REGULATION OF THE MINISTER OF TRADE
No. 23/M-DAG/PER/6/2009

CONCERNING
PROVISIONS ON THE IMPORT OF TEXTILES AND TEXTILE PRODUCTS

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

Attachment

Considering:

a. that in connection with the ever increasingly conducive developments in the domestic industry and market of textiles and textile products (TPT) and in an effort to maintain and improve the competitive edge of the national TPT industry, it is necessary to re-stipulate a policy on the import of Textiles and Textile Products;

b. that in consideration of the matter in a, it is necessary to stipulate a Regulation of the Minister of Trade;

In view of:

1. Trade Ordinance of 1934 (Statute Book No. 86/1938);

2. Law No. 5/1984 concerning Industrial Affairs (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) that is amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);

5. Law No. 5/1999 concerning Ban on Monopolistic Practices and Unfair Business Competition (Statute Book No. 33/1999, Supplement to Statute Book No. 3806);

6. Law No. 8/1999 concerning Consumer Protection (Statute Book No. 42/1999, Supplement to Statute Book No. 3821);

7. Presidential Decision No. 260/1967 concerning the Affirmation of Tasks and Responsibilities of the Minister of Trade in Foreign Trade Field;

8. Presidential Decision No. 187/M/2004 concerning the Formation of United Indonesia Cabinet that is amended by Presidential Decision No. 171/M/2005;

9. Presidential Regulation No. 9/2005 concerning the Position, Task, Function, Organizational Structure and Work Mechanism of Ministries of the Republic of Indonesia that is amended the latest by Presidential Regulation No. 20/2008;

10. Presidential Regulation No. 10/2005 concerning Organizational Units and Tasks of First Echelon Officials of Ministries of the Republic of Indonesia that is amended the latest by Presidential Regulation No. 50/2008;

11. Decision of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 concerning General Provisions in Import;

12. Decision of the Minister of Industry and Trade No.141/MPP/Kep/3/2002 concerning Special Importer Identity Numbers (NPIK) that is amended by Regulation of the Minister of Trade No. 07/M-DAG/PER/3/2008;

13. 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 by Regulation of the Minister of Trade No. 34/M-DAG/PER/8/2007;

14. Regulation of the Minister of Trade No. 31/M-DAG/PER/7/2007 concerning Importer's Identity Numbers (API);

15. Regulation of the Minister of Trade No. 56/M-DAG/PER/12/2008 concerning Provisions on the Import of Certain Products;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS ON THE IMPORT OF TEXTILES AND TEXTILE PRODUCTS.

Article 1

In this Ministerial Regulation:

1. "Textiles and textile products" hereinafter abbreviated as TPT, refers to sheets of fabrics and products using sheets of fabrics as raw materials or auxiliary materials.

2. "Textile producer importers" hereinafter abbreviated as IP-Textile, refers to companies holding producer importer's identity numbers (API-P) or limited importer's identity numbers (API-T) approved to import TPT as raw materials and/or auxiliary materials needed for their production process.

3. "Recommendations" refers to letters issued by the official of the relevant authorized agency/unit to give technical explanations rather than import permit or approval.

4. "Minister" refers to the Minister of Trade.

5. "Director General" refers to the Director General of Foreign Trade at the Ministry of Trade.

6. "Director" refers to the Import Director at the Directorate General of Foreign Trade, Ministry of Trade.

Article 2

TPT stipulated in this Ministerial Regulation shall be as contained in Attachment I which is an integral part of this Ministerial Regulation.

Article 3

(1) TPT mentioned in numbers 1 to 10 in Attachment I to this Ministerial Regulation can only be imported by companies already recognized as IP-Textile.

(2) TPT imported by IP-Textiles as described in paragraph (1) shall only be used as raw materials or auxiliary materials for the production process of industries owned by the relevant IP-Textiles and are prohibited to be traded or transferred to other parties.

Article 4

(1) Any importation of TPT contained in Attachment I to this Ministerial Regulation shall be subject to prior technical verification or inspection in the countries of loading.

(2) The obligation to have technical verification or inspection as described in paragraph (1) does not apply if Attachment I to this Ministerial Regulation stipulates exception to verification obligation.

(3) The obligation to have technical verification or inspection as described in paragraph (1) does not apply to IP-Textiles granted Import Facilities for Export Destinations (KITE).

Article 5

(1) To obtain the certificates of recognition as IP-Textiles as described in Article 3 paragraph (1) the relevant companies shall propose written applications to the Director, accompanied by:

(2) The Director shall issue certificates of recognition as IP-Textiles no later than 5 (five) working days after the applications have been received.

Article 6

(1) The certificates of recognition as IP-Textiles as described in Article 5 shall be valid for a maximum of 1 (one) year and can be extended.

(2) To extend the certificates of recognition as IP-Textiles as described in paragraph (1), the relevant IP-Textiles shall propose applications for the extension of the certificates to the Director, accompanied by the following documents:

(3) The recommendations as described in paragraph (2) a. are needed if the volume of TPT to be imported exceeds that of the previous year.

Article 7

(1) IP-Textiles shall submit quarterly reports to the Director since the certificates of recognition as IP-Textiles have been issued.

(2) The reports as described in paragraph (1) shall be submitted no matter whether or not the importation of TPT has been realized.

(3) The reports as described in paragraph (1) shall be submitted no later than the 15th of the first month in the ensuing quarter through http://inatrade.depdag.go.id with the model of reports as contained in Attachment II which is an integral part of this Ministerial Regulation.

