REGULATION OF THE MINISTER OF TRADE
No. 04/M-DAG/PER/1/2007

CONCERNING
PROVISION ON THE EXPORT OF TIN BAR

THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA,

Attachment

Considering:

• a. that in the framework of minimizing environmental damage arising from the uncontrollable mining of tin ores and activities of tin smelters;
• b. that in the framework of supporting interests of Indonesian economy, mainly interests related to the fostering and development of mining businesses, processing and purification of tin ores as well as trade of tin bars;
• c. that in connection wit the matters in sub-paragraphs a and b, the export of tin bars needs to be regulated;
• d. that based on the considerations in sub-paragraphs a, b and c, it is necessary to stipulate a regulation of the minister of trade;

in view of:

• 1. Trade Ordinance of 1934 (statute book of 1938 No. 86) as has already beenamended and supplemented;
• 2. Law No. 8/PRP/1962 No. 42, on Trade of Supervisory Goods (Statue Book of 1962 No. 42, supplement to statute book No. 2409);
• 3. Law No. 11/1967 on Mining Basic Provisions (Statute book of 1967 No. 22, Supplement o statute book No. 2831);
• 4. Law No. 5/1984 on Industry (statute book of 1984 No. 22, Supplement to Stature book No. 3274);
• 5. Law No. 7/1994 on ratification of Agreement Establishing the world trade Organization (Stature book of 1994 No. 57 , supplement to statute book No. 3564);
• 6. Law No. 10/1995 on customs affairs (statute book of 1995 No. 75, supplement to statute book No. 3612) as has already been amended by Law No. 17/2006 (Statute book of 2006 No. 93, Supplement to statute book No. 4661);
• 7. Law No. 23/1997 on Environmental management (Statute book of 1997 No. 68, Supplement to statute book No. 4327);
• 8. Government Regulation No. 32/1969 on the Implementation of Law No. 11/1967 concerning Mining Basic Provisions (Statute book of 1969 No. 60, supplement to statute book No. 2961) as has already been amended the latest by government regulation No. 75/2001 (statute book of 2001 No. 141, supplement to statute book No. 2916);
• 9. Presidential Decree No. 260/1967 on affirmation of tasks and responsibility of the minister of trade tasks and responsibility of the minister of trade in the foreign trade sector;
• 10. Presidential Decree No. 187/M/2004 on the establishment of the United Indonesia cabinet as has already been amended several times and the latest by Presidential Decree No. 171/M/2005;
• 11. Presidential Regulation No. 9/2005 on status, tasks, functions, organizational structures and working arrangements of state ministries as has already been amended by Presidential Regulation No. 90/2006;
• 12. Presidential Regulation of the Republic of Indonesia No. 10/2005 regarding Organization Unit and Task of Echelon I of State Ministries of the Republic of Indonesia as already several times amended the latest by Presidential Regulation of the Republic of Indonesia No. 66/2006;
• 13. Decree of the minister of industry and trade No. 558/MPP/KEP/12/2998 on export general provisions as has already been amended several times and the latest by regulation of the minister of trade No. 07/M-DAG/PER/4/2005 ;
• 14. Regulation of minister of trade No. 01/MDAG/PER/3/2005 on organization and working arrangement of the ministry of trade as has already been amended by regulation of the minister of trade No. 30/M-DAG/PER/12/2005;
• 15. Regulation of the minister of Finance No. 103/PMK.04/2006 on the use of customs declaration of single administrative document at batam, bintan and karimun islands;

HAS DECIDED:

To stipulate:

THE REGULATION OF THE MINSTER CONCERNING PROVISIONS ON THE EXPORT OF TIN BAR

Article 1

Referred to in this regulation as:

