REGULATION OF THE MINISTER OF TRADE
No. 41/M-DAG/PER/10/2008

CONCERNING
PROVISION FOR IMPORT OF NON-HAZARDOUS AND TOXIC MATERIAL WASTE (NON-B3)

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

Considering:

a. that certain domestic industries still use waste as basic material and/or supporting material for processing their products;

b. that procurement of waste as basic material and/or supporting material required for processing certain industrial products cannot be fully obtained from domestic source, so that it is necessary to produce additional waste from overseas source;

c. that procurement of waste as basic material and/or supporting material from overseas source must observe the effort for protection of the country's living environment, so that its import shall be under control and must be limited;

d. that in the context of controlling and limiting and in order to improve effectiveness in supervising import of non-hazardous and toxic material (Non-B3), it is necessary to re-arrange the provisions on import of Non B3 waste;

e. that based on consideration as intended in paragraphs a, b, c and d, it is necessary to stipulate Regulation of the Minister of Trade;

In view of:

1. Trade Law 1934 (Statute Book No. 86/1939);

2. Law No. 5/1994 concerning Industry (Statute Book No. 22/1984, Supplement to Statute Book No. 3274);

3. Law No. 7/1994 concerning 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. 23/1997 concerning Management of Live Environment (Statute Book No. 68/1997, Supplement to Statute Book No. 3699);

6. Government Regulation No. 18/1999 concerning Management of Non-Hazardous and Toxic Material Waste (Statute Book No. 31/1999, Supplement to Statute Book No. 3815) that is amended by Government Regulation No. 85/1999 (Statute Book No. 190/1999, Supplement to Statute Book No. 391);

7. Presidential Decree No. 260/1967, concerning Confirmation of Duty and Responsibility of the Minister of Trade in the field of International Trading;

8. Presidential Decree No. 61/1993, concerning Ratification of Based Convention on The Control of Transboundary Movements of Hazardous Wastes and Their Disposal (Statute Book No. 62/1993);

9. Presidential Decree No. 187/M/2004 concerning Establishment of United Indonesia Cabinet that is amended several times and lately amended by Presidential Decree No. 171/M/2005;

10. Presidential Regulation No. 9/2005 concerning Capacity, Duty, Function, Organizational Structure, and Working Procedure of the State Ministry of Republic of Indonesia that is amended several times and the last amended by Presidential Regulation No. 20/2008;

11. Presidential Regulation No. 10/2005 concerning Organizational Unit and Duty of Echelon I of the State Ministry of Republic Indonesia that is amended several times and the latest amended by Presidential Regulation No. 21/2008;

12. Decree of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 concerning General Provision in Import;

13. Decree of the Minister of Industry and Trade No. 520/MPP/Kep/8/2003 concerning Prohibition from Importing Hazardous and Toxic Material Waste (B3);

14. Regulation of the Minister of Trade No. 01/M~DAG/PER/3/2005 concerning Organization and Working Procedure of the Ministry of Trade that is amended several times and lately amended by Regulation of the Minister of Trade No. 34/M-DAG/PER/7/2007;

15. Regulation of the Minister of Trade No. 31/M-DAG/PER/7/2007 concerning Importer's Identification Number (API);

HAS DECIDED:

To Stipulate:

REGULATION OF THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA CONCERNING PROVISION FOR IMPORT OF NON-HAZARDOUS AND TOXIC MATERIAL WASTE (NON B3).

Article 1

In this Regulation of the Minister:

1. Non-Hazardous and Toxic Waste, hereinafter called as Non-B3 Waste is remnants of a business and/or activities in the form of residue, scrap or left over not included in hazardous and toxic waste material classification/ category.

2. Residue is product not used up in processing products or goods, still having the same characteristics but the function has changes from the original goods.

3. Scrap is goods consisting of components of the same type and different type of goods having been dispersed from its original form and the function if different from the original goods.

4. Left over is left of goods in pieces and still having the same characteristic as that of the original goods but the function is different from that of the original goods.

5. Producer Importer of Non-B3 Waste, hereinafter called as IP Non-B3 Waste is company that runs industrial business activities having been approved to import Non-B3 Waste needed solely to process its industrial products, which is not for trade and/or assignment to other parties.

6. Exporting country of Non-B3 Waste is country where Non-B3 Waste is produced and shipped from other countries for delivery to Indonesia.

7. Surveyor is survey company appointed by the Minister and granted the authority to conduct technical verification and investigation of imported Non-B3 Waste.

