Import Provisions for Non-New Capital Goods

The Minister of Trade in recognition of the fact that the Indonesian economy as a whole is still not yet conducive with respect to purchasing power and the ability to import and purchase new capital goods. Therefore, the Minister of Trade has issued Regulation No. 63/M-DAG/PER/12/2009 to stipulate a series of provisions relating to the import of non-new capital goods. The definition for non-new capital goods requires that the import goods be in a condition so that they can reconditioned, remanufactured, or reused for their original purpose. However, these goods cannot be classified as scrap.

The previous regulation and provisions in this field as contained in No. 57/M-Dag/PER/12/2008 ended on 31 December 2009. Therefore, this regulation has been issued to ensure continuation of the policy relating to the importing of non-new capital goods.

The non-new capital goods that can be imported and their related tariffs are listed in Attachment I. These goods may only be imported by companies who are intending to use the imported goods themselves, or by reconditioning or remanufacturing companies.

The regulation sets out the application procedures. These include copies of Importer Identification Number, Taxpayer Number, Survey Report, and a Recommendation from the Department of Industry, among others. Nevertheless, the import of goods requires the prior approval of the Director of Imports and this agreement is to provided no later than five working days after receipt of the application to import.

If importers abuse the provisions set out in the regulation, then both administrative and criminal sanctions are to apply pursuant to prevailing laws and regulations. The administrative sanctions include the cancelation of Import Identification Numbers.

The regulation was issued on 22 December 2009. The regulation will be in force from 1 January 2010 through to 31 December 2010.