Govt. Tightens Import Provisions for Iron, Steel, Alloy Steel and Their Derivative Products

In order to introduce stricter import provisions for iron, steel, alloy steel and their derivative products (“Products”), the Ministry of Trade (“Ministry”) has issued Regulation No. 63/M-DAG/PER/8/2017 (“Regulation 63/2017”), which amends Ministry Regulation No. 82/M-DAG/PER/12/2016 on Import Provisions for Iron, Steel, Alloy Steel and Their Derivative Products (“Regulation 82/2016”). [1] Regulation 63/2017 essentially amends several matters which relate to import provisions for Products, specifically: 1) Import-specification examinations; and 2) Exemptions.Import-Specification ExaminationsIn principle, all imported Products should undergo a verification process or technical examination (“Verification/Examination”), which is to be undertaken by authorized surveyor companies (“Surveyors”) at loading ports, unless such Products fall under the exemption criteria listed in Article 23 of Regulation 63/2017. [2] The results of the Verification/Examination will be drawn up in the form of a Surveyor’s report. [3] However, such Surveyors’ reports are now no longer classified as additional custom documents for import processes, as previously stated under Regulation 82/2016. [4] Note that imported Products cannot be directly utilized, even if an official release order (Surat Perintah Pengeluaran Barang) has been secured from the Directorate General of Customs and Excise(“Directorate General”)and the relevant customs areas [5] have already been passed. Instead, all imported Products are first required to undergo an import-specification examination in order to be utilized. [6] Import-specification examinations are to be undertaken at importers’ warehouses or at storage places by the following parties: [7]