8. Recommendation is certificate issued by the relevant competent authority/working unit authorized to give technical consideration as the basis for issuing approval for import of Non-B3 Waste.

9. Minister is Minister whose duty and responsibility are in the Trading sector.

10. Director General is Overseas Director General of Trade of the Ministry of Trade.

Article 2

(1) Non-B3 Waste that may be imported shall be in the form of Residue, Scrap or Left-over to be used as basic material and/or industrial supporting material.

(2) The Non-B3 Waste as intended in paragraph (1) set forth in Attachment 1 shall constitute inseparable part of this Regulation of the Minister.

Article 3

(1) The Non-B3 Waste as intended in Article 2 may be imported only by company that runs industrial business activities and having obtained recognition as Non B3 Waste IP from the Director General.

(2) The recognition as Non-B3 Waste IP as intended in paragraph (1) shall list the volume and types of Non-B3 Waste that may be imported by the Non-B3 Waste IP and the technical provision for implementation of its import.

Article 4

(1) Application for obtaining recognition as Non-B3 Waste IP as intended in Article 3 paragraph (1) must be submitted in writing to the Director General supported by:

(2) The application for obtaining Non-B3 Waste IP recommendation as intended in paragraphs f and g, must be submitted in writing to the respective agency providing recommendation by attaching the documents below:

(3) The Director General shall issue or reject application for recognition as Non-B3 Waste IP as intended in paragraph (1) within 7 (seven) working days at the latest effective as of the application is received.

Article 5

(1) The recognition as Non-B3 Waste IP as intended in Article 3 shall be valid for 1 (one) year and is extendable.

(2) Application for Recognition as Non-B3 Waste IP as intended in paragraph (1), must be submitted in writing to the Director General by attaching the documents below.

(3) If the company applying for extension of recognition as Non-B3 Waste IP is unable to attach the original certificate of recognition as Non-B3 Waste IP which validity expired as intended in paragraph (2) c, the company concerned must submit the written application to the Director General in accordance with the provisions as intended in Article 4.

Article 6

(1) The Non-B3 Waste IP to be imported must obtain Approval Letter for Import (SPI) of Non-B3 Waste for each shipment from the Director of Import of the Ministry of Trade on behalf of the Director General.

(2) The Non-B3 Waste SPI as intended in paragraph (1) shall cover Non-B3 Waste type, the volume or weight (net) for each type of Non-B3 Waste, the description and specification of Non-B3 Waste covering the HS number; the data and remarks on the country of origin of the Non-B3 Waste, and the port of loading and unloading and the validity period of the Non-B3 Waste SPI;

(3) Each application for Non-B3 Waste SPI conducted by Non-Be Waste IP must be supported by Statement Letter from the exporter that has been approved by the competent authority in governing Non-B3 Waste from exporting country, stating that:

(4) Statement Letter from the exporter as intended in paragraph (3) is not obligatory if the next Non-B3 Waste to be imported constitutes the same type of Non-B3 Waste, originating from the exporting country, and the exporter as well as the same Non-B3 Waste IP.

(5) The validity of Approval for Import as intended in paragraph (2) shall be 3 (three) months at the longest effective as of the date the Non-B3 Waste SPI is issued.

(6) If the imported Non-B3 Waste is found out to be contaminated by hazardous and toxic material so that it is inconsistent with the provisions of paragraph (3) a, the Non-B3 Waste IP must be re-exported to the country of original within 90 (ninety) days as of the arrival of the goods based on applicable document of customs.

(7) Charges required for re-export as intended in paragraph (3) shall be on account of the Non-B3 Waste IP.

Article 7

(1) The Non-B3 Waste IP that has obtained Non-B3 Waste SPI as intended in Article 6, paragraph (1) must be submitted in writing either to import or not to import Non-B3 Waste.

(2) The report as intended in paragraph (1) shall be submitted to the Director General in this case the Director of Import of the Ministry of Trade with copy to:

(3) The report as intended in paragraph (1) shall be submitted within 10 (ten) days as of the expiry of the validity of the Non-Be Waste SPI.

(4) The Non-B3 Waste SPI that fails to submit the report as intended in paragraphs (1) and (2) may not submit application for the next Non-B3 Waste SPI.

(5) The form of the report as intended in paragraph (1) set forth in Attachment II shall constitute inseparable part of this Regulation of the Minister.

Article 8

(1) Every import of Non-B3 Waste by the Non-B3 Waste IP must be verified or investigated technically in the country of loading before shipment.

