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DECISION OF THE DIRECTOR GENERAL OF FOREIGN TRADE
No. 17/DAGLU/KP/VII/2003

ON
IMPLEMENTING GUIDANCE OF DECREE OF THE MINISTER OF INDUSTRY AND TRADE
NO. 418/MPP/Kep/6/2003
ON
THE PROVISION ON IMPORT OF NITRO CELLULOSE (NC)

DIRECTOR GENERAL OF FOREIGN TRADE,

Considering:

• a. that in the framework of implementation of Decree of the Minister of Industry and Trade No. 418/MPP/Kep/6/2003 on Provisions on Import of Nitro Cellulose (NC), then it is considered necessary to stipulate an implementing guidance for implementation of verification or technical surveillance of import of Nitro Cellulose (NC);
• b. that, for that purpose, a Decision of the Director General of Foreign Trade has to be issued.

In View of:

• 1. Decree of the Minister of Industry and Trade No. 418/MPP/Kep/6/2003 on Provisions on Import of Nitro Cellulose (NC);
• 2. Decree of the Minister of Industry and Trade No. 479/MPP/Kep/7/2003 on Appointment of Surveyor as Executor of Verification or Technical Surveillance of Import of Nitro Cellulose (NC).

DECIDES :

To stipulate:

DECREE OF THE DIRECTOR GENERAL OF FOREIGN TRADE ON IMPLEMENTING GUIDANCE OF DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 418/MPP/Kep/6/2002 ON THE PROVISION ON IMPORT OF NITRO CELLULOSE (NC).

Article 1

(1) Nitro Cellulose (NC) which is imported based on Decree of the Minister of Industry and Trade No. 418/MPP/Kep/6/2003 must be verified/technically traced or examined by the Surveyor.

(2) Verification/technical surveillance as contemplated in (1) above shall be conducted before shipping in the loading country.

Article 2

(1) examination by the Surveyor includes:

• a. administrative examination concerning importer's identity and validity of permits and or requirements that must be fulfilled by the importer (API, TDP, NPWP, Business License).
• b. Advanced examination in the field regarding with various information and data of manufacturing country, specification of goods, chemical composition, and quantity and type of goods.

(2) Examination tags attached to the package of NC Imported goods that have been examined.

(3) Procedures and technical method of attaching the examination tag as contemplated in paragraph (2) made and implemented by the Surveyor in accordance with the prevailing common practice.

Article 3

(1) Results of examination as contemplated in article 2 are contained in a Surveyor Report or LS by the Surveyor for submission to:

• a. the relevant Importer; and
• b. Customs and Excise Service Office in the loading-unloading ports.

(2) LS as contemplated in paragraph (1) contains the following data:

• a. Importer's identity;
• b. Exporter's identity;
• c. Relevant permits and requirements;
• d. Description of type of goods;
• e. Tariff Heading HS Code;
• f. Composition of chemical elements;
• g. Quantity of goods;
• h. Planned shipping time or B/or or AWB;
• i. Manufacturing country;
• j. Goods packages;
• k. LS Number and LS issuing country;
• l. Other related information.

(3) LS Format is made with the following characteristics:

• a. printed on security paper and affixed with the Surveyor's logo and watermark;
• b. given with Security number;
• c. signed by Surveyor personnel in charge or assignee.

Article 4

(1) For the examination of NC import he carries out, the Surveyor is entitled to receive reward from the relevant importer whose NC importation is subjected to compulsory verification or technical surveillance.

(2) The amount of reward as contemplated in paragraph (1) above is adjusted to the benefit principle.

(3) Procedures and method of payment for reward that is liability of the relevant IC importer to the Surveyor shall be implemented in accordance with the prevailing common practice.

Article 5

(1) LS of document verification on the NC importation tat are obliged to be imposed with verification or technical surveillance shall take effect after 17 August 2003.

(2) To the NC importation that arrives to Indonesia after 17 August 2003, is not obliged to attach LS if Goods Import Notification (Pemberitahuan Impor Barang/PIB) for such a NC importation has been submitted to the Directorate General of Customs and Excise on or before 17 August 2003.

(3) If the NC importation that is obliged to be subjected with a prior verification or technical surveillance fails to comply with provisions in paragraphs (1) and (2), then such a NC importation must be re-exported or abolished.

Article 6

Any delay or other faults in issuing LS that is resulted from the Surveyor's negligence, either purposely or not, shall be liability of Surveyor, in accordance with the provisions applicable in international surveyor organization (International Federation of Inspection Agency/IFIA).

Article 7

(1) The Surveyor who is appointed to conduct examination of NC importation as contemplated in the Decree of the Minister of Industry and Trade No. 479/MPP/Kep/7/2003, must submit written report on the activity of verification or technical surveillance on NC import periodically every 3 (three) months to the Director General of Foreign Trade cq. The Director of Import with copy to the Director of Upstream Chemical Industry, the Directorate General of Agro Chemical Industry and Forest Products of the Ministry of Industry and Trade and the Director of Industry and Technology of the Directorate General of Defence Facility, the Ministry of Defence.

(2) Written report by the Surveyor as contemplated in paragraph (1) contains the following matters:

• a. HS Number:
• b. Total volume of NC import per importer and total volume of NC import;
• c. Total value of NC Import per invoice per importer and total value of NC import;
• d. Other related information required by the Government.

Article 8

In the event the Surveyor neglects to submit written report to the Director General of Foreign Trade of the Ministry of Industry and Trade cq. The Director of Import as contemplated in article 8, either purposely or not, the Director General of Foreign Trade shall warn and propose for revocation of appointment as Surveyor.

Article 9

(1) In the event of any dispute or controversy in implementing verification or technical surveillance of NC import, then the related parties can consult with the competent authorities.

(2) results of consultation as contemplated in paragraph (1) is unbinding in nature, and may serve as a consideration for the Agency/working unit in the related Department that has the authority to make decision.

Article 10

This Decree shall come to effect as from the date of stipulation.

Stipulated in Jakarta
On July 29, 2003
DIRECTOR GENERAL OF FOREIGN TRADE
Sgd.
SUDAR S.A.

Copies of this decision are sent to:

• 1. The Minister of Industry and Trade;
• 2. The Minister of Finance;
• 3. The First Echelons of Ministry of Industry and Trade;
• 4. The Director General of Defence Facilities, the Ministry of Defence;
• 5. The Director General of Customs and excise, Ministry of Finance;
• 6. Bank Indonesia/ULN;
• 7. The Heads of Provincial Industry and Trade Agencies throughout Indonesia.