Impact of the Amendment to Minister of Trade Regulation No. 8 of 2024
The latest amendment under Minister of Trade Regulation No. 8 of 2024 has affected several imported goods.
Products that were previously not categorized as LARTAS (Prohibited and Restricted Goods) have now changed their status and become LARTAS goods.
As a result of this change, import permit documents such as Import Approval and Surveyor Report are now mandatory.
LARTAS stands for “Larangan dan Pembatasan,” or Prohibitions and Restrictions.
These goods are prohibited or restricted from being imported or exported.
The purpose of these restrictions is to protect national interests.
This includes protecting domestic industries and the public from potentially dangerous goods.
International trade has a significant influence on a country's economic growth.
Imports allow people and businesses to obtain raw materials, goods, and services that are unavailable or limited domestically.
However, import activities need to be supervised.
The purpose is to ensure that imported goods do not create negative impacts or pose risks to public and national security.
Regulation and Supervision of LARTAS Goods
The government issues regulations to protect the public and national interests.
Supervision is carried out for goods classified as LARTAS.
Technical government institutions authorized to establish LARTAS regulations include:
- Ministry of Trade
- Ministry of Industry
- Ministry of Health
- Ministry of Forestry
- Ministry of Environment
Lists of LARTAS goods are issued by these institutions and supervised by Customs and Excise.
Customs has the authority to hold goods that are not supported by the required permits from the relevant government institutions.
Business operators that do not obtain the required import permits for LARTAS goods are not permitted to import those goods.
If the goods are imported without the required permits, they may be held by Customs at the port.
The goods may also be considered illegal goods.
Examples of Affected Commodities
Several commodities affected by LARTAS requirements include:
- Telecommunication equipment and devices
- Medical devices
- Cosmetic raw materials
- Pharmaceutical raw materials
- Hazardous materials (B2)
- Hazardous and toxic materials (B3)
- Food materials
- Explosives
Addition of HS Codes for Certain Commodities
Under Minister of Trade Regulation No. 8 of 2024, several new HS Codes were added, and certain goods that were previously classified as non-LARTAS became LARTAS goods.
Several affected commodity groups include:
- Electronic Commodities – Addition of 31 new HS Codes
- Finished Textile Goods – Addition of 2 new HS Codes
- Garments and Accessories – Reduction of 3 HS Codes, which became non-LARTAS
- Bags – 23 new HS Codes became LARTAS
- Textiles and Textile Products – Addition of 64 new HS Codes
- Plastic Raw Materials – 12 HS Codes became LARTAS
- Downstream Plastic Products – 140 new HS Codes became LARTAS
- Iron or Steel, Alloy Steel, and Their Derivative Products – Addition of 20 new LARTAS HS Codes
For those who would like to obtain more information regarding changes under Minister of Trade Regulation No. 8 of 2024, you can also read our article about the Government revising the Minister of Trade Regulation again.