REGULATION OF THE MINISTER OF TRADE
No. 20/M-DAG/PER/5/2008

CONCERNING
PROVISIONS IN EXPORT OF FORESTRY INDUSTRY PRODUCTS

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

Considering:

In view of:

HAS DECIDED:

To revoke:

REGULATION OF THE MINISTER OF TRADE NO. 09/M-DAG/PER/2/2007 DATED FEBRUARY 14, 2007 CONCERNING PROVISIONS IN EXPORT OF FORESTRY INDUSTRY PRODUCTS;

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS IN EXPORT OF FORESTRY INDUSTRY PRODUCTS.

Article 1

In this Minister Regulation:

Article 2

Wooden Railroad Tie (included in Tariff Post/HS 4406) as described in Article 1 No. 1, and Sawn Wood (included in Tariff Post/HS 4407) as described in Article 1 No. 2 are prohibited for export.

Article 3

Export of Forestry Industry Products as described in Article 1 No. 3 is regulated in accordance with this Minister Regulation.

Article 4

(1) Forestry Industry Products included in categories Ex. HS 4407, Ex. HS 4409, Ex. HS 4412, Ex. HS 4415, Ex. HS 4418, and Ex. HS 9406 may only be exported if it meets the technical criteria contained in Attachment II of this Minister Regulation.

(2) Particularly for Forestry Industry Products from cocoanut tree and palm tree in the form of Surface Four Side (S4S) or pole (round smooth processed) and further processing may be exported without subject to measurement limitations.

Article 5

(1) Export of Forestry Industry Products as described in Article 1 No. 3 may only be performed by forestry industry companies having been acknowledged as Forestry Industry Products Registered Exporter (ETPIK) by the Director General.

(2) Forestry industry companies which can be acknowledged as ETPIK are forestry industry companies which had possessed industry business permit issued based on prevailing statutory regulations and meeting requirement regulated in this Minister Regulation.

Article 6

(1) In order to receive an acknowledgement as ETPIK, a forestry industry company must submit a written application to the Director General.

(2) The application as described in paragraph (1) must be accompanied with the following documents:

(3) If necessary, verification can be performed on the ETPIK applicant concerning the validity of the company covering location, documents/permits possessed in accordance with applicable provisions by a team appointed by the Director General.

(4) The Director General shall issue an approval or rejection on the application as described in paragraph (1) within 10 (ten) working days at the latest from the receipt of the application.

(5) In the event data changes in the documents of the forestry industry companies having been acknowledged as ETPIK, the company is obliged to submit an application on the ETPIK revision accompanied with documents on changes within 60 (sixty) working days at the latest from the data change.

(6) The Director General shall issue an approval or rejection on the ETPIK revision application as described in paragraph (5) within 10 (ten) working days at the latest from the receipt of the application.

Article 7

(1) Verification on company having received acknowledged as ETPIK may be performed, covering:

(2) The verification as described in paragraph (1) shall be performed by officials of Foreign Trade Directorate General of the Ministry of Trade, Directorate General of Agro and Chemical Industries of the Ministry of Industry, and Directorate General of Forestry Production Management of the Ministry of Forestry through coordination, and/or independent surveyor stipulated by the Minister.

(3) Result of the verification as described in paragraph (1) shall be set forth in the form of ETPIK Verification Result Report.

(4) The ETPIK Verification Result Report as described in paragraph (3) shall be submitted to the Director General 30 (thirty) working days at the latest after the verification.

(5) Procedure on the performance of the verification as described in paragraph (2) shall further be regulated with a Regulation of the Director General.

Article 8

(1) Any export of Forestry Industry Products with ulin wood as its raw material must get an Export Approval Letter (SPE) from the Director General after receiving a recommendation from the Ministry of Forestry.

(2) Procedure to receive the recommendation as described in paragraph (1) shall further be regulated by the Minister of Forestry.

(3) In order to get the SPE as described in paragraph (1), forestry industry companies having been acknowledged as ETPIK must submit a written application to the Director General by attaching the photocopy of the ETPIK documents and the recommendation from the Ministry of Forestry.

(4) The Director General shall issue an approval or rejection on application as described in paragraph (3) within 10 (ten) working days at the latest from the receipt of the application.

Article 9

(1) Forestry Industry Products included in categories of HS 4407, HS 4408, HS 4409, HS 4410, HS 4411, HS 4412, HS 4413, HS 4415, HS 4418, Ex. HS 4421.90.99.00 (particularly for wooden paving block), HS 9406.00.92.00 should be endorsed.

(2) The endorsement as described in paragraph (1) shall be performed by an independent agency stipulated by the Minister by heeding the recommendation of the Minister of Forestry.

(3) The original endorsement as described in paragraph (1) shall be used as obligatory customs supplementary documents for the notification of export customs to the customs office.

(4) Procedure for the performance of the endorsement as described in paragraph (1) shall further be regulated with a Regulation of the Director General.

(5) The independent agency as described in paragraph (2) is obliged to report the performance of the endorsement no later than the 15th of the following month to the Minister, in this case, the Director General with copies to Director General of Agro and Chemical Industries of the Ministry of Industry, and the Director General of Forestry Production Management of the Ministry of Forestry.

