REGULATION OF THE MINISTER OF TRADE
No. 43/M-DAG/PER/10/2007

CONCERNING
THE ISSUANCE OF CERTIFICATE OF ORIGIN FOR INDONESIAN EXPORT COMMODITY

THE MINISTER OF TRADE REPUBLIC OF INDONESIA,

Considering:

• a. that the use of certificate of origin (SKA) for Indonesian export commodity increases and develops, however trend in the misuse of SKA also increases and prevention shall be optimized;
• b. that as a consequence of Indonesia's participation in international forum so the issuance of certificate of origin shall be adjusted with international agreement and technological development either manually or through automatic system;
• c. that in relation to paragraph a and b provision on the issuance of SKA as in the Regulation of Minister of Trade No. 17/M-DAG/PER/9/2005 is not suitable and shall be revoked and reregulated;
• d. that based on consideration as in paragraph a, paragraph b and paragraph c, need Minister of Trade Regulation,

In view of:

• 1. Trade Law 1934 (Statute Book of 1938 No. 86);
• 2. Law No. 7/1994 concerning Enactment of Agreement Establishing The World Trade Organization (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3564);
• 3. Law No. 10/1995 concerning Custom Affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612) as has already been amended with Law No. 17/2006 (Statute Book of 2006 No. 93, Supplement to Statute Book No. 4661).
• 4. Law No. 37/2000 concerning the Enactment of Government Regulation to change Law No. 2/2000 concerning Free Trade Zone and Sabang Free Port into Law (Statute Book of 2000 No. 252, Supplement to Statute Book No. 4054);
• 5. Law No. 10/2004 concerning the Making of Legislation (Statute Book of 2004 No. 53, Supplement to Statute Book No. 4389);
• 6. Law No. 32/2004 concerning Regional Administration (Statute Book of 2004 No. 125, Supplement to Statute Book No. 4437);
• 7. Government Regulation No. 33/1996 concerning the Bonded Storage as amended by Government Regulation No. 43/1997;
• 8. Government Regulation No. 38/1994 concerning the Merger of the Management Company of Bonded Zone PT Pengelola Kawasan Berikat into the National Bonded Area PT Kawasan Berikat Nusantara (Statute Book of 1994 No. 67);
• 9. Government Regulation No. 38/2007 concerning the Division of Administration Affairs of Central, Province and Regency Government (Statute Book of 2007 No. 82, Supplement to Statute Book No. 4737);
• 10. Government Regulation No. 46/2007 concerning Free Trade and Free Port of Batam (Statute Book of 2007 No. 107, Supplement to Statute Book No. 4759);
• 11. Decree of President Republic of Indonesia No. 260/1967 concerning Duty and Responsibility of Minister of Trade in Foreign Trade;
• 12. Decree of President No. 58/1971 concerning Official with Authority to Issue Certifificate of Origin;
• 13. Decree of President No. 34/1989 concerning Enactment of Agreement on the Global System of Trade Preference (GSTP) Among Developing Countries;
• 14. Decree of President No. 3/1995 concerning International Coffee Agreement, 1994;
• 15. Decree of President No. 85/1995 concerning Enactment of Protocol to Amend the Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area;
• 16. Decree of President No. 187/M/2004 concerning the Composition of Union Cabinet as has already been amended some times the latest with Decree of President No. 171/M/2005;
• 17. Presidential Regulation No. 9/2005 concerning the Position, Duty, Function, Structure and Workflow of Indonesian Ministry as has already been amended some times the latest with Regulation of President No. 94/2006;
• 18. Presidential Regulation No. 10/2005 concerning Unit of Organization and Duty of Echelon I Indonesian Ministry as has already been amended some times the latest with Presidential Regulation No. 17/2007;
• 19. Presidential Regulation No. 11/2007 concerning Enactment of Framework Agreement on Comprehensive Economic Cooperation Among the Government of Southeast Asian Nations and the Republic of Korea;
• 20. Presidential Regulation No. 12/2007 concerning Enactment of Agreement on Trade In Goods Under the Framework Agreement on Comprehensive Economic Cooperation Among the Government of Southeast Asian Nations and the Republic of Korea;
• 21. Decree of Finance Minister No. 1012/KMK.00/1991 concerning Information of Exported Goods as has already been amended with Decree of Finance Minister No. 381/KMK.01/1996;
• 22. Decree of Trade Minister No. 225/Kp/X/1995 concerning Export of Goods outside General Provision on Export as has already been amended some times the latest with Decree of Trade and Industry Minister No. 317/MPP/Kep/9/1997;
• 23. Decree of Industry and Trade Minister No. 17/MPP/SK/1/1996 concerning Import and Export of Goods to and from Bonded Zone as has already been amended with Decree of Industry and Trade Minister No 120/MPP/Kep/5/1996;
• 24. Decree of Industry and Trade Minister No. 558/MPP/Kep/12/1998 concerning General Provision on Export as has already been amended some times the latest with Regulation of Trade Minister No. 01/M-DAG/PER/1/2007;
• 25. Decree of Trade Minister No 04/M/Kep/12/2004 concerning Regulation about Export of Textile and Textile Products;
• 26. Regulation of Trade Minister No. 01/M-DAG/PER/3/2005 concerning the Organization and Workflow of Trade Ministry as some times amended the latest with Regulation of Trade Minister No 34/M-DAG/PER/8/2007;
• 27. Regulation of Trade Minister No. 26/M-DAG/PER/12/2005 concerning provision on export of coffee;

