REGULATION OF THE MINISTER OF TRADE
No. 41/M-DAG/PER/9/2009

CONCERNING
PROVISIONS ON THE EXPORT OF COFFEE

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

Considering:

• a. that in the framework of enhancing competitiveness, creating fair business practices, it is necessary to reregulate provisions on the export of coffee;
• b. that based on the consideration as described in a., it is necessary to stipulate a 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 of the Republic of Indonesia No. 22/1984, Supplement to Statute Book of the Republic of Indonesia No. 3274);
• 3. Law No. 10/1995 concerning Customs (Statute Book of the Republic of Indonesia No. 75/1995, Supplement to Statute Book of the Republic of Indonesia No. 3612) that is amended by Law No. 17/2006 (Statute Book of the Republic of Indonesia No. 93/2006, Supplement to Statute Book of the Republic of Indonesia No. 4661);
• 4. Law No. 32/2004 concerning Regional Administration (Statute Book of the Republic of Indonesia No. 125/2004, Supplement to Statute Book of the Republic of Indonesia No. 4437) that is amended by Law No. 8/2005 (Statute Book of the Republic of Indonesia No. 108/2005, Supplement to Statute Book of the Republic of Indonesia No. 4548);
• 5. Presidential Decision No. 260/1967 concerning the Affirmation of Tasks and Responsibility of the Minister of Trade in the Field of Foreign Trade;
• 6. Presidential Decision No. 187/M/2004 concerning the Establishment of United Indonesia Cabinet that is amended several times and the latest by Presidential Decision No. 171/M/2005;
• 7. Presidential Regulation No. 9/2005 concerning Status, Tasks, Functions, Organizational Structures and Working Arrangements of State Ministries of the Republic of Indonesia that is amended several times and the latest by Presidential Regulation No. 20/2008;
• 8. Presidential Regulation No. 10/2005 concerning First Echelon Organizational Units and Tasks of State Ministries of the Republic of Indonesia that is amended several times, and the latest by Presidential Regulation No. 50/2008;
• 9. Decision of the Minister of Industry and Trade No. 164/MPP/Kep/6/1996 concerning Mandatory Quality Control over Certain Exported Products;
• 10. Decision of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 concerning General Provisions in Export that is amended several times and the latest by Regulation of the Minister of Trade No. 01/M-DAG/PER/1/2007;
• 11. Regulation of the Minister of Trade No. 01/M-DAG/PER/3/2005 concerning Organization and Working Arrangement of the Ministry of Trade that is amended several times and the latest by Regulation of the Minister of Trade No. 24/M-DAG/PER/6/2009;
• 12. Regulation of the Minister of Trade No. 43/M-DAG/PER/10/2007 concerning the Issuance of Certificate of Origin to Exported Products of Indonesia;

HAS DECIDED:

To stipulate:

THE REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS ON THE EXPORT OF COFFEE.

Article 1

In this ministerial regulation:

• 1. "Coffee" refers to coffee classified into Tariff Post HS 09.01 and 21.01.
• 2. "Export Approval of Coffee" hereinafter abbreviated to SPEK refers to a letter of approval of the export of coffee to all destination countries.
• 3. "Certificate of origin Form ICO" refers to a certificate used as an accompanying document of coffee exported from throughout Indonesia, which proves that the coffee comes, is produced and/or processed in Indonesia.
• 4. "Temporary Coffee Exporter" hereinafter abbreviated as EKS refers to a company already securing recognition as temporary approved coffee exporter from the Director General.
• 5. "Registered Coffee Exporter" hereinafter abbreviated to ETK refers to a company already securing recognition as approved exporter of coffee from the Director General.
• 6. "Director General" refers to the Director General of Foreign Trade, Ministry of Trade.
• 7. "Agency" refers to Agency in charge of trading affairs in province/regency/city.

Article 2

(1) Coffee having export regulated shall be coffee classified into Tariff Post HS 09.01 and 21.01 as contained in Attachment I, which constitutes an integral part of this regulation.

