Preferential duties under trade agreements
 

19.1	As the vast majority of Indonesia imports are subject to MFN rates, Indonesia tariff preferences are essentially confined to ASEAN partners.  Duty rates under the Common Effective Preferential Tariff (CEPT) scheme, are only valid for imported goods bearing certificates of  origin from ASEAN countries except goods valued under US$ 200 FOB.  The preferences relate to the implementation of the AFTA scheme, since the vast majority of Indonesian imports are subject to MFN rates.
19.2	Indonesia is a member of the Association of Southeast Asian Nations (ASEAN) together with Brunei, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.  ASEAN aimed at promoting economic, social, cultural and scientific ties, as well as trade and monetary policies.  Other areas of cooperation among ASEAN members include harmonization of standards, reciprocal recognition of tests and certification of products. In 1992, ASEAN members called for the formation of an ASEAN Free Trade Area.  In December 1998 members agreed to implement the AFTA by 1 of January 2002.  In this regard, the six original founding members of ASEAN, Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore, and Thailand, would advance the implementation of AFTA from 2003 to 2002.  In addition, a  minimum of 85% of the tariff lines in the Inclusion List of these nations would be reduced to 0-5% by 2000 and 90% by 2001.  Vietnam which joined ASEAN in 1995 would implement its tariff reductions to 0-5% by 2003; Laos and Myanmar which joined the group in 1997, will complete the reductions by 2005.  Cambodia joined ASEAN in 1999 and will complete the tariff reductions by 2010.  No common external tariff is planned; tariff rates on imports from non-Asean countries will continue to be determined individually.  Consequently, since 1 of January 2003, the ASEAN countries have announced the abolishment of tariffs on 60 per cent of traded goods and the introduction of a 5% on import tariffs within its six original members, i.e. Indonesia, Brunei, Malaysia, the Philippines, Singapore and Thailand.  Products affected essentially by this measure are electronic products, machinery items and petrochemicals.  And good excluded from the tariff-reduction agreement are goods of key industries in some of the member countries;  for example, Indonesia and the Philippines will delay the 5% cap on sugar and petroleum, and Malaysia will shelve the cap on car imports, until 2005.  As for Cambodia, Myanmar, Lao People's Democratic Republic and Vietnam, the four ASEAN's latecomers, will introduce the 5 per cent tariff cap only in 2010. Indonesia is also a member of the Asia Pacific Economic Cooperation (APEC) along with Australia, Brunei, Canada, Chile, China, Chinese Taipei, Hong Kong, Japan, Rep. of  Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Thailand, the United States, and Vietnam.  APEC is a multilateral forum formed in 1989 so that Asian and Pacific economies can promote economic cooperation and mutual assistance in developing key economic sectors, including trade and investment.  On 15 of November 1994, member countries agreed to implement open and free trade among themselves by 2020, with advanced industrialized nations realizing the trade liberalization goal by 2010.  At their 1997 meeting in Vancouver, APEC leaders agreed on Voluntary Sectoral Liberalization (EVSL) to take place in 15 sectors and the tariff elements of nine sectors were identified under the accelerated tariff liberalization (ATL) package i.e. chemicals, energy, environment, fish and fish products, forest products, gems and jewellery, medical equipment and instruments, and toys, as well as a mutual recognition agreement concerning telecommunications.  The ATL initiative aimed to achieve a zero target for almost all the sectors by 2005. The eight ASEAN summit was held in Phnom Penh, Cambodia from 4 to 6 November 2002.  During this meeting, several free trade plans were developed involving 14 Asian countries, i.e. the 10 Asean members such as Indonesia, Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, China, India, Japan and the Republic of Korea.  The objectives of these free-trade plans are to quicken the pace of trade liberalization and foster multilateralism in the region.
19.3	Indonesia through the framework of ASEAN, maintains a commercial and economic cooperation agreement with the European Union.  The agreement provides for most favoured-nation treatment and studies to remove trade barriers, create new trade patterns, and recommend trade promotion measures. A new trade initiative between the ASEAN and the U.S.A. has been set up as the Enterprise for Asean Initiative (EAI), which objectives aim at developing the Southeast Asian Region, and enhance close U.S. ties with ASEAN.  The EAI offers bilateral free trade agreements (FTAs) between the United States and individual ASEAN countries, by determining jointly the launching of FTA negotiations. ASEAN members and China leaders decided in Brunei on November 2001 to work on creating a free trade area within the next ten years.

