Indonesian standards and regulations

Target items

4407 wood, 4412 plywood, 4413 improved wood (high durability wood)

Content

“Minister of Commerce Regulation No. 82 of 2019” specifies items including 4407 sawn timber, 4412 plywood, and 4413 improved wood (highly durable wood) as import-restricted items. If the goods to be imported fall under import-restricted items, it is necessary to obtain import approval from the Minister of Commerce, and after obtaining import approval, data such as the amount imported must be reported.

Target items

4407 wood, 4412 plywood, 4413 improved wood (high durability wood)

Content

The Minister of Finance Regulation No. 219 of 2019 stipulates that only companies with a General Importer Identification Number (API-U, AngkaPengenal Impor-Umum) or Business Basic Number (NIB) can import timber. Masu.
The Business Basic Number (NIB) can be obtained on the OSS (Online Single Submission) system, which has been established based on “Government Regulation No. 24/2018 (GR 24/2018)”. You can visit the website and get it in a few hours.

Target items

4407 wood, 4412 plywood, 4413 improved wood (high durability wood)

Content

The "Minister of Commerce Regulation No. 20 of 2021" requires many products classified as 4407 sawn timber, 4412 plywood, 4413 improved wood, and highly durable wood to obtain import approval (PI) and conduct inspections after import customs clearance. It is mandatory.
In order to obtain Import Approval (PI), it is necessary to apply through the Indonesia National Single Window (INSW).

Regarding inspections after import customs clearance, after import declaration, goods are classified into Green Line, Yellow Line, Red Line, etc., and different inspection procedures are taken for each classification.
Green line: Only formal document examination
Yellow line: Implementation of document screening
Red line: Document examination and physical inspection
Customs Preferred Partner (MITA) Line: Recognized for excellent business operators

Generally speaking, when an importer imports for the first time, they start from the Red Line, and as they accumulate a track record of importing, they will be upgraded to the Yellow Line and then the Green Line.

Please refer to Appendix 1 (Lampiran I) of the related link "Minister of Commerce Regulation No. 20, 2021" for information on whether it is necessary to obtain import approval (PI) and whether inspections are to be conducted after import customs clearance.

Content

The “Minister of Trade Regulation No. 97 of 2015” stipulates regulations regarding the import of timber and timber products into Indonesia, and when obtaining an import authorization (PI), proof of legal harvesting of timber must be submitted. I am assuming that it will not be possible.
The “Regulations of the Director-General of Sustainable Production Forest Management (P.7/PHPL–SET/2015)” requires importers to conduct due diligence via the SILK site and make an import declaration based on the results. Masu.
The “Circular No. 2 on Verification of Due Diligence Results and Declaration Guidelines for Imports of Forest Products” mandates the Timber Legality Verification Agency (Lembaga Verifikasi Legalitas Kayu (LVLK)) to audit imports by importers. Within the framework of carrying out this work, guidelines for due diligence inspections and forest product import declarations have been developed to guide LVHK in carrying out audits.

Due diligence application in SILK (online system)

Due diligence is a check process undertaken by governments to ensure the legality of wood products from exporting and harvesting countries to ensure compliance with import activities and to prevent illegal imports of wood products. When an importer submits due diligence data and information through SILK, LVLK will conduct an inspection, and the results will be reviewed by the Director-General of Forest Products Processing and Sales, Ministry of Environment and Forestry. The due diligence review will be conducted within 7 business days, and an import recommendation will be issued by the Ministry of Environment and Forestry based on the review results.

SILK collects secondary information in the form of documents regarding the import of wood products. The types of documents requested and inspected on SILK are as follows.

1. Copy of import approval
2. Copy of import declaration/import recommendation
3. Copy of Timber Importer/Wood Products Supplier Declaration of Conformity (Deklarasi Kesesuaian Pemasok) (DKP)
4. Due diligence table (including the following items)
   a.Certification of exporter's legality
   b.Certification of producer legality
   c.Certification of origin traceability and legality of imported wood raw materials and products
5. Notice Regarding Import of Goods (Pemberitahuan ImporBarang) (PIB)
6. invoice
7. Packing list (P/L)
8. Bill of Lading (B/L)
9. Import realization reports
10. Log Stock Reports (Laporan Mutasi Kayu Bulat) (LMKB)
11. Processed wood inventory report (Laporan Mutasi Kayu Olahan) (LMKO)
12. production report
13. Export report for products using imported raw materials
14. Import duty payment certificate (if imported goods are subject to import duty)
15. Other relevant documents relating to timber species whose trade is restricted (including under CITES)

Furthermore, regarding the due diligence form, the guidelines stipulate that if the certificate of legality is in the language of the exporting country, it must be translated into Indonesian or English in advance.

