Jakarta - The Ministry of Commerce (Ministry of Trade) Trade issued Decree No. 28/M-DAG/PER/6/2014 on the Import Alloy Steel which will apply until December 31, 2016.

"This policy is a response to the proposal of the Ministry of Industry and the national steel industry," said Director General of Foreign Trade Ministry of Commerce, Bachrul Chairi, in a press release received Thursday.

Bachrul explained, the Ministry of Industry and national steel industry expressed a lot of imported steel alloy (alloy) which is entered by using boron with low levels simply to divert import duties and avoid the imposition of anti-dumping duties or safeguards.

Bachrul said, an indication of the transfer of the HS tariff lines using steel tariff lines seen in 2013, which when compared to the year 2012 there has been a surge in the volume of imports of alloy steel for tariff lines, with 22.94 percent of HS 7225, HS 7227 amounted to 77, 61 percent, amounting to 8.49 percent of HS 7228 and HS 7229 by 6.3 percent.

Bachrul added, that the primary purpose of the issuance of regulations on June 2, 2014 is to minimize unfair trade practices (shifting HS) which can harm the iron / steel industry nationwide.

Some basic settings in the Regulation are, among others, steel alloy can only be imported by companies that have received recognition as Importer Manufacturers (IP) alloy steel or determination as Registered Importer (IT) Minister of Trade of alloy steel.

IT steel alloy that will import alloy steel imports must obtain approval from the Ministry of Trade with regard alloy steel sales contract between the owner of a steel alloy with a firm IT manufacturers with original shows sales contract cooperation alloy steel.

In addition, a statement that the imported steel is a type of steel alloy that is evidenced through the mill at the time of certificate verification by surveyors and technical considerations of the Directorate General of the Ministry of Industry Manufacturing Industry Base which contains information about the type of goods, classification of goods / tariff heading / HS 10 digits, and the number per port of destination.

Another basic arrangement is that each IP import steel alloy by alloy steel and steel alloys IT must first verification or technical surveillance of import in the country of loading.

Recognition as IP designation as a steel alloy and alloy steels IT frozen if the company does not submit the import realization report three times, and / or there is suspicion of criminal offenses related to abuse of recognition as IP Dangan alloy steel, alloy steel designation as IT, and / or import approval.

Exceptions verification on imports given to the automotive industry, electronics industry, shipbuilding industry, and major appliance industries, as well as individual components.

Exceptions are also provided to the IP steel alloy as industrial users who have Certificate Verification Industry (SKVI) through the facilities of User Specific Duty Free Scheme (USDFS) or other schemes facility.

• [Editor:Phillip.Feng]