COVID-19 Pandemic: Updates on the Provision of Export of Certain Medical Supplies in Indonesia
For the sake of boosting the export in the industrial sector in order to support national economic growth amidst the COVID-19 pandemic, the Indonesian government through Minister of Trade has issued an update on the export provision that now allows the export of several types of medical supplies such as masks and Personal Protective Equipment (“PPE”), which previously had been temporarily prohibited from being exported.
Legal Frameworks: Our below article refers to the Minister of Trade (“MoT”) Regulation No. 57 of 2020 on Export Provision for Raw Materials of Masks, Masks, and PPE (“MoT Regulation 57/2020”).
Please note that MoT Regulation 57/2020 has revoked the previously enacted regulation, MoT Regulation No. 23 of 2020 on Temporary Export Ban on Antiseptic, Mask Raw Materials, PPE, and Masks that has been amended several times lastly by the MoT Regulation No. 34 of 2020 (“MoT Regulation 23/2020”).
Main Keys on the Updates on the Provisions of Export of Certain Medical Supplies: We provide the following main keys on the provision of export of certain medical supplies based on Indonesian prevailing laws and regulations.
Scope of Medical Supplies: The following are the scope of medical supplies stipulates under MoT Regulation 57/2020: (a) face surgical masks, (b) N-95 masks, (c) surgical gown, (d) coverall PPE, and raw materials with HS Codes of Ex.5603.11.00 and Ex.5603.91.00 (“Medical Supplies”).
Prerequisite to Export Medical Supplies: We note that prior to export Medical Supplies, a relevant exporter should have obtained Export Approvals/Persetujuan Ekspor (“PE”) for each of the relevant exported goods (Art 3 (1) of MoT Regulation 57/2020.
Procedures of PE Application: We note that to obtain PE, the relevant exporters should file an application to International Trade Director General (“Director-General”) through Indonesia National Single Window (“INSW”) that is integrated with MoT’s online submission system (“INATRADE”). Provided that the application has completed, the PE will be issued within 3 (three) days after such application duly received (Art. 4 (1) and (3) of MoT Regulation 57/2020).
Required Documents of PE Application: The following are some required documents that must be submitted in the PE application:
- Applicable Industrial Business License/Izin Usaha Industri;
- Statement Letter stating that the relevant company has provided sufficient medical supplies for domestic needs along with the company’s financial statements and list of company; and
- Company’s export plan within the next 6 (six) months. (Art. 4 (2) of MoT Regulation 57/2020).
The validity of Issued PE: We note that the issued PE will remain valid for 6 (six) months since its issuance. However, the MoT has the authority to suspend any issued PE and/or reject any PE applications if domestic demand of the Medical Supplies increases to a critical level. (Art. 4 (6) jo. Art. 7 (1) of MoT Regulation 57/2020)
Mandatory Export Realization Report: We note that the exporters of Medical Supplies must submit a periodical realization report along with the scan of relevant tax invoice(s) every 15th of the following month to the Director-General through INATRADE (Art. 9 (3) of MoT Regulation 57/2020).
The failure to fulfill the mandatory export realization report may result in the imposition of administrative sanction of PE revocation (Art. 10 (1) of MoT Regulation 57/2020).
The article above was prepared by Marshall S. Situmorang (Partner) and Aniendita Rahmawati (Associate).
