REGULATION OF THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA
No. 09/M-DAG/PER/2/2007

CONCERNING
PROVISIONS FOR EXPORT OF FORESTRY INDUSTRY PRODUCTS

THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA,

Attachment

Considering:

In view of:

Observing:

Results of Meetings regarding Deliberation about Revision for Regulation of the Minister of Trade No. 02/M-DAG/PER/2/2006 concerning Provisions on the Export of Forestry Industry Products and the latest held on January 31,2007.

HAS DECIDED:

To revoke:

REGULATION OF THE MINISTER OF TRADE No. 02/M-DAG/PER/2/2006 DATED FEBRUARY 1,2006 CONCERNING PROVISIONS ON THE EXPORT OF PRODUCTS OF THE FORESTRY INDUSTRY.

To stipulate:

THE REGULATION OF THE MINISTER OF FINANCE REGARDING PROVISIONS ON THE EXPORT OF PRODUCTS OF THE FORESTRY INDUSTRY.

Article 1

Referred to in this regulation as:

Article 2

The wooden railway sleepers (subsumed into HS 4406) as meant in Article 1 point 1 and sawn timber (subsumed into HS 4407) as meant is Article 1 paragraph (2) cannot be exported.

Article 3

The export of the products of the forestry industry as described in Article 1 point 3 is regulated in accordance with this regulation.

Article 4

(1) The products of the forestry industry belonging to groups Ex. HS 4407, Ex HS 4409, Ex HS 4412, Ex HS 4415, Ex HS 4418 and Ex HS 9406 only can be exported if the technical criteria as contained in Attachment II to this regulation are fulfilled.

(2) Exception from the provision regulated in Attachment II to this regulation is stipulated by the Minister of Trade after securing consideration from the a team set forth by the Minister of Trade.

Article 5

(1) The products of the forestry industry as described in Article 1 point 3 only can be exported by forestry manufactures already recognized as Approved Exporters of Products of the Forestry Industry (ETPK) by the Director General of Foreign Trade of the Ministry of Trade.

(2) Forestry Manufactures which can be recognized as ETPIK are forestry manufactures already securing business license issued on the basis of legislation in force and fulfilling the requirements stipulated in this regulation.

Article 6

(1) In order to secure recognition as ETPIK, forestry manufactures must submit a written application to the Director General of Foreign Trade, Ministry of Trade.

(2) The application as described in paragraph (1) must be accompanied by the following documents:

(3) The Director General of Foreign Trade issues approval or rejection of the application as described in paragraph (1) in not later than 10 (ten) working days as from the date of receipt of application.

(4) Forestry manufactures already securing recognition as ETPIK are obliged to convey every change in data contained in the documents as described in paragraph (2) in not later than 30 (thirty) days as from the change.

Article 7

(1) Verification of legitimacy of documents, existence of companies, export activities and production in accordance with the owned license as well as provisions in force can be applied to companies already securing recognition as ETPK.

(2) The verification as described in paragraph (1) is executed by officials of the Directorate General of Foreign Trade of the Trade of Ministry, Directorate General of Agro and Chemical Industries of the Industrial Trade and Directorate General of Forestry Production Development of the Forestry Industry in coordination and/or independent surveyors stipulated by the Minister of Trade.

(3) Result of the verification as described in paragraph (1) are mentioned in the form of a Report on Results of Verification of ETPIK (LHV ETPIK).

(4) LHV ETPIK as described in paragraph (3) is conveyed in not later than 30 (thirty) days after the verification to the Director General of Foreign Trade of the Trade of Ministry.

(5) Technical Procedures for the Verification as described in paragraph (1) are regulated further by a regulation of the Director General of Foreign Trade, Ministry of Trade.

Article 8

(1) The export of products of the forestry industry subsumed into HS 4408, HS 4410 and Ex HS 4412 (especially for plywood) is realized on the basis of Cost & Freight (C&F), Cost Insurance and Freight (CIF) as well as the payment is realized through banking institution.

(2) The export of products of the forestry products subsumed into HS 4407, HS 4408, HS 4409, HS 4411, HS 4412, HS 4413, HS 4415, HS 4418, Ex HS. 4421.90.99.00 (especially for wooden paving block), HS 9406.00.92.00 must secure endorsement from the Forestry Industry Revitalization Board (BRIK).

