DECREE OF DIRECTOR GENERAL FOR FOREIGN TRADE
No. 04/DAGLU/KP/I/2003

ON
TECHNICAL DIRECTIVES FOR
DECREE OF MINISTER OF INDUSTRY AND TRADE
NO. 32/MPP/KEP/1/2003
ON
EXPORT OF FOREST-BASED INDUSTRY PRODUCTS

THE DIRECTOR GENERAL FOR FOREIGN TRADE,

Considering :

that in the framework of enforcing Decree of Minister of Trade and Industry No. 32/MPP/Kep/1/2003 on Export of Forest-based Industry Products, it is necessary to stipulate elucidation on the said decree.

In view of :

DECIDES :

To stipulate :

THE DECISION OF DIRECTOR GENERAL OF FOREIGN TRADE ON TECHNICAL DIRECTIVES FOR DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 32/MPP/KEP/1/2003 ON EXPORT OF FOREST-BASED INDUSTRY PRODUCTS.

Article 1

In this decree, the meaning of:

(1) Sawn Timber is wood, which is sawn horizontally or is cut down, and planed not by moulder or unplanned, sandpapered or not, finger joined with a thickness of more than 6 mm, with content of water of more than or equal to 16% (HS No. 4407).

(2) Finger Joint is a processed wood, which is acquired by joining dried sawn wood by kiln dryer and planed by planer to form a toothed joint (the joining of wood is done using finger joint device) and the final product is usually in the form of finger joint stick or finger joint board under the condition that every log, which is joined, is part of the processed wood and has a measurement as follows: length 100 cm or less and width 25 cm or less.

(3) S2S, S3S, and S4S are sawdust, which has been processed by kiln dryer with water content equal to or less than 16% and is processed in a moulder and has an accurate length and width in the entire surface of not more than 12 cm and width of not more than 25 cm.

(4) S2S, S3S, and S4S as set forth in paragraph (3) are:

Article 2

(1) Commodities, which are classified into HS No. 4406 and HS No.4407, are railway track underpinning and sawn wood.

(2) Commodities, which are classified into HS. No. 4409, HS No. 4413, HS No. 4414, HS No. 4415, HS No. 4416, HS No. 4417, HS No. 4418, HS No. 4419, HS No. 4421, and HS No. 9406, are processed wood.

(3) Commodities, which are classified into HS No. 4408, HS No. 4410, HS No. 4411, and HS No. 4412 are wood panel and secondary processed wood panel, which includes veneer, plywood, laminated veneer lumber (LVL), block board, particle board, hard board, medium density board (MDF), high density fiber board (HDF), fiber board, oriented strand board (OSB), flake board, water board, etc.

(4) Commodities, which are classified into HS No. 4601 and HS No. 4602, are industry products using rattan as raw material.

(5) Commodities, which are classified into HS No. 9461 and HS No. 9403, are furniture. Furniture, as specified in this Decree, is the one that uses wood and rattan as raw materials.

(6) Commodities, which are classified into 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. 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, and HS No. 4823 are pulp and paper using wood as raw material.

(7) Commodities, which are classified into HS No. 1401.20.500, HS No. 1401.20.600, HS No. 1401.20.700, and HS No. 1401.20.900 are rattan industry products, which are, amongst others, in the form of: refined round rattan, rattan heart, and rattan skin.

Article 3

(1) The application for Registered Exporter for Forest Products (ETPIK) shall be submitted to the Director General for Overseas Trading in compliance with the provisions set forth in Decree of Minister of Trade and Industry No. 32/MPP/Kep/1/2003 through:

(2) Export of forest products may only be conducted by Producer & Exporter who has obtained industry business permit and who does not breach the laws applicable for the entire Indonesian territory, which permit is issued by the authorized institution and it is in compliance with the conditions set forth in Decree of Minister of Trade and Industry No. 32/MPP/Kep/1/2003 to be acknowledged as ETPIK.

(3) In the event that the Exporter & Producer, asspecified in paragraph (1), is classified into small industry, the Industry Registration Certificate (TDI) may be used as substitute for Industry Business Permit (IUI).

(4) The application set forth in paragraph (1) must obtain recommendation from Forest Industry Revitalization Agency (BRIK).

