a. that, salt is a strategic commodity as food and raw material for industries so that the production, provision, procurement, and distribution of salt are very important in the framework of supporting of public health through iodization program, increase of income and welfare of salt farmers or in the framework of meeting the needs of domestic industries;
b. that, domestic salt production, either in terms of quality or quantity, so far, has not been able to meet the domestic needs for salt, especially salt for raw materials for industries so that imported salt is still needed;
c. that, in relation to the matters in paragraphs a and b, it is deemed necessary to increase effectiveness of salt policy by the revocation of Decree of the Minister of Industry and Trade No. 360/MPP/Kep/5/2004 on Rules on Import of Salt and re-stipulate the rules on import of salt.
1. Bedrijfsreglementerings Ordonantie of 1934 (Statute Book of 1938 No. 86);
2. Law No. 5/1984 on Industrial Affairs (Statute Book of 1984 No. 22, Supplement to Statute Book No. 3274);
3. Law No. 23/1992 on Health (Statute Book of 1992 No. 100, Supplement to Statute Book No. 3495);
4. 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);
5. Law No. 10/1995 on Customs Affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
6. Law No. 7/1996 on Food (Statute Book of 1996 No. 99, Supplement to Statute Book No. 3656);
7. Law No. 5/1999 on Prohibitions of Monopoly Practices and Unfair Competition (Statute Book of 1999 No. 33, Supplement to Statute Book No. 3817);
8. Law No. 8/1999 on Consumer Protection (Statute Book of 1999 No. 42, Supplement to Statute Book No. 3821);
9. Government Regulation No. 69/1999 on Food Label and Advertisement (Statute Book of 1999 No. 131, Supplement to Statute Book No. 3867);
10. Government Regulation No. 25/2000 on Governmental Authority and Provincial Authority as Autonomous Region (Statute Book of 2000 No. 54, Supplement to Statute Book No. 3952);
11. Government Regulation No. 58/2001 on Development and Supervision of Implementation of Consumer Protection (Statute Book of 2001 No. 103, Supplement to Statute Book No. 4126);
12. Presidential Decree No. 260/1967 on Confirmation of Duties and Responsibilities of the Minister of Trade In The Field of Foreign Trade;
13. Presidential Decree No. 69/1994 on Procurement of Iodized Salt;
14. Presidential Decree No. 187/M/2004 on Establishment of United Indonesia Cabinet as already amended by Presidential Decree No. 8/M/2005;
15. Presidential Regulation No. 9/2005 on Positions, Duties, Functions, Organizational Structures, and Work Procedures of State Ministries of the Republic of Indonesia;
16. Presidential Regulation No. 10/2005 on Organizational Units and Duties of Echelons I of the State Ministries of the Republic of Indonesia as already amended by Presidential Regulation No. 15/2005;
17. Decree of the Minister of Industry No. 77/M/SK/5/ 1995 on Conditions for Processing, Packing, and Labeling of Iodized Salt;
18. Decree of the Minister of Trade No. 229/MPP/Kep/7/ 97 on General Rules on Import;
19. Decree of the Minister of Industry and Trade No. 230/ MPP/Kep/7/1997 on Commodities Which Commercial Procedure for Import Is Ruled as already amended several times and latest by Decree of the Minister of Industry and Trade No. 406/MPP.Kep/6/ 2004;
20. Decree of the Minister of Industry and Trade No. 40/ MPP/Kep/1/2003 on Importer Identification Number (API);
21. Regulation of the Minister of Trade No. 01/M-DAG/ PE3R/3/2005 on Organization and Work Procedure of the Department of Trade;
REGULATION OF THE MINISTER OF TRADE ON THE RULES ON IMPORT OF SALT
Hereinafter referred to as:
1. Salt is a chemical compound, which main component contains natrium chloride and water, magnesium, calcium, sulphate compounds and free-flowing additional substances (iodium, anti-caking) or not, namely:
2. KP1, KP2, and KP3 Salt is the classification of types of farmers salt to determine selling price of salt at farmers level as stipulated by the Director General of Foreign Trade based on agreement of the related institution/association.
3. Importer-Producer of Non-Iodized Salt, which is hereinafter called Non-Iodized Salt IP, is a salt using industry other than iodized salt industry as holder of Limited Importer Identification Number (API-T) authorized to import certain salt as raw/auxiliary material needed for the process of production.
4. Importer-Producer of Iodized Salt, which is hereinafter called Iodized Salt IP, is an iodized salt industry as holder of Importer-Producer Identification Number (API-P) or Limited Importer Identification Number (API-T) authorized to import certain salt as raw materials needed for the process of production.
5. Registered Importer of Salt, which is hereinafter called Salt IT, is a company as holder of General Importer Identification Number (API-U) authorized to import certain salt to meet the needs of industries that do not self-import and or import certain salt to meet public consumption demand.
