2016 2 C 1 2 Presentation AIPEG NTMs Classification Exercises

Australia Indonesia Partnership
for Economic Governance
INDONESIAN NON-TARIFF
MEASURES:
HOW TO CLASSIFY NTMs
8 February 2016
AGENDA
• Legal sources
• Issuing institutions
• How to classify NTMs
LEGAL SOURCES
Indonesian Regulations on NTMs

Hierarchy of regulation in Indonesia: Law, Government
regulation (PP), Ministerial regulation
Comprehensiveness: the Indonesia National Single Window
website (INSW).
• The website provides LARTAS database (LARTAS means
prohibition and restriction)
• The LARTAS database only lists the regulations as legal basis
but it does not provide regulations document
• The website is managed by Custom
• NTMs regulation must be notified to Ministry of Finance to be
implemented
• To get detail regulations content we need to go to each
Government Agencies involve on issuing NTMs
regulation.
Government agencies (delegated legislation) involve in

issuing NTMs
% of total tariff lines
subject to NTMs
Government Agencies
1. Ministry of Trade 44.5
2. BPOM 16.4
3. Quarantine-Plant, Animal and Fish 14.6
4. Ministry of Health 18.1
5. Ministry of Agriculture 0.6
6. Post & Telecommunication 0.5
7. Police 0.5
8. Energy & Mineral Resources 0.2
9. Ministry of Forestry 0.3
10. BAPETEN 0.3
11. Ministry of Environment 0.2
12. Others: Bank of Indonesia , Ministry of Agriculture, 3.8
Ministry of Industry, Ministry of Defense, Ministry of
Transportation
Source: LARTAS database

Government Agencies involve in issuing NTMs
o 12 different agencies involve on issuing import NTMs
and only few on export NTMs
o Some of agencies only provide recommendation on
regards to NTMs.
o Ministry of Trade: 44.5%
o Quarantine: 17%
o BPOM: 14%
o Others: 3.8% (Ministry of Health (MoH) and Ministry of
Agriculture).
Total 4 Government Agencies covers 93.6%
HOW TO CLASSIFY NTMs:

MAST Classification
UNCTAD-MAST Classification:
The Common language
 The Multi Agency Support Team (FAO, IMF, ITC, OECD, UNCTAD,
UNIDO, World Bank, WTO) initiated by UNCTAD
developed NTM classification
8
SPS and TBT. Sections 1 to 6 (Regulations)

A SPS B TBT
A1 Prohibitions/restriction B1 Prohibitions/restriction
A2 Tolerance limits for residues and B2 Tolerance limits for residues and
restricted use of substances restricted use of substances
A3 Labelling, marking and packaging B3 Labelling, marking and packaging
A4 Hygienic requirements
A5 Treatment for elimination of pests,
fumigation, irradiation, etc (e.g.
post-harvest treatment
A6 Other requirements on production B4 Production or post-production
or post-production requirements
B6 Product identity requirement
B7 Product-quality or -performance
requirement
9

A1, B1
• SPS • TBT
A1 Prohibitions/restrictions B1 Prohibitions/restrictions
A11 Temporary B11 Prohibition for TBT reasons
A12 Restrictions on eligibility
(Geographical)
A13 "Systems approach"
A14 Special authorization B14 Authorization for TBT reasons
A15 Registration for importers B15 Registration for importers
10

A2, A3, B2, B3
A2 Tolerance limits for residues B2 Tolerance limits for residues

and restricted use and restricted use
A21 Tolerance limits for residues B21 Tolerance limits for residues
A22 Restricted use of certain B22 Restricted use of certain
substances substances
A3 Labelling, marking and B3 Labelling, marking and

packaging packaging
A31 Labelling B31 Labelling
A32 Marking B32 Marking
A33 Packaging B33 Packaging
11

A4, A5
A4 Hygienic requirements
A41 Microbiological criteria of the final
product
A42 Hygienic practices during production
A5 Treatment for elimination of

plant and animal pests and
disease-causing organisms in
the final product (e.g. post-
harvest treatment)
A51 Cold/heat treatment
A52 Irradiation
A53 Fumigation
12

