21 Oct 2016
SIMPLIFICATION OF PROVISIONS ON IMPORTATION OF GADGETS

The government amended, for the third time, the provisions on importation of cellular phones and handheld and tablet computers (“Gadgets”) by issuing Regulation of the Minister of Trade No. 41/M-DAG/PER/5/2016 of 2016 (“Regulation”) regarding Third Amendment to Regulation of the Minister of Trade No. 82/M-DAG/PER/12/2012 regarding the same subject matter.

In line with the main objective of promoting investment, this Regulation principally simplifies the requirements and procedures for investors to (i) be certified as registered importers (“Importir Terdaftar” or “IT”); (ii) obtain the permit for importing Gadgets (“Persetujuan Import or “PI”); and (iii) secure the surveyor’s report. This Regulation also revokes the requirement for importers of non-4G technology devices to establish a gadget industry in Indonesia.

Certification as Registered Importer (IT)

For the certification as an IT, the importer must submit an application to the Minister of Trade which is accompanied by the importer’s:

1. importer identification number;
2. original certification as IT for Gadgets (if the certification has been obtained);
3. cooperation contract with at least 3 (three) distributors for the sale of Gadgets; and
4. recommendation from the Directorate General of Metal, Machinery, Transportation and Electronic Industries at the Ministry of Industry (“DGEI”). Specifically for devices with 4G technology, the recommendation must be in the form of investment recommendation which contains (i) evidence on establishment of business within the Gadget industry in Indonesia; or (ii) evidence on cooperation with local Gadget industries (if the business is focusing in manufacturing, house designs and/or research and development).

Import Permit (PI)

The amendment in regard to the PI simplifies the supporting document requirements for the application. The required supporting documents now are:

1. the IT certification;
2. the Import Product Registration Certificate (Tanda Pendaftaran Produk Impor or “TPP Impor”) issued by the DGEI;
3. the Telecommunication Gadget Certificates issued by the Directorate General of Post and Information Resources and Gadgets at the Ministry of Communication and Information Technology (“DGPIT”); and
4. the original appointment letter from the overseas principal company / holder of the trademark/factory/distributor. The letter must be legalized by a notary in the principal’s country of origin as well as by the Indonesian trade attaché or diplomatic officer.

The above applications must be submitted electronically to the Director General of Foreign Trade through its portal: http://inatrade.kemendag.go.id. Manual applications are still accepted in force majeure situations such as website malfunctions.

The Surveyor’s Report

The Surveyor’s Report is the required report to be issued by a surveyor appointed by the Minister of Trade, stipulating the surveyor’s findings upon verification of the gadget’s data. Under this regulation, the verification must cover : (i) the country and loading port; (ii) the shipping time; (iii) the destination port; (iv) the tariff post/HS and description of the goods; and (v) the types and volume, in line with the statement of the overseas principal company. The verification also includes verification on whether the products correspond with the respective DGPIT certification, the International Mobile Equipment Identity, the Mobile Equipment Identifier, the Electronic Serial Number and so forth, as stated in the TPP Impor.

This Regulation came into force on 1 July 2016. (by: Daniel Octavianus Muliawan)