(5) Small business performers of forest industry, to be acknowledged as ETPIK, shall be obliged to comply with the provisions set forth in Article 3 of Decree of Minister of Trade and Industry No. 32/MPP/Kep/1/2003.

(6) In case that the small business performers of forest industry, as set forth in paragraph (5) exports forest products and he or she has not been able to export forest products and has not been able to comply with all of the conditions set forth in Article 3 paragraph (1) of Decree of Minister of Trade and Industry No. 32/MPP/Kep/1/ 2003, Certificate of ETPIK will still be granted in favor of him or her.

(7) If, within a period of four (4) months from the issuance of Certificate of ETPIK, small business performers of forest industry, as set forth in paragraph (6) has not been able to submit all of the requirements set forth in Article 3 paragraph (1) of Decree of Minister of Trade and Industry No. 32/MPP/Kep/1/2003, his or her ETPIK Certificate will be revoked.

Article 4

(1) A qualified application will immediately be processed to Certificate of ETPIK.

(2) Companies, which have acquired ETPIK certificate, will be verified in order to know about legality of the required documentation and the existence of the companies whether they are still active in accordance with the permit.

(3) The verification, as set forth in paragraph (2) shall be performed by an-officer authorized by the Directorate General for Overseas Trading, Directorate General for Agro Chemical and Forest Produce, Directorate General for Development of Forest Products, Regency/Mayoralty Service for Trade, Industry and/or Forestry, Forestry Industry Revitalization Agency, and, if necessary, hand-in hand with independent institutions authorized in accordance with the applicable laws.

(4) ETPIK Certificate will be void if result of verification shows that the company has not been active in production for 12 consecutive months and does not use productions machinery in accordance with the products that will be exported.

(5) The administrative process for the issuance of ETPIK Certificate shall be accomplished not later than six (6) working days after fulfillment of all conditions by the applicant (Exporter & Producer).

Article 5

(1) Holder of Certificate of Registered Plywood Exporter (ETKL) bearing Producer status may renew the said certificate to Certificate of ETPIK by enclosing the original document or duplicate of Certificate of ETKL and recommendation from the Forest Industry Revitalization Agency.

(2) To renew company's data, holder of certificate of ETKL must enclose all requirements as specified in Article 3 paragraph (1) of Decree of Minister of Trade and Industry No. 32/MPP/Kep/1/2003 to know whether the company undergoes changes of data in one or more of the required documents.

(3) If, data of the company as holder of Certificate of ETKL has undergone changes, the said company must submit a notification of change of data upon submitting application for Certificate of ETPIK.

(4) Certificate of ETKL will be void after February 28th, 2003 in case that the company, which has acquired ETKL Certificate does not renew their ETPIK Certificate.

Article 6

(1) ETPIK must report to the Director General for Overseas Trading, Director General for Agro Chemical and Forest Produce of Department of Trade and Industry, Director General for Development of Forest Products of Department of Forestry, and Forest Industry Revitalization Agency (BRIK) regarding:

(2) ETPIK having line of business in sawn wood, veneer, and wood panel, other than the obligation to report, as set forth in paragraph (1), must also report:

Article 7

(1) In the event of change of data in one or more of the required documents for Certificate of ETPIK, the relevant company must submit report on the said changes to the Director General for Overseas Trading with a copy furnished to the Forest Industry Revitalization Agency not later than fifteen (15) days from the occurrence of the said changes.

(2) The changes specified in paragraph (1) are, amongst others, changes of Industry Business Permit Number, Company Registration Certificate Number, name of company's manager, factory location, and office location.

(3) ETPIK who does not submit the reports as set forth in Article 7 paragraph (1) shall be imposed by administrative sanctions in the form of Memoranda I, II, and II, with an interval of fifteen (15) days respectively. And, should there be any unfulfilled requirements, the ETPIK certificate will be frozen and revoked within 'ten (10) days after date of freezing.

Article 8

ETPIK must write down number of Certificate of ETPIK in the Export Declaration (PEB).

Stipulated in Jakarta
on January 31st, 2003
DIRECTOR GENERAL FOR OVERSEAS TRADING
sgd.
SUDAR S.A


Appendix I
PRODUCTIONS PLAN REPORT