DECISION OF THE DIRECTOR GENERAL OF FOREIGN TRADE
No. 31/DAGLU/KP/X/2004

ON
TECHNICAL PROVISIONS ON THE IMPLEMENTATION OF DECREE OF THE MINISTER OF INDUSTRY AND TRADE
NO. 527/MPP/KEP/9/2004 AS WELL AS PROCEDURES AND MECHANISMS
OF VERIFICATION OR TECHNICAL SURVEILLANCE OF THE IMPORT OF SUGAR

THE DIRECTOR GENERAL OF FOREIGN TRADE,

Considering:

a. that in connection with the issuance of Decree of the Minister of Industry and Trade No. 527/MPP/Kep/9/2004 on provisions on the import of sugar and Decree of the Minister of Industry and Trade No. 594/MPP/Kep/9/2004 on appointment of surveyors executing verification or technical surveillance of the import of sugar, it is necessary to stipulate technical directives for the said decree and procedures and mechanisms of verification or technical surveillance of the import of sugar;
b. that in relation thereto, it is necessary to issue a decision of the Director General of Foreign Trade;

In view of:

1. Decree of the Minister of Industry and Trade No. 527/MPP/Kep/9/2004 on provisions on the import of sugar;
2. Decree of the Minister of Industry and Trade No. 594/MPP/Kep/9/2004 on appointment of surveyors executing verification or technical surveillance of the import of sugar;

DECIDES

To stipulate:

THE DECISION OF THE DIRECTOR GENERAL OF FOREIGN TRADE ON TECHNICAL PROVISIONS ON THE IMPLEMENTATION OF DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 527/MPP/KEP/9/2004 AS WELL AS PROCEDURES AND MECHANISMS OF VERIFICATION OR TECHNICAL SURVEILLANCE OF THE IMPORT OF SUGAR.

Article 1

Referred to in this decision as:

1. Sugar shall be raw sugar, refined sugar and plantation white sugar.
2. Raw sugar shall be sugar used as raw material of production, subsumed into Tariff Heading/HS.1701.11.00.00 and 1701.12.00.00.
3. Refined sugar shall be sugar used as raw material of production, subsumed into Tariff Heading/HS.1701.99.11.00 and 1701.99.19.00.
4. Plantation white sugar shall be sugar, which can be consumed directly without further process, subsumed into Tariff Heading/HS.1701.91.00.00 and 1701.99.90.00.
5. Verification or technical surveillance shall be inspection of the import of sugar as meant in Decree of the Minister of Industry and Trade No. 527/MPP/Kep/9/2004.
6. IP Sugar shall be importers already securing recognition as producing importers of sugar in accordance with the provision in Decree of the Minister of Industry and Trade No. 527/MPP/Kep/9/2004.
7. IT Sugar shall be importers already appointed as registered importers of sugar in accordance with the provision in Decree of the Minister of Industry and Trade No. 527/MPP/Kep/9/2004.
8. Surveyors shall be survey companies appointed by the Minister of Industry and Trade to verify or undertake technical surveillance of the import of sugar as meant in Decree of the Minister of Industry and Trade No. 594/MPP/Kep/9/2004 on the appointment of surveyors executing verification or technical surveillance of the import of sugar.

Article 2

(1) Starting from September 17, 2004, the import of raw sugar and refined sugar by companies already securing appointment as IP Sugar shall meet the requirements in accordance with the provision in Article 2 paragraph (1) of Decree of the Minister of Industry and Trade No. 527/MPP/Kep/9/2004, namely:

a. raw sugar must have ICUMSA Number of 1,200 IU at the minimum;
b. refined sugar must have ICUMSA Number of 45 IU at the maximum.

(2) The exception from the provision as meant in paragraph (1) shall be given to IP Sugar with the provision as follows:

a. IP Sugar must have evidence of purchasing contract of refined sugar from exporters abroad, which is made legally before September 17, 2004;
b. IP Sugar must have documents of Bill of Lading (B/L) as evidence that the imported refined sugar already shipped and to arrive at destination port in the Indonesian territory after September 17, 2004.
c. Refined sugar imported by IP sugar as meant in letters a and b must arrive at destination port in the Indonesian territory before December 17, 2004, proven by date of customs registration in the form of manifest (B.C. 1.1) in accordance with the customs provisions in force.

(3) Violation of the provision as meant in paragraphs (1) and (2) shall be subjected to sanction in accordance with the provision in Article 19, Article 20 and/or Article 21 of Decree of the Minister of Industry and Trade No. 527/MPP/Kep/9/2004.

