REGULATION OF THE MINISTER OF TRADE
NUMBER 15/M-DAG/PER/5/2008

CONCERNING
PROVISIONS ON THE IMPORT OF TEXTILES AND TEXTILE PRODUCTS

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

Attachment

Considering:

a. that fast growth of current international trading push to open market, it is make tight market competition with imported goods in Indonesia, and influence national economics development;

b. that to fulfill demand on goods are not available from domestic source for production process, national consumption and to keep condusive textile and textile products (TPT) business in domestic market;

c. that in connection with paragraphs a and b, and effort to prevent unfair trading that make injury to TPT industry and consumer, it is necessary to rearrange provisions to import TPT;

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

In view of:

1. Trade Ordinance of 1934 (Statute Book Number 86 of 1938);

2. Law Number 5 of 1984 concerning Industrial Affairs (Statute Book Number 22 of 1984, Supplement to Statute Book Number 3274);

3. Law Number 7 of 1994 concerning the Ratification of Agreement Establishing The World Trade Organization (Statute Book Number 57 of 1994, Supplement to Statute Book Number 3564);

4. Law Number 10 of 1995 concerning Customs (Statute Book Number 75 of 1995, Supplement to Statute Book Number 3612) that is amended by law Number 17 of 2006 (Statute Book Number 93 of 2006, Supplement to Statute Book Number 4661);

5. Law Number 5 of 1999 concerning Ban on Monopolistic Practices and Unfair Business Competition (Statute Book Number 33 of 1999, Supplement to Statute Book Number 3806);

6. Law Number 8 of 1999 concerning Consumer Protection (Statute Book Number 42 of 1999, Supplement to Statute Book Number 3821);

7. Presidential Decision Number 260 of 1967 concerning the Affirmation of Tasks and Responsibilities of the Minister of Trade in Foreign Trade Field;

8. Presidential Decision Number 187/M of 2004 concerning the Formation of United Indonesia Cabinet that is amended by Presidential Decision Number 171/M of 2005;

9. Presidential Regulation Number 9 of 2005 concerning the Position, Task, Function, Organizational Structure and Work Mechanism of Ministries of the Republic of Indonesia that is amended the latest by Presidential Regulation Number 94 of 2006;

10. Presidential Regulation Number 10 of 2005 concerning Organizational Units and Tasks of Echelon I Officials of Ministries of the Republic of Indonesia as amended the latest by Presidential Regulation Number 17 of 2007;

11. Decision of the Minister of Industry and Trade Number 229/MPP/Kep/7/1997 concerning General Provisions in Import;

12. Decision of the Minister of Industry and Trade Number 141/MPP/Kep/3/2002 concerning Special Importer's Identification Numbers (NPIK) that is amended by Regulation of the Minister of Trade Number 07/M-DAG/PER/3/2008;

13. Regulation of the Minister of Trade Number 01/M-DAG/PER/3/2005 concerning the Organizational Structure and Work Mechanism of the Ministry of Trade that is amended by Regulation of the Minister of Trade Number 34/M-DAG/PER/8/2007;

14. Decree of the Minister of Trade Number 92/M-DAG/KEP/3/2007 concerning Delegation and Giving Right to Sign Recognition, Registration, License, or Certain Agreement in Export and Import field.

15. Regulation of the Minister of Trade Number 31/M-DAG/PER/7/2007 concerning Importer's Identity Numbers (API);

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS ON THE IMPORT OF TEXTILES AND TEXTILE PRODUCTS.

Article 1

In this Ministerial Regulation:

1. Textiles and textile products hereinafter abbreviated as TPT, is sheets of fabrics and products using sheets of fabrics as raw/auxiliary materials in classification of import goods/Heading (HS) as listed in Attachment I of this Ministerial Regulation.

2. Textile producer importers hereinafter abbreviated as IP-Textile, is companies holding producer importer's identity numbers (API-P) or limited importer's identity numbers (API-T) approved to import TPT as raw materials and/or auxiliary materials needed for their production process.

3. Recommendations are letters issued by the official of the relevant authorized agency/unit to give technical explanations rather than import permit/approval.

4. Minister is the Minister of Trade.

5. Director General is the Director General of Foreign Trade at the Ministry of Trade.

6. Director is the Import Director at the Directorate General of Foreign Trade, Ministry of Trade.

Article 2

(1) Importing TPT as listed in number 1 until 12 in Attachment I of this Ministerial Regulation can only be imported by companies already recognized as IP-Textiles, and be banned from being traded or transferred to other parties.

(2) TPT imported by IP-Textiles as intended in paragraph (1) shall only be used as raw materials or auxiliary materials for the production process of industries owned by the relevant IP-Textiles.

Article 3

(1) Recognition as IP-Textiles as intended in Article 2 is stipulated by the Director.

(2) To obtain the certificates of recognition as IP-Textiles as intended in paragraph (1) the relevant companies shall propose written applications to the Director, accompanied by:

(3) Format of recognition as IP-Textiles as intended in paragraph (1) is attached in Attachment III of this Ministerial Regulation.

Article 4

Obligation to has IP-Textile as intended in Article 2 paragraph (1), is not for imported TPT:

Article 5

(1) The Director shall issue certificate of recognition as IP-Textiles or rejection for the application as intended in Article 3 no later than 5 (five) working days after the applications have been received.

(2) The certificate of recognition as IP-Textile as intended in paragraph (1) shall be valid for a maximum of 1 (one) year and can be extended.

