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New rules on Import of Horticultural Products enters into force
15 June 2012

 

Today, 15 June 2012, marks the entry into force of the Decree of the Minister of Trade No. 30/M-DAG/PER/5/2012 concerning Provisions on Imports of Horticultural Products (“Decree No. 30/2012”). With this rule, several conditions of import will have to be fulfilled by importers.

The Decree basically covers horticultural products, both processed and fresh fruits and vegetables, floriculture, herbal medicine material, and/or aesthetic material (the detail products are mentioned in Annex 1 of the Decree).

Under the new rule, an importer needs to obtain an import license. For a producer importer who will use the imported products as raw materials in the production process, they will have to apply for a producer importer of horticultural products (“IP-HP”). Meanwhile, for an importer who imports for the purpose of trading, he/she will have to apply for a registered importer of horticultural products (“IT-HP”). In addition, an IT-HP company who imports for trading purposes will need to also obtain Import Approval.

Applications for IP-HP and IT-HP have to be submitted to the Directorate General of International Trade, Ministry of Trade (“DG”).

A company with IP-HP may not trade or assign its imported products. On the other hand, a company with IT-HP may only trade and/or assign the imported horticultural products to distributors, instead of direct consumers or retailers.

Besides such import license, Decree No. 30/2012 also requires certain conditions of packaging and labeling to be fulfilled. For example, packaging made of plastic must bear the Tara Pangan logo and Recycling Code. This will have to be later proven by Test Result Certificate issued by a Test Laboratory accredited by the local government.

As for labeling, basically the Decree requires the imported horticultural product to bear a label in Indonesian upon entry into the territory of Indonesia. The Decree also requires for the importers to obtain an Acknowledgment Letter for the Attachment of Label in Indonesian (“SKPLBI-PH”) to the Director General of Standardization and Consumer Protection, in this case, the Director of Consumer Development.

Specifically, for plants for decoration, a different set of rules apply. There is not specific requirement of packaging and labeling. However, a IT-PH company shall have SKPLBI-PH that is a compulsory document for custom clearance purpose.

The Decree requires all imports of horticultural products by IP-PH or IT-PH to be verified or technically investigated at the loading port of the country of origin by determined surveyors of the Ministry of Trade, on importers’ cost. The verification document is needed for custom clearance purpose.

Aside from the new Decree, according to Article I Decree No. 15/2012 of the Minister of Agriculture, ports of imports of fresh fruits and/or vegetables will be limited to the following:

  1. Sea Port of Belawan, Medan;
  2. Sea Port of Tanjung Perak, Surabaya;
  3. Sea Port of Soekano-Hatta, Makassar; and
  4. Airport of Soekarno-Hatta, Jakarta.

Besides the four ports, free ports which are determined by law at free trade areas and free ports, may still be used as the port of imports of fresh fruits and/or vegetables.

The new port restriction rule will enter into force on 19 June 2012.