Extension of Period for Adjustment of Importer Identification Number
The new Ministry of Trade Regulation No. 84/M- DAG/PER/12/2012 concerning the Second Amendment of Ministry of Trade Regulation No. 27/M-DAG/PER/5/2012 concerning Provision of Importer Identification Number (“New API Regulation”) was enacted on 27 December 2012. It provides an extension of the period allowed for mandatory adjustment of Importer Identification Number (Angka Pengenal Importir – “API”). The enactment of this new regulation is for the purpose of increasing stability, creating a more favorable business climate, and increasing the effectiveness of the enforcement of the API provision.
General Overview of API Provision
Under the Ministry of Trade Regulation No. 27/M- DAG/PER/5/2012 (“Old API Regulation”), a company is allowed to have only 1 (one) API, namely, either a General Importer Identification Number (Angka Pengenal Importir Umum – “API- U”) or a Producer Importer Identification Number (Angka Pengenal Importir Produsen – “API-P”).
The holder of an API-U is allowed to import goods for trading purposes in 1 (one) section of the Classification System of Goods.
The holder of an API-P, however, is allowed to import goods to be used for its own purposes, such as capital goods, raw material, supporting material, and/or materials to support the production process. The imported goods are not permitted to be traded or transferred to any other party. The holder of an API-P is allowed to import particular industrial goods to the extent that they are required for the development of business and investment, provided that such goods are not intended to be used in the production process, but rather for the purpose of market testing and/or complimentary goods.
Pursuant to Ministry of Trade Regulation No. 59/M-DAG/PER/9/2012 concerning the Amendment of Ministry of Trade Regulation No. 27/M-DAG/PER/5/2012 concerning Provision of Importer Identification Number, the holder of an API-U is allowed to import goods in more than 1 (one) section of the Classification System of Goods, while the holder of an API-P is allowed to import certain industrial goods as complimentary goods, with the following provisions:
- the holder of the API-U or API-P imports goods which are derived from a company which is located abroad and has a special relationship with the holder of the API-U or API-P;
- all business activities are in accordance with its business license and any other relevant licenses owned by the holder of the API-U or API-P .
The abovementioned special relationship may be derived from any of the following:
- contractual consent;
- share ownership;
- articles of association;
- agent/distributor agreement;
- loan agreement; or
- supplier agreement.
Extension of Period
The New API Regulation provides an extension of the period allowed for the adjustment of an API that has been issued before the enactment of the Old API Regulation. It provides that the adjustment of the API shall be made no later than 31 March 2013, while pursuant to the Old API Regulation the adjustment shall be made no later than 31 December 2012.
This extension of this period has been made possible because there are many importers who have not yet adjusted their API-U or API-P.
Implications of Extension of Period
Neither the Old API Regulation nor the New API Regulation regulates any provision regarding sanctions in the event that holders of an API do not adjust their API as stipulated by the Old API Regulation.
This extension period has been welcomed by importers because it provides them with adequate time to conduct the adjustment of their API.
If you have any questions relating to this article, please contact:
Cornel B. Juniarto
Partner, Hermawan Juniarto
T +62 21 5795 7095
Posted in News and Media on Jan 01, 2013