DECREE OF THE MINISTER OF INDUSTRY AND TRADE
No.32/MPP/Kep/1/2003

CONCERNING
PROVISIONS ON EXPORT OF PRODUCTS OF FORESTRY INDUSTRY

THE MINISTER OF INDUSTRY AND TRADE,

Considering :

• a. that since products of forestry industry constitute non-oil and gas commodities resulting in state foreign exchange whose continuous production needs to be maintained through eternal supply of raw materials coming from production forests managed in sustainable manner, provisions on export of products of forestry industry need to be stipulated;
• b. that relation there to, it is necessary to stipulate a decree of the Minister of Industry and Trade;

In view of :

• 1. Law No. 5/1984 on industry (Statute Book of 1984 No. 22, Supplement to Statute Book No. 3274);
• 2. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• 3. Law No. 22/1999 on regional administration (Statute Book of 1999 No. 60, Supplement to Statute Book No. 3839);
• 4. Law No. 41/1999 on forestry;
• 5. Government Regulation No. 1/1982 on export, import and traffic of foreign exchange (Statute Book of 1982 No. 1, Supplement to Statute Book No. 3210) as already amended by Government Regulation No. 24/1985 (Statute Book of 1985 No. 33, Supplement to Statute Book No. 3291);
• 6. Government Regulation No. 25/2000 on the authority of the government and the authority of provinces as autonomous regions;
• 7. Government Regulation No. 34/2002 on the arrangement of forests, utilization of forests and the use of forest areas;
• 8. Presidential Decree No. 260/1967 on the affirmation of tasks and responsibility of the Minister of Trade in the foreign trade sector;
• 9. Presidential Decree No. 228/M/2001 on the establishment of Mutual Cooperation Cabinet;
• 10. Presidential Decree No. 102/2001 on status, tasks, functions, authority, organizational structures and working arrangements of ministries;
• 11. Presidential Decree No. 109/2001 on first-echelon organizational units and tasks of ministries;
• 12. Joint Decree of the Minister of Industry and Trade and the Minister of Forestry No. 803/MPP/Kep/12/2002 and No. 10267/Kpts-II/2002 on the establishment of the Forestry Industry Revitalization Agency (BRIK);
• 13. Decree of the Minister of Industry and Trade No. 440/MPP/Kep/9/1998 on provisions on exports of round rattan;
• 14. Decree of the Minister of Industry and Trade No. 441/MPP/Kep/9/1998 concerning provisions on export of sawn timber;
• 15. Decree of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 and No. 31/MPP/Kep/1/2003 on export general provisions.

DECIDES :

To stipulate :

THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON PROVISIONS ON EXPORT OF PRODUCTS OF FORESTRY INDUSTRY.

CHAPTER I
SCOPE AND GENERAL PROVISION

Article 1

Products of forestry industry regulated in this decree shall be commodities subsumed into tariff heading (HS) No.1401.20.500, HS No. 1401.20.600, HS No. 1401.20.700, HS No. 1401. 20.900, HS No. 4406, HS No. 4407, HS No.4408, HS No. 4409, HS No.4410, HS No, 4411, HS No. 4412, HS No. 4413, HS No. 4414, HS No. 4115, HS No. 4416, HS No. 4417, HS No. 4418, HS No. 4419, HS No. 4421, HS No. 4601, HS No. 4602, HS No. 9,401, HS No. 9403, HS No. 4703, HS NO. 4801, HS No. 4802, HS No. 4803, HS No.4804, HS No. 4805, HS No. 4806, HS No. 4808, HS No. 4809, HS No. 4809, HS No. 4810, HS No. 4811, HS No. 4812, HS No. 4813, HS No. 4814, HS No. 4816, HS No. 4817, HS No. 4818, HS No. 4820, HS No. 4821, HS No. 4823, HS No. 9406 which are produced by forestry industry.

Article 2

(1) The products of forestry industry as meant in Article I of this decree only can be exported by forestry manufacturers already recognized as Registered Exporters of Products of Forestry Products (ETPIK) by the Minister of Industry in this case the Director General of Foreign Trade.

(2) Manufacturers which can be recognized as ETPIK shall be forestry manufacturers already having industrial business license issued on the basis of laws in force and other requirements as stipulated in Article 3 of this decree.

(3) The export of products of forestry industry shall be executed on the basis of Cost and Freight (C&F) or Cost Insurance and Freight (CIF), except that HS No. 1410, HS No. 4421, No. HS No. 4601, HS No. 4602, HS No. 9401 and HS No. 9403 can be exported on the basis of Cost and Freight (C&F) or Cost Insurance and Freight (CIF) or Free on Board (FOB) as well as the payment is done through banking institution.

(4) The export of the products of forestry industry subsumed into HS No. 4406, HS No. 4407, HS No. 4408, HS No. 4409, HS No. 4410, HS No. 4415, HS No. 4416, HS No. 4417, HS No. 4418, HS No. 4419, HS No. 4421, HS No. 9406 shall secure endorsement of the Forestry Industry Revitalization Agency (BRIK).