Article 8

(1) The technical verification or inspection as described in Article 4 paragraph (1) shall be conducted by surveyors appointed by the Minister.

(2) The technical verification or inspection as described in paragraph (1) shall cover:

(3) Surveyors shall put the results of technical verification or inspection as described in paragraph (1) in surveyor's reports (LS) used as a supplement to customs documents in customs clearance in the import sector.

(4) Surveyors shall collect fees from importers for the technical verification or inspection as described in paragraph (1).

Article 9

(1) To become the executor of technical verification or inspection of the importation of TPT as described in Article 8 paragraph (1), surveyors shall meet the following requirements:

(2) The surveyors appointed as the executor of technical verification or inspection of the importation of TPT shall submit a monthly written report on technical verification or inspection of TPT.

(3) The written report as described in paragraph (2) shall be submitted to the Director General in this case the Director in the first week of the ensuing month.

Article 10

(1) TPT resulting from the manufacturing process in bonded zones and entered into other places in the customs area shall be exempted from the obligations of IP-Textiles.

(2) TPT resulting from the manufacturing process in bonded zones and entered into other places in the customs area shall be subject to technical verification or inspection as described in Article 4.

(3) TPT resulting from the manufacturing process as described in paragraph (1) shall be subject to technical verification or inspection by a surveyor in the bonded zone.

Article 11

(1) TPT originating from imports in a free trade area and free port as well as TPT originating from imports at a bonded warehouse released to other place in the customs area shall be subject to provisions in this Ministerial Regulation.

(2) TPT originating from imports as described in paragraph (1) shall be subject to technical verification or inspection by a surveyor at:

Article 12

(1) In addition to IP-Textiles as described in Article 3, the Minister or the official appointed by the Minister can appoint other companies to import TPT as contained in numbers 1 to 10 in Attachment I to this Ministerial Regulation.

(2) The other companies as described in paragraph (1) can only import TPT to meet demand from small scale industries and/or industries not undertaking the importation of TPT themselves.

(3) To become the executor of TPT imports as described in paragraph (1), the relevant companies shall:

(4) The plan for the distribution of TPT as described in paragraph (3) b shall be made based on TPT orders from small scale industries and/or industries not undertaking the importation of TPT themselves to the companies as described in paragraph (1).

(5) The importation of TPT by the companies declared as the executor of TPT imports as described in paragraph (1) shall meet provisions on technical verification or inspection as described in Article 4.

Article 13

The technical verification or inspection of TPT imports by the surveyor as described in Article 4, Article 10, Article 11, and Article 12 shall not reduce the authority of the Directorate General of Customs and Excise of the Ministry of Finance to conduct customs audit.

Article 14

(1) Provisions in this Ministerial Regulation shall not apply to the importation of TPT entered into:

(2) Provisions in this Ministerial Regulation shall not apply to the importation of TPT constituting:

Article 15

(1) Certificates of recognition as IP-Textiles shall be frozen if the relevant parties fail to submit the reports as described in Article 7 twice.

(2) The frozen certificates of recognition as IP-Textiles can be reactivated after the relevant parties have submitted the reports as described in Article 7 in 2 (two) months after being frozen.

(3) The suspension of certificates of recognition as IP-Textiles as described in paragraph (1) and the reactivation of the frozen certificates of recognition as IP-Textiles as described in paragraph (2) shall be undertaken by the Director.

Article 16

(1) Certificates of recognition as lP-Textiles shall be revoked if the relevant parties:

(2) The revocation of certificates of recognition as IP-Textiles as described in paragraph (1) shall be undertaken by the Director.

Article 17

(1) Certificates of appointment as the executor of TPT imports as described in Article 12 shall be revoked if the relevant parties prove to sell or transfer TPT not to meet demand from small-scale industries and/or industries not undertaking the importation of TPT themselves.

(2) The revocation of certificates of appointment as the executor of TPT imports as described in paragraph (1) shall be undertaken by the Director.

Article 18

Importers importing TPT in breach of provisions in this Ministerial Regulation shall be liable to sanctions based on the laws and regulations.

Article 19

Surveyors that fail to meet the obligations as described in Article 9 paragraph (2) shall be liable to sanction of having certificates of appointment as a surveyor of TPT imports revoked.

Article 20

(1) Certificates of recognition as IP-Textiles already issued based on Regulation of the Minister of Trade No. 15/M-DAG/PER/5/2008 shall remain valid until their date of expiry.

(2) Surveyor's reports (LS) already published based on Regulation of the Minister of Trade No. 15/M-DAG/PER/5/2008 shall remain valid until customs clearance of the relevant TPT imports.

Article 21

Certificates of appointment as a surveyor already issued based on Decision of the Industry and Minister of Trade No. 307/MPP/Kep/11/2003 concerning the Appointment of Surveyors as the Executor of Technical Verification or Inspection of Textiles and Textile Products (TPT) Imports shall remain valid for 30 (thirty) days after this Ministerial Regulation has been stipulated.

Article 22

When this Ministerial Regulation begins to take effect, Regulation of the Minister of Trade No. 15/M-DAG/PER/5/2008 concerning Provisions on the Import of Textiles and Textile Products shall be declared null and void.

Article 23

Further provisions needed to implement this Ministerial Regulation are to be stipulated by the Director General.

Article 24

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 19, 2009
THE MINISTER OF TRADE,
signed.
MARI ELKA PANGESTU