(2) The technical verification and investigation as intended in paragraph (1) shall be conducted by a surveyor appointed by the Minister.

(3) The surveyor appointed as intended in paragraph (2) must comply with the requirements as follows:

(4) The technical verification and investigation by the Surveyor as intended in paragraph (2) shall be conducted based on:

(5) The result of technical verification or investigation as intended in paragraph (4) shall be set forth in a form of Surveyor Report (LS) as customs supporting on import.

(6) The Surveyor shall be responsible for the result of technical verification and investigation as intended in paragraph (5).

(7) The Surveyor shall collect service compensation for conducting the technical verification and investigation as intended in paragraph (4) which amount shall be determined with due observance of the benefit principle.

(8) The Surveyor as intended in paragraph (2) must submit written report on the technical verification and investigation each month to the Director General with copy to:

Article 9

(1) If the Non-B3 Waste imported by the Non-Be Waste IP will transfer its shipment at the port of transit in a certain country, the Non-B3 Waste concerned must be re-verified and re-investigated technically.

(2) The technical re-verification and re-investigation as intended in paragraph (1) shall be conducted at the port of transit at re-loading of the Non-B3 Waste to the ship by complying with the provisions as intended in Article 8.

Article 10

Technical verification and investigation conducted by the Surveyor as intended in Articles 8 and 9 shall not prejudice the authority of the Directorate General of Customs and Excise of the Ministry of Finance to conduct customs examination.

Article 11

(1) Recognition as Non-Be Waste IP shall be terminated if the Non-B3 Waste IP concerned fails to comply with its obligation to submit report as intended in Article 7 paragraph (3).

(2) The termination as intended in paragraph (1) shall be implemented after giving written reminder within 7 (seven) working days as of the deadline of the obligatory report submission.

(3) The termination of recognition as Non-B3 Waste IP as intended in paragraph (1) may be re-activated if the Non-B3 Waste IP concerned has implemented the obligatory report submission.

(4) The termination and activation of the recognition as Non-B3 Waste IP as intended in paragraphs (1) and (2) shall be conduced by the Director GeneraI.

Article 12

(1) Recognition as Non-Be Waste IP shall be revoked if the Non-B3 Waste IP concerned:

(2) Revocation of recognition as Non-B3 Waste lP as intended in paragraph (1) shall be stipulated by the Director General.

(3) The company owning the Non-B3 Waste lP recognition charged by revocation penalty as intended in paragraph (2) may only submit application to obtain recognition as Non-B3 Waste IP again after 2 (two) years as of the revocation of the stipulated Non B3 Waste IP.

Article 13

(1) Violation by the Surveyor of the provision in Article 8 paragraph (8) shall be charged administrative penalty by revoking the appointment as Surveyor.

(2) Revocation of appointment as intended in paragraph (1) shall first be reminded in writing for 3 (three) times within a period often 10 (ten) days.

Article 14

(1) Recognition as Non-B3 Waste IP issued based on Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997, concerning Governing of Commerciality of Import Goods and Decree of the Minister of Industry and Trade No. 231/MPP/Kep/7/1997, concerning Procedure for Waste Import, is declared to remain valid until the expiry of the Non-B3 Waste IP.

(2) Import of Non-B3 Waste by Non-B3 Waste IP as intended in paragraph (1) which at stipulation of this Regulation of the Minister is in shipping process from the exporting country to the territory of the Republic of Indonesia except for the provision on the ownership of NonB3 Waste SPI within 2 (two) months at the latest.

(3) The period of time as intended in paragraph (2) takes effect as of the date this Regulation of the Minister is stipulated.

(4) Import made by the Non-B3 Waste IP after the period of time as intended in paragraph (2) is subject to the provision in this Regulation of the Minister.

(5) The appointment as Waste IU issued based on Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 concerning Governing of Commerciality of Import Goods and Decree of the Minister and Trade No. 231/MPP/Kep/7/1997 concerning Procedure for Waste Import is declared null and void.

Article 15

(1) In the framework of supervision in the implementation of this Regulation of the Minister, the Director General may establish supervisory duty consisting of relevant technical agency.

(2) The supervisory duty as intended in paragraph (1) shall function to evaluate and monitor and give recommendation to the Minister through the Director General as material for consideration in stipulating policy.

Article 16

By the time this Regulation of the Minister comes to force:

shall be revoked and declared null and void.

Article 17

This Regulation of the Minister shall take effect on the date it is stipulated.

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

Stipulated in Jakarta
On October 31, 2008
THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA
signed,
MARI ELKA PANGESTU