REGULATION OF THE MINISTER OF TRADE
No. 54/M-DAG/PER/12/2010

CONCERNING
PROVISION ON THE IMPORT OF IRON OR STEEL

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

Attachment

Considering:

a. that fair trade and conducive business climate are not in maximum condition yet, it is necessary to increase administration order in the field of import of iron or steel;

b. that based on consideration as intended in paragraph a, it is necessary to make policy on the import of iron or steel;

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

In view of:

1. Trade Law of 1934 (Statute Book 1938 No. 86/1938);

2. Law No. 3/1982 concerning Company Registration Obligatory (Statute Book No. 7/1982, Supplement to Statute Book No. 3214);

3. 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);

4. Law No. 7/1994 concerning Ratification of Agreement Establishing The World Trade Organization (Statute Book of the Republic of Indonesia No. 57/1994, Supplement to Statute Book of the Republic of Indonesia No. 3564);

5. Law No. 10/1995 concerning Customs (Statute Book of No. 75/1995, Supplement to Statute Book No. 3612) as amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);

6. Law No. 5/1999 concerning Prohibition of Monopolistic Practical and Unfair Business Competition (Statute Book No. 33/1999, Supplement to Statute Book No. 3817);

7. Law No. 25/2007 concerning Investment (Statute Book No. 67/2007, Supplement to Statute Book No. 4724);

8. Law No. 39/2008 concerning State Ministries (Statute Book No. 166/2008, Supplement to Statute Book No. 4916);

9. Law No. 25/2009 concerning Public Service (Statute Book No. 112/2009, Supplement to Statute Book No. 5038);

10. Government Regulation No. 102/2000 concerning National Standardization (Statute Book No. 199/2000) Supplement to Statute Book No. 4020);

11. Presidential Decision No. 260/1967 concerning Affirmation of Tasks and Responsibility of the Minister of Trade in the Foreign Trade Sector;

12. Presidential Regulation No. 47/2009 concerning Formation and Organization of State Ministries;

13. Presidential Decree No. 84/P/2009 concerning Formation of United Indonesia Cabinet II;

14. Presidential Regulation No. 24/2010 concerning Position, Task and Function of State Ministries and Organization Structure, Task and Function of Echelon I of State Ministries;

15. Regulation of the Minister of Trade No. 28/M-DAG/PER/6/2009 concerning Provision of Export and Import Licensing Service by using Electronic System through INATRADE in the framework of Indonesia National Single Window;

16. Regulation of the Minister of Trade No. 45/M-DAG/PER/9/2009 concerning Importer's Identification Number (API) as amended by Regulation of the Minister of Trade No. 17/M-DAG/PER/3/2010;

17. Regulation of the Minister of Trade No. 54/M-DAG/PER/10/2009 concerning General Provision in Import;

18. Regulation of the Minister of Trade No. 31/M-DAG/PER/7/2010 concerning Organization and Working Arrangement in the Ministry of Trade;

HAS DECIDED:

To stipulate:

THE REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISION ON THE IMPORT OF IRON OR STEEL

Article 1

In this Ministerial Regulation:

1. Iron or steel is the product of alloy carbon iron works with a number of further alloy elements and polluting elements, and/or goods produced from the product.

2. Iron or steel importer producer, hereinafter called as iron or steel IP, is a company which holds an industrial business permit or other business permit which imports iron or steel in the interests of its production process or a company which holds an industrial business permit or other business permit which imports iron or steel for own use to support its production process or its business activities.

3. Registered iron or steel importer, hereinafter called as iron or steel IT, is a company which holds a business permit which imports iron or steel for distribution to producing companies or end users.

4. Technical import verification or inspection is a technical audit of iron or steel products conducted by a surveyor in the port of loading.

5. Surveyor is a survey company which has the authority to conduct technical verification and inspection of imported goods.

Article 2

(1) Iron or Steel are arranged in this Ministerial Regulation are as intended in Attachment that is integral part of this Ministerial Regulation.

(2) Iron or Steel as intended in paragraph (1) only can be imported by:

Article 3

(1) In order to secure recognition as Iron or Steel IP or stipulation as Iron or Steel IP as intended in Article 2 paragraph (2), every company shall submit application to the Director General by enclosing the following documents:

(2) Director General on behalf of Minister issue recognition as Iron or Steel IP or stipulation as Iron or Steel IP in not later than 7 (seven) working days as from the date of receipt complete and true application.