HAS DECIDED:

To revoke:

REGULATION OF MINISTER OF TRADE REPUBLIC OF INDONESIA No. 17/M-DAG/PER/9/2005 CONCERNING THE ISSUANCE OF CERTIFICATE OF ORIGIN FOR INDONESIAN EXPORTED GOOD,

To stipulate:

REGULATION OF MINISTER OF TRADE REPUBLIC OFINDONESIA CONCERNING THE ISSUANCE OF CERTIFICATE OF ORIGIN FOR INDONESIAN EXPORTED GOOD.

Article 1

In this regulation the meaning of:

• 1. Certificate of origin, further called SKA, shall be document enclosed when Indonesian exported goods enter other country that shows that the goods come from, produced in and/or manufactured in Indonesia.
• 2. Form SKA shall be form with standard in shape, size, color and usage and content according to provision in bilateral, regional, multilateral agreement, unilateral action or policy of the government of Indonesia.
• 3. The office that issues SKA shall be office/institution that is decided by Minister and has authority to issue SKA.
• 4. Manual system shall be system used in the submission and filling of form, data processing, storage and administration of SKA and other activities relate to the issuance of SKA without information technology infrastructure.
• 5. Automation system shall be system used in the submission and filling of form, data processing, storage and administration of SKA and other activities relate to the issuance of SKA with information technology infrastructure.
• 6. International agreement shall be multilateral, bilateral, regional agreement and those made under the framework of international trade cooperation.
• 7. Unilateral action shall be self-imposed action from a country that require the use of SKA on exported goods from other country to get preference or non-preference;
• 8. SKA Verification shall be an investigation into the validity of SKA document and/or validity of data and information on SKA at the request of government the destination of export.
• 9. Minister shall be the Minister of Trade Republic of Indonesia.
• 10. Director General shall be Director General of Foreign Trade, Trade Ministry.

Article 2

(1) SKA consists of SKA Preference and SKA Non-Preference.

(2) SKA-Preference issued to be used in order to get discount facility or import tax compliment given by a country or group of countries to export of certain products from a country that meets requirements according to international agreement or unilateral action.

(3) SKA-Non Preference issued to be used in order to meet the standard set by a country or group of countries for export of certain goods from a country based on international agreement or unilateral action.

Article 3

(1) The application of type and structure of form SKA preference and non-preference as in Article 2 is set according to regulation based on international agreement or unilateral decision including a decision by the government of Indonesia.

(2) Type and structure of form SKA and provision on the usage of SKA as in paragraph (1) can be added and or reduced in accordance to the need based on progress of international agreement or unilateral decision including a decision by the government of Indonesia that occurs after the stipulation of this ministerial regulation.

(3) Type and structure of form SKA and provision on its usage as in paragraph (2) set by minister.

(4) The minister delegates the stipulation of type and structure of form SKA asn provision of its usage as in paragraph (3) to the director general.

Article 4

(1) Type and structure of form SKA set by the government of Indonesia as in Article 3 paragraph (2) applied on certain commodities the export of which requires SKA.