CHAPTER II
PROVISIONS ON RECOGNITION OF REGISTERED EXPORTERS OF PRODUCTS OF FORESTRY INDUSTRY (ETPIK)

Article 3

(1) Procedures and requirements for recognizing ETPIK shall be submitting application to the Director General of Foreign Trade through the Director of Export of Agricultural Products and Minerals or Director of Export of Industrial Products in accordance with the respective scopes of responsibility by enclosing:

• a. recommendation from BRIK;
• b. industrial business license on the basis of laws in force;
• c. corporate registry number (TDP);
• d. taxpayer code number (NPWP);
• e. notarial deed of establishment of company;
• f. corporate general data.

(2) The scopes of responsibility of the Director of Export of Agricultural Products and Minerals and Director of Export of Industrial products as meant in paragraph (1) shall be further regulated through a decision of the Director General of Foreign Trade.

(3) The recognition as ETPIK shall be nullified if the relevant ETPIK undertake no production and export activities for one year consecutively and face change in data on one or more requirements as meant in paragraph (1).

(4) The nullification as meant in paragraph (1) shall be conveyed through a letter of recommendation of BRIK to the Director General of Foreign Trade.

CHAPTER III
OBLIGATIONS OF REGISTERED EXPORTERS OF PRODUCTS OF FORESTRY PRODUCTS (ETPIK)

Article 4

(1) ETPIK shall report to the Director General of Foreign Trade and Director General of Agro Chemical and Forest Product Industry of the Ministry of Industry and Trade, Director General of Forestry Production Development of the Ministry of Forestry, the Forestry Industry Revitalization Agency (BRIK) the following matters:

• a. annual production plan and quarterly production realization;
• b. annual export plan and quarterly export realization.

(2) In addition to the provision as meant in paragraph (1), ETPIK operating in the sawn timber, veneer and panel wood industries also shall report the annual plan for the use of industrial raw materials and monthly realization, of the use of raw materials in the current year.

CHAPTER IV
TRANSITIONAL PROVISION

Article 5

(1) The recognition as ETPIK especially for raw plywood and secondary processed plywood, block board and veneer before the issuance of this decree can be renewed not later than February 28, 2003.

(2) Procedures for submitting applications for recognition as ETPIK shall be as contained in Article 3 of this decree.

(3) ETPIK for raw plywood and secondary processed wood, block board and veneer which are not renewed up to February 28,2003 as meant in paragraph (1) shall be declared null and void.

CHAPTER V
SANCTION

Article 6

The recognition as ETPIK shall be frozen if manufacturers holding ETPIK and/or executives/directors of manufacturers holding ETPK are:

• a. being investigated by authorized investigators because they are allegedly committing crimes related to the abuse of ETPIK;
• b. not executing the obligation as meant in Article 4;
• c. violating the provisions in force in the export sector;
• d. or in certain cases on the basis of request of the Minister or the appointed officials.

Article 7

The recognition as ETFIK already frozen as meant Article 6 can be liquidated in the case of:

• a. investigators already issuing order to discontinue the investigation;
• b. the relevant parties being declared not guilty/freed from all legal charges already having permanent legal power by enclosing verdict of the court;
• c. the relevant parties being not proven to violate the provision as meant in Article 6 letter c;
• d. the Minister or the appointed official requesting.

Article 8

(1) The recognition as ETPIK shall be revoked if manufacturers holding ETPIK and/or executives/directors of manufacturers holding ETPIK:

• a. face the freezing of ETPIK twice;
• b. fail to execute the obligation as meant in Article 4 not later than 30 (thirty) days as from the date of the freezing;
• c. violate export provisions in force;
• d. falsify an/or misuse export documents of letters related to export;
• e. are declared guilty by the court for crime related to the misuse of ETPIK and already having permanent legal power; or
• f. are in certain cases on the basis of the request of the Minister or the appointed official.

(2) The recognition as ETPIK already revoked because of he mistake as meant in paragraph (1) letter,a and/or b can renew ETPIK after 3 (three) years as from the date of revocation of ETPIK.

(3) The recognition as ETPIK already revoked because of he mistake as meant in paragraph (1) letters c, d, e

CHAPTER VI
CONCLUSION

Article 10

(1) With the enforcement of this decree, Decree of the Minister of Industry and Trade No. 28/MPP/Kep/1/1998 on plywood export provisions shall be declared null and void.

(2) Matters not yet regulated in this decree shall be further stipulated by the Director General of Foreign Trade.

(3) This decree shall come into force as from March 1, 2003.

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

Stipulated in Jakarta
On March 22, 2003
THE MINISTER OF INDUSTRY AND TRADE
sgd
RINI M SUMARNI SOEWANDI