2.        PARA-TARIFF MEASURES
 

22.9	An income tax on imports at the rate of 2.5%  of the c.i.f. value is imposed on licensed importers and at the rate of 7.5%  on other importers.  Most imports subject to reduced or suspended rates of  import duties are also granted exemption of income tax on imports.

             Internal taxes and charges levied on imports
 

23.1	A value added tax of 10% is levied on most imported and domestically produced goods.  Capital goods are exempt from the value-added tax, as of 1 of April 1998.  Exemptions of value added tax is granted to goods (either imported by government enterprises or not yet domestically produced)  as detailed in Decree No. 41 of 2 June 1994;  the exemption list includes: basic materials for making bank notes, coins, stamps and gold ingots, cattle and poultry feed, arms, ammunition, water, under-water and air transport vehicles, books on sciences, medical equipment and health care instruments, contraceptives for the national family planning programme, machinery, equipment, software and basic materials for use in shipbuilding and for the manufacture of aircrafts, explosives, arms and ammunition.
23.2	Luxury goods are subject to a tax ranging from 10% to 75%.  They include manufacturing products such as motor vehicles, alcoholic beverages, bottled or canned food or drink, and perfume.  And, excise taxes are levied at various rates on certain products such as cigarettes 10%, alcoholic beverages 80% and, sugar.  Excise exemptions are set on ethyl alcohol, sliced tobacco, and beer used as raws materials or auxiliary materials in the manufacture of end products as excisable goods.
23.9	Vehicles taxes have been increased between 0.34% and 22.47% as of 25 of April 2001, in order to boost city revenues, in accordance to the issuance of Governor Decree No.33/2001 on vehicles taxes and change of vehicle ownership taxes.

3.        PRICE CONTROL MEASURES

Until late 1995, Indonesia had no anti-dumping or countervailing legislation.  A new anti-dumping and countervailing regulation was introduced as part of the 1995 Customs Law, and complemented by Government Regulation 34/1996 of 4 June 1996, and Ministerial Decrees 136/MPP/Kep/6/1996 and 172/MPPkep/7/1996 with the latter establishing the Indonesian Anti-Dumping Committee.  The rules on countervailing measures were introduced at the same time and in the same legislation as those on antidumping.  Countervailing like anti-dumping cases are investigated by the Anti-dumping Operation Team. 

4.        FINANCE MEASURES
 

45	Exchange control is administered by Bank of Indonesia, the Ministry of Trade and Industry, the Ministry of Finance, foreign exchange banks, and the customs authorities.  Import payments may be made by any method acceptable in international commerce.

