REGULATION OF THE MINISTER OF TRADE
No. 05/M-DAG/PER/4/2005

ON
PROVISIONS ON THE IMPORT OF MACHINES, MACHINERY APPARATUSES, RAW MATERIALS AND OPTICAL DISCS

THE MINISTER OF TRADE,

Considering :

• a. that in a bid to support the protection of intellectual property rights, particularly copyrights, and in the framework of executing Article 11 paragraph (5) of Government Regulation No. 29/2004 on high technology production facilities of optical discs, it is deemed necessary to stipulate provisions on the import of machines, machinery apparatuses, raw materials, empty and filled optical discs;
• b. that in the framework of enhancing the effectiveness of the objective of the intellectual property right protection as meant in letter a and encouraging better conducive business-climate in the optical disc industry, it is necessary to withdraw again Decree of the Minister of Industry and Trade No. 645/MPP/Kep/10/ 2004 concerning provisions on the import of machines, machinery apparatuses, raw materials, empty and filled optical discs;
• c. that based on the considerations as meant in letters a and b, it is necessary to stipulate a regulation of the Minister of Trade;

In view of :

• 1. Trade Ordinance of 1934 (Statute Book of 1938 No. 86);
• 2. Law No. 5/1984 on industry (Statute Book of 1984 No. 22, Supplement to Statute Book No. 3274);
• 3. Law No. 7/1994 on ratification of the Agreement Establishing The World Trade Organization (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3564);
• 4. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• 5. Law No. 5/1999 on prohibition on monopolistic practices and unfair business competition (Statute Book of 1999 No.33, Supplement to Statute Book No. 3806);
• 6. Law No. 8/1999 on consumer protection (Statute Book of 1999 No. 42, Supplement to Statute Book No. 3821);
• 7. Law No. 19/2002 on copyrights (Statute Book of 2002 No. 85, Supplement to Statute Book No. 4220);
• 8. Government Regulation No. 29/2004 on optical disc (Statute Book of 2004 No. 108, Supplement to Statute Book No. 4425);
• 9. Presidential Decree No. 260/1967 on affirmation of tasks and responsibility of the Minister of Trade in the foreign trade sector;
• 10. Presidential Decree No.187/M/2004 on the establishment of the United Indonesia Cabinet, as already amended by Presidential Decree No. 8/M/2005;
• 11. Presidential Regulation No. 9/2005 on the status, tasks, functions, organizational structures and working arrangements of state ministries;
• 12. Presidential Regulation No. 20/2005 on first-echelon organizational units and tasks of state ministries as already amended by Presidential Regulation No. 15/ 2005;
• 13. Decree of the Minister of Industry and Trade No. 229/ MPP/Kep/7/1997 on import general provisions;
• 14. Decree of the Minister of Industry and Trade No. 230/ MPP/Kep/7/1997 on goods subjected to import control as already amended several times and the latest by Decree of the Minister of Industry and Trade No. 478/MPP/Kep/ 7/2003;
• 15. Decree of the Minister of Industry and Trade No. 40/MPP/Kep/1/2003 on importer identity number (API);
• 16. Decree of the Minister of Industry and Trade No. 648/MPP/Kep/10/2004 on reporting and supervision over optical disc manufactures;
• 17. Regulation of the Minister of Trade No. 01/M-DAG/PER/3/2005 on the organization and working arrangement of the Ministry of Trade;

DECIDES :

To stipulate :

THE REGULATION OF THE MINISTER OF TRADE ON PROVISIONS ON THE IMPORT OF MACHINES, MACHINERY APPARATUSES, RAW MATERIALS AND OPTICAL DISCS.

Article 1

Referred to in this regulation as:

• 1. Machines and machinery apparatuses shall be all kinds of machines and equipment used in the production of empty optical discs and/or filled optical discs.
• 2. Raw materials shall be all forms of materials usable in the production of empty optical discs and/or filled optical discs.
• 3. Optical discs shall be all kinds of recording media in the form of discs, which can be filled by or contain data and/or information in the form of voice, music, film or other data and/or information readable by scanning technology optically using source of high-intensity ray, such as laser.
• 4. Empty optical discs shall be optical discs in the empty form, which constitute the final result of production without data and/or information.
• 5. Filled optical discs shall be optical discs, which constitute the final result of high-technology production, containing data and/or information in the form of voice, music or film or other data and/or information.
• 6. Production code shall be Source Identification Code (SID Code) consisting of stamper code and mould code, which must be mentioned in filled optical discs.
• 7. Approved Importers of Optical Discs, hereinafter called IT of Optical Discs, shall be companies and/or industries in the optical disc sector, owning Importer Identity Number (API), which are approved by the Director General to import machines, machinery apparatuses, empty optical discs and/or filled optical discs.
• 8. Companies and/or industries in the optical disc sector, hereinafter called optical disc companies, shall be companies and/or industries undertaking activities in the field of the import of raw materials, production of optical discs covering the production of empty optical discs and/or filled optical discs with activities of molding, duplication/multiplication, replication of creative works, as well as companies making stamper, which can be in the form of statutory body or non-statutory body domiciled in Indonesia.
• 9. Recommendation shall be a letter issued by official of the authorized institution/unit concerned to provide explanation technically and being not import license/ approval.
• 10. Minister shall be the Minister of Trade, unless otherwise stipulated clearly.
• 11. Director General shall be the Director General of Foreign Trade, Ministry of Trade.

Article 2

(1) The machines, machinery apparatuses, raw materials, empty optical discs and filled optical discs as meant in Article 1 number 1, 2, 4 and 5 shall be contained in Attachment I to this regulation.

(2) The machines, machinery apparatuses, raw materials, empty optical discs and filled optical discs as meant in paragraph (1) shall meet the technical provisions according to the regulations in force, which are stipulated by the Minister of Industry.

(3) The filled optical discs as meant in paragraph (1) shall have code of production already accredited and accepted on the basis of the provisions and standards in force internationally.

(4) The machines, machinery apparatuses, raw materials, empty optical discs and filled optical discs as meant in paragraphs (1), (2) and (3) only can be imported by optical disc companies already securing the appointment as IT of Optical Discs.

Article 3

(1) The appointment of optical disc companies as IT of Optical Discs as meant in Article 2 paragraph (4) shall be stipulated by the Director General.

(2) In order to secure the appointment as IT of Optical Discs as meant in paragraph (1), optical disc companies shall submit written application to the Director General by enclosing the following documents:

• a. Copy of Industrial Business License/Industrial Registry Number or other equivalent business-licenses from the authorized institution;
• b. Copy of Importer Identity Number (API);
• c. Copy of Corporate Registry Number (TDP);
• d. Copy of Taxpayer Code Number (NPWP);
• e. Recommendation from the Director General of Metal, Machine, Textile and Multifarious Industries, Ministry of Industry, for the import of machines and machinery apparatuses;
• f. Recommendation from the Director General of Agro and Chemical Industries, Ministry of Industry, for the import of raw materials and empty optical discs;
• g. Recommendation from the Director General of Intellectual Property Rights, Ministry of Law and Human Rights, for the import of filled optical discs;
• h. Statement of the plan for the import and distribution of machines, machinery apparatuses and optical discs or the plan for the need of raw materials for a production year and/or the plan for the need of empty optical discs and/or filled optical discs in one year, which is signed by the personnel in charge of company;
• i. Copy of license from holders of copyright for the import of filled optical discs.

(3) The model of document of the appointment as IT of Optical Discs shall be as contained in Attachment II to this regulation.

Article 4

Based on the written application of optical disc companies as meant in Article 3 paragraph (2), the Director General shall approve to issue or reject the appointment as IT of Optical Discs not later than 15 (fifteen) working days as from the date of receipt of the application.

Article 5

The appointment as IT of Optical Discs as meant in Article 3 shall apply for 3 (three) years at the maximum and can be extended.

Article 6

(1) The import of machines, machinery apparatuses, raw materials and optical discs by IT of Optical Discs shall secure prior import-approval from the Director General with regards to the quantity, kind, destination port, country of origin and validity period of import approval.

(2) In order to secure the import approval as meant in paragraph (1), IT of Optical Discs shall submit written application to the Director General by enclosing statement of the plan for the import of machines, machinery apparatuses, raw materials and optical discs for the need of production and/or distribution plan signed by the personnel in charge of the said company.

(3) The model of document of the import approval shall be as contained in Attachment III to this regulation.