Article 6

(1) Companies that received certificate of recognition as IP-Textile shall submit quarterly reports of importing textiles to the Director, and copies are submitted to the Director General and Director General of Metal, Machinery, Textile and Multifarious Industries in this case Director of Textile and Textiles Products Industry, Ministry of Industry.

(2) Report as intended in paragraph 1 is submitted in the form of Import Monitoring Card that is approved by customs and office official or print out of Import Monitoring Card.

Article 7

(1) Any importation of TPT contained in Attachment I to this Ministerial Regulation shall be subject to prior technical verification or inquiry in the countries of loading.

(2) The obligation to have technical verification or inquiry as intended in paragraph (1) does not apply if Attachment I to this Ministerial Regulation stipulates exception to verification obligation.

(3) The technical verification or inquiry as intended in paragraph (1) shall conducted by surveyors appointed by the Minister.

(4) Technical verification or inquiry by surveyors as intended in paragraph (1) shall cover:

(5) Surveyors shall put surveyor inspection sign as result of technical verification or inquiry in the form of seal in Full Container Load (FCL) transportation packing or surveyor inspection sign in the form of label in the goods or other similar transportation packing.

(6) Surveyors issued Surveyor Report (LS) on every technical verification or inquiry by surveyor as intended in paragraph (2) that will be used as customs complementary document.

(7) Surveyors can collect fees from importers for their service of technical verification or inquiry as intended in paragraph (3).

Article 8

(1) To become the executor of technical verification or inspection of the importation of TPT as intended in Article 7 paragraph (2), surveyors shall meet the following requirements:

a. having experience as a surveyor for a minimum of 5 (five) years; and

b. having a branch or representative or affiliate abroad.

(2) The surveyors appointed as the executor of technical verification or inspection of the importation of TPT shall submit a monthly written report on technical verification or inspection of TPT.

(3) The written report as intended in paragraph (2) shall be submitted to the Director General in this case the Director in the first week of the ensuing month.

Article 9

(1) Obligation of verification or technical inquiry as intended in Article 7, is not for importing TPT:

(2) TPT resulting from the manufacturing process in the zones as intended in paragraph (1) a, wholly or partly will be entered to Other Indonesian Customs Area (DPIL) shall be subject to technical verification or inquiry.

(3) Technical verification or inquiry as intended in paragraph (2) and (3) shall be done by the surveyors in the place of goods which will be carried to DPIL or places of goods will be sold to domestic market.

Article 10

The technical verification or inspection of TPT imports by the surveyor as intended in Article 7 shall not reduce the authority of the Directorate General of Customs and Excise to conduct customs audit.

Article 11

(1) Certificates of recognition as IP-Textiles shall be frozen if the relevant parties fail to submit the reports as intended in Article 6 twice.

(2) The frozen certificates of recognition as IP-Textiles can be reactivated after the relevant parties have submitted the reports as intended in Article 6 in 2 (two) months after being frozen.

(3) The freezing of certificates of recognition as IP-Textiles as intended in paragraph (1) and the reactivation of the frozen certificates of recognition as IP-Textiles as intended in paragraph (2) shall be undertaken by the Director.

Article 12

(1) Certificates of recognition as IP-Textiles shall be revoked if the relevant parties:

(2) The revocation of certificates of recognition as IP-Textiles as intended in paragraph (1) shall be undertaken by the Director.

Article 13

Without reduce provision in Article 8, to implement provision in Article 7 paragraph (2), surveyors appointed by Minister are decided in Decree of the Minister of Industry and Trade Number 307/MPP/Kep/11/2003 concerning Appointed Surveyors as Implementer of Technical Verification or Inquiry of Importing Textile and Textile Products (TPT).

Article 14

(1) Certificates of recognition as IP-Textiles already issued based on Regulation of the Minister of Trade No. 19/M-DAG/PER/9/2005 shall remain valid until their date of expiry.

(2) Surveyor Reports (LS) already published based on Regulation of the Minister of Trade No. 19/M-DAG/PER/9/2005 shall remain valid until customs clearance of the relevant TPT imports.

Article 15

(1) In addition to IP-Textiles as intended in Article 2, the Minister or the official appointed by the Minister can appoint other companies to import TPT as contained in numbers 1 to 12 in Attachment I to this Ministerial Regulation.

(2) The other companies as intended in paragraph (1) can only import TPT to meet demand from small scale industries and/or industries not undertaking the importation of TPT themselves.

(3) To become the executor of TPT imports as intended in paragraph (1), the relevant companies shall obtain recommendations from the Director General of Metal, Machinery, Textile and Multifarious Industries of the Ministry of Industry; and have a plan for the distribution of TPT to be imported to meet demand from small scale industries.

(4) Companies appointed to import TPT as intended in paragraph (1) only supply to the industry not undertaking the importation of TPT themselves and prohibited to sell to domestic market.

Article 16

When this Ministerial Regulation begins to take effect, Regulation of the Minister of Trade Number 19/M-DAG/PER/9/2005 concerning Provisions on the Import of Textiles and Textile Products shall be declared null and void.

Article 17

Further provisions to implement and technical directives are not arrange in this Ministerial Regulation are to be stipulated by the Director General.

Article 18

This Ministerial Regulation shall come into force as from 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 May 5, 2008
THE MINISTER OF TRADE,
signed,
MARI ELKA PANGESTU