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REGULATION OF THE MINISTER OF TRADE
No. 48/M-DAG/PER/7/2012

CONCERNING
PROVISIONS ON THE EXPORT OF NON SUBSIDIZED UREA FERTILIZER

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

Considering:

a. that urea is a type of fertilizer that widely used in agriculture sector, in order to improve the effectiveness control of fertilizer from abuse and diversion as well as to maintain the national availability of fertilizer, it is necessary to arrange export of non subsidized urea fertilizer;

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

In view of:

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

2. Law No. 8 Prp of 1962 concerning Trade in Goods Under Supervision (Statute Book of the Republic of Indonesia No. 42/1962, Supplement to Statute Book of the Republic of Indonesia No. 2469);

3. Law No. 3/1982 concerning Obligatory Company Registration (Statute Book of the Republic of Indonesia No. 7/1982, Supplement to Statute Book of the Republic of Indonesia No. 3214;

4. Law No. 5/1984 concerning Industrial Affairs (Statute Book of the Republic of Indonesia No. 22/1984, Supplement to Statute Book of the Republic of Indonesia No. 3274);

5. 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);

6. 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) as 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);

7. Law No. 7/1996 concerning Foods (Statute Book of the Republic of Indonesia No. 99/1996, Supplement to Statute Book of the Republic of Indonesia No. 3656);

8. Law No. 5/1999 concerning Prohibition of Monopoly Practical and Unfair Business Competition (Statute Book of the Republic of Indonesia No. 33/1999, Supplement to Statute Book of the Republic of Indonesia No. 3817);

9. Law No. 24/1999 concerning Foreign Exchanges Flows and Exchange Rate System (Statute Book of the Republic of Indonesia No. 67/1999, Supplement to Statute Book of the Republic of Indonesia No. 3844);

10. Government Regulation No. 68/2002 concerning Foods Sustainability (Statute Book of the Republic of Indonesia No. 142/2002, Supplement to Statute Book of the Republic of Indonesia No. 4154);

11. Government Regulation No. 38/2007 concerning the Sharing of Government Affairs between the Government, Provincial Governments and Regency/Municipal Governments (Statute Book of the Republic of Indonesia No. 82/2007, Supplement to Statute Book of the Republic of Indonesia No. 4737);

12. Presidential Decree No. 260/1967 concerning Affirmation of Duties and Responsibilities of the Minister of Trade in Foreign Trade;

13. Presidential Regulation No. 77/2005 concerning Determination of Subsidized Fertilizer as Goods Under Supervision as amended by Presidential Regulation No. 15/2011;

14. Presidential Decree No. 84/P/2009 concerning Establishment of United Indonesia Cabinet II, as amended by Presidential Decree No. 59/P/2011;

15. Presidential Decree No. 47/2009 concerning the Establishment and Organization of the State Ministries, as amended several times, the latest by Presidential Regulation No. 91/2011;

16. Presidential Regulation No. 24/2010 concerning Position, Duties and Functions of the State Ministries as well as Organizational Structures, Duties, and Function of Echelon I of State Ministries, as amended several times, the latest by Presidential Regulation No. 92/2011;

17. Regulation of the Minister of Trade No. 28/M-DAG/PER/6/2009 concerning Provisions on the Export and Import Permit Service By Electronic System through INATRADE in the Framework of Indonesia National Single Window;

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

19. Decree of the Minister of Agriculture as Implementation Leader of Foods Sustainability Commission No. 669/Kpts/OT.160/2/2012 concerning Working Group of Fertilizer Policy Formulation;

20. Regulation of the Minister of Trade No. 13/M-DAG/PER/3/2012 concerning General Provisions in the Export Sector;

DECIDES:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS ON THE EXPORT OF NON SUBSIDIZED UREA FERTILIZER

Article 1

In this Ministerial Regulation:

1. Export is the activities to release goods from customs territory.

2. Urea Fertilizer is a chemical fertilizer that contains high grade nitrogen (N), white crystals shaped, with the chemical formula NH2CONH2, a fertilizer that is easy combined in water and is very easy to suck the air (hygroscopic).

