Authorized Translation REGULATION OF MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA CONCERNING IMPORT PROVISION ON COMPLEMENTARY GOODS, GOODS FOR

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1 As of 27 th November 2015 REGULATION OF MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA NUMBER CONCERNING IMPORT PROVISION ON COMPLEMENTARY GOODS, GOODS FOR MARKET TEST PURPOSES, AND AFTER SALES SERVICE BY THE BLESSING OF THE ALMIGHTY GOD MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA, Considering : a. that in the framework of providing business certainty and conducive climate and encourage investment activities in the country, it is necessary to perform import arrangement on complementary goods, goods for the purposes of market testing, and after-sales service; b. Subject with the considerations as referred to paragraph a, it is necessary to stipulate Regulation of the Minister of Trade on Import Regulation on Complementary Goods, Goods for Purposes Test Market, And After Sales Service; 1

2 In view of : 1. Law Number 7 of 1994 on Ratification of Agreement Establishing The World Trade Organization (Approval on the Establishment of World Trade Organization), (State Gazette of the Republic of Indonesia of 1994 Number 57, Supplement to State Gazette of the Republic of Indonesia Number 3564); 2. Law Number 10 of 1995 on Customs (State Gazette of the Republic of Indonesia of 1995 Number 75, Supplement The Republic of Indonesia Number 3612) as amended by Law Number17 of 2006 (State Gazette of the Republic of Indonesia of 2006 Number 93, Supplement to State Gazette of the Republic of Indonesia Number 4661); 3. Law Number 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Competition (State Gazette of the Republic of Indonesia of 1999 Number 33, Supplement to State Gazette of the Republic of Indonesia Number 3817); 4. Constitution Number 8 of 1999 on Consumer Protection (State Gazette of the Republic of Indonesia of 1999 Number 42, Supplement to State Gazette of the Republic of Indonesia Number 3821); 2

3 5. Law Number 39 of 2008 on The Ministry of State (State Gazette of the Republic of Indonesia of 2008 Number 166, Supplement to State Gazette of the Republic of Indonesia Number 4916); 6. Law Number 3 of 2014 on Industry (State Gazette of the Republic of Indonesia of 2014 Number 4, State Gazette of the Republic of Indonesia Number 5492); 7. Law Number 7 of 2014 on Trade (State Gazette of the Republic of Indonesia of 2014 Number 45, Supplement to State Gazette of the Republic of Indonesia Number 5512); 8. Law Number 20 of 2014 on Standardization and Conformity Assessment (State Gazette of the Republic of Indonesia of 2014 Number 216, Supplement to State Gazette of the Republic of Indonesia Number 5584); 9. Government Regulation Number 10 of 2012 on the Treatment of Customs, Taxation and Excise And Revenue And Expenditures Procedures To And From And In Areas That Have Been Defined As the Free Trade Zone and Free Port (State Gazette of the Republic of Indonesia of 2012 Number 17, Supplement the Republic of Indonesia Number 5277); 3

4 10. Presidential Decree Number 121/P of 2014 on the Establishment of the Ministry and the appointment of Working Cabinet Minister of ; 11. Presidential Regulation Number 7 of 2015 on the Organization of State Ministries; 12. Presidential Decree Number 48 of 2015 of the Ministry of Trade; 13. Presidential Decree Number 79/P 2015 on the Replacement of Several State Minister of Working Cabinet For Period ; 14. Regulation of Minister of Trade Trading Number 31/M- DAG/PER/7/2010 concerning Organization and Working Structure of Ministry of Trade as amended by Regulation of the Minister of Trade Number 57/M- DAG/PER/8/2012; 15. Regulation of Minister of Trade Number 53/M- DAG/PER/9/2014 on Integrated Services at Trade Affairs; 16. Regulation of Minister of Trade Number 48/M- DAG/PER/7/2015 on General Provisions on Import; 17. Regulation of Minister of Trade Number 70/M- DAG/PER/9/2015 on Importer Identification Number; 4

5 18. Regulation of Minister of Trade Number 87/M- DAG/PER/10/2015 on Imports of Certain Products; DECIDED: Stipulated : REGULATION OF MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA CONCERNING IMPORT PROVISION ON COMPLEMENTARY GOODS, GOODS FOR MARKET TEST PURPOSES, AND AFTER SALES SERVICE. Article 1 In this minister regulation the following terms shall be defined as : 1. Goods are any object, whether tangible or intangible, whether movable or immovable, can either be spent or not spent, and can be traded, used, used, or used by consumers or businesses. 2. Import activities to supply goods to the customs area. 3. Producer Importer Identification Number, hereinafter called API-P is the identification as a producer importer. 4. Complementary goods are manufactured goods associated with industrial business license, which is imported by the owner of API-P originated from and produced by affiliated companies in foreign countries. 5

6 5. The market test is the activity of selling imported manufactured goods which can not be produced by the company owner of API-P in order to determine the market's reaction and used in order to develop its business in a limited period of time. 6. After Sales Service is the activity of selling imported manufactured goods made by the company owner of API-P in order to ensure availability of spare parts and other facilities. 7. Import consent is consent that is used as a license to import Complementary Goods, goods for the purposes of market testing, and after sales service. 8. Minister is the minister who hold government affairs in the field of trade. 9. Director General is the Director General of Foreign Trade, Ministry of Trade. Article 2 (1) Company owner of API-P can import manufactured goods are necessary for business development and investment. (2) Imported manufacturing goods as referred to in paragraph (1) can be traded and/or transferred to another party. 6