A6, B4
• SPS • TBT
A6 Other requirements on B4 Production or post-
production or post- production requirements
production processes
A61 Plant-growth processes B41 TBT regulations on production
processes
A62 Animal-raising or -catching
processes
A63 Food and feed processing
A64 Storage and transport B42 TBT regulations on transport
conditions and storage
13

B6, B7
• SPS • TBT
B6 Product identity
requirement
B7 Product-quality or -
performance requirement
14
SPS and TBT. Sections A8 and B8. Conformity

Assessment
• SPS • TBT
A8 Conformity assessment B8 Conformity assessment

related to SPS related to TBT
A81 Product registration B81 Product registration
A82 Testing B82 Testing
A83 Certification B83 Certification
A84 Inspection B84 Inspection
A85 Traceability information B85 Traceability information
requirement requirement
A86 Quarantine
15
C. Pre-shipment inspection
• C1 Pre-shipment inspection
• C2 Direct consignment (no 3rd country)
• C3 Only specified port of customs
• C4 Automatic licensing (monitoring and
surveillance
Others-See UNCTAD MAST Classification

16

• Indonesian “regulations” on NTMs can be found
mostly in the Ministerial regulation level
• LARTAS, regulations on quarantine which falls under
the Sanitary and Phytosanitary classification
o Use Law as the legal basis.
o Laws stipulates requirements or provision in a very
general way
o Further effort are needed on regard to quarantine
regulation on the ministerial level to identify in
more detail information on NTMs particularly on
products subject to quarantine.
Source of Information:
• Indonesia National Single Window (insw website) Database (covers
the entire regulations related to Indonesian NTMs
• Ministry of trade website: TBT, PSI, Labeling, Port limitation
o MoT website at www.kemendag .go.id.
o Inatrade database at www.inatrade.kemendag.go.id.
• Ministry of Industry website - Technical barrier to trade,
particularly on regard to the Indonesia National Standard (SNI).
• BPOM is the Indonesian monitoring agency for food and
medicine, Halal food.
• Quarantine agencies: SPS measures
• Other Ministry's web sites.
Understanding the meaning of the

terms “regulation” and “measure”
• A regulation is a legal document issued officially
by a Government, such as a law, decree or
directive.
• An official regulation could bear several measures
(or NTMs).
• A measure is a mandatory trade control
requirement enacted by an official regulation.
• Each regulation or legal document must be read
to distinguish all measures within its text.
• All identified measures should be registered
separately.
What data is collected?

• Official measures currently imposed by Indonesia
and that affect imported or exported products.
• As a rule of thumb, such measures would be
checked at the customs point to allow entry or exit
of the product.
• Only those measures backed by official mandatory
regulations are to be collected and classified.
• Within sanitary and phytosanitary measures (SPS
measures) and technical barriers to trade (TBTs) are
included standards that are a compulsory condition
for importing
NTMs Classification: An Example

• Regulation No. 83/2012 on the provisions of import of certain products.
This regulation has been changed 2 times:
o The MoT regulation No. 61/M-DAG/PER/9/2013 and The MoT
regulation No. 36/M-DAG/PER/7/2014
• Type of measures:
o B15: Import of Certain Products as intended in Article 2 is only be
done by a company that has gained determination as IT-Certain
Products from the Minister.
o To get the IT-certain products, the importer need to comply the
requirements which are:
 Importer identification number (API-P)
 Company registration number (TDP)
 Tax registration number (NPWP)
 NPIK for product subject to NPIK
 Custom identification number
 Import plan within a year

• C1: Each implementation of importation of certain products should be first
conducted verification or technical inquiry at the port of loading. (1)
Verification or technical inquiry conducted on the importation of Certain
Products, should include data or information on the: a. State and the port
of loading; b. Time of shipment; c. Port of destination, and d. Tariff
Post/HS and description of goods. (2) The results of the verification or
technical inquiry as intended in paragraph (1) is written in the form of
Surveyor Report (LS) to be used as a complementary customs
documents in customs settlement in the field of import.
• C3: Any importation of certain products by IT of Certain Products can only
be done through the destination ports of:
a. Seaports: Belawan in Medan, Tanjung Priok in Jakarta, Tanjung Emas in
Semarang, Tanjung Perak in Surabaya, Soekarno Hatta in Makassar, in
Dumai Dumai, Jayapura in Jayapura, and Tarakan in Tarakan; and/or
b. Airports: Polonia in Medan, Soekarno Hatta in Tangerang, Achmad Yani
in Semarang, Juanda in Surabaya, and Hasanuddin in Makassar.

