REGULATION OF THE MINISTER OF TRADE
No. 17/M-DAG/PER/9/2005

ON
THE ISSUANCE OF CERTIFICATE OF ORIGIN TO INDONESIA'S EXPORTED GOODS

THE MINISTER OF TRADE,

Considering:

• a. that in the framework of driving up the export for supporting the growth of national economy, it is necessary to optimize the utilization of Certificate of Origin of Indonesia's exported goods effectively and efficiently as well as concurrently as an instrument of supervision to avoid the misuse/manipulation of the export;
• b. that since the utilization of function of Certificate of Origin for Indonesia's exported goods has been in accordance with expectations, the use of the certificate needs to be enhanced;
• c. that following the expiration of the provision on the quota of Indonesia's textile and clothing export on December 31,2004, the issuance of Certificate of Origin to the quotas of textile and clothing is not needed anymore;
• d. that in connection with the matters as meant in letters a, b and c, it is deemed necessary to revoke Decree of the Minister of Industry and Trade No. 618/MPP/KepJ10/2004 on Certificate of Origin of Indonesia's Exported Goods;
• e. that based on the considerations as meant in letters a, b, c and d, it is deemed 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. 7/1994 on Ratification of Agreement Establishing the World Trade Organization (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3564);
• 3. Law No. 10/1995 on Customs Affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612};
• 4. Law No. 37/2000 on Stipulation of Government Regulation In Lieu of Law No. 2/2000 on Sabang Free Trade Area and Free Port into Law (Statute Book of 2000 No. 252, Supplement to Statute Book No. 4054);
• 5. Law No. 10/2004 on Enactment of Legislation (Statute Book of 2004 No. 53, Supplement to Statute Book No. 4389);
• 6. Law No. 32/2004 on Regional Administration (Statute Book of 2004 No. 125, Supplement to Statute Book No. 4437);
• 7. Government Regulation No. 22/1986 on Bonded Zone (Statute Book of 1986 No. 30, Supplement to Statute Book No. 3334)
• 8. Government Regulation No. 38/1994 on Consolidation of Limited Liability Company (Persero) PT Pengelola Kawasan Berikat Indonesia Into Limited Liability Company (Persero) PT Kawasan Berikat Nusantara (Statute Book of 1994 No. 67);
• 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. 58/1971 on Stipulation of Official Authorized to Issue Certificate of Origin;
• 11. Presidential Decree No. 41/1973 on Batam Industrial Region as already amended several times and the latest by Presidential Decree No. 28/1992;
• 12. Presidential Decree No. 34/1989 on Ratification of Agreement on Global System of Trade Preference (GSTP) Among Developing Countries;
• 13. Presidential Decree No. 3/1995 on Ratification of International Coffee Agreement 1994;
• 14. Presidential Decree No. 85/1995 on Ratification of Protocol to Amend The Agreement on The Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area;
• 15. Presidential Decree No. 187/M/2004 on the Establishment of the United Indonesia Cabinet as already amended by Presidential Decree No. 8/M/2005;
• 16. Presidential Regulation No. 9/2005 on the Status, Tasks, Functions, Organizational Structures and Working Arrangements of State Ministries;
• 17. Presidential Regulation No. 10/2005 on First-Echelon Organizational Units and Tasks of State Ministries as already amended by Presidential Regulation No. 15/2000;
• 18. Decree of the Minister of Finance No. 1012/KMK.00/1999 on Export Declaration as already amended by Decree of the Minister of Finance No. 381/KMK.01/1996;
• 19. Decree of the Minister of Trade No. 225/Kp/X/1995 on The Export of Goods to Other Countries Outside the Export General Provisions as already amended several times and the latest by Decree of the Minister of Industry and Trade No. 317/MPP/Kep/9/1997;
• 20. Decree of the Minister of Industry and Trade No. 17/MPP/SK/1/1999 on the Import and Export of Goods to and From Bonded Zones as already amended by Decree of the Minister of Industry and Trade No. 120/MPP/Kep/5/1996;
• 21. Decree of the Minister of Industry and Trade No. 18/MPP/SK/I/1996 on The Import and Export of Goods to and from Production Centerport for Export Purpose (EPTE) as already amended by Decree of the Minister of Industry and Trade No. 121/MPP/Kep/5/1996;
• 22. Decree of the Minister of Industry and Trade No, 29/MPP/Kep/1/1999 on Coffee Export Provisions;
• 23. Decree of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 on Export General Provisions as already amended several times and the latest by Regulation of the Minister of Trade No. 07/M-DAG/Per/3/2005;
• 24. Decree of the Minister of Trade No. 04/M/Kep/12/2004 on Provisions on the Export of Textile and Clothing (TPT);
• 25. 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 revoke :

DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 618/MPP/Kep/10/2004 ON CERTIFICATE OF ORIGIN.

To stipulate :

REGULATION OF THE MINISTER OF TRADE ON THE ISSUANCE OF CERTIFICATE OF ORIGIN TO INDONESIA'S EXPORTED GOODS

Article 1

Referred to in this regulation as :

• 1. Certificate of Origin, hereinafter abbreviated to SKA is a document, which on the basis of consensus in bilateral, regional, multilateral, unilateral agreement or attributable to unilateral provision of a certain country must be enclosed when Indonesia's exported goods will enter territory of the certain country, proving that the goods come, are produced and/or processed in Indonesia.
• 2. Form of SKA is a completing list of SKA already standardized in both model, size, paper color and kind of designation as well as having content suitable to the provisions stipulated in bilateral, regional, multilateral, unilateral agreement or stipulated by the Indonesian government.
• 3. Rules of Origin are a kind of administrative regulation or provision applied by a country to determine country of origin of goods.
• 4. Institutions issuing SKA are institutions/agencies/bodies authorized to issue SKA.
• 5. Preference is a facility provided by a country or a group of countries for certain products of a country that meets the requirements in the form of reduction or abolition of the tariff of import duty, which constitutes bilateral, regional, multilateral or unilateral agreement.
• 6. Models of the preference are:
• Generalized System of Preferences (GSP);
• Global System of Trade Preferences (GSTP);
• Common Effective Preferential Tariff -ASEAN Free Trade Area (CEPT-AFTA);
• ASEAN-China Free Trade Area (ACFA); and
• Handicraft Preferences.
• 7. Verification of SKA is a process of investigation into legitimacy of documents and truth of completion of SKA on the basis of request from the government in export destination country of goods to the institutions issuing SKA.
• 8. Minister is the Minister of Trade.
• 9. Director General is the Director General of Foreign Trade.

Article 2

(1) SKA is issued on the basis of request from exporters for attaching upon exporting goods coming from Indonesia.

(2) The request of the exporters as meant in paragraph (1) is submitted in the framework of fulfilling :

• a. the obligations stipulated by the government in export destination country;
• b. request from buyers abroad; or
• c. the obligations stipulated by the Indonesian government for the export of certain goods, outside the export of goods accompanied by SKA in the framework of preference.

(3) Kind and model of the form of SKA as meant in paragraph (1) in accordance with their respective designation are as contained in Attachment I to this regulation.

Article 3

(1) Certain goods whose export must be accompanied by SKA as meant in Article 2 paragraph (2) letter c are further stipulated by a regulation of the Director General.

(2) The certain goods as meant in paragraph (1) must be accompanied by SKA Form A or SKA on the basis of international agreement.

(3) Verification of sources of raw materials and production process can be applied to the export of certain goods.

(4) The institutions issuing special SKA to certain goods are further stipulated by a regulation of the Director General.

Article 4

The issuance of SKA to the exported goods as meant in Article 2 paragraphs (1) and (2) must meet the provisions on the issuance of SKA on the basis of the kinds as contained in Attachment II to this regulation and other provisions in force.

Article 5

(1) Exporters must submit applications to the issuing institution in accordance with the designation for the issuance of SKA.