3. Non Subsidized Urea fertilizer is Urea Fertilizer which is not contained subsidy from the government.

4. Special Working Group for Fertilizer Policy Assessment in the Framework to Support Food Security hereinafter called as Pokja is the working group established by the Minister of Agriculture as Operational Chief of the Food Security Council.

5. PT Pupuk Indonesia (Persero) is the parent company of the State Owned Company (BUMN) in fertilizer production.

6. Children Companies of PT Pupuk Indonesia (Persero) are State Owned Companies (BUMN) in fertilizer production, namely PT Pupuk Sriwidjaja Palembang, PT Petrokimia Gresik, PT Pupuk Kaltim, PT Pupuk Kujang, and PT Pupuk Iskandar Muda.

7. Certificate of Allocation of Non Subsidized Urea Fertilizer hereinafter called as SKAE of Non Subsidized Urea Fertilizer is a certificate issued by PT Pupuk Indonesia (Persero) which describes the distribution of the export allocation of Non Subsidized Urea Fertilizer to its children companies.

8. Letter of Approval to Export Non Subsidized Urea Fertilizer, hereinafter called as SPE of Non Subsidized Urea Fertilizer is a letter of approval for export implementation of non subsidized urea fertilizer.

9. Minister is minister who conducts government affairs in the field of trade.

10. Director General is Director General of Foreign Trade, Ministry of Trade.

Article 2

(1) Non Subsidized Fertilizer is restricted to be exported only Non Subsidized Urea Fertilizer in the Tariff Heading/HS 3102.10.00.00.

(2) All of Subsidized Fertilizer is prohibited to be exported.

Article 3

(1) Number of Non Subsidize Urea fertilizer that can be exported as intended in Article 2 paragraph (1) is determined for each year by the Pokja.

(2) Number of Non Subsidized Urea Fertilizer set by the Pokja as intended in paragraph (1) can be changed at any time.

(3) Changes in the number of Non Subsidized Urea Fertilizer can be exported as intended in paragraph (2) is done by considering the condition of the domestic availability of fertilizers.

Article 4

(1) Determination quantity of Non Subsidized Urea Fertilizer that can be exported as intended in Article 3, is submitted by the Pokja to PT Pupuk Indonesia (Persero), with copy to the Director General.

(2) PT Pupuk Indonesia (Persero) based on determination quantity of Non Subsidized Urea Fertilizer can be exported as intended in paragraph (1) to divides the allocation to export Non Subsidized Urea fertilizer to its children companies.

(3) Based on the allocation to export Non Subsidized Urea fertilizer as intended in paragraph (2) PT Pupuk Indonesia (Persero) issues SKAE of Non Subsidized Urea Fertilizer.

Article 5

(1) Children companies of PT Pupuk Indonesia (Persero) should obtain SPE of Non Subsidized Urea Fertilizer to carry out export Non Subsidized Urea Fertilizer.

(2) Minister issues SPE of Non Subsidized Urea Fertilizer Subsidies as intended in paragraph (1).

(3) The Minister delegate authority to issue SPE of Non Subsidized Urea Fertilizer as intended in paragraph (2) to the Director General.

Article 6

(1) To obtain SPE of Non Subsidized Urea Fertilizer as intended in Article 5, children companies of PT Pupuk Indonesia (Persero) should file writing application to the Director General by attaching:

(2) The Director General issues SPE of Non Subsidized Urea Fertilizer at the latest 5 (five) working days from received the application as intended in paragraph (1) completely and correctly.

(3) In case of the application as intended in paragraph (1) is not complete and correct, the Director General rejected the SPE of Non Subsidized Urea Fertilizer at the latest 5 (five) working days after received of the application.

Article 7

SPE of Non Subsidized Urea Fertilizer issued by the Director General as intended in Article 6 paragraph (2) valid for a period of 6 (six) months from the date of issuance.

