REGULATION OF THE MINISTER OF TRADE
No. 21/M-DAG/PER/6/2009

CONCERNING
AMENDMENT TO REGULATION OF THE MINISTER OF TRADE NO. 08/M-DAG/PER/2/2009
CONCERNING PROVISIONS ON THE IMPORT OF IRON OR STEEL

BY GRACE OF THE ALMIGHTY GOD,
THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA,

Considering:

• a. that to support the effective implementation of policies in the import of iron or steel, it is necessary to amend Regulation of the Minister of Trade No. 08/M-DAG/PER/2/2009 concerning Provisions on the Import of Iron or Steel;
• b. that based on the consideration in paragraph a, it is necessary to stipulate Regulation of the Minister of Trade;

In view of:

• 1. Trade Law 1934 (Statute Book No. 86/1938);
• 2. Law No. 5/1984 concerning Industry (Statute Book No. 22/1984, Supplement to Statute Book No. 3274);
• 3. Law No. 7/1994 concerning the Ratification of Agreement Establishing The World Trade Organization (Statute Book No. 57/1994, Supplement to Statute Book No. 3564);
• 4. Law No. 10/1995 concerning Customs (Statute Book No. 75/1995, Supplement to Statute Book No. 3612) as amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);
• 5. Presidential Decree No. 260/1967 concerning the Affirmation of Tasks and Responsibilities of the Minister of Trade in the Field of Foreign Trade;
• 6. Presidential Decree No. 187/M/2004 concerning the Formation of United Indonesia Cabinet as has been amended the latest by Presidential Decree No. 171/M/2005;
• 7. Presidential Regulation No. 9/2005 concerning the Position, Task, Function, Organizational Structure and Work Mechanism of Ministries of the Republic of Indonesia that is several times amended the latest by Presidential Decree No. 20/2008;
• 8. Presidential Regulation No. 10/2005 concerning the Organizational Unit and Task of Echelon I Officials of Ministries of the Republic of Indonesia that is several times amended the latest by Presidential Regulation No. 50/2008;
• 9. Decree of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 concerning General Provisions in the Import;
• 10. Regulation of the Minister of Trade No. 01/M-DAG/PER/3/2005 concerning the Organizational Structure and Work Mechanism of the Ministry of Trade that is amended the latest by Regulation of the Minister of Trade No. 34/M-DAG/PER/8/2007;
• 11. Regulation of the Minister of Trade No. 31/M-DAG/PER/7/2007 concerning Importer's Identification Numbers (API);
• 12. Regulation of the Minister of Finance No. 96/PMK.011/2008 concerning the Setting of Import Duty Tariffs under User Specific Duty Free Scheme (USDFS) within the Framework of Agreement between the Republic of Indonesia and Japan on Economic Partnership;
• 13. Regulation of the Minister of Trade No. 08/M-DAG/PER/2/2009 concerning Provisions on the Import of Iron or Steel;

DECIDES:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING AMENDMENT TO REGULATION OF THE MINISTER OF TRADE NO. 08/M-DAG/PER/2/2009 CONCERNING PROVISIONS ON THE IMPORT OF IRON OR STEEL

Article I

Several provisions in Regulation of the Minister of Trade No. 08/M-DAG/PER/2/2009 concerning Provisions on the Import of Iron or Steel shall be amended as follows:

1. Provisions in Article 1 point 1, point 2 and point 3 shall be amended so that Article 1 will read as follows:

"Article 1

In this Ministerial Regulation:

1. Iron or steel is the product of alloy carbon iron works with a number of further alloy elements and polluting elements, and/or goods produced from the product.

2. Iron or steel importer producer, hereinafter called as iron or steel IP, is a company which holds an industrial business permit or other business permit which imports iron or steel in the interests of its production process or a company which holds an industrial business permit or other business permit which imports iron or steel for own use to support its production process or its business activities.

3. Registered iron or steel importer, hereinafter called as iron or steel IT, is a company which holds a business permit which imports iron or steel for distribution to producing companies or end users.

4. Technical import verification or inspection is a technical audit of iron or steel products conducted by a surveyor in the port of loading.

5. Surveyor is a survey company which has the authority to conduct technical verification and inspection of imported goods.

6. Minister is the Minister of Trade.

7. Director General is the Director General of Foreign Ministry of Trade of Trade."

2. Provisions in Article 3 shall be amended so that it will read as follows:

"Article 3

(1) To obtain a certificate of recognition as iron or steel IP or a certificate of declaration as iron or steel IT as intended in Article 2 paragraph (1) companies shall file applications to the Director General, accompanied by the following documents:

• a. Importer's Identification Number (API):
• 1) Producer Importer's Identification Number/Limited Importer's Identification Number/Special Importer's Identification Number (API-P/API-T/API-K), for companies as iron or steel IP; or
• 2) General Importer's Identification Number (API-U), for companies as iron or steel IT;
• b. Certificate of Company Registration (TDP), except for oil and gas contractors under cooperation contract (KKKS);
• c. Taxpayer code number (NPWP);
• d. Customs identification number (NIK); and
• e. Technical considerations from the director general of technical guidance overseeing industry or energy and mineral resources.

