REGULATION OF THE MINISTER OF TRADE
No. 14/M-DAG/PER/5/2008

CONCERNING
TECHNICAL VERIFICATION OR INQUIRY INTO THE EXPORT OF CERTAIN MINERALS

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

Attachment

Considering:

a. a. that in the framework of enhancing supervision over the export of certain minerals and overcoming illegal export of certain minerals;

b. that in relations with the matter in paragraph a, it is necessary to verify and inquire technically the export of certain minerals

c. that based on consideration 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 1934 (Statute Book No. 86 of 1938) as amended and supplemented;

2. Law No. 8 Prp of 1962 concerning Trading of Goods under Supervision (Statute Book No. 42 of 1962, Supplement to Statute Book No. 2409);

3. Law No. 11 of 1967 concerning Basic Provisions on the Mining (Statute Book No. 22 of 1967, Supplement to Statute Book No. 2831);

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

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

6. Law No. 23 of 1997 concerning Environmental Managemet (Statute Book No. 68 of 1997, Supplement to Statute Book No. 4327);

7. Presidential Decree No. 260 of 1967 concerning Affirmation of Task and Responsibility of the Minister of Trade in the Foreign Trade Sector;

8. Presidential Regulation No. 33 of 2002 concerning Control and Supervision over the Explotation of Sea Sand;

9. Presidential Decree No. 187/M of 2004 concerning the Establishment of the United Indonesia Cabinet as amended several times, the latest by Presidential Decree No. 171/M of 2005;

10. Presidential Regulation No. 9 of 2005 concerning Status, Tasks, Functions, Organizational Structures and Workiiig Arrangements of State Ministries of the Republic of Indonesia as amended several times, the latest by Presidential Regulation No. 94 of 2006;

11. Presidential Regulation No. 10 of 2005 concerning Organizational Units and Tasks of First Echelon of State Ministries as amended several times, the latest by Presidential Regulation No. 17 of/2007;

12. Decree of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 concerning General Provisions on Export as amended several times, the latest by Regulation of the Minister of Trade No. 01/M-DAG/PER/1/2007;

13. Decree of the Minister of Finance No. 545/KMK.01/2003 concerning Stipulation of Classification System of Imported Goods;

14. Regulation of the Minister of Trade No. 01/M-DAG/PER/3/2005 concerning Organization and Working Arrangement of the Ministry of Trade as amended by Regulation of the Minister of Trade No. 34/M-DAG/PER/8/2007;

15. Regulation of the Minister of Finance No. 103/PMK.04/2006 concerning Using Customs Declaration Single Administrative Document in Batam, Bintan and Karimun Islands;

16. Regulation of the Minister of Finance No. 110/PMK.010/2006 concerning Stipulation of Classification System of Goods and Imposition of Import Duty on the Imported Goods;

Observing:

Letter of the Director General of Mineral, Coal and Geothermal No. 1553/07.07/DJB/2007 dated August 28, 2007 concerning recommendation of verification;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING TECHNICAL VERIFICATION OR INQUIRY INTO THE EXPORT OF CERTAIN MINERALS

Article 1

In this Ministerial Regulation:

1. Technical Verification or inquiry is examination and inspection of exported goods by surveyor, before the goods are loaded.

2. Surveyor is a survey company securing authorization from and stipulated by the Minister of Finance to verify or inquire technically the export of certain minerals.

3. Customs Office is office within the Directorate General of Customs and Excise where customs obligations are settled in accordance with the Customs Law.

4. Dirjen Minerbapabum is Director General of Mineral, Coal and Geothermal of Ministry of Energy and Mineral Resources.

5. Dirjen Daglu is Director Genral of Foreign Trade of the Ministry of Trade.

6. Minister is Minister of Trade.

Article 2

(1) The export of certain minerals shall be verified or inquired technically first.

(2) The certain minerals as intended in paragraph (1) shall be as contained in Attachment I to this regulation.

Article 3

(1) The technical verification or inquiry as intended in Article 2 paragraph (1) shall be done before the loading of goods by surveyors stipulated by the Minister.

(2) The technical verification or inquiry by surveyors as intended in paragraph (1) shall cover:

• 1. examination and audit of data or information minimally related to administrative and technical legitimacy of origin of minerals;
• 2. stipulation of quantity of goods;
• 3. stipulation of kinds and specifications of goods, covering Tariff Headings/HS Numbers through qualitative analysis in laboratory; and
• 4. shipment period and loading port.

(3) Result of the technical verification or inquiry by the surveyors as intended in paragraph (1) shall be written down into Surveyor Report (LS) to be used as a customs complementary document required for the registration of Export Declaration (PEB) or Customs Declaration of Single Administrative Document (PPSAD) in the case of customs office already applying it.

(4) Costs spent for the technical verification or inquiry into the export of certain minerals by surveyors shall be borne by exporters.

(5) In connection with the technical verification or inquiry into certain minerals, surveyors collect service fee with the amount stipulated by observing the principle of benefit.

Article 4

(1) The stipulation of surveyors by the Minister as intended in Article 3 paragraph (1) only can be applied to surveyors complying with the following requirements:

• a. having business license as Surveyor;.
• b. experiencing as surveyor of minerals for 3 (three) years at the minimum; and
• c. having complete specialists and equipment as well• as laboratory in regions according to the scope of their tasks.

(2) To make survey companies eligible for the execution of technical verification or inquiry, the survey companies shall submit written application to the Minister of Trade with a copy made available to the Dirjen Daglu, by enclosing:

• a. copy of business license of survey service provider (SIUJS);
• b. copy of corporate registry number (TDP);
• c. copyof taxpayer code number (NPWP);
• d. information about working area of company, such as address of head office, branch office and location of laboratory;
• e. information about kinds of minerals which have been verified;
• f. list of specialists, accompanied by curriculum vitae and working location by using the format as contained in Attachment II and Attachment III;
• g. evidence of ownership of laboratory or cooperation in the use of laboratory; and
• h. list of laboratory equipment/instruments by using the format as contained in Attachment IV.

Article 5

(1) The surveyors as intended in Article 3 paragraph (1) shall convey written report on activities of technical verification or inquiry, which are executed, every month.

(2) The written report as intended in paragraph (1) shall be conveyed to Dirjen Daglu in this case the Director of Export of Industrial and Mineral Products and Dirjen Minerbapabum in this case the Director of Mineral and Coal Exploitation Development in the first week of the ensuing month.

(3) Surveyor shall ascertain that the exported goods are in accordance with the ones mentioned in LS as intended in Article 3 paragraph (3).

(4) Surveyor shall convey recapitulation of LS as intended in Article 3 paragraph (3) everymonth by using the format as contained in Attachment V.

Article 6

Stipulation of surveyors as executors of verification shall be revoked if the surveyors as intended in Article 3 paragraph (1):

• a. do not execute the obligations as intended in Article 5 paragraph (1) and paragraph (4) twice in one year; and/or
• b. do no execute the obligation as intended in Article 5 paragraph (3).

Article 7

Further provision on the implementation of this regulation may bestipulated by Dirjen Daglu.

Article 8

The regulation shall come into force 2 (two) months as from the date of stipulation.

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

Stipulated in Jakarta
On May 5, 2008
THE MINISTER OF TRADE,
signed,
MAR! ELKA PANGESTU

Attachment I Regulation of the Minister of Trade

No. 14/M-DAG/PER/5/2008
Dated May 5, 2008

LIST OF COMPULSORILY VERIFIED MINERALS

The MINISTER OF TRADE
signed,
MARI ELKA PANGESTU