New Provisions on the Import of Used Capital Goods

With the ultimate aim of simplifying licensing procedures in the trading sector, the Minister of Trade (“Minister”) has issued Regulation No. 127/M-DAG/PER/12/2015 on Import Provisions for Used Capital Goods (“2015 Regulation”). [1] In nutshell, the 2015 Regulation redefines the parties allowed to import used capital goods, as well as the procedure for securing import approval from the Minister. Prior to the 2015 Regulation, these same matters were regulated under Ministerial Regulation No. 75/M-DAG/PER/12/2013 (“2013 Regulation”). [2] The 2015 Regulation is of relevance to all companies currently involved in the import of, or which are intending to import, used capital goods.Used Capital GoodsUsed capital goods (Barang Modal Tidak Baru–“BMTB”) are defined as goods that can be utilized as capital or used in order to produce other goods, to be reconditioned, or to be remanufactured. [3] It should be noted that the provision set out under the 2015 Regulation does not apply to: