Published on Global Trade Alert (http://www.globaltradealert.

org)

Indonesia: New procedures for the import of steel and

iron products into Indonesia
Description
The "Provisions on Iron and Steel Importation" (Decree of the Minister of Trade No 08/M-DAG/PER/2/2009),
announced on 18 February 2009, which expires on 31 December 2010, introduces new procedures for the import of
iron and steel as follows:

i. Registration of importers with Indonesia?s Ministry of Trade: Under the decree, iron and steel imports may
only be imported by Registered Importers (IP) or Producer Importers (IT) of Steel or Iron. This status is valid
for 1 year and may be extended;
ii. Pre-shipment import technical verification: This must be done by an independent state-appointed surveyor at
the loading port. The import technical verification shall cover the type of goods, classification of goods,
quantity, and port of destination; and
iii. Submission of quarterly reports on the realisation of imports: The written reports must be submitted to
Director-General of the Ministry of Trade via http://inatrade.depdag.go.id. Repeated failure to abide by this
article shall result in the revocation of the Registered Importers (IP) or Producer Importers (IT) of Steel or Iron
status.
The regulation applies to 202 domestically produced steel products including Hot Rolled Coil (HRC), Hot Rolled Plate
(HRP), Layered Sheet Iron, Welding Pipes, Wire Rods, and Coated-Steel Products. Some items excluded from the
verification and import technical tracking regulation are:
a. Steel or iron imported by licensed importers (IPs) of steel or iron in the automotive industry, electronics
industry, ship dock industry and their relevant components;
b. Steel or iron imported that is already subjected to import verification based on the User Specific Duty Free
Scheme (USDFS/BM-DTP); and
c. Steel or iron imported for the industrial needs in Free Trade Zones, Free Ports and Bonded Zones.

Update 13 September 2012:

The revised Decree 21/2009 eliminates the requirement to submit a Goods Import Plan in the application by an
importer-producer (IP) or an importer (IL) for importation of iron and steel products. Furthermore it enlisted the
industries excluded from the scope of the Decree:
the industries of automotive, electronics, ship building, heavy equipment and their components;
importers in Priority Lane: user industry with SKVI (Industry Verification Reference Letter) through USDFS
(User-Specific Duty Free Scheme), and the company owning SKVI through BM-DTP (Import Duty Paid by
the Government; and
contractors of Joint Operations in Oil & Gas and Mining, of development of power plants for public
consumption, and operators of the development of Oil & Gas downstream for public services.
Decrees 8/2009 and 21/2009 were extended for two more years by Decree 54/2010 until 31 December 2012.

On 1 March 2012, the Minister of Trade prolonged the regulation until 31 December 2015 (see regulation No. 08/MDAG/PER/2/2012).
Any Evidence-Based Deliberation:
Question

Result

Is there anything in the public record to suggest that evidence of the effectiveness of the proposed
measure was considered during official deliberations?

Yes

Is there any evidence that alternatives to the proposed measure were considered?

Yes

Is there anything in the public record that suggests that empirical evidence informed the comparison
across the alternatives available to government?

No

Was such evidence identified?

No

Is such evidence publicly available?

No

Did the official decision-maker in question provide an explanation as to why a chosen measure was
favoured over alternatives?

Don't Know

Is there any evidence to suggest that potentially affected trading partners were consulted before the
measures were taken?

Don't Know

Is there any evidence that safeguards have been put in place to ensure that implementation of the
initiative is transparent and non-discriminatory?

No

Did the government state its intention to review the measure within one year of implementation?

Don't Know

Implementing Jurisdiction:
Indonesia
Affected Trading Partners:
Argentina
Australia
Austria
Belgium
Brazil
Canada
China
Finland
France
Germany
Hong Kong
India
Italy
Japan
Kazakhstan
[view 20 more jurisdictions]
Affected Sectors:
41 [ Basic metals]
42 [ Fabricated metal products, except machinery and equipment]

Affected Tariff Lines:

7208 [Flat-Roll Iron & Na Steel N/Un600Mm Wd Hot-Rl, Not Clad]
7209 [Flat-Roll Iron & Na Steel N/Un600Mm Wd Cold-Rl, No Clad]
7210 [Flat-Roll Iron & Na Steel N/Un600Mm Wd, Clad Etc]
7211 [Flat-Roll Iron & Na Steel Un 600Mm Wd, Not Clad Etc]
7213 [Bars & Rods, Iron & Na Steel, H-R Irreg Coils]
7214 [Bars & Rods, Iron & Na Steel Nesoi, H-R Etc]
7215 [Bars & Rods, Iron & Na Steel Nesoi]
7216 [Angles, Shapes & Sections Of Iron & Nonalloy Steel]
7217 [Wire Of Iron & Nonalloy Steel]
7219 [Flat-Roll Stainless Steel Products, Not Und 600Mm Wide]
7229 [Wire Of Alloy Steel Nesoi]
7301 [Sheet Piling, Welded Angles Etc Of Iron Or Steel]
7304 [Tubes, Pipes Etc, Seamless, Iron Nesoi & Steel]
7305 [Tubes & Pipes Nesoi, Ext Dia Ov406-4Mm, Iron & Steel]
7306 [Tubes, Pipes & Hollow Profiles Nesoi, Iron & Steel]
7307 [Tube Or Pipe Fittings, Of Iron Or Steel]
7308 [Structures Nesoi & Parts Thereof, Of Iron Or Steel]
7311 [Containers For Compressed Or Liquified Gas]
7312 [Stranded Wire, Ropes Etc, No Elec Ins, Iron Or Steel]
7314 [Cloth, Grill Etc Iron Or Steel, Expand Metal, Iron Or Steel]
7317 [Nails, Tacks, Drawing Pins Etc Of Iron Or Steel]
7318 [Screws, Bolts, Nuts, Washers Etc, Iron Or Steel]
7321 [Stoves, Ranges Etc, Nonel Domestic & Parts, Iron & Steel]
Dates:
Inception of measure: 18/02/2009
Duration of measure:
Date Discovered: 30/06/2009
GTA Evaluation: Red
Source:
The translated regulation of the minister of trade of the Republic of Indonesia (No.08/M-DAG/PER/2009) can be found
here: http://www.iesingapore.gov.sg/wps/wcm/connect/74ccd8004d8ece869374fbb196...
The list of affected products can be found here:
http://www.iesingapore.gov.sg/wps/wcm/connect/d771cf804d8ed050937cfbb196...
The communication of the delegation of Indonesia to the WTO can be found here:
http://www.google.ch/url?sa=t&source=web&ct=res&cd=4&url=http%3A%2F%2Fww...
Regulation 08/M-DAG/PER/2/2012:
http://rulebook-jica.ekon.go.id/english/4706_08_M-DAG_PER_2_2012_e.html
Government Response: Based on The Government of Indonesia?s notification: a. List of products subject to licensing

procedures; Reduced from the original 203 post tariff to 169 post tariff, where HS. 7311, 7318, and 7321 are not
included in the new regulation. b. Date and name of publication where licensing procedures are published: - Date: 11
June 2009 - Publication: Regulation of the Minister of Trade No.21/M-DAG/PER/6/2009 dated June 2009 on The
Revision of Regulation of the Minister of Trade No.8/M-DAG/PER/2/2009 on the Import of Iron or Steel. c. In the case
of automatic import licensing procedures, their administrative purpose: In the new regulation, the clause that stated
company applying for IP or IT of Iron or Steel must provide their import plan for one year covering quality, kinds of
goods, tariff heading/HS 10 (ten) digits and destination port, is removed.
Source URL: http://www.globaltradealert.org/node/166
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