The Minister of Trade (“MOT”) Regulation No. 70/M-DAG/PER/9/2015 on Import Identification Numbers (“API”), issued in September 2015 (“MOT Reg 70/2015”), came into effect on 1 January 2016 and revoked the previous API regulation: MOT Regulation No. 27/M-DAG/PER/5/2012 as lastly amended by MOT Regulation No. 84/M-DAG/PER/5/2012.
Under MOT Reg 70/2015:
- there is no longer a restriction only allowing goods from 1 (one) section to be imported by an API-U holder. Therefore, goods from more than 1 (one) section can be imported without having to prove a special relationship with the overseas supplier or that the company is wholly or majority owned by the state;
- goods imported under an API-P, and granted an import duty exemption, may be transferred to other parties after the goods have been used for at least 2 years as of the date of the Customs import notification;
- importing “certain industrial goods” and being designated an Importer Producer (Produsen Importir) is no longer regulated. Importing certain industrial goods, such as complementary goods, goods for market testing and/or goods for after sales services now fall under MOT Regulation No. 118/M-DAG/PER/12/2015 on Import Provisions on Complementary Goods, Goods for Market Testing and for After Sales Services (“MOT Reg 118/2015”). According to MOT Reg 118/2015, API-P holders can now import finished goods and/or manufactured goods as long as they are needed for the development of the company’s business and investment. The manufactured goods can be traded and/or transferred to other parties and be used as complementary goods, for market testing and/or for after sales services, subject to several requirements under MOT Reg 118/2015. Import Approval (Persetujuan Impor) from the MOT (delegated to the Director General of Foreign Trading), is required to import these goods. MOT Regulation 118/2015 came into force on 1 January 2016. Import Approvals issued under previous regulations remain valid, but must be adjusted to comply with MOT Regulation 118/2015 by 30 June 2016.
- not only API-P holders designated as Importer Producers but both API-U and API-P holders may now be post-audited by the MOT, if the MOT deems it necessary.
- the authority to issue APIs is delegated by the MOT to (i) the BKPM, (ii) MOT’s Director General of Foreign Trading, and (iii) the Head of the Provincial Trade Office.
- under Article 37 of MOT Reg 70/2015, API-Ps and API-Us issued under the previous regulation remain valid, but must be adjusted to MOT Reg 70/2015 by 30 June 2016. Therefore, if your company holds an API-P or API-U, your company must apply for a new API-P or API-U adjusted to MOT Reg 70/2015, by 30 June 2016.