(2) Certain commodities the export of which requires SKA as in paragraph (i) set by the minister.

(3) The minister delegates the stipulation on certain commodities as in paragraph (2) to the Director General.

Article 5

(1) The issuance of SKA is made through manual and automatic system.

(2) Provision and procedure of the issuance of SKA through manual and automatic system as in paragraph (1) is regulated further with regulation of director general.

Article 6

(1) Every issuance of SKA shall be made at the request of exporter.

(2) To get SKA as in paragraph (1), exporter shall;

• a. submit proposal for the issuance of SKA; and
• b. fill in form SKA in accordance with type and usage and submit it to the issuer of SKA.

(3) The letter of request for SKA issuance and form SKA as in paragraph (2) can be obtained from SKA issuing office or website.

(4) The request for SKA issuance as in paragraph (2) shall be attached with documents:

• a. copy of the information of export (PEB) checked by custom office at the loading port or print out PEB made through electronic data exchange attached with export agreement (PE);
• b. original copy Bill of Lading (B/L) or copy of Air Way Bill (AWB) or copy of cargo receipt if the export takes land transport;
• c. invoice;
• d. packing list and or
• e. other document in accordance with SKA based on its usage.

(5) Submission of proposal for the issuance of SKA and already-filled SKA form can be made through manual and automatic system.

(6) Submission of proposal for SKA issuance through automatic system can be made in 3 ways:

• a. submitting proposal for SKA issuance and has already filled SKA form, stored in data storage like disc flashdisk/CD;
• b. submitting proposal for SKA issuance and has already filled SKA form through e-mail;
• c. fill in and submit proposal through website.

(7) Document as in paragraph (4) can be submitted at a time of submission of proposal orbefore SKA is signed in by official.

Article 7

(1) Proposal to issue SKA for export commodity shall be equipped with documents:

• a. invoice of the purchase of good; and
• b. copy of ID card for Indonesian citizen or passport for expatriate or letter of assignment from; owner of commodity if it uses express mail service.

(2) Stipulation on export commodity for certain purpose as in paragraph (1) set by director general.

Article 8

(1) concerning proposal for SKA issuance as in Article 6, SKA issuing office shall check validity of information from exporter and check the document.

(2) Within one workday since the receipt of proposal from exporter, the SKA issuing office shall give response to the proposal with:

• a. the issuance of SKA; or
• b. writing notification about the rejection to the proposal and the reasons.

Article 9

(1) Agency/Office/Institute stated as the issuer of SKA is:

• a. Agency or regional office that handles trade in province/regency/municipality further called Agency or regional office at province/regency/ municipality which has met efficiency and effectiveness of SKA issuance;
• b. PT Berikat Nusantara bonded zone and its business units in Jakarta;
• c. Industrial Development Authority (OPDI) in Batam; and
• d. Tobacco Institute in Surakarta and Medan, Commodity Examination and Certification in Surabaya and Jember.

(2) The declaration that an Agency is the SKA issuer as in paragraph (1) is made by Director General on behalf of Minister.

Article 10

Based on efficiency and effectiveness on the SKA issuance, Director General on behalf of Minister can:

• a. decide the increase and/or reduction of agency that issue SKA as in Article 8 paragraph (1);
• b. decide agency the issuer of SKA with authority to issue SKA for certain commodity as in Article 4 paragraph (2); and
• c. decide which agency issue SKA with manual system and which and with automatic system.

Article 11

(1) Each SKA shall be signed by authorized official at each of SKA issuer.

(2) Official with authority to sign SKA shall be the one that handle foreign trade at SKA issuer office as in paragraph (1), they are:

• a. Official assigned to sign SKA;
• b. Official substitute I; or
• c. Official substitute II.

(3) The official with authority to sign SKA as in paragraph (2) is decided by director general at the proposal from agencies stated as SKA issuer.

(4) Official the SKA issuer as ih paragraph (2) sub-paragraph a:

• a. shall hand over to official substitute I or official substitute II as in paragraph (2) sub-paragraph b and sub-paragraph c if unable to sign SKA;
• b. can divide authority and responsibility in SKA signing with official substitute I or official substitute II as in paragraph(2) sub-paragraph b and sub-paragraph c based on work load and volume of SKA issuer at SKA issuer.