(2) The applications for the issuance of SKA as meant in paragraph (1) must be accompanied by the following supporting-documents:

• a. in the event that the export of goods is obliged to meet the export general provisions as meant in Decree of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 on Export General Provision as already amended several times and the latest by Regulation of the Minister of Trade No. 07/M-DAG/PER/4/2005, the documents are:
• 1. Copy of Export Declaration (PEB) already securing loading approval from officers by Customs and Excise Office in loading port or printout of PEB made by means of Electronic Data Interchange (EDI), accompanied by Export Approval (PE);
• 2. Original Copy of Bill of Lading (B/L) or Copy of Airway Bill (AWB) or copy of Cargo Receipt if the export is realized through mainland port.
• b. In the event that the export of goods is not obliged to meet the export general provisions as meant in Decree of the Minister of Industry and Trade No. 558/MPP/Ke/12/1998 on Export General Provision as already amended several times and the latest by Regulation of the Minister of Trade No. 07/M-DAG/PER/4/2005, the documents are:
• 1. Purchasing form, in case of goods having SKA requested; and
• 2. Copy of Citizenship Identity Card (KTP) in the case of Indonesian citizens or passport in the case of foreign citizens/tourists or power of attorney from owners of goods in the case of the export being realized through freight forwarding companies.
• c. In the event that the export of goods uses SKA Form A, the documents are:
• 1. If the application for SKA Form A of the first export, it must be accompanied by:
• a) the documents as meant in paragraph (2) letter a;
• b) Statement of applicant of SKA Form A with the model as meant in Attachment IIIa and Structure of Cost Per Unit in the US Dollar with the model as meant in Attachment IV to this regulation, in the case of the applicants being exporter-producers; or
• c) Statement of applicant of SKA Form A plus statement of producers with the model as meant in Attachment IIIb and Structure of Cost Per Unit in the US Dollar with the model as meant in Attachment IV to this regulation, in the case of the applicants being not exporter-producers.
• 2. If the applicant for SKA form A of the next export of the similar goods without change submitted to the institutions issuing the same SKA, the applicant only encloses:
• a) the documents as meant in paragraph (2) letter a;
• b) Letter of Affirmation of applicant of SKA Form A with the model as contained in Attachment V to this regulation.
• d. the case of the export of goods using SKA Form D, E and GSTP, it must be accompanied by document in the form of Structure of Cost Per Unit in the US Dollar with the model as meant in Attachment VI to this regulation;
• e. In the case of certain goods being not accompanied by Preference SKA or SKA required specifically on the basis of international agreement, the export of certain goods must be accompanied by SKA Form B as meant in Article 3 and the following documents:
• 1. Copy of Export Declaration (PEB) already securing loading approval from officers by Customs and Excise Office in loading port or printout of PEB made by means of Electronic Data Interchange (EDI), accompanied by Export Approval (PE);
• 2. Original Copy of Non Negotiable Bill of Lading (B/L) or Copy of Airway Bill (AWB) or copy of Cargo Receipt if the export is realized through mainland port.

Article 6

(1) Forms of SKA in accordance with their designation must be completed in the English language clearly, completely and truthfully in accordance with the provisions effective for the respective kinds of SKA.

(2) The institutions issuing SKA are obliged to examine the data/information and completeness of supporting documents.

Article 7

In connection with the applications for the issuance of SKA as meant in Article S paragraph (1), the institutions issuing SKA must give response to the application in not later than one day after the date off receipt of the application in the form of:

• a. issuance of SKA; or
• b. notification of rejection of issuance of SKR, accompanied by reason for the rejection.

Article 8

Procedures for completing forms of SKA in accordance with the respective kinds of designation are as contained in Attachment VII to this regulation.

Article 9

(1) The institutions issuing SKA as meant in Article S paragraph (1) is:

• a. Institution or Service in charge of trading affairs in the provincial/regental/municipal government, hereinafter called the provincial/regental/municipal institution or service, which is stipulated by the Minister after fulfilling certain requirements;
• b. PT (Persero) Kawasan Berikat Nusantara and Business Unit in Jakarta;
• c. Management Board of Sabang Free Trade Area and Free Port (BPKS);
• d. Industrial Development Authority (OPDI) of Batam Island;
• e. Tobacco Institutions of Surakarta and Medan Branches, Good Quality Verification and Certification Center (BPSMB) and Tobacco Institution of Surabaya and )ember.

