozone-depleting substances, registered B3 waste and non-B3 waste comes into effect on 1 January 2022.
Goods Prohibited from Being Exported
A total of 275 goods in six categories of commodities are now prohibited from being exported under the new framework of Regulation 18/2021. In comparison, only 39 goods in four categories of commodities were previously subject to the prohibition on exports. A comparison between the various goods prohibited from being exported under both regulations is provided in the table below:
Applicability of Prohibitions
Any importers and exporters who fail to comply with the prohibitions set out under Regulation 18/2021 will be subject to the imposition of sanctions, as set out under the prevailing laws and regulations. Accordingly, it is important for the relevant importers and exporters to take note of the applicability of the abovementioned prohibitions.
A number of provisions on goods prohibited from being imported and exported apply to imports and exports of goods or products that contain raw materials that currently enjoy import facilities for exports purposes. Furthermore, said prohibitions will also be applicable in the following areas under the following conditions:
Source : Indonesian legal center “Hukum Online”.