6. Letter of Recommendation is a letter issued by the officer of the related institution/unit authorized to give technical clarifications, and it is not construed as import license/permit.
7. Collecting Point is a place of collection of salt on the roadside that could not be reached by truck or similar vehicles.
8. Minister is the Minister of Trade, except if stipulated otherwise.
9. Director General is the Director General of Foreign Trade of the Department of Trade.
(1) Mineral salt and other salt, as meant in Article 1 paragraph 1 clauses b, c, and d, that may be imported by Non-Iodized Salt IP and Salt IT for industries not self-importing salt.
(2) Table salt, as meant in Article 1 paragraph 1 clause a, may only be imported by Salt IT.
(1) Iodized Salt IP may import mineral salt and other salt, as meant in Article 1 paragraph 1 clauses b, c, and d needed to meet the demand of their industries.
(2) Iodized Salt IP may not import mineral salt and other salt, as meant in Article 1 paragraph 1 clauses b, c, and d for 1 (one) month before mast year of farmers salt, during the mast year of farmers salt, and 2 (two) months after the mast year of farmers salt.
(3) The mast year of farmers salt, as meant in paragraph (2), shall be decided by the Minister of Industry in consideration of the resolutions of meeting between related salt institutions and associations.
(4) The deciding of the time of import restriction, as meant in paragraph (2), can be extended or shortened according to production in the mast year so that salt stock could meet national demand.
(5) The extension or shortening of time of import restriction, as meant in paragraph (4), shall be decided by the Minister of Trade in consideration of the opinion of the Minister of Industry or the authorized official.
(6) Import of salt to meet the needs of iodized salt industries shall be restricted if the average prices of salt in bulk form on the trucks at collecting point are as follows:
(1) The designation of the quantity of salt that may be imported to meet the needs of iodized salt industries shall be computed based on the resolutions of the related salt institutions and associations.
(2) Excepted from the computation, as meant in paragraph (1), is salt to meet the demand for multi-various industries, which, technically, could not use farmers salt.
(3) The quantity of salt, as meant in paragraph (1), shall be allocated to Iodized Salt IP proportionally based on the purchased amount of farmers salt.
(4) The purchase of the farmers salt, as meant in paragraph (3), shall be evidenced by a statement of obtainment of salt from salt farmers made by Iodized Salt Industry and ratified by the Regental/Municipal Agency for salt industries and salt farmers association, acknowledged by the group of salt farmers stating that the amount of the purchased salt and the purchase price at farmers level is at least Rp. 200,000 (two hundred thousand Rupiah) per ton for KP1, Rp. 150,000 (one hundred fifty Rupiah) per ton for KP2, and Rp. 80,000 (eighty thousand Rupiah) per ton for KP3.
(1) Companies recognized as Iodized Salt IP are:
(2) The obtainment of salt from salt farmers, as meant in paragraph (1) clause a, shall be evidenced by a statement of obtainment of salt from association of salt farmers, or if the association of salt farmers is not available, it shall be ratified by group of salt farmers and ratified by the Regental/Municipal Agency for industrial affairs.
(3) The cooperation with salt farmers, as meant in paragraph (1) clause b, shall be evidenced by copy of cooperation agreement ratified by the Regental/Municipal Agency for industrial affairs.
(1) The acknowledgment of Non-Iodized Salt IP and Iodized Salt IP, as meant in Article 12 paragraphs 3 and 4 shall be stipulated by the Director General.
(2) Companies that wish to obtain acknowledgment of Non-Iodized Salt IP and Iodized Salt IP, as meant in paragraph (1), shall file a request in writing to the Director General completed with:
(3) The acknowledgment of Non-Iodized Salt IP and Iodized Salt IP, as meant in paragraph (1), concerns about, amongst others, the validity of the acknowledgment of Salt IP, quantity of salt, type of salt, and port of destination.
(1) Based on the request in writing, as meant in Article 6 paragraph (2), the Director General may issue or reject the acknowledgment of Non-Iodized Salt IP and Iodized Salt IP not later than 15 (fifteen) working days since receipt of the request.
(2) Format of the document of acknowledgment of Non Iodized Salt IP and Iodized Salt IP, is as specified in Attachment I to this Regulation.
(3) The acknowledgment of Salt IP, as meant in paragraph (2), shall be valid for not later than 1 (one) year and can be extended.
(1) The appointment of Salt IT as meant in Article 1 paragraph 5, shall be stipulated by the Director General.
(2) Companies that wish to obtain appointment of Salt IT must file a request in writing to the Director General completed with:
(1) Based on the request in writing, as meant in Article 8 paragraph (2), the Director General may issue or reject the request for appointment of Salt IT not later than 15 (fifteen) working days since receipt of the request.
