REGULATION OF THE MINISTER OF TRADE
NUMBER 11/M-DAG/PER/3/2010

CONCERNING
PROVISIONS ON THE IMPORT OF MACHINE, MACHINE APPARATUSES, RAW MATERIALS, UNRECORDED OPTICAL DISCS AND RECORDED OPTICAL DISCS

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

Considering:

• a. that to implement Article 11 paragraph (5) of Government Regulation No. 29/2004 concerning High Technology Production Facilities for Optical Discs, and to support the protection of intellectual property rights, especially in the field of copy rights, it is necessary to stipulate provisions on the import of machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs;
• b. that to ensure administrative order in the import and control of machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs;
• c. that based on the considerations in paragraph a and b it is necessary to stipulate a Regulation of the Minister of Trade;

In view of:

• 1. Trade Law of 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) 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. 331/1999, Supplement to Statute Book No. 3806);
• 6. Law No. 8/1999 concerning Consumers Protection (Statute Book No. 42/1999, Supplement to Statute Book No. 3821);
• 7. Law No. 19/2002 concerning Copy Rights (Statute Book No. 85/2002, Supplement to Statute Book No. 4220);
• 8. Law No. 39/2008 concerning State Ministry (Statute Book No. 166/2008, Supplement to Statute Book No. 4916);
• 9. Government Regulation No. 29/2004 concerning High Technology Production Facilities for Optical Discs (Statute Book No. 108/2004, Supplement to Statute Book No. 4220);
• 10. Presidential Decision No. 260/1967 concerning the Affirmation of Tasks and Responsibilities of the Minister of Trade in the Field of Foreign Trade;
• 11. 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;
• 12. Presidential Regulation No. 47/2009 concerning the Formation and Organization of State Ministry;
• 13. Presidential Decision No. 84/P/2009 concerning the Formation of the United Indonesia Cabinet II;
• 14. Decision of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 concerning Goods Subject To Import Regulation that is amended the latest by Decision of the Minister of Industry and Trade No. 406/MPP/Kep/6/2004;
• 15. Decision of the Minister of Industry and Trade No. 648/MPP/Kep/10/2004 concerning the Reporting and Control of Optical Disc Industries;
• 16. 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;
• 17. Regulation of the Minister of Trade No. 45/M-DAG/PER/9/2009 concerning Importer's Identity Number (API);
• 18. Regulation of the Minister of Trade No. 54/M-DAG/PER/10/2009 concerning General Provisions in Import;

DECIDES:

To stipulate:

THE REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS ON THE IMPORT OF MACHINE, MACHINE APPARATUSES, RAW MATERIALS, UNRECORDED OPTICAL DISCS AND RECORDED OPTICAL DISCS

Article 1

In this Ministerial Regulation:

1. "Machinery and machinery apparatuses" refers to all kinds of machinery and apparatuses that are used in the production of unrecorded optical discs and/or recorded optical discs.

2. "Raw materials" refers to all kinds of materials that may be used in the production of unrecorded optical discs and/or recorded optical discs.

3. "Optical discs" refers to all kinds of recording media in the form of discs that can be filled with or contain data and/or information in the form of sound, music, film or other data and/or information that can be read with a scanning technology mechanism optically using a ray source of high intensity such as laser.

4. "Unrecorded optical discs" refers to optical discs in unrecorded form that are the final product of production process without any data and/or information.

5. "Recorded optical discs" refers to optical discs that are the final product of high technology production process that contain data and/or information in the form of sound, music, film or other data and/or information.

6. "Production code" refers to a source identification code (SID code) consisting of stamper code and mould code that must be stamped in any recorded optical disc.

7. "Registered importer of optical discs" hereinafter abbreviated as IT of optical discs refers to a company approved by the Director General to import machinery, machinery apparatuses, raw materials, unrecorded optical discs and! or recorded optical discs.

8. "Surveyor" refers to a survey company authorized to conduct technical verification or trace of imports.

9. "Recommendation" refers to a letter that is issued by the official of an agency/unit authorized to give technical advice and does not constitute an import permit or approval.