(6) The performance of the export of Forestry Industry Products included in HS4408, HS4410 and Ex HS4412 (particularly for plywood) shall be made based on Cost and Freight (C&F), Cost, Insurance and Freight (CIF) and the payment there of shall be made through bank institutions.

Article 10

(1) The export of Forestry Industry Products included in category HS 4407, HS 4409 and Ex HS 4412 (particularly for laminated wood), Ex HS 4418 (particularly for doors and windows) and Ex HS 9406 (particularly for fabricated building from wood) shall only be performed after having undergone verification/technical tracing before loading.

(2) The verification 1technical tracing as described in paragraph (1) shall be performed by an independent surveyor stipulated by the Minister.

(3) The surveyor as described in paragraph (2) must possess technical capability in the field of verification of Forestry Industry Products and has a wide service net in Indonesian territory.

(4) Costs arising from the verification/technical tracing activities as described in paragraph (1) shall be borne by the Government.

(5) Result of the verification/technical tracing as described in paragraph (1) shall be set forth in the form of Surveyor Report (LS) to be used as mandatory customs supplementary documents for the submission of customs export notification to the customs office.

(6) Report of result of the verification/technical tracing as described in paragraph (5) shall be submitted by the Surveyor on the 15th of the following month at the latest to the Director General with copies to the Director General of Agro and Chemical Industries of the Ministry of Industry, and the Director General of Forestry Production Management of the Ministry of Forestry.

(7) Procedure on the performance of the verification/technical tracing as described in paragraph (1) shall be regulated further with a Regulation of the Director General.

Article 11

(1) Forestry industry companies having been acknowledged as ETPIK as described in Article 6 paragraph (4) are obliged to report:

(2) The reports as described in paragraph (1) must be submitted on the end of February at the latest for the realization of production and export in the previous year, and on production and export plan for the current year shall use the report form contained in Attachment III, IV, V, and VI of this Minister Regulation.

(3) The reports as described in paragraph (1) must be submitted to the Director General with copies to the Director General of Agro and Chemical Industries of the Ministry of Industry, and the Director General of. Forestry Production Management of the Ministry of Forestry.

Article 12

The acknowledgement as ETPIK as described in Article 6 paragraph (4) will be frozen if the forestry industry company holder of ETPIK and/or the Board of Management/Board of Directors of the forestry industry company holder of ETPIK:

Article 13

(1) The frozen acknowledgement as ETPIK as described in Article 12 may be re-activated if the forestry industry company holder of ETPIK and/or the Board of Management/Board of Directors of the forestry industry company holder of ETPIK:

(2) The ETPIK re-activation as described in paragraph (1) shall only be performed based on a written application by the Board of Management/Board of Directors of the forestry industry company holder of ETPIK to the Director General.

(3) The ETPIK re-activation as described in paragraph (1) cannot be performed if the documents submitted when applying for ETPIK or ETPIK revision is proved to be false.

(4) Application for the ETPIK re-activation shall be completed with documents on Industry Registration Proof, Company Registration Proof, Taxpayer Basic Number, and company notary deed and shall attach documents supporting the fulfillment of the re-activation terms as described in paragraph 1.

Article 14

The acknowledged as ETPIK as described in Article 6 paragraph (4) shall be revoked if the forestry industry company holder of ETPIK and/or the Board of Management/Board of Directors of the forestry industry company holder of ETPIK:

Article 15

(1) The freezing, re-activation and revocation of ETPIK as described in Article 12, 13 and 14 shall be made by the Director General.

(2) The Director General sends a notification letter on the freezing, re-activation and revocation of ETPIK as described in paragraph (1) to the ETPIK holder with copies to the Director General of Duty and Excise of the Ministry of Finance, Director General of Agro and Chemical Industries of the Ministry of Industries, and the Director General of Forestry Production Management of the Ministry of Forestry, and technical services of the area in charge of forestry industries;

Article 16

(1). Any surveyor who committed violations on the provisions as described in Article 10 paragraph (6) shall be imposed of sanction in the form of revocation of right to receive fee for any verification performed in the un reported month.

(2) The independent institutions as described in Article 9 paragraph (2) that committed violations on the provisions as described in Article 9 paragraph (5) and/or its authority based on assigned missions, shall be imposed of sanction in the form of revocation of its position as an endorsement issuing independent institution.

Article 17

Forestry industry products in the form of sample goods, research material and overseas exhibition are exempted from provisions of this Minister Regulation after receiving an approval from the Director General.

Article 18

Implementation provisions of this Minister Regulation shall be regulated further by the Director General.

Article 19

Acknowledgement as ETPIK issued before this Minister Regulation is declared as still valid to the extent it does not contravene provisions of this Minister Regulation.

Article 20

(1) Stipulation of exemptions on technical criteria issued based on Regulation of the Minister of Trade No. 09/M-DAG/PER/2/2007 concerning Provisions of Forestry Industry Products is declared as still valid up to the last shipping date limit of the Forestry Industry Products stipulated in the stipulation.

(2) In the event the stipulation on technical criteria was not stipulated as of its validity date, then it is declared to be still valid up to two (2) months from the effective date of this Minister Regulation.

Article 21

This regulation commences to become effective two (2) months from the date of stipulation.

For public cognizance, this Minister Regulation shall be announced in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On May 29, 2008
THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA
signed,
MARI ELKA PANGESTU