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DECISION OF THE SECRETARY GENERAL OF THE MINISTRY OF INDUSTRY AND TRADE
NO. 470/SJ/SK/VII/1996

ON
STIPULATION ON AND THE PROCEDURE FOR COMPULSORY QUALITY CONTROL
OVER PARTICULAR EXPORT PRODUCTS

THE SECRETARY GENERAL OF THE MINISTRY OF INDUSTRY AND TRADE,

Considering:

• a. that as a follow-up to Decrees of the Minister of Industry and Trade No. 108/MPP/Kep/1996 concerning standardization, certification and accreditation of and control over the quality of products within the Ministry of Industry and Trade and No. 164/MPP/Kep/6/1996 concerning compulsory quality control over particular export products, it is deemed necessary to lay down the stipulation on and the procedure for compulsory quality control over particular export products;
• b. that to this end, it is necessary to issue the decision of the Secretary General.

In view of:

• 1. Presidential Decree No. 2/1996 on the amendment to Presidential Decree No. 15/1984 on the organizational structure of ministries as has been amended twenty-five times, the latest by Presidential Decree No. 61/1995;
• 2. Presidential Decree No. 5/M/1996 on the appointment of officials of echelon I within the Ministry of Industry and Trade;
• 3. Decree of the Minister of Industry and Trade No. 29/MPP/SK/1996 and No. 92/MPP/Kep/4/1996 on the organization and the working system of the Ministry of Industry and Trade;
• 4. Decree of the Minister of Industry and Trade No. 198/MPP/Kep/5/1996 on standardization, certification and accreditation of and control over the quality of products within the Ministry of Industry and Trade;
• 5. Decree of the Minister of Industry and Trade No. 164/MPP/Kep/1996 on compulsory quality control over export products.

DECIDES:

To stipulate:

THE DECISION OF THE SECRETARY GENERAL OF THE MINISTRY OF INDUSTRY AND TRADE ON THE STIPULATION ON AND THE PROCEDURE FOR COMPULSORY QUALITY CONTROL OVER PARTICULAR EXPORT PRODUCTS

CHAPTER I
GENERAL PROVISIONS

Article 1

Referred to in this decree as:

• 1. A sample-collecting officer (PPC) shall be an officer from a testing laboratory registered by a personnel certification institute to collect sample pursuant to the stipulation of the SNI or other standards referred to and recognized;
• 2. A Sample Collection Report (LPC) shall be a report made by a PPC on behalf of the testing laboratory, stating that the sample of an export product lot has been collected pursuant to the requirements of the SNI or other standards referred to and recognized;
• 3. A testing laboratory shall be a laboratory where the certification of a testing result is conducted;
• 4. A Quality Conformity Certificate, hereinafter abbreviated as SM, shall be a certificate Issued by a testing laboratory for export purposes and containing the data about conformity with respect to the quantity, the types and the quality of the products;
• 5. An Export Notice, hereinafter abbreviated as PEB, shall be the main, document used to take notes of exports;
• 6. A Report on Analysis Result, hereinafter abbreviated as LHA, shall be a document issued by a testing laboratory, stating that the result of the testing of a product sample does not fulfill the requirements of the SNI or other standards referred to and recognized;
• 7. A Product Certificate shall be a document issued by a product certification Institute, stating that a company is entitled to use the SNI mark or other standard marks referred to and recognized on particular products turned out.

Article 2

(1) A testing laboratory which can issue an SM shall be a testing laboratory stipulated by the Secretary General of the Ministry of Industry and Trade.

(2) The performance and the meticulousness of a testing laboratory as meant in sub-article (1) shall be monitored and nurtured by the Center for Product Quality Testing and Consumers' Protection as a standard testing laboratory.

Article 3

The quality control as meant in this decision shall not be exercised upon export products as contained in the attachment to Decree of the Minister of Industry and Trade No. 164/MPP/Kep/6/1996.

Article 4

The quality control over export products as meant in Article 3 shall, be way of obligation, fulfill the requirements of the SNI or other standards referred to and recognized, which shall be evidenced by the SM or the Product Certificate.

CHAPTER II
QUALITY ONTROL OVER EXPORT PRODUCTS
NOT POSSESSING PRODUCT CERTIFICATES AND THE PROCEDURE
FOR CERTIFICATION IN THE FORM OF SM

Part One
Quality Control over Export Products Not Yet Possessing Product Certificate

Article 5

(1) The quality control over export products as meant in Article 3 and not yet possessing a Product Certificate shall be implemented by means of certification in the form of SM through pre-shipment inspection by a testing laboratory of the sample collected by a PPC;

(2) Every time the export of a product not yet possessing a Product Certificate as meant in sub-article 1 is conducted, the exporter shall be obligated to attach SM to the PEB.

