On February 6, 2019 the Indonesian government has legislated Minister of Trade Regulation No. 12 of 2020 concerning Imported Prohibited Goods (“MOT Regulation No. 12/2020”). MOT Regulation No. 12/2020 is the implementing regulation of Law No. 7 of 2014 concerning Trade (“Trade Law”) which stipulates that importers are prohibited from importing certain goods. Importers are defined as individuals or institutions or business entities, both in the form of legal entities and non-legal entities, that carry out imports.
The stipulation of prohibited goods from being imported are in the interest of the nation with the reasons to protect national security and the public interest, including social, cultural and public morale; to protect intellectual property rights; and/or to protect human, animal, fish, plant, and environmental health and safety. Prohibited Goods from being imported shall be in accordance with the goods description and Post Tariff/HS Code, as referred to in the Appendix of the MOT Regulation No. 12/2020.
In the event that the Prohibited Goods from being imported is being re-imported, it must adhere to the following provisions:
•Re-importation is conducted by the company which previously conducted export of Prohibited Goods from being imported;
•Prohibited Goods from being imported which are re-imported shall be in the lesser or equal amount with the exported amount by enclosing a copy of Customs Notification documents;
•Prohibited Goods from being imported which are re-imported shall be in the same quality and do not undergo any processing or improvement process; and
•The exporter shall attach a statement letter from parties related to the importer abroad, which explains the reasons for returning the exported goods.
An importer who violates this regulation and provision, shall be imposed with sanctions pursuant to the laws and regulations. Based on the Trade Law, in the event that an importer violates the prohibition of importing certain goods, the importer may be subject to a maximum imprisonment of 5 (five) years and/or a maximum fine of IDR 5,000,000,000 (five billion Rupiah).
