REEGULATION OF THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA
No. 06/M-DAG/PER/1/2007

CONCERNING
VERIFICATION OR TECHNICAL ASSESSMENT OF IMPORTED CERAMIC

THE MINISTER OF TRADE OF REPUBLIC OF INDONESIA,

Considering:

• a. in order to improve competitiveness of local ceramic industries, create conducive business environment and improve consumer protection, it is imperative that verification or technical assessment is conducted to ceramic products imported to Indonesia;
• b. whereas, in connection with the matter stated above in paragraph a, it is necessary to put in place a regulation which governs the conduct of the verification or technical assessment of ceramic imports;
• c. whereas, in consideration of all the matters as contemplated above in paragraphs a and b, a Trade Minister Regulation is hereby put in place.

In View of:

• 1. Trade Law 1934 (Statute Book of 1938 No. 86), as amended and supplemented;
• 2. Law No. 7/1994 concerning Adoption of the Agreement Establishing the World Trade Organization (Statute Book of 1994 No. 57, Statute Book Supplement No. 3564);
• 3. Law No. 10/1995 concerning Customs Affair, as amended by Law No. 17 of 2006 (Statute Book of Republic of Indonesia of 1996 No. 93, Statute Book Supplement No. 4661);
• 4. Law No. 8/1999 concerning Consumers Protection (Statute Book of Republic of Indonesia of 1999 No. 42, Statute Book Supplement No. 3821);
• 5. Decree of President No. 260/1967 concerning Definition of the Duty and Responsibility of Trade Minister in Foreign Trade;
• 6. Decree of President No. 187/M/2004 concerning Formation of the United Indonesia Cabinet, as amended several times, most recently as amended in Decree of President of Republic of Indonesia No. 171/M/2005;
• 7. Regulation of President No. 9/2005 concerning the Capacity, Duty, Functions, Authorities, Organizational Structure and Works of State Ministry Offices of Republic of Indonesia, as amended several times, most recently has been ammended in Decree of President of Republic of Indonesia No. 90/2005;
• 8. Regulation of President No. 10/2005 concerning Units of Organization and Duties of Echelon I in State Ministry Offices of Republic of Indonesia as amended several times, most recently ammended in Regulation of President No. 66/2006;
• 9. Decree of Minister of Industry and Trade Number 229/MPP/Kep/7/1997 concerning General Provisions on Imports;
• 10. Joint Decree of Minister of Finance of Republic of Indonesia and Minister of Trade of Republic of Indonesia No. 527/KMK.04/2002 and No. 819/MPP/Kep/12/2002 concerning Orderly Administration of Imports;
• 11. Decree of Minister of Industry and Trade of Republic of Indonesia No. 40/MPP/Kep/1/2003 concerning Importer Identification Number [API], as amended by Regulation of Minister of Trade of Republic of Indonesia No. 43/M-DAG/PER/12/2006;
• 12. Regulation of Minister of Trade of Republic of Indonesia No. 01/M-DAG/PER/3/2005 concerning Organizational Structure And Works Of Trade Ministry, as recently amended in Regulation of Minister of Trade of Republic of Indonesia No. 30/M-DAG/PER/AS/2005;

HAS DECIDED:

To Stipulate:

MINISTER OF TRADE REGULATION CONCERNING CERAMIC IMPORTS VERIFICATION OR TECHNICAL ASSESSMENT

Article 1

In this Minister Regulation, the meaning of:

• 1. Verification or Technical Assessment, hereinafter called verification, is an inspection of imported products conducted by surveyor in the country of loading of the products.
• 2. Ceramics, is the end product which results from the heat processing of non-metal mineral materials, and are classified under Section 69 in Indonesia’s Import Tariff Book.
• 3. Surveyor, is a surveying company which is authorized and appointed by Trade Minister to carry out the verification or technical assessment of ceramic imports.
• 4. Country of Origin, is a country in which products are manufactured.
• 5. Minister, shall mean the Trade Minister.
• 6. Director General, is the Director General of Foreign Trade of the Ministry of Trade.

Article 2

Imports of ceramic products as intended above in Article 1 paragraph 2 will be subject to verification prior to shipments.

Article 3

(1) All verifications as contemplated above in Article 2 will be conducted by such Surveyor named by the Minister.

(2) In order to become Surveyor, as stated above in paragraph (1), a prospective surveyor shall meet the following qualifications:

• a. must have professional experience as surveyor for no less than 5 (five) years;
• b. must have branch(es) or representative office(s) or affiliate(s) in foreign country(ies).

(3) The verification conducted under Article 2 above shall include verification of:

• a. Description and specifications of the products imported, including their HS numbers;
• b. Quantity (volume) and net weight of each category of products imported;
• c. Data and information as regards country of origin of the products; and
• d. Time of shipment;

(4) Results of the verification conducted in accordance Article 2 above will be laid down in a Surveyor Report (certificate of inspection), which is a customs clearance document which will serve as one of the references for the issuance of Import Declaration (a.k.a. PIB) or Single Administrative Customs Declaration (a.k.a. PPSAD).

(5) For the verification conducted by it, Surveyor will affix a seal on the packing of goods, in case of FCL (Full Container Load) container; or affix a label on the goods or on such other types of packaging of the goods imported.

(6) For the verification activities conducted pursuant to paragraph (1) above, surveyor may charge and collect fees from, and for the services provided to, relevant importers at such rates in accordance with cost-benefit principle.

Article 4

Surveyor, as stated above in Article 3 paragraph (1), will file monthly reports concerning implementation of their verification activities, no later than the first week of the succeeding month, with the Director General, through his Director of Imports, at the Ministry of Industry and Trade, with copies thereof also sent to Director General of Agriculture and Chemical Industries of the Ministry of Industry, in this regard, the Director of Upstream Chemical Industry of the Ministry of Industry.

Article 5

No verification or technical assessment will be conducted to ceramic imports if such ceramic products:

• a. are imported for research and development purposes;
• b. are imported as gifts and or samples using air courier service; or
• c. are goods during transit/for further shipment;

Article 6

The verification activities conducted by surveyor as contemplated above in Article 2 shall in no event reduce the rights of the Directorate General of Customs of the Ministry of Finance to perform customs inspections.

Article 7

(1) Companies or importers violating any of the provisions contained in this Minister Regulation will be subject to such sanctions including cancellation of their Importer Identification Number [API] and/or such other sanctions permitted by the prevailing laws and regulations.

(2) Ceramic products actually imported in breach of any of the provisions of this Ministerial Regulation must be re-exported, all at the expense of the relevant importer concerned.

(3) Surveyors failing to file such written reports as contemplated above in Article 4 will be subject to such sanction in the form of cancellation of its appointment as the surveyor which carries out the verification.

Article 8

Importers which have been conducting ceramic imports by the time this Minister Regulation is issued may continue with their imports without the pre-shipment verification otherwise required hereunder, provided that the products imported must have arrived at Indonesia’s port of destination no later than 30 (thirty) days from the date of stipulation of this Minister Regulation, based on the date of submission of the customs declaration, i.e. Manifest (form BC 1.1) or otherwise in accordance with the applicable customs regulations.

Article 9

This Ministerial Regulation commences to take effect on the date of this stipulation.

In order for everyone to take cognizance hereof, it is hereby instructed that this Ministerial Regulation is promulgated in the Statute Book of Republic of Indonesia.

Stipulated in Jakarta
On 22 January 2007
MINISTER OF TRADE OF REPUBLIC OF INDONESIA
Signed
MARI ELKA PANGESTU