If you are currently an importer or planning to become one, it is important to understand developments in government trade policies.
This is especially important for government policies concerning imported goods classified as LARTAS (Prohibitions and Restrictions).
These policies can affect the import procedures that must be completed.
This article discusses several crucial stages that importers need to understand when importing goods classified as LARTAS.
What are these stages?
Let’s take a closer look.
What Are LARTAS Goods?
Before discussing the important stages of importing LARTAS goods, we first need to understand what LARTAS goods are.
LARTAS stands for Larangan dan Pembatasan, or Prohibitions and Restrictions.
LARTAS goods are imported goods whose importation into Indonesia is prohibited and/or restricted.
These provisions are regulated under Minister of Finance Regulation No. 161/PMK.4/2007 in conjunction with PMK No. 224/PMK.4/2015 and 141/PMK.04/2020 concerning Supervision of the Import or Export of Prohibited and/or Restricted Goods.
The policy on prohibited and restricted imported goods is intended to protect national interests.
These interests include:
- Economic interests
- Innovation and industrial interests
- Public interests, including social and cultural interests
- National security interests
- Indonesia’s natural environmental conditions
- Intellectual Property Rights
Therefore, LARTAS policies are dynamic.
What does this mean?
It means that the number and types of goods classified as LARTAS may increase or decrease.
The government may add or remove goods from the LARTAS category depending on national conditions.
For example, in 2020 the government, through the Ministry of Finance, reduced the number of LARTAS HS Codes by 749 HS Codes.
This represented more than 50% of the HS Codes classified as LARTAS goods.
Products removed from the LARTAS category included:
- Electronics
- Pharmaceutical raw materials
- Textile raw materials
- Steel
This adjustment was made during the COVID-19 pandemic to make it easier for these goods to enter Indonesia and help maintain the stability of production activities and the national economy during the pandemic.
LARTAS goods are further divided into two categories:
- Goods prohibited from being imported
- Goods whose importation is restricted
Examples of goods prohibited from being imported include:
- Certain types of sugar
- Certain types of rice
- Ozone-depleting substances
- Used materials such as used sacks, used bags, and used clothing
- Hazardous and toxic materials (B3)
- Hazardous and toxic waste (B3 waste)
- Hand tools
- Other prohibited products
Meanwhile, examples of goods whose importation is restricted include:
- Medical devices
- Hazardous materials
- Pharmaceutical materials
- Traditional medicine materials
- Iron and steel
- Animals
- Horticultural products
- Cosmetics
- Footwear
- Forestry products
- Used capital goods
- Other restricted products
More detailed information about goods categorized as LARTAS can be found in Decree of the Minister of Finance of the Republic of Indonesia No. 23/KM.4/2022.
In practice, importers are allowed to import goods whose importation is restricted, but not goods that are prohibited from being imported.
What Are the Important Stages of Importing LARTAS Goods?
After briefly explaining LARTAS goods, we can now discuss the important stages that importers need to understand and complete when importing restricted goods.
There are four main stages.
1. Determine Whether the Goods Are Classified as LARTAS
The first step is to determine whether the goods to be imported are classified as LARTAS.
This stage may seem simple, but it is very important because it can affect the entire import process.
For example, the classification will determine whether:
- An Import License is required
- A Surveyor Report is required
- Other supporting documents are required
This stage is also important because government policies concerning LARTAS goods may change over time.
Importers can check the goods they plan to import by referring to Decree of the Minister of Finance of the Republic of Indonesia No. 23/KM.4/2022.
Alternatively, for a more practical method, importers can check through the insw.go.id website.
The process is as follows:
- Visit the INSW website.
- Enter the HS Code or product description in the “Cari Kode HS / Uraian HS” field.
- Click “Search.”
- The system will display a list of related HS Codes and products.
- Click “Detail” on the relevant product.
The detailed information will show the applicable export and import LARTAS requirements.
In general, imported goods classified as LARTAS may require documents such as:
- Import Licensing
- Certificates or Statements
- Surveyor Reports
before they can be imported.
2. Obtain an Import License from the Relevant Technical Institution
The second stage is obtaining an import license from the relevant technical institution.
Once the importer confirms that the product is subject to LARTAS requirements, the next step is to obtain the required import license.
One commonly required document is an Import License issued by the Ministry of Trade.
This Import Licensing document is required for releasing imported goods from the port.
If imported LARTAS goods are not accompanied by the required Import Licensing document, the goods cannot be released from the port.
The imported goods may then need to be:
- Re-exported
- Partially released
depending on the applicable provisions.
To obtain the required document, importers can process the import licensing application online through the Online Single Submission (OSS) system.
3. Obtain a Surveyor Report
The third stage in importing LARTAS goods is obtaining a Surveyor Report.
In addition to import licensing, one of the instruments used by the government to supervise export and import activities is the Import Technical Verification and Inspection Program (VPTI).
The output of this process is the Surveyor Report.
From the importer’s perspective, processing a Surveyor Report can help ensure that imported goods comply with the applicable requirements before they are shipped to Indonesia.
To obtain this document, importers can submit a technical verification application to an Independent Surveyor Institution (LSI).
Two major LSIs in Indonesia that provide these services are:
Importers can create an account in the LSI system and submit a verification application.
The survey process will be carried out by an LSI affiliate located overseas.
The importer’s responsibilities generally include:
- Providing the information requested by the LSI accurately
- Coordinating with the exporter regarding the product verification process
- Paying the applicable survey fees
More information about the Surveyor Report process can be found here.
4. Complete the Customs Clearance Process
The final stage of importing goods, including LARTAS goods, is completing the customs clearance process.
In simple terms, imported goods, except those governed by specific government provisions, will generally be inspected and may be subject to import duties.
Importers process customs matters through the Directorate General of Customs and Excise (DJBC) under the Ministry of Finance.
For imported goods classified as LARTAS, DJBC will inspect the required supporting documents, including:
- Import Licensing documents
- Surveyor Reports
If the importer can provide the required Import Licensing and Surveyor Report documents, the customs inspection and goods release process can continue.
If the importer cannot provide the required documents, the imported goods will be held until the importer is able to provide them.
The deadline for completing these documents is 30 days.
If the importer cannot provide the required documents within more than 30 days, the imported goods may be classified as “Unclaimed Goods” (Barang Tidak Dikuasai).
Customs clearance is processed centrally through insw.go.id.
Import Documentation Services for LARTAS Goods with PT. Alpha Romeo Teknologi
Those are the main stages that importers need to understand and complete when importing goods classified as LARTAS.
Importers may need to interact with at least three government or private institutions during the process.
That can involve quite a lot of coordination.
However, you do not need to worry.
PT. Alpha Romeo Teknologi can assist you throughout the process of importing LARTAS goods, including:
- Identifying products and applicable regulations
- Processing import licensing through the relevant technical institutions
- Processing Surveyor Reports
- Handling customs clearance procedures
You can use our services for:
- One specific requirement
- Several documents
- The complete import documentation process
By using our services, you can entrust the administrative process to us until the required documents are completed or your imported goods are received.
This allows you to focus on developing your business.
Interested in our services or would you like to discuss your import requirements first?