The above information can be submitted electronically by the importer by registering it in the SILK system, and once the due diligence results have been reviewed by LVLK, the importer can receive an import recommendation.

Target items

4407 wood, 4412 plywood, 4413 improved wood (high durability wood)

Content

The Animal, Fishery and Plant Quarantine Act requires phytosanitary inspection for imports of goods other than finished products. When conducting a phytosanitary inspection, you are required to submit certain documents via the internet.

The contents of quarantine are set according to the three levels of risk assessment (high risk, medium risk, low risk) set by the quarantine authorities, and low risk imported goods are subject to simple quarantine measures. It has become.

For low risk cases

• Document examination
• Physical and clinical tests at the Plant Quarantine Laboratory (IKT)

For medium risk

• Document examination
• Physical and clinical tests at the Plant Quarantine Laboratory (IKT)
• Take samples and test in lab

In case of high risk

• Document examination
• Physical and clinical tests at the Plant Quarantine Laboratory (IKT)
• Isolation, observation, and laboratory testing

Content

The following documents are required for import declaration:

• Import declaration form (Customs declaration form C-5020)
• invoice
• Bill of lading or air waybill
• Certificate of origin (if WTO rates apply)
• Packing list, freight bill, insurance card, etc. (if deemed necessary)
• Permits, certificates, etc. required by laws and regulations other than the Customs Act (phytosanitary certificates, etc.)
• A detailed description of any reductions or exemptions from customs duties and excise taxes (if such relief or exemption applies to the goods);
• Customs duty payment slip (if the goods are subject to tax)

Content

"Decree No. 102 of 2000 (Government Regulations on National Standardization)" stipulates that the Indonesian National Standards (SNI) will be established under the National Standardization Agency. Additionally, for goods for which the state compels standardization, the Indonesian national standards will become the compulsory standard.

Regarding wood, there are multiple standards for sawn lumber, plywood, etc., and quality standards have been established.
(example)

• Softwood sawn timber (Part 1) - Classification, requirements and description (SNI 7540.1:2010)
• Plywood - Classification according to surface appearance - Part 3: Softwood (SNI ISO 2426-3:2008)

Acquisition of Indonesian National Standard (SNI)

In order to obtain Indonesian national standards, first confirm that the products/services for which you are seeking SNI certification meet the SNI standards.
In order to obtain an SNI license, a manufacturer outside Indonesia is required to establish a local company or appoint an importer with an import license for the product they wish to register. After that, we submit the application documents and required documents to the product certification body "LSPro (Local Product Certification Body)", and after LSPro conducts document review, factory audit, product sample testing in the laboratory, etc., we receive an SNI suitability certificate from LSPro. BSN (National Standards Agency: BANDAN STANDARDISASI NASIONAL) will issue an approval letter to use the SNI mark.

Target items

building materials

Content

The "Minister of Commerce Regulation No. 73 of 2015" applies labeling regulations to products belonging to the following five categories.

• Household appliances, telecommunications related items
• building supplies
• Motorized vehicle parts (spare parts, etc.)
• Fiber products
• Other products

These classifications are done by HS code, and HS codes 4407, 4412, and 4413 are not subject to labeling regulations.

Target items

building materials

Content

The ``Act No. 1 of 2011 on Housing and Occupation'' stipulates that building materials used in housing development must meet Indonesia's National Standards (SNI). Housing development includes housing, infrastructure, facility construction, and public works, and the building materials used for these are required to meet SNI standards.

When wood products are used for residential purposes, facilities, public works, etc. in Indonesia, they are required to obtain SNI standards.

Content

In Indonesia, there are forest certifications such as FSC, IFCC (Indonesian Forestry Certification Cooperation) (mutual recognition with PEFC), and LEI (Lembaga Ekolabel Indonesia), each of which is sustainable. We carry out forest management and CoC certification. While FSC is a global certification body, IFCC and LEI are certification bodies established within Indonesia.

Target items

4407 wood, 4412 plywood, 4413 improved wood (high durability wood)

Content

The "Minister of Finance Regulation No. 26 of 2022" stipulates the customs duties for goods classified as HS codes 4407, 4412, and 4413 as follows.

Main tariff rates by HS code

• 4407：0%
• 4412：10%
• 4413：5%

Trade between Japan and Indonesia is subject to the Japan-ASEAN Comprehensive Economic Partnership Agreement (AJCEP) (effective December 2008) and the Japan-Indonesia Economic Partnership Agreement (JIEPA) (effective July 2008). It has become. Within this agreement, tariff rates are set as described above.