6.        QUANTITY CONTROL MEASURES
 

61.1	Licensing under the authority of Department of Trade, Jalan Abdul Muis 87, Jakarta; applications for licences may be submitted to the regional office of the Ministry of Trade and Industry.  Importers must be registered and possess a valid importer's license. In conformity with decree No. 125Kp/VI/1994 of 27 June 1994 on trade procedure regulations, Indonesia's licensing system classifies goods according to the category of importer permitted to import the product concerned.  Non-restricted goods may be imported by the category of general importers (IU); restricted goods may be imported by the categories of approved importers (IT), producer importers (IP), sole importers (AT), and state trading companies such as DAHANA, PERTAMINA and BULOG.  Goods are generally classified as being importable by only one category of importer.  However, various goods remain authorized to be imported by both general importers (IU), or approved importers/sole importers (IT/AT). Although the number of items subject to import restrictions and special licensing is being reduced, the following products continue to be regulated:  goods such as alcoholic beverages, hand tools, artificial sweeteners, engines and pumps, tractors, rice, lube oil, and explosives.
61.2	Under decree No. 311/Kp/X/1993 of 23 October 1993, imports of used machinery, machine tools and other capital goods can only be realized by direct user companies and reconditioning companies.  In the case of small scale industries, a permit is required from the Director General of the local Office Head of Foreign Trade.  Imports for small scale industries may also be conducted by specified state trading organizations holding an IT. Decree 98/MPP/Kep/2/1998 rules the import of capital goods under chapters 82, 84, 85, 87 and 89 of the customs tariff. Imports of ammonium nitrate used as basic material of explosives are restricted to P.T. (persero) DAHANA and other companies appointed by the Ministry of Defence and Security. General importers (IU) may import motor vehicles in CBU condition the types and trade marks of which have been domestically produced without certificates of non objection from trade mark holder, sole importers;  however approved importers/sole importers (IT/AT) may import motor vehicles in CBU condition with types and trade marks not domestically produced yet.  Imports by the category of approved importers/sole importers (IT/AT) are determined by the Minister of trade with the suggestion of the Minister of Industry. Apart from non-restricted goods, general importers may also import certain aluminium plates, sheets and strips, and reciprocating piston engins for propelling vehicles in CKD condition.
61.43	The contertrade scheme is stipulated for any import of goods and equipment by government institutions for a value of five hundred million rupiah, and financed by the state budget, and or commercial credit.  Countertrade regulations are contained in the export policy package of 1982 and subsequent ministerial instructions.  As a rule, a foreign supplier who wins a government tender is obligated to purchase Indonesian  commodities of non-petroleum and gas export in amount equal to the value of goods bought by government.
61.6	Heavy equipment used for oil and gas mining and exploitations imported at suspended rates require a recommendation from the Director General of oil and Gas. Import of motor vehicles for tourism and sports for temporary use in Indonesia according to their schedules of activities must be accompanied by recommendations from either the State Police Chief or the Chairman of the Central Board of the Indonesian Motor Association. Ammonium nitrate not used as basic material of explosives, basic materials for milk processing and non-milk industries, finished milk products, and certain other goods may only be imported by companies appointed as approved importers (IT) subject to prior approval by the Director General of Foreign Trade.
61.71	A special permit from the director general of medicines and food control of the Ministry of Health is required to import medicines, including traditional and herbal medicines.  Alcoholic beverages, and artificial sweeteners, certain categories of food, beverages, fruit and other agricultural products may be imported only by registered importers designated by the Minister of Trade and Industry.
61.72	Imports of the following goods are subject to licensing requirements: live animals such as live horses, asses, mules and hinnies, pure-bred breeding animals; live swines; live sheep and goats; and live poultry, i.e. ducks, geese, turkeys and guinea fowls.
61.73	A permit from the Ministry of Agriculture or a designated official is required for the importation of certain kinds of plants and seedlings.
61.74	Imports of pesticides are assigned one of the following three kinds of permits depending on information submitted about the product's content to the Pesticide Division of the Ministry of Agriculture: A trial permit when data concerning product safety and side effects are incomplete; a temporary permit, granted when available data are considered adequate and allows the product to be distributed to the public only under strict controls; and a permanent permit, issued when the pesticide's contents have been disclosed fully and approved.
61.75	Indonesia has ratified the Washington Convention (Convention on International Trade in Endangered Species of Wild Fauna and Flora, CITES).  As a Party, Indonesia maintains import controls on a number of animals and plants including their parts and derivatives.
61.9	The following imports are subject to licensing:  motor vehicles, hand tools, engines and pumps, tractors, lubricating oil and explosives.  Imports of videotapes and laser discs are subject to approval by the censorship board.

            Quotas
 

62.1

Foods, beverages, and cloves may be imported by registered importers (IT) in conformity with the quantity and types stipulated by the Director General of Foreign Trade. Producer importers (IP) are approved to import goods solely required for their production process (i.e. oil cake, salt, various articles of iron, alloy or non-alloy steel, machinery and appliances, electric motors, generators, and certain tractors only in CKD condition) in conformity with the quantity and need stipulated by the Director General of Foreign Trade.

62.74

The release into free circulation of substances controlled by the Montreal Protocol on Substances that Deplete the Ozone Layer (1987) (CFCs, halons, alone or in mixtures) imported from a state that is a party to the Protocol, is subject to quantitative limits.

