Indonesian Government Removes Steel Products from Labeling Obligation

Commerce of Ministry in Indonesia decided not to include steel products in labeling obligation for particular commercial products effective on September 1st. Japan Iron & Steel Federation had expressed a concern that the labeling obligation causes negative effects on Japanese steel export. Automotive components were initially ruled out from the labeling list. This time, steel products became eliminated from the list except for steel sheet and steel bar used for building materials.

The ministry issued the labeling obligation in December 2009 to bring the law effective in July or December 2010. The draft had included hot dip galvanized steel sheet, corrugated sheet, electro galvanized sheet, tin-free sheet and steel bar for the labeling in local language. If the regulation comes into force, exporters have to put the label of local language.

Japan Iron & Steel Federation sent a letter three times that the labeling is not necessary for intermediate products such as steels though the aim of the obligation is security for general consumers. The federation noticed a concern that the restrict should limit the fair trade as a beach defense. Japanese government also showed a concern about the problem over the embassy.

Corrugated sheet and steel bar will be left in the labeling list but both products will be ruled out if importers proof the use as intermediate goods.