Neglected to Report the Import Activities, Importing Companies Threatened with NIB Suspension
We should know the terms and conditions for the import approval of footwear, electronics, and bicycles and report it electronically for the NIB not to be suspended.
A 50.6% increase in imports of consumer goods (MOM) in May-June 2020, with commodities including Footwear, Electronics, and Bicycles, caused complaints from similar domestic industries due to not being able to compete with those imports goods. As a result, the implementation of those commodities import are now carried out with fairly strict regulations based on the Regulation of the Minister of Trade Number 68 of 2020 concerning Provisions for the Import of Footwear, Electronics, and Bicycle and Tricycle (Permendag No. 68/2020).
Not only requiring ownership of an Import Approval or surveyor inspection results, in carrying out the Import of Footwear, Electronics, Bicycles, and Tricycles, Importing Companies with NIB ownership that function as API-U (Importer Company) are also required to submit reports electronically on the import of the goods. Reporting on the import implementation is carried out electronically to the Director-General of Foreign Trade via the website http:inatrade.kemendag.go.id.
In reporting the implementation of imports, the importing company is required to complete it by submitting a company tax invoice. The report must be submitted no later than the next 15 (fifteen) months. This report is intended to know the implementation of imports that have been carried out. The substance this report is to know whether the import of Footwear, Electronics, Bicycles, and Tricycles have been realized or not.
In Article 18 of the Minister of Trade Regulation No. 68/2020 also regulates the existence of sanctions applied to importing companies that do not carry out the Reporting on the Imports of Footwear, Electronics, and Bicycles and Tricycles. The importers who do not report their Import activities electronically will have their NIB, which applies as API-U, be suspended as the sanction.
Impact of the NIB’s Suspension
The suspension of the NIB will certainly cause obstacles to the importing company’s business, including the following:
- The disruption of the export or import process. This is because the NIB also applies as a customs access. Thus, as long as the suspension of the NIB is occurred, the importing company cannot carry out its business in the export-import sector. Then, you can imagine the losses they will get as a result of not carrying out the obligation to report the of import activites.
- Companies cannot access existing documents or permits before the enactment of PP 24/2018 requiring SIUP, TDP or API. This is because the NIB functions as SIUP, TDP, and API.
- NIB is a business identity and is used by businessmen to obtain business permits and commercial or operational licenses, including to fulfill the requirements for business permits and commercial or operational permits.
Hence, if the NIB is suspended, the importing company cannot obtain the required business permits and commercial or operational licenses for its business. If the Importing Company is unable to carry out the process of obtaining the Business and Commercial or Operational Permits required, the Importing Company cannot carry out its business activities, whether it is the main activity or the business supporting activity.
Reactivation of the NIB
If the Importing Company wants to reactivate the NIB which is valid as API-U, the Importing Company is obliged to submit a Report on the imports of Footwear, Electronics, Bicycles, and Tricycles electronically through the OSS Institution based on the recommendation of the Director General of Foreign Trade.
Although reactivation of NIB can be carried out, if there is a suspension of NIB, it is clear that the Importing Company is experiencing various difficulties and cannot even carry out its main business activities. Thus, we urge importing companies to always report on the imports of Footwear, Electronics, Bicycles, and Tricycles in accordance with the provisions of the Minister of Trade Regulation No. 68/2020).
Import Application Procedure
For information, the types of goods in question are divided into three types of commodities, namely Footwear, Electronics, Bicycles and Tricycles with the following details:
- Footwear, including footwear with outer soles of rubber, plastics, leather or composition leather and the uppers are made of textile materials with HS Code 6404.11.10 (equipped with spikes, cleats, and so on), 6404.11.20 (footwear for wrestling, weights lifting or gymnastics), 6404.11.90 (other), 6404.19.00 (other) and 64.04.20.00 (footwear with outer soles of leather or composition leather).
- Electronics, including air conditioning machines, consisting of a fan driven by a motor and elements to change the temperature and humidity of the air, including those machines that cannot control air humidity separately by HS Code 8415.10.10 (with a cooling capacity not exceeding 26.38 kw) and 8415.10.90 (others).
- Bicycles and Tricycles, including two-wheeled bicycles and other bicycles (including tricycles for transport), not motorized with HS Code 8712.00.10 (two-wheeled racing bicycles), 8712.00.20 (two-wheeled racing bicycles designed to be driven by children), 8712.00.30 (other two-wheeled bicycles), and 8712.00.90 (others).
The application for Import Approval is made electronically via the website http//inatrade.kemendag.go.id by uploading the required documents, namely:
- NIB which applied as API-U
As in Article 4 of the Minister of Trade Regulation No. 75 of 2018, with the ownership of NIB which is applied as API-U (General Importer Identification Number), the Company can import certain goods for trading purposes. - Import plan for 1 year
The import plan must include a description of the goods, Tariff Post/HS, quantity, country of origin, port of loading, and port of destination.
There are two possibilities for the Import Approval application that has been submitted, namely:
- Approval of Import
If the application for Import is complete and correct, the Director General of Foreign Trade will report the recapitulation of the application for Import Approval to the Minister of Trade and then issue the Import approval using a digital signature. The approval of Import is then reported by the Director General of Foreign Trade to the Minister of Trade. This Import Approval is valid for a maximum period of 1 (one) year. - Import Refusal
If the application for Import that has been submitted is incomplete and/or incorrect, the Director General of Foreign Trade will reject it electronically.If there are changes made by the company, including changes to the company’s address, 8 (eight) digit of HS Tariff Post, country of origin, and/or port of import destination within the validity period of the Import Approval, the company is obliged to submit a request for an amendment to the Import Approval.
Change of Import Approval
Meanwhile, applications for Import Approval amendments are made electronically through the same page as the Import Approval application is made, namely http//inatrade.kemendag.go.id. The required documents that must be uploaded are the Import Approval that has been obtained previously, the NIB which is valid as API-U, and the details of the changes to the intended Import plan.
There are two possibilities that will be issued by the Director General of Foreign Trade regarding the application for amendments to the Import Approval. Just like the import permit application process, if the application for amendments to the Import Approval is complete and correct, the Director General of Foreign Trade will report the recapitulation of the request for amendment to the Minister of Trade and then issue the amendment to the Import Approval using digital signature and report the changes to the Minister of Trade.
The validity period for the amendments is in accordance with the validity of the Import Approval previously obtained by the Company. However, if the application for an amendment to the Import Approval is deemed incomplete and/or incorrect, the Director General of Foreign Trade will reject it electronically.
If there is force majeure which causes the electronic system to malfunction, the applications for Import Approval and Import Approval Amendment can be submitted manually to the Director General of Foreign Trade.
Don’t let your NIB be suspended. We can assist you in reporting your Import Activities, so you can focus on running your business. Please contact us via ask@bplawyers.co.id or 082112341235.