10. "Director General" refers to the Director General of Foreign Trade, Ministry of Trade.

11. "Minister" refers to the minister whose tasks and responsibilities cover the trade sector.

Article 2

(1) Machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs in this Ministerial Regulation are contained in Attachment I which is an integral part of this Ministerial Regulation.

(2) The machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs as described in paragraph (1) shall meet technical requirements according to the law and regulation.

(3) The recorded optical discs as described in paragraph (1) shall carry production codes based on the internationally accepted provisions and norms.

Article 3

The machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs as described in Article 2 paragraph (1) can only be imported by companies declared as IT optic discs.

Article 4

(1) Stipulation as IT optic discs as described in Article 3 is done by the Director General.

(2) To become IT optic discs as described in paragraph (1) companies shall propose written applications to the Director General, accompanied by the following documents:

• a. Photocopies of business permit issued by the authorized agency to the companies to carry out business activities according to the law and regulation;
• b. Photocopies of Importer's Identity Number (AP!);
• c. Photocopies of Company's Registration Certificate (TDP);
• d. Photocopies of taxpayer code number (NPWP);
• e. Recommendations from the Director General of Metal, Machinery, Textile and Various Industries at the Ministry of Industry for the importation of machines and machinery apparatuses;
• f. Recommendations from the Director General of Agro and Chemical Industries at the Ministry of Industry for the importation of raw materials arid unrecorded optical discs; and
• g. Recommendations from the Director General of Intellectual Property Rights at the law and Human Rights Ministry for the importation of recorded optical discs.

(3) The Director General shall issue a decision declaring companies as IT optical discs no later than 7 (seven) working days after their applications have been received in a complete and correct manner.

Article 5

The decision declaring companies as IT optical discs as described in Article 4 shall be valid for 4 (four) years and can be extended.

Article 6

To obtain the extended status as IT optical discs as described in Article 5, IT optical discs shall propose applications to the Director General no later than 10 (ten) working days before the expiry date of the status as IT optical discs, by enclosing the following documents:

• a. Recommendations from the Director General of Metal, Machinery, Textile and Various Industries at the Ministry of Industry for the importation of machines and machinery apparatuses;
• b. Recommendations from the Director General of Agro and Chemical Industries at the Ministry of Industry for the importation of raw materials and unrecorded optical discs;
• c. Recommendations from the Director General of Intellectual Property Rights at the law and Human Rights Ministry for the importation of recorded optical discs;
• d. The original of document declaring companies as IT optical discs whose validity period will expire.

Article 7

(1) The IT optical discs as described in Article 4 which are to import machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs shall obtain import permits from the Director General.

(2) To obtain the import permits as described in paragraph (1) IT optical discs shall propose written applications to the Director General, by enclosing:

• a. Recommendations from the Director General of Metal, Machinery, Textile and Various Industries at the Ministry of Industry for the importation of machines and machinery apparatuses;
• b. Recommendations from the Director General of Agro and Chemical Industries at the Ministry of Industry for the importation of raw materials and unrecorded optical discs; or
• c. Recommendations from the Director General of Intellectual Property Rights at the Law and Human Rights Ministry for the importation of recorded optical discs;

Article 8

(1) IT optical discs that have obtained import permits as described in Article 7 shall convey a report on the importation and distribution of machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs to the Director General once in every 3 (three) months.

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

Article 9

(1) Any import of machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs by IT optical discs that have obtained import permits as described in Article 7 shall be subjected to prior technical verification or trace of import at the port of loading.

(2) The technical verification or trace of import as described in paragraph (1) shall be carried out by a surveyor appointed by the Minister.

(3) The results of technical verification or trace of import conducted by a surveyor as described in paragraph (2) shall be put in a surveyor report (LS) used as a customs supplement document in customs settlement in the import sector.

(4) In connection with the technical verification or trace of import as described in paragraph (1), the surveyor can collect recompense from importers.

(5) To be appointed an executor of technical verification or trace of the import of machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs, the surveyor shall meet the following qualifications:

• a. holding a survey service permit (SIUJS);
• b. having experience for at least 5 (five) years as a surveyor; and
• c. having branch or representative or affiliate abroad.

