REGULATION OF THE MINISTER OF TRADE
No. 36/M-DAG/PER/8/2009

CONCERNING
PROVISIONS ON THE EXPORT Of RATTAN

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

Considering:

• a. that rattan is a source of income for rattan growers and collectors and a source of raw materials for rattan processing industry, furniture industry and handicraft industry in Indonesia and therefore, rattan plantation needs to be preserved;
• b. that to increase certainty about the supply of raw materials to the domestic finished rattan goods industry and the sustainable use of rattan, it is necessary to rearrange provisions on the export of rattan;
• c. that based on the considerations in a and b, 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. 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);
• 4. Law No. 41/1999 concerning Forestry Affairs (Statute Book No. 30/1999, Supplement to Statute Book No. 3888);
• 5. Government Regulation No. 34/2002 concerning the Management of Forests and the Use of Forested Land (Statute Book No. 66/2002, Supplement to Statute Book No. 4206);
• 6. Presidential Decision No. 260/1967 concerning the Affirmation of Tasks and Responsibilities of the Minister of Trade in Foreign Trade Field;
• 7. Presidential Decision No. 187/M/2004 concerning the Formation of United Indonesia Cabinet that is amended the latest by Presidential Decision No. 171/M/2005;
• 8. 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 Decision No. 20/2008;
• 9. Presidential Regulation No. 10/2005 concerning the Organizational Unit and Task of First Echelon Officials of Ministries of the Republic of Indonesia that is several times amended the latest by Presidential Regulation No. 50/2008;
• 10. Presidential Regulation No. 28/2008 concerning the National Industrial Policy;
• 11. Decision of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 concerning General Provisions in Export that is several times amended the latest by Regulation of the Minister of Trade No. 01/M-DAG/PER/1/2007;
• 12. 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 several times amended the latest by Regulation of the Minister of Trade No. 24/M-DAG/PER/6/2009;

Observing:

The results of a coordination meeting of economic ministers on finalizing a rattan policy on May 14, 2009.

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS ON THE EXPORT OF RATTAN

Article 1

In this Ministerial Regulation:

• 1. "Mixed rattan" refers to mixed, un rubbed, unwashed, unsmoked/unsulphured rattan belonging to the Tariff Post/ex. HS 1401.20.00.00.
• 2. "Washed and sulphured (W/S) rattan", hereinafter abbreviated as W/S rattan, refers to washed and smoked/sulphured natural bark rattan belonging to the Tariff Post/ex. HS 1401.20.00.00.
• 3. "Semi-finished rattan" refers to rattan further worked into fine polished rattan, rattan cores and rattan bark belonging to the Tariff Post/ex. HS 1401.20.00.00.
• 4. "Fine polished rattan" refers to rattan polished along its stem without epidermis belonging to the Tariff Post/ex. HS 1401.20.00.00.
• 5. "Non-wood forest product primary industry", hereinafter abbreviated as IPHHBK, refers to industry processing mixed rattan into W/S rattan.
• 6. "Registered Rattan Exporter", hereinafter abbreviated as ETR, refers to a company that has secured a certificate of recognition to export W/S rattan and/or semi-finished rattan.
• 7. "Rattan Export Policy Monitoring and Evaluating Team", hereinafter abbreviated as TME, refers to a team appointed by the Minister of Trade to monitor and evaluate rattan export policies, and comprising representatives from relevant agencies and associations as well as from independent surveyor institutes.
• 8. "Director General" refers to the Director General of Foreign Trade, the Ministry of Trade.
• 9. "Minister" refers to the minister whose tasks and responsibilities cover the trade sector.

Article 2

(1) Rattan which can be exported in certain types and quantities includes:

• a. W/S rattan of Taman/Sega (Calamus caesius) and Irit (Calamus trachycoleus) types with a diameter of 4 mm up to 16 mm; and
• b. Semi-finished rattan of Taman/Sega and lrit types, and semi-finished rattan of types other than Taman/Sega and Irit, in the form of fine polished rattan, bark and core.

(2) Rattan which is prohibited to be exported inclu.des:

• a. Mixed rattan;
• b. W/S rattan of Taman/Sega and Irit types with a diameter of less than 4 mm and more than 16 mm; and
• c. W/S rattan of types other than Taman/Sega and Irit.