(2) The certificate of recognition as iron or steel IP or a certificate of declaration as iron or steel IT as intended in paragraph (1) shall be valid until the expiry of this Ministerial Regulation."

3. In between Article 3 and Article 4, shall be inserted Article 3A which reads as follows:

"Article 3A

Each company can only hold 1 (one) certificate of recognition as iron or steel IP or certificate of declaration as iron or steel IT."

4. Provisions in Article 5 paragraph (5) shall be amended so that it will read as follows:

"Article 5

(1) Any import of iron or steel by iron or steel IP or iron or steel IT shall be subject to a prior technical import verification or inspection by a surveyor at the port of loading before being shipped.

(2) The technical import verification or inspection by a surveyor as intended in paragraph (1) shall cover types of goods, classifications of goods/10 (ten) digit heading numbers, quantity and port of destination.

(3) The results of technical import verification or inspection by a surveyor as intended in paragraph (1) shall be put in a surveyor's report (LS) which will serve as a supplement to customs document in customs settlement in the import sector.

(4) All expenses arising from technical import verification or inspection by a surveyor as intended in paragraph (1) shall be borne by the relevant iron or steel IP or iron or steel IT.

(5) The technical import verification or inspection as intended in paragraph (1) does not apply to iron or steel imported or iron or steel taken into other place in a customs area of free trade area and free port as well as bonded hoarding place by:

• a. Iron or steel IP in the automotive industry and its components, the electronic industry and its components, the ship building industry and its components and the heavy-duty equipment industry and its components;
• b. Iron or steel IP or iron or steel IT that has secured a certificate of declaration as priority lane importer from the Directorate General of Customs and Excise of the Ministry of Finance;
• c. User industry that holds a Certificate of Industrial Verification (SKVI) through the User Specific Duty Free Scheme (USDFS) or other scheme facilities set by the Minister of Finance based on an international (bilateral/regional/multilateral) agreement involving the Government of the Republic of Indonesia containing provisions on the import of iron or steel;
• d. Company that holds a still valid Certificate of Industrial Verification (SKVI) through the Government-Borne Import Duty (BM-DTP) facility;
• e. Oil and gas contractor-under a cooperation contract (oil and gas contractor under KKS), mining company under a contract of work, company executing the construction and development of power plants in the interests of the public, and company executing development to serve public interests in the field of downstream oil and gas businesses."

5. In between Article 6 and Article 7, shall be inserted Article 6 A which reads as follows:

"Article 6A

(1) Iron or steel of import origin released from a free trade area and a free port as well as from a bonded hoarding place to other place in a customs area shall comply with this Ministerial Regulation.

(2) Iron or steel of import origin as intended in paragraph (1) shall be subject to a prior technical import verification or inspection by a surveyor in the area of the goods in question."

6. Provisions in Article 9 shall be amended so that it will read as follows:

"Article 9

Provisions in this Ministerial Regulation do not apply to:

• a. iron or steel referred to in Article 25 paragraph (1) and Article 26 paragraph (1) of Law No. 10/1995 concerning Customs that is amended by Law No. 17/2006;
• b. temporarily-imported iron or steel;
• c. iron or steel taken into a free trade area and a free port as well as a bonded hoarding place."

7. Article 10 shall be amended so that it will read as follows:

"Article 10

(1) LS as a document that must be submitted by iron or steel IP or iron or steel IT to serve as a supplement to customs documents in customs settlement in the import sector as intended in Article 5 paragraph (3) shall begin to take effect 45 (forty five) days after the stipulation date of this Ministerial Regulation.

(2) LS as intended in paragraph (1) shall be evidenced by customs document in the form of manifest (BC.1.1)."

8. In between Article 12 and Article 13, shall be inserted Article 12 A, Article 12B and Article 12 C which read as follows:

"Article 12A

Iron or steel IP and iron or steel IT that have been issued based on Regulation of the Minister of Trade No. 08/M-DAG/PER/2/2009 concerning Provisions on the Import of Iron or Steel shall remain valid and be treated in accordance with this Ministerial Regulation.

Article 12B

The obligation of iron or steel IP for user industry as intended in Article 5 paragraph (5) letter c and company as intended in Article 5 paragraph (5) letter d and letter e shall begin to take effect 30 (thirty) days after the stipulation date of this Ministerial Regulation.

Article 12C

When this Ministerial Regulation begins to take effect, point 1 of Attachment I to Regulation of the Minister of Trade No. 12/M-DAG/PER/3/2009 concerning the Delegation of Authority to Issue Licenses in the Foreign Trade Sector to the Management Board of the Batam Free Trade Zone and Free Port, the Management Board of the Bintan Free Trade Zone and Free Port and the Management Board of the Karimun Free Trade Zone and Free Port shall be declared null and void."

9. Attachment I to Regulation of the Minister of Trade No. 08/M-DAG/PER/2/2009 concerning Provisions on the Import of Iron or Steel shall be changed so that it becomes as attached to this Ministerial Regulation.

Article II

This Ministerial Regulation shall come into force as from the date of stipulation.

For public cognizance, this Ministerial Regulation shall be announced by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on June 11, 2009
THE MINISTER OF TRADE,
signed,
MARI ELKA PANGESTU