• Regulation No. 16/M-DAG/2013 on the provisions of import of
horticultural products
• The stated objective of the regulation is to control sales of illegal
products and to protect local industry.
• Type of measures:
o B15: Import of horticultural products is allowed only for IP/IT
horticultural products (registration requirement for importers)
o To get the IP-certain products, the importer need to comply the
requirements which are Industrial business license, TDP
(company registration number), API-P, Tax registration number,
Evidence of store place in accordance with product
characteristic, Transportation ownership in accordance with
product characteristic, Import recommendation letter from the
MoA
o We don’t register them since these are not checked by
custom, they just pre-requisite to get IT-certain product
• To get the IT-certain products, the importer need to comply the

requirements which are Trading business license (SIUP), TDP
(company registration number), API-U, Evidence of store place
in accordance with product characteristic, Transportation
ownership in accordance with product characteristic, Evidence
of horticultural selling cooperation contract with at least 3
distributors, Evidence of experience as distributor of
horticultural products for 1 year, Statement letter not to sell
horticultural product to direct consumer
• We don’t register them as they are not checked by custom,
they just pre-requisite to get IT-certain product

• B14: Import of horticultural products by IT-horticultural products need to provide
import approval from the Minister after providing recommendation letter from
Ministry of Agriculture (RIPH).
• B33: Imported horticultural products must fulfill packaging requirement
• B31: imported Horticultural products by IT must state the Indonesian language label
on any product and/or packaging
• C1: Each shipment of import of Horticultural products by IP or IT must be conducted
technical verification or technical surveillance at the port of country origin. The
verification has to verify of the following information:
o Country and port of origin,
o HS-code
o Country and port of origin
o Type and volume
o Time for shipment
o Port of destination
o Health certificate
o Phytosanitary certificate for fresh horticultural products
o Certificate of origin
o Certificate of test result or importer letter stating appropriate packaging
Some Findings on Indonesia NTMs

based on MAST Classification
Table 1. Type of NTMs imposed by Indonesia

No NTM Frequency No NTM Frequency No NTM Frequency No NTM Frequency
Code Code Code Code
1 A11 68 21 A82 1760 41 B83 2665 61 P3 1523

2 A12 18 22 A83 4398 42 B84 48 62 P5 153
3 A13 446 23 A84 890 43 B85 3719 63 P61 739
4 A14 1102 24 A85 65 44 B9 3 64 P62 683
5 A15 875 25 A86 1690 45 C1 2310 66 P69 990
6 A19 29 26 A89 6 46 C3 2893
7 A21 2112 27 B11 150 47 E112 32
8 A31 3407 28 B14 2747 48 E113 31
9 A32 27 29 B15 4586 49 E211 7
10 A33 1070 30 B15 5 50 E312 7
11 A41 5 31 B19 118 51 E313 129
12 A42 17 32 B21 7 52 E316 1
13 A49 429 33 B22 61 53 F71 569
14 A51 18 34 B31 2450 54 F72 70
15 A59 19 35 B32 18 55 H11 104
16 A62 36 36 B33 51 56 J2 30
17 A63 18 37 B42 59 57 P11 111
18 A64 44 38 B7 853 58 P12 120
19 A69 18 39 B81 644 59 P13 703
20 A81 301 40 B82 1428 60 P14 2143
Table 2. Comprehensiveness of Indonesia’s NTMs --- Not