Article 3

(1) The types and quantities of rattan which can be exported as described in Article 2 paragraph (1) shall be set by observing rattan plantation conservation efforts, national rattan production, and demand for raw materials from the domestic rattan industry.

(2) The types and quantities of rattan which can be exported as described in paragraph (1) shall be set as follows:

• a. For W/S rattan and semi-finished rattan of Taman/Sega and Irit types, at 35,000 (thirty-five thousand) tons per year; and
• b. For semi-finished rattan of types other than Taman/Sega and Irit, at certain percentage of the realized supplies by ETR in the previous period of 3 (three) months.

(3) The percentage as described in paragraph (2) b shall be set by the Director General after consulting TME.

Article 4

(1) The export of rattan as described in Article 2 paragraph (1) can only be done by companies which have secured certificates of recognition as ETR from the Director General.

(2) The certificates of recognition as ETR as described in paragraph (1) shall be issued to companies domiciled in rattan-producing areas.

(3) Each company, group of companies or affiliated companies can only have one certificate of recognition as ETR as described in paragraph (1).

(4) Each company which has secured a certificate of recognition as a Registered Exporter of Forestry Industrial Products (ETPIK) cannot be granted a certificate of recognition as ETR.

(5) Any application for a certificate of recognition as ETR as described in paragraph (1) shall be proposed in writing to the Director General.

(6) The application as described in paragraph (5) shall be accompanied by:

• a. a photocopy of certificate of company registration (TDP);
• b. a photocopy of taxpayer code number (NPWP);
• c. a photocopy of certificate of declaration as taxable company (PKP);
• d. a photocopy of business permit of non-wood forestry product primary industry (IUIPHHBK) validated by the issuing agency for ETR of W/S rattan, and a photocopy of industrial business permit (IUI) for ETR of semi-finished rattan;
• e. an warrant on the physical inspection of industry from the regency/municipal agency whose tasks and responsibilities cover the industrial sector; and
• f. a recommendation from the provincial agency whose tasks and responsibilities cover the trade sector based on the official report on the physical inspection as described in paragraph e.

(7) The Director General shall issue a certificate of recognition as ETR as described in paragraph (1) no later than 10 (ten) working days after the application has been received in a complete and correct manner.

(8) The holder of ETR shall report any change in corporate data and apply for a change in ETR to the Director General.

Article 5

(1) The export of rattan can only be done by ETR after securing an export approval from the Director General in this case the Director of Agricultural and Forestry Product Exports.

(2) The approval of the types and quantities of rattan which can be exported shall be given to ETR every quarter in the form of export approval certificate (SPE) by the Director General in this case the Director of Agricultural and Forestry Exports Product, the Ministry of Trade .

(3) The approval of the export of semi-finished rattan of types other than Taman/Sega and Irit can be given by observing:

• a. proof of supplies by ETR to the domestic industry, for the types of rattan which are absorbed domestically;
• b. a recommendation from the Director General of Forestry Production Development, the Ministry of Forestry, for the types of rattan which are not absorbed domestically.

(4) Any application for SPE as described in paragraph (2) shall be filed in writing to the Director General in this case the Director of Agricultural and Forestry Product Exports, the Ministry of Trade, accompanied by the following documents:

• a. For W/S rattan and semi-finished rattan of Taman/Sega and Irit types:
• 1. a photocopy of a certificate of recognition as ETR;
• 2. proof of rattan stocks and production capacity of ETR which has not yet received SPE; and
• 3. proof of realized exports in the previous period of 3 (three) months, for ETR which has secured SPE.
• b. For semi-finished rattan of types other than Taman/Sega and Irit:
• 1. a photocopy of certificate of recognition as ETR;
• 2. proof of raw material supplies to the domestic finished rattan product industry in the previous period of 3 (three) months when the types of rattan to be exported are absorbed by the domestic industry;
• 3. a recommendation from the Director General of Forestry Production Development, the Ministry of Forestry, when the types of rattan to be exported are not absorbed by the domestic industry.

(5) The model of proof of rattan supply as described in paragraph (4) b.2. is contained in Attachment I which is an integral part of this Ministerial Regulation.

(6) Any application for SPE for rattan as described in paragraph (4) b shall contain the type and name of rattan to be exported.