(2) Format of the document of appointment of Salt IT is as specified in Attachment II to this Regulation.
(3) The appointment of Salt IT as meant in paragraph (1), shall be valid for no more than 3 (three) years and can be extended.
(1) Every import of salt by Salt IT must obtain prior import license by the Director General by enclosing the recommendation of the Director General for Agricultural and Chemical Industries of the Department of Industry.
(2) The import license, as meant in paragraph (1), shall contain, amongst others, validity of the import license, quantity of salt, type of salt, and port of destination.
(1) Importers that have obtained acknowledgment of Non-Iodized Salt IP and Iodized Salt IP and appointment of Salt IT must submit report on realization of import of salt to the Director General c.q. the Director for Import of the Department of Trade once in every 3 (three) months of realization of import with a copy submitted to the Director General for Agricultural and Chemical Industries c.q. the Director for Downstream Chemical Industries of the Department of Industry.
(2) Format of the report, as meant in paragraph (1), in the form of copy of Import Control Card ratified by the company is as specified in Attachment III to this Regulation.
(1) Non-Iodized Salt IP and Iodized Salt IP shall not trade or transfer the mineral salt and other salt, as meant in Article 1 paragraph 1 clauses b, c, and d imported by them.
(2) Salt IT shall not trade or transfer the mineral salt and other salt, as meant in Article 1 paragraph 1 clauses b, c, and d that they import to Iodized Salt IP.
(1) Every realization of import of salt by Non-Iodized Salt IP and Salt IP and Iodized Salt IT must first undergo verification or scanning in the country of loading.
(2) The verification or scanning, as meant in paragraph (1), shall be performed by a surveyor appointed by the Minister.
(3) On each of the verification or scanning performed, the surveyor, as meant in paragraph (2), shall issue a Surveyor Report (LS) as an import declaration.
(4) For the implementation of the verification or scanning, as meant in paragraph (2), the surveyor may collect a fee paid by importer.
(5) To be appointed as performer of verification or scanning of realization of import of salt, the surveyor must meet the following qualifications:
The verification or scanning, as meant in Article 13, shall be declared inapplicable for import of salt, which qualifies as:
The verification or scanning of import of salt by the surveyor, as meant in Article 13, shall not lessen the authority of the Directorate General of Customs and Excise to perform customs scanning.
(1) The acknowledgment of Non-Iodized Salt IP and Iodized Salt IP and the appointment of Salt IT shall be frozen if the concerned party:
(2) The freezing of the acknowledgment of Non-Iodized Salt IP and Iodized Salt IP and the appointment of Salt IT may be cancelled after the concerned party has performed the obligation, as meant in Article 11, or the concerned party is not proven guilty in the criminal act relating to the misuse of the acknowledgment of Non-Iodized Salt IP and Iodized Salt IP and the appointment of Salt IT and the misuse of license to import salt.
(3) The freezing of the acknowledgment of Non-Iodized Salt IP and Iodized Salt IP and appointment of Salt IT, as meant in paragraph (1), and the cancellation of the freezing of the acknowledgment of Non-Iodized Salt IP and Iodized Salt IP and the appointment of Salt IT, as meant in paragraph (2), shall be done by the Director General.
(1) The acknowledgment of Non-Iodized Salt IP and Iodized Salt IP and the appointment of Salt IT shall be revoked if the concerned party:
(2) The revocation of the acknowledgment of Non-Iodized Salt IP and Iodized Salt IP and the appointment of Salt IT, as meant in paragraph (1), shall be done by the Director General.
The import of salt, as meant in Article 1 paragraph 1 clauses b, c, and d in an amount of maximum 1,000 (one thousand) kg, shall be exempted from the provisions of this Regulation.
(1) With the stipulation of this Regulation, the rules on import of salt as set forth in Decree of the Minister of Industry and Trade No. 360/MPP/Kep/5/2004 is declared invalid.
(2) License to import salt that has been issued pursuant to Decree of the Minister of Industry and Trade No. 360/MPP/Kep/5/2004 is declared remain valid up to the end of the validity of the import license.
(3) Every import of salt by Salt IT as meant in paragraph (2), is subject to verification or scanning of import of salt.
(4) To companies that already have Salt IT being industry owners, as set forth in Decree of the Minister of Industry and Trade No. 360/MPP/Kep/5/2004 shall be given acknowledgment of Non-Iodized Salt IP and Iodized Salt IP.
Exceptions from the provisions of this Regulation may only be stipulated by the Minister or the officer authorized by the Minister.
Enforcement regulations and matters that have not been provided in this Regulation, may be stipulated by the Director General.
This Regulation shall be valid from the date it is stipulated.
For public cognizance this Regulation shall be published by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
On September 30, 2005
THE MINISTER OF TRADE,
sgd,
MARI ELKA PANGESTU