(6) The surveyor appointed an executor of technical verification or trace of import as described in paragraph (2) shall convey a report on technical verification or trace of import of machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs once every 3 (three) months.

(7) The report as described in paragraph (6) shall be conveyed to the Director General in this case the Import Director no later than the 15th of the first month of the following quarter.

Article 10

The technical verification or trace of the importation of machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs as described in Article 9 shall not reduce the authority of the Directorate General of Customs and Excise to conduct customs inspection.

Article 11

(1) A decision declaring companies as IT optical discs will. be frozen if once the relevant companies do not meet the obligation to convey a report as described in Article 8.

(2)The frozen decision declaring companies as IT optical discs can be reactivated if the relevant companies have met the obligation to convey a report as described in Article 8 within a period of 30 (thirty days) after the date of freezing.

(3) The freezing and reactivation shall be done by the Director General.

Article 12

(1) A decision declaring companies as IT optical discs will be frozen if the relevant companies:

• a. change, add, and/or replace the content of the decision declaring the companies as IT optical discs and/or import permits;
• b. import machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs whose types and/ or quantities do not accord with those contained in the import permits;
• c. have the status as IT optical discs frozen twice;
• d. do not meet the obligation to convey a report as described in Article 8 within a period of 30 (thirty) days after the date of freezing; and/ or
• e. are declared guilty by the court for a criminal offence related to the abuse of machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs they have imported.

(2) The revocation of decision declaring companies, as IT optical discs as described in paragraph (1) shall be done by the Director General.

Article 13

The freezing or revocation as described in Articles 11 and 12 shall not reduce the imposition of criminal sanctions based on the law and regulation.

Article 14

Surveyors that do not meet the obligation as described in Article 9 paragraph (6) shall be liable to sanctions in the form of having their status revoked as surveyors executing the technical verification or trace of the importation of machines, machine apparatuses, raw materials, unrecorded optical discs and recorded optical discs.

Article 15

(1) Provisions in this Ministerial Regulation shall not apply to the import of unrecorded optical discs and recorded optical discs by:

• a. government agencies and state institutions;
• b. representatives of foreign countries and their officials assigned in Indonesia;
• c. international bodies and their officials assigned in Indonesia;
• d. individuals as personal effects;
• e. passengers and crew members of transport means, with not more than 10 (ten) discs; and
• f. individuals through courier services, with not more than 10 (ten) discs.

(2) Any unrecorded optical disc and recorded optical disc imported as described in paragraph (1) shall remain subject to customs provisions.

(3) Any recorded optical disc imported as described in paragraph (1) shall carry production codes.

Article 16

When this Ministerial Regulation begins to take effect:

1. Regulation of the Minister of Trade No. 05/M-DAG/PER/4/2005 concerning the import of machines, machine apparatuses, raw materials, and optical discs that is amended by Regulation of the Minister of Trade No. 29/M-DAG/PER/6/2009 shall be declared null and void;

2. IT optical discs and import permits. Issued based on Regulation of the Minister of Trade No. 05/M-DAG/PER/4/2005 concerning the import of machines, machine apparatuses, raw materials, and optical discs that is amended by Regulation of the Minister of Trade No. 29/M-DAG/PER/6/2009 shall remain valid until their validity period expires;

3. IT non-optical discs issued based on Regulation of the Minister of Trade No. 05/M-DAG/PER/4/2005 concerning the import of machines, machine apparatuses, raw materials, and optical discs that is amended by Regulation of the Minister of Trade No. 29/M-DAG/PER/6/2009 shall be declared null and void;

4. Decisions on the appointment of surveyors based on Regulation of the Minister of Trade No. 09/M-DAG/PER/5/2005 concerning surveyors executing the technical verification or trace of the import of machines, machine apparatuses, raw materials and optic discs shall remain valid.

Article 17

This Ministerial Regulation shall come into force 90 (ninty) days after 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 March 15, 2010
THE MINISTER OF TRADE
signed,
MARI ELKA PANGESTU