            Prohibitions
 

63.1	The importation of used machinery, equipment and other capital goods indicated on the negative list attached to decree No. 311/Kp/X1993 of 23 October 1993 is prohibited.
63.71	Import prohibition is set by the Ministry of Health for public hospitals, to use used or refurbished medical equipment. Import prohibition is set on chicken parts since October 2000. A presidential degree (PP No. 69/1999) bans the advertising of beverages with an alcohol content of 1 percent or more beginning 21 of July 2000.  The same measure also prohibits companies from advertising any claimed medicinal properties of food products.
63.72	Import prohibition is set on chicken parts since October 2000. With the outbreak of foot and mouth diseases in Europe and Argentina, the Government of Indonesia has taken measures in prohibiting the importation on live animals and animal products of ruminant and pig as of March 2001. With the increase of BSE incidences in Europe and the ban of the use of MBM as a feed stuff to all farm animals, Indonesia has prohibited the importation of live animals and animal products of ruminant origin from EC member states since December 2000 and 1 of January 2001.
63.74	Imports of phenol derivatives containing only halogen substances and their salts, such as sodium pentachlorophenate, ethylene dibromide pesticides, plastic waste and scrap are prohibited. As a Party to the Montreal Protocol on Substances that Deplete the Ozone Layer (1987)  and its following amendments, Indonesia operates a ban on the import of controlled substances listed in Annex A to the protocol (chlorofluorocarbons and halons)  from any state not party to this convention.  This ban will be extended to ten additional types of fully halogenated CFCs, carbon tetrachloride and methyl chloroform (Annex B to the Protocol).
63.79	Imports of printed material including books, magazines, newspapers, and leaflets, written in Bahasa Indonesian, Chinese languages, or other regional languages or characters, audio and video cassettes, films and colour photocopy machines are prohibited.  The import ban extends to cigarette paper and paper for packing cigarettes and drugs, and bearing printed texts in any language.  Are exempted from import prohibition, literature material and other printed matters for educational use, and technical or industrial books connected with industrial processing.
63.9	On 25 of February 2000, the Ministry of Industry and Trade issued two decrees banning imports of fully-assembled automobiles with engines larger than 4000cc, and 4X4 sports utility vehicles with engines larger than 5000 cc. In order to protect local manufacturers, including weavers and knitters, the Indonesian Government has announced important restrictions of fabric imports from China and other countries.
66	Agreement on Textile and Clothing (ACT): Further notification of Indonesia containing corrections to the notification made pursuant to paragraphs 8 (a) and 11 of Article 2.
69	In accordance with government regulation No. 32/1991 of 11 June 1991, raw materials for the production of medicines must be in compliance with the list of substances of which the import does not violate the patent laws.  In addition videotapes and laser discs are subject to approval by the censorship board.

7.        MONOPOLISTIC MEASURES

          Single channel for imports
 

71.1	State Trading Monopolies are set on the following goods, and are carried out by the following agencies:  imports of petroleum and fuels, petroleum based lubricants, by PERTAMINA, Natural Gas Mining Company, Jalan Merdeka Timur 1A, P.O. Box 12, Jakarta;  imports of propellent powder, dynamite, ammunition and explosive gelatin by the PT DAHANA, Jalan Gunung Sahari 84A, Jakarta;  exclusive rights to import rice other basic necessities, by BULOG, National Logistic Agency, Jalan Gatot Subroto Kav. 49, P.O. Box 2345, Jakarta. Indonesia is in the process of eliminating monopolies and privatizing state-owned enterprises.
71.2	Goods channelled  through sole importers (AT) include heavy duty equipment, electronic equipment, and household electric appliances in accordance with decree No. 125/KP/VI/1994 of 27 June 1994. Prior to 1998, state owThe National ned companies controlled the import of certain processed foods and beverages;  but since January 1998, the list of products has been reduced to saccharin, na-cyclamate and alcoholic beverages.
72.2	All Indonesian government imports must be carried on Indonesian vessels.