(5) In a case of replacement of official assigned to sign SKA and or official substiute, the officials stated before the replacement still have the authority and responsibility to sign until the successor declared by director general based on definitive list of the successor and specimen of signature presented by head of the agency declared the issuer of SKA by director general.

Article 12

(1) In crisis condition that disrupts the SKA issuance with automatic process as in Article 8 paragraph (2), SKA issuance can be made with non automatic system.

(2) The crisis/force majeur as in paragraph (1) is:

• a. natural disaster such as flood, quake, landslide and other natural disaster;
• b. fire, electricity blackout and theft; and or
• c. infrastructure damage.

(3) The issuance of SKA with non-automatic process is temporary until the crisis is handled.

Article 13

The exporter can choose the place to issue SKA at the agencies based. on area of work:

• a. SKA issuer whose area of work covers area of production;
• b. SKA issuer whose area of work covers the location of Bank Devisa for export correspondence;
• c. SKA issuer whose area of work covers custom office that issue PEB or a place where PES gets export approval from custom official;
• d. SKA issuer whose area of work covers location to purchase commodity;
• e. SKA issuer whose area of work covers location to transport commodity;
• f. The nearest office of SKA issuer.

Article 14

For the export of certain commodity as in Article 4 paragraph (2), exporter can only submit proposal of SKA issuance to certain SKA issuer agency stated by director general on behalf of minister.

Article 15

(1) Every SKA issued by SKA issuer shall get stamps like example in the attachment I of this regulation and the inclusion of code number of the respective areas of SKA issuer according to code number like example in the attachment II of this regulation.

(2) Changing of regional code number like in the attachment II of this regulation stated by director general based on regional development after implementation of this regulation.

Article 16

The agency that issues SKA shall store and keep the SKA archive and related document at least three months since the issuance of SKA.

Article 17

(1) SKA issuance office shall present report of SKA issuance every 1 month to director general in this case the director of export and import facility at the Trade Ministry.

(2) Director general in this case Director of Export and Import Facility at Trade Ministry makes an evaluation into report of SKA issuance as in paragraph (1) and all impleme.ntation of SKA issuance at SKA issuer agency.

(3) Director general presents report of evaluation as in paragraph (2) to the minister.

Article 18

(1) SKA issuer agency shall respond and resolute any demand for SKA verification from the government/ agency in country of export destination.

(2) Exporter related to verification as in paragraph (1) shall give information and data.

Article 19

(1) Violation to provision in this regulation of minister and its derivative face the following sanction:

• a. If the violation conducted by Official or Official Substitute at SKA Issuer Agency their authority will be stripped off and or other sanctions, based on civil servants regulation and other existing laws; or
• b. If the violation conducted by exporter there will be cancellation of the SKA issuance and/or sanction of the revocation of business license or other sanctions from the existing regulation.

(2) If the violation conducted by Official or Official Substitute at SKA issuer office as in paragraph (1) sub-paragrapha for three consecutive times, Minister can increase the sanctionl apart from sanction in paragraph (1), on SKA issuer office in the form of reduction in authority or cancellation of its status as SKA issuer.

Article 20

(1) Provision related to the issuance of SKA in other regulations is declared effective as long as they do not contradict this ministerial regulation and/or until the issuance regulation that replaces this regulation.

(2) SKA issued based on Regulation of Trade Minister No. 17/M-DAG/PER/9/2005 concerning Certificate of Origin for Indonesian Export Commodity is declared effective until the SKA expired.

(3) SKA issuer office stated to issue SKA and Official assigned to sign SKA and/or its Official Substitute that has authority to sign SKA based on Regulation of Trade Minister No. 17/M-DAG/PER/9/2005 concerning Certificate of Origin for Indonesian Export Commodity can still do their duties until a new provision state otherwise.

Article 21

Supervision into the implementation of this regulation is conducted by Director General.

Article 22

Other provision and procedure of implementation related to the SKA issuance which has not been regulated in this regulation can be regulated further by Director General.

Article 23

This regulation is effective 14 days since the date of stipulation.

For Public cognizance, it is ordered that the regulation shall be published in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
October 8, 2007
MINISTER OF TRADE REPUBLIC OF INDONESIA
Signed.
MARI ELKA PANGESTU