Article 3

(1) Starting from September 17, 2004, the import of plantation white sugar by companies already securing appointment as IT Sugar shall meet the requirements in accordance with the provision in Article 7 paragraph (1) of Decree of the Minister of Industry and Trade No. 527/MPP/Kep/9/2004, namely the plantation white sugar must have ICUMSA Number of between 100 IU and 300 IU.

(2) Violation of the provision as meant in paragraph (1) shall be subjected to sanction in accordance with the provision in Article 19, Article 20 and/or Article 21 of Decree of the Minister of Industry and Trade No. 527/ MPP/Kep/9/2004.

Article 4

The import of raw sugar and refined sugar by IP Sugar as well as plantation white sugar by IT Sugar and the import of sugar in the framework of grant, starting from December 18, 2004, shall be subjected to verification or technical surveillance by surveyors in loading countries of sugar as meant in Article 14 of Decree of the Minister of Industry and Trade No. 527/MPP/Kep/9/2004.

Article 5

(1) Verification or technical surveillance of surveyors shall include:

a. administrative examination of identity and legitimacy of licensing related to IP Sugar and IT Sugar and information in the framework of the provision of grant;
b. technical/field inspection in loading countries of sugar with regard to information and data on countries of origin of loading of sugar, name, address of exporters, specifications of sugar covering HS number, description of sugar, quantity and kind of sugar, shipment date in the framework of adjustment of the validity period of import approval and destination port.

(2) The inspection mark shall be attached to package of import transport of sugar already verified or subjected to technical surveillance in the form of seal or label.

(3) Procedures and technical mechanisms of giving of inspection mark as meant in paragraph (2) shall be made and implemented by surveyor in accordance with the standards in force.

Article 6

(1) Results of verification or technical surveillance of the import of sugar as meant in Article 5 shall be mentioned in Surveyor Report or LS by surveyors to be subsequently conveyed to:

a. the said importers; and
b. Customs and Excise Service Office in destination port.

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

a. HS Code;
b. description, kind and quantity of sugar;
c. shipment date plan, BL and AWB;
d. destination port;
e. country of origin of sugar;
f. identity of importer;
g. identity of exporter;
h. license and technical requirement;
i. sugar package;
j. Number of LS and country where verification or technical surveillance is executed;
k. other related information.

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

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

Article 7

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

(2) The import of sugar arriving at destination ports in the Indonesian territory not later than December 17, 2004 shall not be subjected to the obligation to enclose LS as the import document as meant in paragraph (1).

Article 8

(1) Based on the implemented verification or technical surveillance, surveyors shall entitle to obtain compensation from importers/importing institutions/grantors.

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

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

Article 9

The lateness or other mistake in the issuance of LS attributed to negligence of surveyors intentionally or unintentionally shall become responsibility of surveyors in accordance with the provisions effective in the International Federation of Inspection Agency (IFIA).

Article 10

(1) Surveyors shall convey written reports on activities of verification or technical surveillance of the import of sugar periodically, every one month, in the first week of the ensuing month to the Director General of Foreign Trade in this case the Director of Import, Ministry of Industry and Trade, with a copy made available to:

a. the Director General of Chemical, Agro and Forest Product Industries, in this case the Director of Agro Industries, Ministry of Industry and Trade;
b. the Director General of Agricultural Product Processing and Marketing Development in this case the Director General of Plantation Production Development, Ministry of Industry and Trade;
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 by surveyors as meant in paragraph (1) shall contain the following matters:

a. number of LS;
b. import volume of sugar per HS per importer and total import volume;
c. import value of sugar per HS per importer and total import value;
d. loading port and destination port;
e. other related information needed by the government.

Article 11

In the case of surveyors being negligent to convey 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 10 intentionally or due to negligence, the Director General of Foreign Trade shall remind and can recommend revocation of appointment as surveyors.

Article 12

(1) In the case of dispute or divergent views arising from the implementation of verification or technical surveillance of the import of sugar, the related parties can consult with the Sugar 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 (1) shall not be binding, but becoming substances of recommendation of the Sugar Import Monitoring Team to be further conveyed to institution/working unit within the ministries concerned, which are authorized to make decision.

Article 13

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

Stipulated in Jakarta
On October 4, 2004
THE DIRECTOR GENERAL OF FOREIGN TRADE,
sgd
SUDAR S.A.

DECISION OF THE DIRECTOR GENERAL OF FOREIGN TRADE No. 31/DAGLU/KP/X/2004

ON TECHNICAL PROVISIONS ON THE IMPLEMENTATION OF DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 527/MPP/KEP/9/2004 AS WELL AS PROCEDURES AND MECHANISMS OF VERIFICATION OR TECHNICAL SURVEILLANCE OF THE IMPORT OF SUGAR