8.        TECHNICAL MEASURES
 

81	The National Standardization Agency (Baden Standardisasi Nasional) has been established in 1997.  It deals with the development and approval of national standards, the accreditation of testing and calibration laboratories, certification bodies and technical inspection bodies, international cooperation in standardization activities, the harmonization of international standards with national standards and standards information services.  Standards related to health, safety and  consumer protection are applied to domestic and imported products alike.  They are based on international standards, as those set by the Codex Alimentarius, ISO, and the International Electrotechnical Commission for electro-technical specifications.
81.1	Quality standards are imposed on the import of frozen shrimps, frozen frogs and frozen tuna.  Restrictive aspects of standardization are set on consumer packed infant formula.  Plywood, calibration marks, and motor vehicles are also subject to standard requirements. Within the framework of guaranteeing the quality of imported pharmaceutical products, a certificate of analysis from the manufacturer of the products and a certificate from the authorized official in the manufacturer's country are require as a guarantee proving that the pharmaceutical products fulfil the requirements regarding good manufacturing practices according to the WHO standards (certificate of pharmaceutical product). Food and beverages for sale in Indonesia must comply with regulation PO. 04.02.3.01510 of 5 June 1998, which sets the maximum allowance of caffeine used in food and beverages. Food supplements produced, imported and distributed in Indonesia must conform to the requirements stated in regulation HK 00.063.02360; in addition they must be produced in compliance with good food manufacturing practice.
81.11	Importers of food and drug-related products must be registered with the Ministry of Health.  A ceiling of radio-activity is established on milk and dairy products, fresh and prepared fruits and vegetables, fresh and prepared fish and seafood, meat and meat products, mineral water, maize, wheat and barley.  Registration requirements for all imported or domestically produced medicines with the Ministry of Health.  Processed foods and other imported or domestically produced foodstuffs, including food supplements, must be registered with the Ministry of Health  which requires a sample of the products and product label, an explanatory brochure, a letter of certification from the foreign producer with the name of the importer included, and a health certificate issued by the authorized body in the country of origin.  Registration requirement of medical devices, cosmetics, and household health supplies in order to protect consumers, by Regulation No. 140/Menkes/Per/III/1991 on the obligation to register medical devices, cosmetics, and household health supplies. Imported food supplement that covers a wide range of edible products, either in solid or liquid form, must be registered at the Directorate General of Food and Drugs, Department of Health. OMKABA has been created by the Directorate General of Food and Drugs through Regulation No. HK 00.06.1.4.01985 of 24 August 1998, as a coordinating team, for the registration of drugs, food and beverages, traditional drugs, cosmetics, health care equipment, and narcotics. Raw sugar imported or domestically produced must meet the following requirement:  SN1 01-3140.1-2001 by reference to Codex Alimentarius Commission Volume II, Sugar, Cocoa Product, and Chocolate and Miscellaneous Products, FAO, Rome 1994.
81.11    /12    /13	Sanitary or phytosanitary certificates are required for imports of live animals, meat, meat products, fresh and chilled or frozen fish, fresh and preserved or prepared vegetables and fruits, oilseeds and oleaginous fruits, edible fats and oils, cut flowers and materials of animal and vegetable origin.  For imports of potatoes, an additional statement must be inserted on the health certificate to the effect that the shipment is free from wart disease (synchrytrium endobioticum)  and that the potatoes have been grown at a distance of at least 500 meters from any other potato plant that might be infected by this disease.  For imports of fruit,  the health certificate must include a statement that the fruit is free from fruit fly.  Fresh fruit must have been in a refrigerated state for a period of seventeen days at 37°F or less prior to importation. The National Standardization Agency regulates the maximum microbiological contaminant levels and maximum limits of pesticide and veterinary drugs in food of animal origin applied in Indonesia.
81.14	Registration requirement of fertilizers and pesticides with the Ministry of Agriculture. IS SNS are set as standard requirement for fertilizers whether domestically produced or imported.
81.16	A certificate of origin confirmed by a recognized chamber of commerce is required for imports of drugs and narcotics.
81. 2     /3     /4	Marking, packaging and labelling of tobacco products, wine and spirits, cosmetics and hygiene articles must comply with the Indonesian standards. Marking requirements including warning signs and instructions for medical devices and cosmetics, household health supplies in order to prevent misunderstanding, misuse, and to overcome accidents.