for quotation
No. of
identified No. of No. of
%
Regulatory Agency NTMs coded % affected %
Regulation NTMs products
No.
1 Ministry of Trade 68 34.0 186 29.15 15,133 41.34
2 Ministry of Industry 60 30.0 139 21.79 6,445 17.6
3 Ministry of Agriculture 18 9.0 92 14.42 5,473 14.95
4 Ministry of Marine and Fisheries 14 7.0 70 10.97 4,000 10.93
5 World Trade Organization 1 0.5 44 6.90 26 0.07
6 Ministry of Industry and Trade 11 5.5 30 4.70 2,009 5.49
7 Ministry of Energy and Mineral Resources 7 3.5 17 2.66 1,341 3.66
8 Ministry of Health 4 2.0 23 3.61 410 1.12
9 National Agency of Drug and Food Control 2 1.0 10 1.57 339 0.93
10 State Secretariat 2 1.0 7 1.10 145 0.4
11 Others 13 6.5 20 3.13 1288 3.52
TOTAL 200 100.0 638 100.00 36,609 100
32
Table 3. Indonesia NTMs, by Types --- Not for quotation

#Type of (%) Type of No. of coded % of NTMs No of % of
Coded NTMs Coded NTMs NTMs affected products
products affected by
(national NTM
Type of NTMs tariff lines)
A - Sanitary and phytosanitary (SPS) measures 26 39.39 125 19.59 7770 21.22
B - Technical barriers to trade TBT) 17 25.76 323 50.63 16421 44.86
C - Pre-shipment inspection and other formalities 2 3.03 55 8.62 3899 10.65
D - Contingent trade protective measures 2 3.03 44 6.90 138 0.38
E - Non-automatic licensing, quotas, prohibitions and quantity control measures other than SPS or TBT reasons 6 9.09 8 1.25 232 0.63
F - Price control measures including additional taxes and charges 2 3.03 5 0.78 605 1.65
G - Finance measures 0 - 0 - 0 -
H - Measures affecting competition 1 1.52 3 0.47 171 0.47
I - Trade-related investment measures 0 - 0 - 0 -
J - Distribution restrictions 1 1.52 1 0.16 70 0.19
K - Restriction on post-sales services 0 - 0 - 0 -
L - Subsidies (excluding export subsidies undr P7) 0 - 0 - 0 -
M - Government procurement restrictions 0 - 0 - 0 -
N - Intellectual property 0 - 0 - 0 -
O - Rules of origin 0 - 0 - 0 -
P - Export related measures 9 13.64 74 11.60 7303 19.95
66 100 638 100.00 36609 100.00
33
Table 4. Tariff lines and Tariff Lines subject to

NTMs --- Not for quotation
No.tariff
% Of Tariff
No.Tariff lines
Product Groups No. of NTMs % of NTMs Line subject
lines subject to
to NTMs
NTMs
Animal and animal products 2417 6.60 573 290 50.61
Vegetables products 5287 14.44 480 480 100.00
Animals or vegetables fats 384 1.05 164 72 43.90
Prepared foodstuffs 4298 11.74 453 452 99.78
Mineral product 755 2.06 206 179 86.89
Chemical products 4144 11.32 1182 762 64.47
Plastics and rubber 560 1.53 491 136 27.70
Hides and Skin 180 0.49 102 90 88.24
Wood & wood products 934 2.55 160 155 96.88
Wood pulps products 1243 3.40 283 229 80.92
Textile & textile products 8145 22.25 1167 1167 100.00
Footwear & Headgear 281 0.77 75 40 53.33
Article of stone, plaster, cement. Asbetos 206 0.56 224 81 36.16
Pearls, precious or semi precious stones, metals 223 0.61 89 51 57.30
Based metals & articles therof 1762 4.81 984 426 43.29
Machinery & Mechanical appliances 3380 9.23 2123 875 41.22
Transportation equipment 1214 3.32 633 470 74.25
Instruments-measuring musical 549 1.50 309 111 35.92
Musical instrument, parts and accessories 12 0.03 20 5 25.00
ARMS AND AMMUNITION; PARTS AND ACCE 42 0.11 27 18 66.67
Miscellaneous 589 1.61 255 114 44.71
Works of Art 4 0.01 13 3 23.08
36609 100.00 10013 6206 61.98
34
Table 5. NTMs by Product Groups, Indonesia --- Not for