(2) The coffee as described in paragraph (1) may only be exported by companies already securing recognition as EKS or ETK from the Director General.

Article 3

(1) In order to secure the recognition as EKS as described in Article 2 paragraph (2), companies shall propose written applications to the Director General in this case the Director of Export of Agricultural and Forestry Products by enclosing the following documents:

• a. Trading Business License (SIUP) or business license in the field of food and beverage industry from technical institution;
• b. Corporate Registry Number (TDP);
• c. Taxpayer Code Number (NPWP); and
• d. Recommendation from Agency appointed as the issuer of SPEK.

(2) The Director General shall issue recognition as EKS as described in paragraph (1) in not later than 3 (three) working days as from the date of receipt of complete and true application with copies to:

• a. the Director General of Customs and Excise; and
• b. Agency issuing recommendation/SPEK.

(3) The issuance of recognition as EKS as described in paragraph (2) shall have International Coffee Organization (ICO) Number mentioned as identity of EKS.

Article 4

(1) The recognition as EKS shall valid for one year as from the date of issuance.

(2) The recognition as EKS as described in paragraph (1) may be upgraded to become ETK if EKS has exported coffee minimally 200 (two hundred) tons in one coffee year; by enclosing copy of Export Goods Declarations (PEB) have legalized by local Customs and Excise Service Office.

(3) The recognition as ETK as described in paragraph (2) shall be issued by the Director General in not later than 3 (three) working days as from the date of receipt of complete and true application with copies to:

• a. the Director General of Customs and Excise; and
• b. Agency issuing recommendation/SPEK.

(4) The recognition as ETK as described in paragraph (2) shall be valid as Iong as the said company exports coffee.

(5) EKS and ETK as described. in paragraph (1) and paragraph (3) shall export coffee in one coffee year.

(6) The coffee year as described in paragraph (4) shall start from October 1 to September 30 of the next year.

Article 5

(1) EKS or ETK planning to export coffee shall secure SPEK from Agency.

(2) The Agency as described in paragraph (1) which may be stipulated as institution issuing SPEK shall comply with the following requirements:

• a. being a coffee production center; and
• b. having export seaport.

(3) The requirements as described in paragraph (3) letter b shall not be applied to Aceh Tengah Regency.

(4) The Agency as described in paragraph (1), which may issue SPEK shall be stipulated by the Director General.

(5) Model of SPEK as described in paragraph (1) shall be as contained in Attachment Il, which constitutes an integral part of this regulation.

Article 6

(1) In order to secure SPEK as described in Article 5 paragraph (1), EKS or ETK shall propose writing proposal to the Agency as described in Article 5 paragraph (4) by enclosing:

• a. copy of recognition as EKS or ETK; and
• b. copy of evidence of payment of contribution to the Indonesian Coffee Exporter and Industry Association (AEKI) by showing the original evidence.

(2) The Agency as described in paragraph (1) shall issue SPEK in not later than 3 (three) working days as from the date of receipt of complete and true application.

(3) SPEK shall valid for 30 (thirty) days as from the date of issuance and may only be extended once.

(4) SPEK whose validity period elapses the deadline of the coffee year as described in Article 4 paragraph (4) may not be used as a requirement for exporting coffee and may not be extended.

(5) SPEK as described in Article 5 paragraph (1) shall be issued in 5 (five) copies with the designation to:

• a. original sheet to local Customs and Excise Service Office;
• b. first copy to domestic foreign exchange bank;
• c. second copy to Agency issuing SPEK;
• d. third copy to the Directorate General of Foreign Trade in this case the Directorate of Export of Agricultural and Forestry Products, Ministry of Trade; and
• e. fourth copy to the said EKS or ETK.

(6) SPEK as described in paragraph (5) may be used for the shipment from all export ports Indonesia.

Article 7

(1) The amount of contribution as described in Article 6 paragraph (1) letter b shall be stipulated through an agreement of members of AEKI in a general meeting or plenary board meeting of AEKI by taking into account the Limit and Comparation of Weight (conversion) of coffee as contained in Attachment Ill, which constitutes an integral part of this regulation.

