The Enactment of Ministry of Trade Regulation on the Inclusion of the Label in Indonesian language on Goods

by: Julinorita Simatupang.
The Ministry of Trade (MOT) via regulation No. 67/M-DAG/PER/11/2013 dated 26 November 2013 which was amended by regulation No. 10/M-DAG/PER/1/2014 dated 30 January 2014 (the “MOT Regulation”), is implementing the requirement for the Inclusion of the Label in Indonesian language on Goods.The implementation of this MOT Regulation is to guarantee the right of Indonesian consumers over the goods that they are consuming and covers, among other, information, conditions and guarantee as well as providing legal certainty for businesses vis-à-vis the Consumer Protection Law. The regulation also aims boost the effectiveness of consumer awareness initiatives and enhance consumer protection.Based on this MOT Regulation, the inclusion of the label must be fixed, either printed or embossed, or wholly attached to the goods or packaging. For imported goods, the inclusion of the label must be put in place upon arrival of goods at the customs area. For domestic goods, the labels must be in place before they are circulated in the market.

The label shall contain the caption or description of the goods and the identity of its business doers. The identity of the business doers must at least contain their name and address for the domestic production of the goods or the name and address of the importer for imported goods. The label must not contain incorrect and/or incomplete information which could mislead consumers. . There must also be information pertaining safety, security and health including relevant warning signs and symbols.

The MOT Regulation also stipulates the application procedures to filing of label including the necessary supporting documents and the required product descriptions.

The MOT regulations take effect on 25 June 2014 for new goods and 25 December 2014 for goods already circulating in the market, respectively.

There are additional new products which need to comply with the MOT Regulation i.e. tablet computers and 24 types of textile and textile products through different harmonized system, among others: sewing thread, fabric, baby clothes, the final goods other textile, jersey, pullover, cardigan, vest and others.

Failure to comply may result in non-entry of imported goods into Indonesia or withdrawal of goods already in circulation in the market. It could also result in administrative sanctions which provides for for the revocation of Business License (SIUP) and/or Importer License (API) or other business license.

The regulations provide for a few exceptions, among others, exclusion for manufacturers, agents of the brand holder which import goods for the purposes of the production process or as raw materials for local manufacturing. . Exception is also granted to general importers which import ingredients to be sold to manufacturers or as raw materials. However, the goods must not be transferable or traded in the domestic market. With the enactment of this MOT Regulation, the Ministry of Trade Regulation No. 62/M-DAG/PER/12/2009 jo. No. 22/M-DAG/PER/5/2010 concerning the Inclusion of the Label on Goods is revoked and shall no longer be valid.

This is a brief summary of the MOT Regulation and is compiled from various reliable sources. It is not intended and should not be taken as legal advice or opinion. No action should be taken in reliance of information contained in this article without first seeking professional services. Please contact us for any professional assistance needed for this purposes.]