Article 7

(1) IT of Optical Discs already securing the import approval as meant in Article 6 shall convey report on the realization of the import and/or realization of distribution in writing to the Director General in this case the Director of Import, Ministry of Trade, every month, whether the import of machines, machinery apparatuses, raw materials, empty optical discs and filled optical discs is executed or not, and/or whether the distribution is realized or not.

(2) The report on the realization of import and/or realization of distribution as meant in paragraph (1) shall be conveyed not later than the 15th of the ensuing month after the month when the realization of import and/or distribution must be reported.

(3) The model of report on the realization of the import and realization of the import shall be as contained in Attachment IV to this regulation.

Article 8

(1) The import of machines, machinery apparatuses, raw materials, empty optical discs and filled optical discs by IT of Optical Discs already securing import approval as meant n Article 6 shall be subjected to technical verification or surveillance first in countries where the goods are loaded.

(2) The technical verification or surveillance as meant in paragraph (1) shall be executed by surveyors appointed by the Minister.

(3) Results of the technical verification or surveillance by the surveyors as meant in paragraph (2) shall be mentioned in the form of Surveyor Report (LS), which constitutes an import document.

(4) In the execution of the technical verification or surveillance as meant in paragraph (2), surveyors can collection compensation for the rendered service from importers/grantors.

(5) In order to enable one to secure the appointment as the executor of technical verification or surveillance of the import of machines, machinery apparatuses, raw materials, empty optical discs and filled optical discs, surveyors shall meet the following requirements:

• a. experiencing as surveyors for five years at the minimum;
• b. having branch or representative or affiliate abroad.

(6) The Director General shall stipulate technical provisions on the technical verification or surveillance as meant in paragraph (1).

Article 9

The activities of technical verification or surveillance of the import of machines, machinery apparatuses, raw materials, empty optical discs and filled optical discs as meant in Article 8 shall not reduce the authority of the Directorate General of Customs and Excise to undertake customs inspection.

Article 10

(1) The appointment as IT of Optical Discs shall be frozen if the said companies:

• a. do not execute the obligation to convey the written report as meant in Article 7 paragraph (2);
• b. are in the course of investigation into the alleged crimes related to the misuse of the appointment as IT of Optical Discs and/or import approval.

(2) The freezing of the appointment as IT of Optical Discs can be liquidated if the said companies have met all obligations in accordance with the provision as meant in Article 7 and/or are not proven to commit the alleged misuse of appointment as IT of Optical Discs and/or import approval.

(3) The Director General shall freeze the appointment as IT of Optical Discs as well as liquidate the freezing.

Article 11

(1) The appointment as IT of Optical Discs shall be revoked if :

• a. executives of optical disc companies change, supplement and/or replace the content mentioned in the document of appointment as IT of Optical Discs and/or documents of the import approval.
• b. The said companies import machines, machinery apparatuses, raw materials, empty optical discs and filled optical discs with the content and/or quantity not suitable to what is mentioned in document of import approval; or
• c. There is sufficient evidence of violation and/or crime related to the misuse of appointment of IT of Optical Discs or import approval of machines, machinery apparatuses, raw materials, empty optical discs and filled optical discs or the relevant is declared guilty by the court for violation and crime related to the misuse of the imported machines, machinery apparatuses, raw materials, empty optical discs and filled optical discs.

(2) The Director General shall revoke recognition as IT of Optical Discs as meant in paragraph (1).

Article 12

The imposition of sanction of freezing or revocation as meant in Articles 10 and 11 shall not reduce the imposition of criminal penalties on the basis of legislation in force.

Article 13

Machines, machinery apparatuses, empty optical discs and filled optical discs imported by means contravening the provisions in this regulation shall be destroyed or re-exported in accordance with the provisions of legislation in force.

Article 14

The Director General shall further stipulate technical provisions on this regulation.

Article 15

The exception from the provisions regulated in this regulation only can be stipulated by the Minister.

Article 16

With the enforcement of this regulation, Decree of the Minister of Industry and Trade No. 645/MPP/Kep/ 10/2004 concerning provisions on the import of machines, machinery apparatuses, raw materials and optical discs shall be withdrawn again and declared null and void.

Article 17

The regulation shall come into force as from June 18, 2005.

For public cognizance, the regulation shall be published by placing it in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On April 15, 2005
THE MINISTER OF TRADE,
sgd
MARI ELKA PANGESTU