(2) AEKI shall convey financial statement related to the use of the contribution as described in paragraph (1) to the Minister of Trade at the beginning of the next coffee year.

Article 8

(1) The Agency as described in Article 5 paragraph (4) shall submit report on the realization of the issuance of SPEK every month to the Director General through the Director of Export of Agricultural and Forestry Products in not later than the 10th of the next month.

(2) Agency failing to fulfill the obligation to report the realization of the issuance of SPEK as described in paragraph (1) may be subject to revocation of stipulation as the issuer of SPEK.

Article 9

(1) The exported coffee shall comply with the quality standard stipulated by the Minister of Trade and shall be accompanied by Certificate of Origin (SKA) Form ICO as described in Regulation of the Minister of Trade concerning the Issuance of Certificate of Origin to Indonesia's exported goods.

(2) SKA Form ICO as described in paragraph (1) shall be as contained in Attachment IV, which constitutes an integral part of this regulation.

Article 10

(1) EKS and ETK shall be obliged to convey report on the realization of the export of coffee in writing every 3 (three) months to the Director General through the Director of Export of Agricultural and Forestry Products.

(2) The report as described in paragraph (1) shall be submitted in not later than every October 10, January 10, April 10 and July 10.

(3) Model of report on the realization of the export of coffee shall be as contained in Attachment V, which constitutes an integral part of this regulation.

Article 11

(1) Recognition as EKS shall be revoked if the reports as described in Article 10 is not submitted twice consecutively:

(2) Recognition as FTK shall be frozen if the reports as described in Article 10 is not submitted twice consecutively.

(3) Company whose recognition as EKS has been revoked as described in paragraph (1) may propose new application in accordance with the provision in Article 3 paragraph (1).

(4) Recognition as ETK, which has been frozen as described in paragraph (2) may be re-activated if the companies report the realization of the export of coffee in not later than 30 (thirty) days as from the date of freezing.

(5) Recognition as ETK, which has been frozen as described in paragraph (2) may be downgraded to EKS if the report on the realization of the export of coffee is not submitted in a period of 30 (thirty) days as from the date of freezing.

(6) Recognition as EKS as described in paragraph (5) shall use Number of International Coffee Organization (ICO) as described in Article 3 paragraph (3).

Article 12

(1) Recognition as EKS or recognition ETK shall be revoked in the event that:

• a. no coffee is exported in one coffee year; or
• b. coffee is exported without SPEK.

(2) Companies whose recognition as EKS or recognition as ETK has been revoked as described in paragraph (1) may propose new application to secure recognition as EKS in accordance with the provision in Article 3 paragraph (1).

Article 13

(1) Revocation of recognition as EKS as described in Article 11 paragraph (1) and Article 12 paragraph (1) shall be done by the Director General with copies to:

• a. the Director General of Customs and Excise; and
• b. Head of Agency issuing recommendation/SPEK.

(2) Freezing, re-activation and revocation of recognition as ETK as described in Article 11 paragraph (2), paragraph (4), and Article 12 paragraph (1) shall be done by the Director General with a copies to:

• a. the Director General of Customs and Excise; and
• b. Head of Agency issuing recommendation/ SPEK.

Article 14

ET-Coffee already issued and still valid on the basis of Regulation of the Minister of Trade No. 27/M-DAG/PER/7/2008 concerning Provisions on the Export of Coffee shall be declared to remain effective and shall be treated as ETK in accordance with the provisions in this regulation.

Article 15

The Director General may stipulate further provision on the implementation of this regulation.

Article 16

With the enforcement of this regulation, Regulation of the Minister of Trade No. 27/M-DAG/PER/7/2008 concerning Provisions on the Export of Coffee shall be revoked and declared null and void.

Article 17

This regulation shall come into force 30 (thirty) days as from the date of stipulation.

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

Stipulated in Jakarta
On September 14, 2009
THE MINISTER OF TRADE
signed
MARI ELKA PANGESTU