(3) Recognition as Iron or Steel IP or stipulation as Iron or Steel IT as intended in paragraph (1) valid until ending period off this Ministerial Regulation.

Article 4

Every company may only have 1 (one) of:

Article 5

(1) The import of iron or steel by Iron or Steel IP or Iron or Steel IT shall be subject to prior technical verification or inquiry by surveyors at the loading port before the shipment.

(2) The technical verification or inquiry by surveyors as intended in paragraph (1) shall cover kind and quantity of goods, classification of goods, Tariff Post/10 (ten) digits HS number, and destination port.

(3) The result of the technical verification or inquiry by surveyors as intended in paragraph (1) shall be written down into Surveyor Report (LS), to be used as customs complementary document in the settlement of customs obligation in import.

(4) All costs of the technical verification or inquiry by surveyors as intended in paragraph (1) shall be borne by the said IP of Iron or Steel or IT of Iron or Steel.

Article 6

(1) The technical verification or inquiry as described in as described in Article 5 paragraph (1) shall be executed by surveyors stipulated by the Minister.

(2) The stipulated surveyors as described in paragraph (1) shall comply with the following requirements:

(3) The surveyors as described in paragraph (1) shall be obliged to conduct Import Technical Verification or inquiry in accordance with the provision as described in Article 5 paragraph (2) and convey a report on recapitulation of technical verification and inquiry into the import of iron or steel by IP of Iron or Steel and IT of Iron or Steel to the Director General every three month on the 15th of the ensuing month.

Article 7

(1) Iron or steel of import origin released from a Free Trade Area and a Free Port as well as from a Bonded Hoarding Place to other place in a customs area shall comply with this Ministerial Regulation.

(2) Iron or steel of import origin as intended in paragraph (1) shall be subject to a prior Import Technical Verification or Inquiry by a surveyor in the area of the goods in question.

Article 8

The Import Technical Verification or Inquiry as intended in paragraph (1) does not apply to iron or steel imported or iron or steel taken into other place in a customs area of free trade area and free port as well as bonded hoarding place by:

Article 9

(1) Iron or Steel IP and Iron or Steel IP shall obliged to submit report in writing to the Director General every 3 (three) months as from the date of issuance or recognition as Iron or Steel IP or stipulation as Iron or Steel IP.

(2) Submission report as intended in paragraph (1) shall be conveyed not matter whether the import is realized or not.

(3) The report as intended in paragraph (1) is submitted through http://inatrade.kemendag.go.id.

Article 10

Other legal provisions based on other regulations on the Iron or Steel still are applied.

Article 11

(1) Iron or Steel IP or Iron or Steel IT violating the provision as intended in Article 9 paragraph (1) twice shall be subject to administrative sanction in the form of revocation of Iron or Steel IP or Iron or Steel IT.

(2) Surveyor does not do obligation as intended in Article 6 paragraph (3) shall be subject to sanction in the form revocation of stipulation as Surveyor for Iron or Steel.

Article 12

Provisions in this Ministerial Regulation do not apply to:

Article 13

(1) In case importer who has recognition as Iron or Steel IP or stipulation as Iron or Steel IP expire on December 31, 2010, Director on behalf of Minister can issue extension of recognition as Iron or Steel IP or stipulation as Iron or Steel IP.

(2) Recognition as Iron or Steel IP or stipulation as Iron or Steel IP as intended in paragraph (1) is issued not later than January 1, 2011 and that issuance will be informed to importer as intended in paragraph (1).

(3) Importer can take recognition as Iron or Steel IP or stipulation as Iron or Steel IP as intended in paragraph (1) by return the original expired recognition as Iron or Steel IP or stipulation as Iron or Steel IP.

Article 14

Iron or Steel are imported by Iron or Steel IP or Iron or Steel IT which recognition or stipulation expired on December 31, 2010, still can import until February 28, 2011, with evidence registration date of customs notification in Manifest (BC. 1.1) in accordance with regulations in customs.

Article 15

The implementation of this Ministerial Regulation shall be evaluated within 1 (one) year as from the date of enforcement.

Article 16

Further provision on this Ministerial Regulation shall be stipulated by the Director General.

Article 17

This Ministerial Regulation shall come into force from January 1, 2011 and expire on December 31, 2012.

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

Stipulated in Jakarta
On December 28, 2010
MINISTER OF TRADE
signed,
MARI ELKA PANGESTU