• 1. Tin bar is alloyed and non-alloyed tin resulting from the processing and purifying activities, which is subsumed into tariff headings/HS Number 8001.10.00.00 and 8001.20.00.00.
• 2. Tin smelters are places of tin ore processing and purifying activities, owned by holders of mining concessions for processing and purification or holders of working contracts (KK).
• 3. Approved exporters of tin bar, hereinafter called ET-tin are companies which had already secured recognition from the minister of trade, in this case the Director General Of Foreign Trade, to export tin bars.
• 4. Exploitation Mining concession, hereinafter abbreviated to Exploitation KP is a mining concession to undertake exploitation mining-business.
• 5. Processing and purification mining-concession, hereinafter abbreviated to processing and purification KP is a mining concession to undertake processing and purification mining-business.
• 6. Working contract, hereinafter abbreviated to KK is an agreement between the Indonesian government and Indonesian statutory bodies in the framework of foreign investment to undertake mining business of minerals, excluding petroleum, natural gas, geothermal, radioactive and coal.
• 7. Document of cooperation agreement is a document of agreement containing agreement between holders of processing and purification P and holders of Exploitation.
• 8. Recommendation is a letter issued by the related institution/unit, which contains explanation about existence; capability and feasibility of company’s to undertake the export and is not export permit/approval of tin bar.
• 9. Surveyors are survey companies securing authorization from and stipulated by the minister of trade to verify or inquire technically the export of tin bar.
• 10. Minister is the Minister of Trade.
• 11. "Dirjen Daglu" is the Director General of Foreign Trade in the trade Ministry.
• 12. "Dirjen Minerbapabum" is the Director general of mineral, coal and geothermal in the ministry of energy and mineral resources.

Article 2

(1) Tin bar only can be exported by the companies which had already secured the recognition as ET-Tin from Director General of Foreign Trade.

(2) In Order to secure recognition as ET-Tin as intended in paragraph (1), the companies are obliged to submit written application to dirjen daglu by enclosing the following documents:

• a. In the case of holders of processing and purification KP:
• i. copy of corporate registry number (TDP)
• ii. copy of taxpayer code number (NPWP);
• iii. copy of processing and purification KP;
• iv. copy of exploitation KP or document of cooperation agreement; and
• v. recommendation from governors of provinces exporting tin bar.
• b. In the case of holders of KK:
• i. copy of corporate registry number (TDP);
• ii. copy of taxpayer code number (NPWP);
• iii. copy of KK (Family Identity Card); and
• iv. Recommendation from Dirjen Menerbapabum.

(3) Based on the written application as intended in paragraph (2), dirjen daglu issues approval or rejection of application for recognition as ET-Tin in not later than 10 (ten) working days as from the date of receipt of the application.

(4) The recognition as ET-Tin as intended in paragraph (1) is valid for 3 (three) years and can be extended.

(5) Model of the recognition as ET-Tin as intended in paragraph (1) is as contained in attachment I to this regulation.

Article 3

Tin bar, which can be exported by ET-Tin must meet the following provisions:

• a. raw material (tin ore), which is used, comes from Exploitation KP of holders of processing and purification KP or KK or Exploitation KP of holders of document of cooperation agreement.
• b. Having evidence of settlement of royalty for tin bar, which will be exported;
• c. Having a minimum tin metal content of 99.85%.

Article 4

Verification or technical inquiry must be applied first to the export of tin bar by ET-Tin as intended in Article 2.

Article 5

(1) Verification or technical inquiry as intended in article 4 is done by the surveyors stipulated by the minister.

(2) The surveyors as intended in paragraph (1), which can be stipulated as executors of verification or technical inquiry must meet the following requirements;

• a. having experience as surveyor for 5 (five) years at the minimum;
• b. having branch or broad or broad service networking the Indonesian territory.

(3) The verification or technical inquiry as intended in Article 4 covers analysis and examination of data or information minimally regarding;

• a. origin of raw material (tin ore);
• b. specification of goods, covering HS number;
• c. quantity and kind of goods;
• d. shipment schedule;
• e. loading port;
• f. metal content of tin bar; and
• g. evidence of payment of royalty linked to the quantity of the exported tin bar.