(7) SPE for W/S rattan and semi-finished rattan of Taman/Sega and Irit types as described in paragraph (4) letter a shall be issued by observing the number of ETR and/or export realization.

(8) Export notification (PES) for the export of rattan as described in paragraph (1) shall be delivered to the customs office at the port of loading in the rattan-producing area.

Article 6

(1) ETR that has secured SPE shall convey a report on the export of rattan, either realized or unrealized, in writing every the 15th of the ensuing month after the expiry of SPE, to the Director General in this case the Director of Agricultural and Forestry Product Exports, with copies addressed to:

• a. the Director General of Agro and Chemical Industries in this case the Director of Forestry and Plantation Product Industry, Ministry of Industry; and
• b. the Director General of Forestry Production Development in this case the Director of Forestry Product Processing and Marketing Development, Ministry of Forestry.

(2) The model of report on the realization of rattan export as described in paragraph (1) is contained in Attachment II which is an integral part of this Ministerial Regulation.

Article 7

(1) Any export of rattan by ETR shall be subject to prior technical export verification or inspection.

(2) The technical export verification or inspection as described in paragraph (1) shall be conducted by an independent surveyor appointed by the Minister.

(3) The results of technical export verification or inspection conducted by the surveyor shall be put in:

• a. Surveyor report (LS), for rattan inspected according to the existing rules; or
• b. report of inspection result (LHP), for rattan inspected not according to the existing rules.

(4) The surveyor report (LS) as described in paragraph (3) paragraph a shall be used as a supplement to customs document in customs settlement in the export sector.

(5) All expenses arising from the technical export verification or inspection as described in paragraph (2) shall be borne by the government.

(6) The results of technical export verification or inspection as described in paragraph (2) shall be conveyed by the surveyor no later than the 15th of the ensuing month to the Director of Agricultural and Forestry Product Exports, with copies addressed to:

• a. the Director General of Agro and Chemical Industries in this case the Director of Forestry and Plantation Product Industry, Ministry of Industry; and
• b. the Director General of Forestry Production Development in this case the Director of Forestry Product Processing and Marketing Development, Ministry of Forestry.

Article 8

(1) The certificate of recognition as ETR as described in Article 4 paragraph (1) shall be frozen if the holder of ETR:

• a. does not carry out export within 1 (one) year since the issuance of ETR or since the last export;
• b. does not carry out the obligations as described in Article 4 paragraph (8); or
• c. does not carry out the obligations as described in Article 6 paragraph (1).

(2) The frozen certificate of recognition as ETR as described in paragraph (1) can be reactivated if the holder of ETR:

• a. is to conduct export, evident from the order/sales contract;
• b. has carried out the obligations as described in Article 4 paragraph (8) within 30 (thirty) days since the date of freezing; and/or
• c. has carried out the obligations as described in Article 6 paragraph (1) within 15 (fifteen) days since the date of freezing.

(3) The certificate of recognition as ETR as described in Article 4 paragraph (1) shall be revoked if the holder of ETR:

• a. does not carry out the obligations as described in Article 4 paragraph (8) 30 (thirty) days after the date of freezing;
• b. is declared quilty of committing a criminal offence related to the abuse of ETR and/or violation of export rules based on a fixed court verdict;
• c. does not submit correct data and/or documents at a time of filing an application for ETR or an application for a change in ETR or an application for SPE;
• d. has had ETR frozen twice and committed a violation liable to sanction in the form of frozen ETR; or
• e. does not conduct export 1 (one) year since the date of the first freezing.

Article 9

Any surveyor that does not carry out the obligations as described in Article 7 paragraph (6) shall be liable to a sanction in the form of having its status as surveyor revoked.

Article 10

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

Article 11

The certificates of recognition as ETR issued before this Ministerial Regulation is put into force shall be adjusted no later than 1 (one) month after this Ministerial Regulation begins to take effect.

Article 12

When this Ministerial Regulation begins to take effect, Regulation of the Minister of Trade No. 12/M-DAG/PER/6/2005 concerning Provisions on the Export of Rattan that is several times amended the latest by Regulation of the Minister of Trade No. 33/M-DAG/PER/7/2009 shall be declared null and void.

Article 13

This Ministerial Regulation shall come into force 2 (two) months after the date of stipulation and be valid for 2 (two) years.

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

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