Part Two
The Procedure for Certification in the form of SM

Article 6

(1) For the purpose of certification in the form of SM, a PPC shall, on behalf of a testing laboratory, collect sample pursuant to the requirements of the SNI or other standards referred to and recognized, with respect to ready for-export product lots, issue an LPC and convey it in duplicate along with the sample to respectively:

• a. a testing laboratory, in order to have the quality tested;
• b. the exporter concerned, as a file.

(2) The format of and the procedure for the completion of the LPC shall be as contained in Attachment I to this decision.

Article 7

(1) If the result of sample testing as meant in Article 5 sub-article (1) proves to fulfill the SNI requirements and those of other standards referred to and recognized, the testing laboratory shall issue an SM.

(2) The SM shall be made in six fold for respectively:

• a. the foreign-exchange bank, original first sheet, to be submitted by the exporter as attachment to the PEB;
• b. the buyer, second sheet, to be submitted by the exporter concerned;
• c. the exporter concerned, third sheet;
• d. the local regional office of the Ministry of Industry and Trade, fourth sheet, to be submitted by the testing laboratory;
• e. the Center for Standardization, the Ministry of Industry and Trade, fifth sheet, to be submitted by the testing laboratory;
• f. the testing laboratory, sixth sheet.

(3) The format of and the method of completing the SM shall be as contained in Attachment II to this decision.

(4) If the result of sample testing as meant in Article 5 sub-article (1) proves not to fulfill the SNI requirements or those of other standards referred to and recognized, the testing laboratory shall issue an LHA and the export product lot cannot be exported;

(5) The LHA shall be made in 4 (four) fold to be submitted by the testing laboratory to respectively:

• a. the exporter concerned, original first sheet;
• b. the local regional office of the Ministry of Industry and Trade, second sheet;
• c. the Center for Standardization, the Ministry of Industry and Trade, third sheet;
• d. the testing laboratory, fourth sheet;

(6) The format of and the method of completing LHA shall be as set forth in Attachment III to this decision;

(7) It is obligatory that SM or LHA should be signed by the head of the testing laboratory or by an official that he appoints to act as his substitute.

Article 8

The expenses arising from sample collection, dispatch and testing and from the dispatch of SM in the framework of control over the quality of export products shall be borne by the exporters concerned.

Article 9

A local regional office of the Ministry of Industry and Trade shall be obligated to:

• a. foster exporters so that they shall comply with the obligation already stipulated in the control over the quality of export products;
• b. examine the agreement between the SM attached to PEB and the SM they receive.

CHAPTER III
QUALITY CONTROL OVER PRODUCTS ALREADY POSSESSING PRODUCT CETIFICATES

Article 10

(1) The Center for Standardization of the Ministry of Industry and Trade shall give the number of the Certificate of Products Using the SNI Mark of every company turning out export products as set forth in the Attachment to Ministerial Decree No. 164/MPP/Kep/6/1996 to Bank Indonesia.

(2) In carrying out exports, the company as meant in sub-article (1) shall be obligated to stamp the PEB with "BEBAS SM" ("SM FREE") and put down on the PEB the number of the Product Certificate it possesses.

Article 11

(1) If, owing to one reason or another, the Product Certificate of the company as meant in Article 10 sub-article (1) should be delayed or revoked, the Center for Standardization of the Ministry of Industry and Trade must notify Bank Indonesia of this.

(2) Quality control over export products of a company whose Product Certificate is delayed or revoked as meant in sub-article (1) shall be exercised pursuant to the stipulations in CHAPTER If of this decision.

CHAPTER IV
MISCELLANY

Article 12

The procedure for the imposition of administrative sanctions on exporters proven not to have attached SM to PEB; exporters exporting products which bear the SNI mark or other standards referred to and recognized but which are proven not to fulfill the requirements of the SNI or other standards referred to and recognized and PPC and testing laboratories proven to have violated the stipulations regarding the quality control over particular export products shall be as set forth in Attachment IV.

CHAPTER V
CLOSING PROVISION

Article 13

Matters not yet regulated in this decision shall be regulated further by the head of the Center for Standardization or the head of the Center for Product Quality Testing and Consumers' Protection of the Ministry of Industry and Trade in accordance with their respective areas of duties.

Article 14

This decision shall be effectively in force 6 (six) months as from the date of stipulation.

Stipulated in Jakarta
On July 10, 1996
THE SECRETARY GENERAL
sgd.
AIDIL JUZAR