Import of Product Samples for the Footwear Industry is Now Restricted Free

To encourage the textile and footwear industrial sector, imports of sample goods are now free from prohibitions and restrictions.

KOMPAS/HENDRA A SETYAWAN

Illustration. Workers complete the production of women's footwear in a small footwear manufacturing industry in Pondok Benda, South Tangerang, Banten, on Wednesday (10/20/2020). This small industry supplies online shoe traders with brands according to orders.

JAKARTA, KOMPAS — The Ministry of Trade exempts sample goods for the textile and footwear industries from import prohibitions and restrictions. This relaxation is based on recommendations from industry players who previously experienced problems in importing sample goods for developing their products.

The release is in line with the issuance of the Minister of Trade Regulation (Permendag) Number 7 of 2024 concerning the Second Amendment to Permendag Number 36 of 2023. This policy was promulgated on April 29, 2024 and will officially take effect on May 6, 2024.

The Director of Imports at the Ministry of Trade, Arif Sulistyo, stated that changes in regulations are based on recommendations from textile and footwear industry players who had previously encountered difficulties in importing sample goods for their product development.

Relaxation of imports of sample goods is needed so that industry can easily develop production domestically.

"The evaluation conducted by government inter-agencies has agreed to provide import facilities for sample goods for development and research activities in several industrial sectors, including textile and footwear," said Arif during the virtual socialization of Trade Minister Regulation Number 7 of 2024, on Thursday (2/5/2024).

Previously, Regulation of the Minister of Trade (Permendag) Number 36 of 2023 required import activities of product samples to go through recommendations from the government with a prohibition and restriction mechanism. In fact, product samples sent from export destination countries are the main key for producers to meet the needs of the export market.

Therefore, in Minister of Trade Regulation Number 7 of 2024, industries with business registration numbers (NIB), which effectively function as Importer-Producer Identification Numbers (API-P), can import sample goods or items without having to use technical recommendations from the Ministry of Industry.

Importers, according to Arif, only need a statement from the Director General of Foreign Trade, Ministry of Trade, to procure sample goods in limited quantities.

A number of commodities included in the exemption of limited import prohibition, among others, are textiles and textile products (TPT), footwear, bags, ready-made garments and clothing accessories, electronics, lubricant raw materials, toys, as well as other finished textile goods.

Arif explained that the government understands the need for import relaxation of goods, for example, so that industries can easily develop production in the country. Specifically, the provisions for the types of commodities and quantities are recorded in Appendix V of Trade Minister Regulation Number 7 of 2024.

Also read: No Longer Restricted, Types of Goods Sent by Migrant Workers and Personal Luggage of Passengers

During the implementation of Trade Ministerial Regulation Number 36 of 2023, the Ministry of Trade received a lot of input from stakeholders involved in imports, which required changes to be made. Then, in March 2024, the Ministry of Trade issued Trade Ministerial Regulation number 3 of 2024.

The content of this change is to reintroduce or free the commodity MEG (Monoethylene glycol), a raw material for the textile industry which was previously restricted. The release followed a protest from the Indonesian Fiber and Filament Yarn Producers Association (Apsyfi).

The release of other commodities, namely plastic raw materials, as well as airplane spare parts. The exception on airplane spare parts imports aims to ensure that airlines lower their airfare prices. "The hope is that with the decrease in airfare prices, domestic tourism will continue to develop," he said.

KOMPAS/IWAN SETIYAWAN

Pelita Air airline plane parked on the apron of Terminal 3 of Soekarno-Hatta Airport, Tangerang, Banten, Wednesday (3/8/2022).

However, in reality, as stated by Arief, Regulation of the Minister of Trade No. 3 of 2023 is claimed to be incomplete, so on April 29, 2024, the Ministry of Trade issued Regulation of the Minister of Trade No. 7 of 2024.

PMI goods

In addition to evaluating the regulation of industrial raw material imports, Trade Minister Regulation Number 7 of 2024 also discusses several important regulations that have been problematic for the community, namely regarding parcels sent by Indonesian migrant workers (PMI) and personal luggage of passengers.

"The import of personal belongings by passengers has also garnered numerous complaints and suggestions to us, especially from migrant workers. Then, we coordinate with relevant ministries and institutions," said Arif.

Regarding regulations on PMI's mail shipments, it is currently based solely on the Ministry of Finance Regulation (PMK) Number 141 of 2023 regarding Import Provisions for Migrant Workers' Goods. This regulation does not limit PMI's mail shipments who are working abroad as long as the goods are not intended for trade.

However, the PMK regulation stipulates a duty-free exemption for the personal belongings of Indonesian migrant workers with a maximum value of $1,500 USD for three shipments within one year, or $500 USD for one shipment.

Regarding passengers' personal belongings, Ministry of Trade Regulation Number 7 of 2024 no longer sets limits on the types, quantities, and conditions of goods, except for prohibited and hazardous goods. The provisions for import duties and taxes also still refer to Ministry of Finance Regulation Number 203 of 2017 concerning Provisions for the Export and Import of Goods Carried by Passengers and Transport Crew.

Also read: Subject to Prohibitions and Restrictions, Goods Belonging to Indonesian Migrant Workers Detained at Customs

"At present, there is already data integration between the Indonesian Migrant Workers Protection Agency (BP2MI) and the Ministry of Foreign Affairs to ensure that the goods belong to the Indonesian migrant workers," said Arif.

Migrant workers who arrived from Malaysia while waiting for transportation to take them to their respective areas at Tanjung Emas Port, Semarang City, Central Java, on Friday (15/5/2020).

When contacted separately, senior economist at the Institute for Development of Economic and Finance (Indef), Tauhid Ahmad, stated that the government's efforts to reduce the influx of illegal imports are not enough with just regulations that limit foreign goods.

The government also needs to increase monitoring in border areas with neighboring countries. "In some borders with our nearest neighbors Singapore and Malaysia, it is too easy to enter because of their close proximity. This is what I think may require monitoring," said Tauhid.