7 (3) Imported manufacturing goods as referred to in paragraph (1) is not used in the production process and is only used as a Complementary Goods, for the purpose of market test and after sales service. Article 3 Manufactured goods which is imported as complementary goods as referred to in Article 2 must comply with the following criteria: a. in the new circumstances; b. can not be produced by the company owner of API-P; c. in accordance with the business license in the field of industrial or other similar business license that is owned by the owner of API-P; and d. produced by affiliated companies in foreign countries. Article 4 Manufactured goods imported for the purposes of market testing as referred to in Article 2 must comply with the following criteria: a. in the new circumstances; and b. can not be produced by the company owner of API-P. Article 5 7

8 (1) Imports of manufactured goods for the purposes of market testing as referred to in Article 2 shall be made for a limited period. (2) Restriction period referred to in paragraph (1) in accordance with the limit time as determined by the developer technical minister. Article 6 Manufactured goods imported for the purposes of after sales service as referred to in Article 2 must meet the following criteria: a. in the new circumstances; b. can not be produced entirely by companies owner of API-P or availability in the country is still limited; and c. in accordance with the business license in the field of industrial or other similar business license owned by industrial companies owner of API-P. Article 7 (1) Imports of manufactured goods as referred to in Article 2 may only be carried out by companies owner of API-P after receiving import approval from the Minister. (2) Minister mandates the issuance of import approval referred to in paragraph (1) to the Director General. 8

9 Article 8 (1) To obtain Import Approval as referred to in Article 7, the owner of API-P company must submit an application to the Minister in this case the Director General, accomplished by: a. photocopy of business license in the field of industrial or other similar business license issued by the authorities; b. photocopy of Producer Importer Identification Number (API-P); and c. proof of affiliation with foreign companies, for required manufactured goods. Article 9 (1) Director General on behalf of the Minister shall issue import approval no later than five (5) working days after the application referred to in Article 8 received completely and correctly. (2) In case of the application referred to in Article 8 is not complete and correct, the Director General on behalf of the Minister shall convey rejection on Import Approval issuance no later than 5 (five) working days with the rejection grounds. Article 10 9

10 Import Approval validity period referred to in Article 7 in accordance with the time limits defined by the developer technical minister. Article 11 (1) Submission of application to obtain Import Approval as referred to in Article 8 can only be serviced by an electronic system through id. (2) In the event of force majeure which causes an electronic system through is not functionable, the application filing as referred in paragraph (1) be postponed until the electronic system via is functionable again. Article 12 (1) Company owner of API-P that has received import approval electronically must submit a report on the implementation of import, whether realized or not realized, through with attaching scanned Import Realization Control Card which has been initialed and stamped by Customs and Excise officers. 10

11 (2) The report as referred to in paragraph (1) shall be submitted every three (3) months later than the date of 15 (fifteen) months following the first quarter, to the Director General with a copy submitted to the developer technical institution. Article 13 Import Approval shall be revoked if company owner of API- P: a. do not carry reporting obligations as referred to in Article 12 2 (two) times; b. proven of performing data and/or information changes adopted in the Import Approval; c. proven of conveying data and/or information that is not correct as the requirement to obtain import approval, after the Import Approval issued; d. conduct violation in the customs field based on information from the Directorate General of Customs and Excise, Ministry of Finance; and/or e. is found guilty by a court decision that has had permanent legal force for a criminal offense related to the abuse of Import Approval. Article 14 11

12 Revocation of Import Approval as referred to in Article 13 carried out by the Director General on behalf of the Minister. Article 15 The company that have been subject to sanctions revocation Import Approval as referred to in Article 13 can only reapply Import Approval after 1 (one) year from the date of Import Approval Revocation. Article 16 (1) In order to control the import, the Directorate General of Foreign Trade, Ministry of Commerce can make an assessment of compliance (post-audit) to the company owner of API-P that have obtained import approval. (2) Post audit as referred to in paragraph (1) shall apply to: a. the correctness of import realization report; b. conformity of imported goods with the data listed in Import Approval and; and c. compliance with laws and regulations. (3) Post audit as referred to in paragraph (1) can be done at any time and in coordination with the ministries / agencies. (4) The Director General may establish integrated team to carry out the conformity assessment (post audit) referred to in paragraph (1). 12

13 Article 17 Imports of manufactured goods as Complementary Goods, for the purposes of market testing, and After-Sales Service, in addition subject to the provisions of the Regulation is also subject to the provisions of the legislation governing the import restrictions. Article 18 Technical guidelines implementation of this regulation may be determined by the Director General. Article 19 Implementation of this regulation is evaluated every 1 (one) year from the enactment date of this Minister Regulation. Article 20 This Regulation shall be enacted on 1 st January For public cognizance, this Regulation shall be published in the State Gazette of the Republic of Indonesia. Enacted in Jakarta on MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA, AFFIDAVIT This is to certify that have translated the foregoing from Indonesia to English, that is true and complete, and I am competent in both languages. Jakarta, 2 nd December 2015 THOMAS TRIKASIH LEMBONG Drs. Sularno Popomaruto Sworn Translator by virtue SK.Gub.KDKI Jkt.No.1715/