81.3	New labelling requirements have been enacted through presidential decree (PPNo. 69/1999), which compels manufacturers and importers to provide at a minimum the name of the products, a list of ingredients, net weight, name of the manufacturer or distributor, and expiration date on all food and beverage labels, with the information printed in Indonesian. Imports of food products must be labelled in English or Indonesian with the name of the food and/or brand name etc.;  all perishable foods must be labelled with an expiration date determined by the Ministry of Health;  expiration dates are also required for certain other food including powdered or dry milk, baby food, bread and bread products and nutritional supplements.  Storage and preparation instructions must be provided when applicable. Sweetened and condensed milk must bear the following statement: "Warning not suitable for infants below six months old!"  Products containing pork must bear the words "contains pork", printed in red ink within a red box, the type size may not be smaller than 12 points.  Specific statement are required on labels for certain other food products including milk and food containing milk, baby food, commercially sterilized canned food, artificial sweetener, breast milk substitute, food additives, and irradiated food.  Imported medicines must bear the name of medicine, its composition, its weight or content, dosage instructions, indications and contraindications, expiration date, registration and production code numbers, and the name and address of the Indonesia-based manufacturer or distributor.  Information must appear in the Indonesian language in addition to the original language. Alcoholic beverages must be labelled with the name of the product, the alcohol content, net weight or net volume, materials used, names and addresses of the producer and importer, and the statement "alcoholic drinks". The Indonesian Government will support the operation of the national ecolabelling institution.  By the year 2000, all wood-based products in the world markets are required to be produced from timber estates.  The funds will be derived from the Reforestation Fund, for forest rehabilitation.  The programme is being supported by the World Bank, the European Union and the International Tropical Organization, (ITTO). By ratifying of the Basel Convention of 22 March 1989, on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, Indonesia committed itself to protect by strict control, human health and the environment against the adverse effects which may result from the generation and management of hazardous and other wastes. Government Regulation No. 69/1999 on Food Labelling and Advertisement, requires that labels clearly describe ingredients used especially as food additives, beside other non-SPS requirements.  Labels should indicate irradiated food, including other related technical information; the same requirement is set on GMO product labelling.
81.5	Various quarantine, inspection or testing requirements apply to live animals, fish, plants, fruits, vegetables, fertilizers, insecticides and pesticides as well as blood transfusion equipment. Seeds, plants and plant products may only be imported through specified points of entry.  The permit to import must be accompanied by a plant health certificate from the country of origin, and they are subject to inspection in Indonesia at the expense of the importer. Liquid fertilizers must undergo a field test before they may be registered and imported in Indonesia. SNI 01-3140.1-2001, the standard requirement for raw sugar, defines equally raw sugar quality requirements, its method of sampling and method of testing. This proposed regulation of the Centre for Agricultural Quarantine, Ministry of Agriculture, aims at implementing Law No.2 of 1992, concerning Animal, Fish and Plant Quarantine, stipulating mainly the requirements and quarantine actions for the importation into, transit in and inter-islands movements within the territory of the Republic of Indonesia of live animal, animal products, products of animal origin and any other media capable of transmitting epizootics.  This will supersede the provisions of Government Regulation No.15 of 1977 concerning the refusal, prevention, eradication and treatment of animal diseases to the extent relevant to animal quarantine.
81.9	Finished milk products must be registered at the Department of Health.  Any type and brand of motor vehicle must be registered at Directorate General of Basic Metal, Machinery and Electronics Industry of the Department of Industry.  Food products and medical products may only be registered after samples being tested by the Department of Health.  Imported finished drugs must be registered in accordance with the effective provisions, and the exporting country must be the country of origin.  Pharmaceuticals may only be registered if they incorporate high technology and are products of the registered company own research. Based on the joint decree Nos. 201/Kp/VII/1992 & 107/M/SK/VII/1992,  imports of used machinery, machine tools and other capital goods must be preceded by a pre-shipment inspection in the country of the loading port. In accordance with decree No. 745 of 30 December 1992, meat imports with the exception of pork must be accompanied by a certificate confirming that the slaughter process conforms with the requirements of Islam. Effective 14 January 2000, imported electronic products must be accompanied by a card that guarantees free maintenance of the products for at least one year; manuals that contain complete information about the product's use, maintenance and specifications must accompany the goods. Measures such as special sanitation, and fumigation are required for the import of goods generally prohibited or restricted.  In addition, goods originating from places infected with pests and cholera must be disinfected before they may be imported.
82	Inspection requirement for imported plant  propagating materials and plant products.
83	Plant propagating materials and plant products must be imported through designated ports.