(2) The certain requirements as meant in paragraph (1) letter a are that the following conditions must be available the working area of the provincial; regent/municipal service:

• a. adequate export activities;
• b. foreign exchange bank; and
• c. export port (land, sea and air) opened for overseas/international trade; and/or
• d. export-oriented industrial region.

(3) The authority as meant in paragraph (1) letter a is delegated to the Director General to stipulate the provincial/regent/municipal service fulfilling the requirements as meant in paragraph (2) as institutions issuing SKA.

(4) The minister can stipulate other institutions/agencies/bodies as SKA issuers other that the issuing institutions as meant in paragraph (1) and other provisions other than the provisions as meant in paragraph (2).

Article 10

(1) Officials signing SKA are stipulated by a regulation of the Director General;

(2) Officials having authority and responsibility in the issuance of SKA in the respective institutions issuing SKA as meant in paragraph (1) are as follows :

• a. In Provincial/Municipal/Regental Institution or Service :
• 1. Head of Service in charge of trading affairs;
• 2. Head of Sub-Service in charge of trading affairs as Alternate Official I; and
• 3. Head of the Export Section in Sub-Service in Charge of trading affairs, as Alternate Official II.
• b. In Jakarta Provincial Provincial Industry and Trade Sub-Service:
• 1. Head of Sub Service in charge of trading affairs;
• 2. Head of the Export Section as Alternate Official I; and
• 3. Head of the Administrative Affairs Sub-Section as Alternate Official II.
• c. In PT (Persero) Kawasan Berikat Nusantara and Business Unit in Jakarta :
• 1. Marketing and Service Director;
• 2. Head of Business Unit of Kawasan as Alternate Official I; and
• 3. Head of Industrial Service Division as Alternate Official II.
• d. In the Management Board of Sabang Free Trade Area and Free Port (BPKS) :
• 1. Deputy in charge of Trade, Service and Industrial Affairs;
• 2. Deputy for Financial Affairs as Alternate Official I; and
• 3. Head of Licensing and Promotion Division as Alternate Official II.
• e. In The Industrial Development Authority (OPDI) of Batam Island :
• 1. Deputy in charge of Operational Affairs;
• 2. Head of the Industry and Trade Sub-Directorate as Alternate Official I; and
• 3. Head of the Foreign Trade Section as Alternate Official II.
• f. In the case of Certificate of Authenticity of tobacco, in Tobacco Institution of Surakarta and Medan Branch :
• 1. Head of Tobacco Institution;
• 2. Head of the Verification Section, as Alternate Official I; and
• 3. Head of the Administrative Affairs Sub-Section, as Alternate Official II.
• g. In the case of Certificate of Authenticity of tobacco, in Goods Quality Verification and Certification Center (BPSMB) and Tobacco Institution in Surabaya and Jember:
• 1. Head of BPSMB and Tobacco Institution;
• 2. Head of the Verification Section, as Alternate Official I; and
• 3. Head of the Administrative Affairs Sub-Section, as Alternate Official II.

(3) The Heads of Provincial/Regental/Municipal Service/ Sub-Service, Marketing and Service Director, Deputy for Trade, Service and Industry, Deputy for Operational Affairs, Heads of BPSMB/Tobacco Institution as meant in paragraph (2) delegate their authority and responsibility for signing SKA to Alternate Officials I and II if they are absent.

(4) Besides the provision as meant in paragraph (3), the Heads of Provincial/Regental/Municipal Service/Sub-Service, Marketing and Service Director, Deputy for Trade, Service and Industry, Deputy for Operational Affairs, Heads of BPSMB/Tobacco Institution as meant in paragraph (2) can distribute job to alternate officials by delegating authority to sign SKA made in writing after considering the volume of issuance of SKA in the respective institutions.

(5) The list of names of officials and alternate officials having authority and responsibility for signing SKA as meant in paragraph (2) as well as specimens of signatures of the respective officials and alternate officials must be conveyed to the Director General.

(6) In the case of any change in the officials and/or alternate officials having authority and responsibility for signing SKA as meant in paragraph (2), the officials and/or alternate officials still have authority and responsibility for signing SKA until the replacement is stipulated definitively and the list of names of the officials and/or alternate officials replacing the relevant as well as specimens of signature are conveyed officially to the Director General.

