What is the regulation on importation of sugar in Indonesia?
The importation of sugar is regulated under Regulation of Minister of Trade Number 117/M-DAG/PER/12/2015 on Provision on Import of Sugar. Import of sugar based on the regulation is basically limited and conducted in accordance to domestic demand of sugar that is determined and agreed in coordination meeting between ministries. This particularly applies for import of plantation white sugar, which shall only be carried out in order to control the supply and stability of the price.
In addition, sugar that can be imported are divided into:
1. raw sugar with Tariff of Post/hS 1701..12.00.00, ex 1701.13.00.00, and ex 1701.14.00.00 that have ICUMSA (International Commission for Uniform of Sugar Analysis) number minimum 1200 IU (ICUMSA Color)
2. refined sugar with Tariff of Post/hS 1701.99.11.00 and 1701.99.19.00 that have ICUMSA number maximum 45 IU; an
3. Plantation white sugar with Tariff of Post/hS 1701.91.00.00 and 1701.99.90.00 that have ICUMSA number between 70 IU to 200 200 IU.
Who can import sugar?
a. Company holding API-P permit (Producer Identification Number of Importer) that can only import raw sugar and refined sugar; and
b. BUMN (State-Owned Company) with API-U (General Identification Number of Importer) that can only import plantation white sugar.
What will cause the Ministry of Trade to revoke the approval to import of a company organizing import of sugar?
Pursuant to Article 20 of Permendag Number 117 of 2015, approval to import of company is revoked if:
- proven to trade and/or hand over imported raw sugar and refined sugar to direct consumer, to distributor, and/ or to retailer;
- proven to trade imported refined sugar into domestic market;
- proven to alter data and/or information contained in approval to import;
- proven to submit data and/or information that are not true as requirement to obtain approval to import, after the approval to import has been issued;
- proven to commit violation based on assessment and recommendation of relevant technical institution; and/or
- declared guilty based on court’s judgment which has obtained permanent legal force or crime related to misuse of approval to import.