(4) Results of the verification or technical inquiry by the surveyors as intended n paragraph (1) are issued in the form of surveyor report (LS) to be used as customs supplementary document required for registration of export declaration (PEB) or custom Declaration of single Administrative Document (PPSAD) in the case of customs and Excise service Offices which had already applied it.

(5) In connection with the realization of verification or technical inquiry of the export of tin bar, surveyors collect compensation for the rendered service from ET-Tin with the amount stipulated by observing the benefit principles.

(6) Costs spent for verification or technical inquiry of the export of tin bar by surveyors are borne by exporters.

Article 6

(1) The surveyors as intended in Article 5 paragraph (1) are obliged to convey written report on activities of verification or technical inquiry realized by the relevant every month to Dirjen Daglu in this case the Director of Industrial and Mineral Product Export with a coy made available to Dirjen Menerbapabum in this case the Director of Mineral and coal Exploitation Development in the first week of the ensuing month.

(2) The surveyors must be able to ascertain that the exported goods are in accordance with what is mentioned in the surveyor report (LS) as intended in article 5 paragraph (4).

Article 7

(1) ET-Tin are obliged to convey report on the realization of the export in writing to Dirjen Daglu in this case the Director of Industrial and Mineral Product Export with a copy made available to Dirjen menerbapabum in this case the Director of mineral and coal exploitation development and local governors every 3 (three) months, starting from the date of issuance of recognition as ET-tin.

(2) The report on the realization of the export as intended in paragraph (1) is conveyed in the case of the export of tin bar being realized or not.

(3) Model of the report on the realization of the exporter as intended in paragraph (1) is as contained in attachment II to this regulation.

Article 8

(1) Recognition as ET-Tin is frozen in the case of the companies and/or executives/executive directors of the companies;

• a. not fulfilling the obligation as intended in article 7 paragraph (1) twice in a period of one year; and/or
• b. being in the course of investigation into the alleged crime related to misuse of recognition as ET-Tin.

(2) Recognition as ET-Tin which had already been freezed can be re-activated in the case of the companies and/or executives/executive directors of the companies:

• a. already fulfilling the obligation as intended in article 7 paragraph (1) in a period of 60 (sixty) working days as from the date of freezing;
• b. investigator who had already issued the order to discontinue investigation; and/or
• c. being declared not guilty/exempted from all legal charge on the basis of legally fixed court decision.

(3) Recognition as ET-Tin is revoked in the case of the companies and/or executives/executive directors of the companies:

• a. not fulfilling the obligation as intended in article 7 paragraph (1) in a period of 60 (sixty) working days as from the date of freezing;
• b. being proven to convey untrue information or data upon submitting application for recognition as ET-Tin;
• c. being declared guilty by the court for the violation and crime related to the misuse of recognition as ET-Tin on the basis of legally fixed court decision; and/or
• d. already facing the freezing of recognition as ET-Tin twice and fulfilling reason for re-freezing.

(4) The freezing, re-activation and revocation of recognition as ET-Tin as intended in paragraphs (1),(2) and (3) are done by dirjen daglu.

Article 9

Stipulation as verifies is revoked in the case of;

• a. not implementing the obligation as intended in a\Article 6 paragraph 1) as many as twice in a period of one year; and/or
• b. not implementing the obligation as intended in Article 6 paragraph (2)

Article 10

The exception from the provisions in the regulation only can be stipulated by the minister.

Article 11

The regulation of the minister comes into force as from February 23, 2007.

For public cognizance, the regulation shall be published by placing it in state gazette of the republic of Indonesia.

Stipulated in Jakarta
On January 22, 2007
THE MINISTER OF TRADE
Signed
MARI ELKA PANGESTU

Attachment to REGULATION OF THE MINISTER OF TRADE
No. 04/M-DAG/PER/1/2007