Article 11

(1) In order to smooth the issuance of SKA, institutions issuing SKA can use an automatic system by utilizing information technology can use automatic system by utilizing information technology.

(2) In the event that institutions using SKA use the automatic system as meant in paragraph (1), the provision on the obligation to enclose the supporting documents to applications for the issuance of SKA as meant in Article 5 paragraph (2) continue to be implemented before the signing of SKA.

(3) Provisions and procedures for the implementation of the automatic system of the issuance of SKA are further regulated by a regulation of the Director General.

Article 12

(1) Exporters can choose any of the institutions issuing SKA as meant in Article 9 paragraph (1) letter a for the issuance of SKA as long as the institutions meet the requirements as meant in Article 9 paragraph (2) with the provision as follows:

• a. in the case of the export of goods being obliged to meet the export general provisions as meant in Article 5 paragraph (2) letter a, in:
• 1) Institutions Issuing SKA whose working area covers production place of goods; and/or
• 2) Institutions Issuing SKA whose working area is location of foreign exchange bank as correspondence bank of exporters; and/or
• 3) Institutions Issuing SKA whose working area covers Customs and Excise Service Office issuing PEB or place where PEB secures export approval from official of Customs and Excise Service Office at export port; and/or
• 4) Nearest Institutions Issuing SKA.
• b. The case of the export of goods being not obliged to meet the export general provisions as meant in Article 5 paragraph (2) letter a, in:
• 1) Institutions Issuing SKA whose working area covers purchasing place of goods; and/or
• 2) Institutions Issuing SKA whose working area covers embarkation/shipment places of goods; and/or
• 3) Nearest Institutions Issuing SKA.

Article 13

The issuance of SKA to the export of coffee as goods subjected to export control on the basis of international agreement can be done by the appointed institutions issuing SKA in both provincial and regental/municipal level.

Article 14

In issuing SKA, the institutions issuing SKA must use special seal like specimen as contained in Attachment VIIIa by enclosing code numbers of the respective areas in accordance with the code numbers of regions as contained in Attachment VIIIb to this regulation.

Article 15

In issuing SKA, the institutions issuing SKA are obliged to convey report on the issuance of SKA every month to the Director General of Foreign Trade in this case the Director of Export and Import Facilities of the Ministry of Trade by using the model of report as meant in Attachment IX to this regulation.

Article 16

Provisions and technique of the implementation related to procedures for the issuance of SKA, specimens of signature, verification of SKA, settlement of verification of SKA and conveyance of reports are regulated by a regulation of the Director General.

Article 17

Violation of the provisions in this regulation and its technical directives is subject to the following sanctions :

• a. if the violations carried out by the official or officials in the Agency Publisher Substitute SKA, SKA subject to revocation of authorization signed and or other sanctions under civil service rules and other applicable regulations;
• b. if the violations carried out by the exporter, is subject to suspension of issuance of ACS and/or other sanctions such as freezing and/or revocation of its business license and or other sanctions under the rules of the applicable legislation.

Article 18

(1) Officials or alternate officials and institutions issuing SKA having authority and responsibility in the issuance of SKA as well as the use of seal in institutions issuing SKA, which are stipulated on the basis of Decree of the Minister of Industry and Trade No. 618/MPP/Kep/10/2004 are declared to remain effective until the new officials or alternate officials and institutions issuing SKA are stipulated by the Director General.

(2) The Officials or alternate officials and the institutions issuing SKA as meant in paragraph (1) are the officials or alternate officials and institutions issuing SKA already stipulated by the Director General before the enforcement of this regulation, as contained in Attachment X.

(3) The Officials or alternate officials and the institutions issuing SKA already stipulated by the Director General outside those mentioned in Attachment X remain affective up to December 31, 2005.

(4) Reduction or addition to the Institutions issuing SKA are stipulated by the Director General as meant in Article 9 paragraph (3) and Article 10 paragraph (1) is stipulated by the Director General as meant in Article 9 paragraph (3) and Article 10 paragraph (1).

Article 19

The regulation comes into force as from the date of stipulation.

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

Stipulated in Jakarta
On September 30, 2005
THE MINISTER OF TRADE,
sgd
MARI ELKA PANGESTU