(3) The document of endorsement as described in paragraph (2) is used as customs complementary document required for registration of Export Declaration (PEB) or Customs Declaration of Single Administrative Document (PP SAD) for customs service offices already applying the system.

(4) Technical procedures for endorsement by BRIK are regulated further by a regulation of the Director General of Foreign Trade of the Trade Ministry.

(5) BRIK is obliged to report the implementation of endorsement in not later than the 15th of the ensuing month to the Minister of Trade, in this case the Director General Foreign Trade with a copy made available to the Director General of Agro and Chemical Industries of the Industrial Trade and Director General of Forestry Production Development of the Forestry Industry.

Article 9

(1) The export of products of the forestry industry subsumed into HS 4407, HS 4409 and Ex HS 4412 (especially for laminated woo), HS 4415, HS 4418 and Ex HS 9406 (especially for wooden pre-fabricating structure) is subjected to technical verification/surveillance.

(2) The technical verification/surveillance as described in paragraph (1) is executed by independent surveyors stipulated by the Minister of Trade.

(3) The surveyors as described in paragraph (2) must have technical capability in the verification of products of the forestry industry as well as broad service networks in Indonesia's territory.

(4) Coast arising from the technical verification/surveillance as described in paragraph (1) are borne by the government.

(5) Result of the technical verification/surveillance as described in paragraph (1) are mentioned in the form of a Surveyor Report (LS) to be used as customs complementary document required for registration of Export Declaration (PEB) or Customs Declaration of Single Administrative Document (PP SAD) for customs service offices already applying the system.

(6) The report on results of the technical verification/surveillance as described in paragraph (5) must be conveyed by surveyors in not later than the 15th of the ensuing month to the Director General of Foreign Trade with a copy made available to the Director General of Agro and Chemical Industries of the Industrial Trade and Director General of Forestry Production Development of the Forestry Industry.

(7) Technical Procedures for the technical verification/surveillance as described in paragraph (1) are regulated further by the Director General of Foreign Trade, Ministry of Trade.

Article 10

(1) Forestry Manufactures already recognized as ETPIK as described in Article 5 are obliged to report:

(2) The result as described in paragraph (1) is conveyed to the Director General of Foreign Trade with a copy made available to the Director General Agro and Chemical Industries of the Industrial Trade and Director General of Forestry Production Development of the Forestry Industry by using the formats of report as contained in Attachments III, IV, V and VI to this regulation.

Article 11

Recognition as ETPIK as described in Article 5 is frozen if manufactures holding ETPIK and/or executives/directors of the manufactures holding ETPIK:

Article 12

The frozen recognition as ETPIK as referred to in Article 11 can be re-activated if manufactures holding ETPIK and/or executives/directors of manufactures holding ETPIK:

Article 13

Recognition as ETPIK as described in Article 5 is revoked if manufactures holding ETPIK and/or executives/directors of manufactures holding ETPIK:

Article 14

(1) The freezing, re-activation and revocation of ETPIK as described in Articles 11, 12 and 13 are executed by the Director General of Foreign Trade, Ministry of Trade.

(2) The Director General of Foreign Trade conveys notification about the freezing, re-activation and revocation of ETPIK as described in paragraph (1) to holders of ETPIK with a copy made available to the Director General of Agro and Chemical Industries of the Industrial Trade, Director General of Forestry Production Development of the Forestry Industry and the Forestry Industry Revitalization Board (BRIK).

Article 15

(1) Surveyors violating the provision as described in Article 9 paragraph (6) are subjected to sanction in the form of revocation of right to receive service free from the executed verification in the month, which is not reported.

(2) BRIK violating the provision as described in Article 8 paragraph (5) is subjected to administrative sanction in the form of written warning.

Article 16

The export of products of the forestry products, in the form of samples, substances of research and goods for the need of overseas exhibition is excepted from the provisions in this regulation after securing approval from the Director General of Foreign Trade, Ministry of Trade.

Article 17

Technical provisions on this regulation can be regulated further by the Director General of Foreign Trade, Ministry of Trade.

Article 18

Recognition as ETPIK issued before the issuance of this regulation applies as long as it does not contravene the provisions in this regulation.

Article 19

The regulation comes into force 2 (two) months as from the date of stipulation.

In order for everyone to be informed, the regulation shall be in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On February 14, 2007
THE MINISTER OF TRADE
Signed
MARI ELKA PANGESTU


Attachment to REGULATION OF THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA
No. 09/M-DAG/PER/2/2007