DECISION OF THE DIRECTOR GENERAL OF FOREIGN TRADE
NO. 11/DAGLU/KP/IV/2004

CONCERNING
PROVISIONS AND PROCEDURES FOR VERIFICATION AND TECHNICAL INQUIRY
IN THE FRAMEWORK OF IMPLEMENTING
DECREE OF THE MINISTER OF INDUSTRY AND TRADE
NO. 9/MPP/Kep/I/2004
CONCERNING PROVISIONS ON THE IMPORT OF RICE

THE DIRECTOR GENERAL OF FOREIGN TRADE,

Considering:

• a. that in the framework of implementing Decree of the Minister of Industry and Trade No. 9/MPP/Kep/I/2004 concerning provisions on the import of rice, it is necessary to stipulate technical directives for verification or technical inquiry of the import of rice, rice in the husk suitable to seedling (seed), glutinous rice and rice flour as well as other flour;
• b. that in relation thereto, a decision of the Director General of Foreign Trade needs to be issued;

In view of:

Decree of the Minister of Industry and Trade No. 9/MPP/Kep/I/2004 concerning provisions on the import of rice;

DECIDES:

To stipulate:

THE DECISION OF THE DIRECTOR GENERAL OF FOREIGN TRADE REGARDING PROVISIONS AND PROCEDURES FOR VERIFICATION AND TECHNICAL INQUIRY IN THE FRAMEWORK OF IMPLEMENTING DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 9/MPP/Kep/I/2004 CONCERNING PROVISIONS ON THE IMPORT OF RICE.

Article 1

Referred to in this decision as:

• 1. Rice, rice in the husk suitable to seedling (seed), glutinous rice, rice flour and other flour shall be as meant in Decree of the Minister of Industry and Trade No.9/MPP/Kep/I/2004 concerning provisions on the import of rice.
• 2. Verification or technical inquiry shall be inspection of the import of rice, rice, rice in the husk suitable to seedling (seed), rice flour and other flour as meant in Decree of the Minister of Industry and Trade No. 9/MPP/Kep/I/2004.
• 3. Rice Producing Importers shall be importers already securing recognition as Rice Producing Importers in accordance with the provisions in Decree of the Minister of Industry and Trade No. 9/MPP/Kep/I/2004.
• 4. Rice Registered Importers shall be importers already appointed as Rice Registered Importers in accordance with the provisions in Decree of the Minister of Industry and Trade No. 9/MPP/Kep/I/2004.
• 5. Surveyors shall be survey companies appointed by the Minister of Industry and Trade to verify or inquire technically the import of rice, rice in the husk suitable to seedling (seed), rice flour and other flour.

Article 2

(1) Verification or technical inquiry by surveyors shall include:

• a. administrative examination of identities and legitimacy of licenses, including requirements which must be fulfilled by Rice Producing Importers and Rice Registered Importers.
• b. field inspection of information and data on countries of origin of rice, rice, rice in the husk suitable to seedling (seed), rice flour and other flour, specification covering HS, description of goods, quantity and kind and shipment date as well as destination seaports.

(2) The mark of inspection shall be attached to package of transport of the import of rice, rice in the husk suitable to seedling (seed), rice flour and other flour already verified or inquired technically in the form of seal or label.

(3) Technical procedures and mechanism of granting of the mark of inspection as meant in paragraph (2) shall be made and implemented by surveyors in accordance with the standards in force.

Article 3

(1) Results of verification or technical inquiry of rice, rice in the husk suitable to seedling (seed), glutinous rice, rice flour and other flour as meant in Article 2 shall be mentioned into Surveyor Report or LS by surveyors to be subsequently conveyed to:

• a. the said importers; and
• b. Customs and Excise Service Office at destination seaports.

(2) LS as meant in paragraph (1) shall contain data on:

• a. Code of HS;
• b. Description, kind and quantity of goods;
• c. Shipment plan, BL or AWB;
• d. Destination seaport;
• e. Country of origin of rice;
• f. Identity of importer;
• g. Identity of exporter;
• h. License and requirements concerned;
• i. Package of rice;
• j. Number of LS and country where verification or technical inquiry is executed;
• k. Other information concerned.

(3) The format of LS shall be made with characteristics as follows:

• a. being printed on security paper and given logo and watermark of surveyor;
• b. being given security number.

Article 4

LS as meant in Article 3 shall constitute import document which must be attached, and other documents to Import Declaration (PIB).

Article 5

(1) In connection with verification or technical inquiry of rice, rice in the husk suitable to seedling (seed), glutinous rice, rice flour and other flour, surveyors shall entitle to obtain a compensation from importers/importing institutions,/grantors importing rice, rice in the husk suitable to seedling (seed), glutinous rice, rice flour and other flour subjected to the obligation of verification or technical inquiry.

(2) The amount of the compensation as meant in paragraph (1) shall be adjusted to the principles of benefit.

(3) Procedures and mechanisms of payment of the compensation from the relevant importers/importing institutions/grantors to surveyors shall be in accordance with the standards in force.

Article 6

The import of rice, rice in the husk suitable to seedling (seed), glutinous rice, rice flour and other flour arriving at destination seaports in the Indonesian territory not later than January 20,2004 shall be exempted from the obligation to attach LS as the import document as meant in Article 4.

Article 7

Lateness or other mistakes in the issuance of LS attributable to negligence of surveyors directly or indirectly shall become responsibility of surveyors in accordance with the provisions in force in the International Federation of Inspection Agency (IFIA).

Article 8

(1) Surveyors shall convey written report on activities of verification or technical inquiry of the import of rice, rice in the husk suitable to seedling, glutinous rice, rice flour and other flour periodically, once per month, in the first week of the ensuing month to the Director General of Foreign Trade in this case of the Director of Import, Ministry of Industry and Trade with a copy made available to:

• a. the Director General of Chemical, Agra and Forest Product Industries in this case the Director of Agro Industry, Ministry of Industry and Trade;
• b. the Director General of Agricultural Product Processing and Marketing Development in this case the Director of Food Crop Processing and Marketing, Ministry of Agriculture;
• c. the Director General of Domestic Trade in this case the Director of Market and Distribution Development, Ministry of Industry and Trade.

(2) The written report as meant in paragraph (I) shall contain the following information:

• a. the quantity of LS;
• b. the volume of imported rice by HS per importer and the total import volume,
• c. import value of rice by HS per importer and the total import value;
• d. other related information needed by the government.

Article 9

In the case of surveyors being negligent to convey the written report to the Director General of Foreign Trade in this case the Director of Import, Ministry of Industry and Trade as meant in Article 8, intentionally or due to their negligence, the Director General of Foreign Trade shall warn and can recommend revocation of appointment as surveyors.

Article 10

(1) In the case of any dispute or divergent view over the implementation of verification or technical inquiry of the import of rice, rice in the husk suitable to seedling, glutinous rice, rice flour and other flour, the parties in dispute can consult with the Rice Import Monitoring Team established on the basis of a decision of the Director General of Foreign Trade, Ministry of Industry and Trade.

(2) Results of the consultation as meant in paragraph (i) shall not be binding but function as substance of the Monitoring Team to be conveyed further to the institution/working unit concerned in the Ministry of Industry and Trade for making decision.

Article 11

The decision shall come into force as from the date of stipulation.

Stipulated in Jakarta
On April 13, 2004
THE DIRECTOR GENERAL OF FOREIGN TRADE
sgd
SUDAR S.A.