quotation
35
Table 6. Percentage of NTMs by product groups ---

Not for quotation
HS-2 digits 3 or
level Description 1ntm 2ntm 3ntm >3ntm more Total
01-05 Animal and animal products 38 32 32 188 220 290
06-14 Vegetables products 71 6 36 368 404 481
15 Animals or vegetables fats 10 8 9 45 54 72
16-24 Prepared foodstuffs 48 2 6 396 402 452
25-27 Mineral product 37 40 33 69 102 179
28-38 Chemical products 54 250 104 354 458 762
39-40 Plastics and rubber 22 15 9 90 99 136
41-43 Hides and Skin 37 25 23 5 28 90
44-46 Wood & wood products 19 17 13 106 119 155
47-49 Wood pulps products 0 0 0 229 229 229
50-63 Textile & textile products 2 265 41 920 961 1228
64-67 Footwear & Headgear 1 6 1 32 33 40
68-70 Article of stone, plaster, cement. Asbetos 29 18 12 22 34 81
71 Pearls, precious or semi precious stones, metals 19 0 12 20 32 51
72-83 Based metals & articles therof 20 17 184 205 389 426
84-85 Machinery & Mechanical appliances 98 286 48 443 491 875
86-89 Transportation equipment 118 84 182 86 268 470
90-91 Instruments-measuring musical 16 25 6 64 70 111
92 Musical instrument, parts and accessories 1 1 3 0 3 5
93 ARMS AND AMMUNITION; PARTS AND ACCE 1 10 7 0 7 18
94-96 Miscellaneous 20 12 28 54 82 114
97 Works of Art 2 1 0 0 0 3
Total 663 1120 789 3696 4485 6268
Percentage (%) 10.6 17.9 12.6 59.0 71.6 100.0
36
Figure 1. Percentage of NTMs by product groups
37
Exercises
Please review the following Indonesian NTMs regulations and
classify the measures (NTMs):
1. MoT Regulation No. 46/2013 on animal and animal
products
2. MoT regulation No. 58/M-DAG/PER/9/2012 on
provisions of the import of salt
3. MoI regulation No. 34/M-IND/PER/4/2007 on Indonesia
National Standard (SNI) mandatory for safety glass for
motor vehicle
4. MoI regulation No. 122/M-IND/PER/11/2010 on
Indonesia National Standard (SNI) mandatory for
38
specification of drinking water meter
Thank you

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Australia Indonesia Partnership

for Economic Governance

Indonesian Regulations on NTMs

Government agencies (delegated legislation) involve in

Indonesian Regulations on NTMs

HOW TO CLASSIFY NTMs:

SPS and TBT. Sections 1 to 6 (Regulations)

SPS and TBT. Sections 1 to 6 (Regulations)

SPS and TBT. Sections 1 to 6 (Regulations)

A2 Tolerance limits for residues B2 Tolerance limits for residues

A3 Labelling, marking and B3 Labelling, marking and

SPS and TBT. Sections 1 to 6 (Regulations)

A5 Treatment for elimination of

SPS and TBT. Sections 1 to 6 (Regulations)

SPS and TBT. Sections 1 to 6 (Regulations)

SPS and TBT. Sections A8 and B8. Conformity

A8 Conformity assessment B8 Conformity assessment

Others-See UNCTAD MAST Classification

Indonesian Regulations on NTMs

Understanding the meaning of the

What data is collected?

NTMs Classification: An Example

NTMs Classification: An Example

NTMs Classification: An Example

NTMs Classification: An Example

• To get the IT-certain products, the importer need to comply the

NTMs Classification: An Example

Some Findings on Indonesia NTMs

Table 1. Type of NTMs imposed by Indonesia

1 A11 68 21 A82 1760 41 B83 2665 61 P3 1523

Table 2. Comprehensiveness of Indonesia’s NTMs --- Not

Table 3. Indonesia NTMs, by Types --- Not for quotation

Table 4. Tariff lines and Tariff Lines subject to

Table 5. NTMs by Product Groups, Indonesia --- Not for

Table 6. Percentage of NTMs by product groups ---

Figure 1. Percentage of NTMs by product groups

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