Article 8

(1) In case the application documents as intended in Article 6 paragraph (1) a up to d will be changed, children companies of PT Pupuk Indonesia (Persero) must file application to change SPE of Non Subsidized Urea Fertilizer in writing to the Director General by attaching:

(2) The Director General issues changing SPE of Non Subsidized Urea Fertilizer Subsidy at the latest 5 (five) working days from the application as intended in paragraph (1) is received completely and correctly.

Article 9

(1) In case of expired validity period of SPE of Non Subsidized Urea Fertilizer and there is Non Subsidized Urea Fertilizer not exported yet, a subsidiary of PT Pupuk Indonesia (Persero) file an extension of validity period of SPE of Non Subsidized Urea Fertilizer.

(2) Extension of validity period of SPE of Non Subsidized Urea Fertilizer maximum for 3 (three) months, adjusted to the quantity of Non Subsidized Urea Fertilizer is not exported yet and the Pokja recommendation.

(3) To extend the validity period of SPE of Non Subsidized Urea Fertilizer as intended in paragraph (1), children companies of PT Pupuk Indonesia (Persero) must file application in writing to the Director General by attaching:

(4) The Director General issues extension SPE of Non Subsidized Urea Fertilizer at the latest 5 (five) working days since receive complete and correct application as intended in paragraph (3).

(5) If the application as intended in paragraph (3) is not complete and correct, the Director General rejects application for SPE of Non Subsidized Urea Fertilizer at the latest 5 (five) working days after received of the application.

Article 10

Children companies of PT Pupuk Indonesia (Persero) who own expired SPE of Non Subsidized Urea Fertilizer and want to re-export Non Subsidized Urea Fertilizer should file written application to obtain new SPE of Non Subsidized Urea Fertilizer in accordance with the provisions as intended in Article 6 paragraph (1).

Article 11

Children Companies of PT Pupuk Indonesia (Persero) who export Non Subsidized Urea Fertilizer, in addition shall comply with the provisions as intended in Article 2, must also comply with the provisions and technical requirements related to the export of Non Subsidized Urea Fertilizer stipulated in other regulations.

Article 12

(1) Children companies of PT Pupuk Indonesia (Persero) who have earned SPE of Non Subsidized Urea Fertilizer shall submit a written report on the implementation of export Non Subsidized Urea Fertilizer, whether realized or not realized.

(2) The report as intended in paragraph (1) shall be submitted to the Director General with a copy submitted to the Pokja not later than 15 (fifteen) of ensuing month the expired date of SPE of Non Subsidized Urea Fertilizer manually and/or through http:// inatrade.kemendag.go.id.

Article 13

(1) Children companies of PT Pupuk Indonesia (Persero) who violate the provisions of Article 2 and Article 11 shall be liable to revocation of permit and/or other sanctions in accordance with effective regulations.

(2) Children companies of PT Pupuk Indonesia (Persero) who violate the provisions of Article 12 shall be liable not given SPE of Non Subsidized Urea Fertilizer for the next export of Non Subsidized Urea Fertilizer.

(3) Children companies of PT Pupuk Indonesia (Persero) who are sanctioned as intended in paragraph (2) may reapply issuance of SPE of Non Subsidized Urea Fertilizer Subsidy after submit a written report on the export implementation of Non Subsidized Urea Fertilizer as intended in Article 12.

Article 14

Provisions on the technical implementation of this Ministerial Regulation may be determined by the Director General.

Article 15

Export approval for Urea Fertilizer was issued based on Decree of the Minister of Industry and Trade No. 588/MPP/Kep/12/1998 concerning General Provisions in the Export Field as amended several times, the latest by Regulation of the Minister of Trade No. 01/M-DAG/PER/1/2007, shall remain in force until Export Approval for Urea Fertilizer is expired.

Article 16

This Ministerial Regulation shall come into force on July 19, 2012

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

Stipulated in Jakarta
on July 18, 2012
THE MINISTER OF TRADE
signed,
GITA IRAWAN WIRJAWAN