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REGULATION OF THE MINISTER OF TRADE
No. 58/M-DAG/PER/9/2012

CONCERNING
PROVISIONS ON THE IMPORT OF SALT

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

Considering:

a. that salt was a strategic commodity as food and industrial raw materials, so that the activities of production, supply, procurement and distribution of salt is very important in the framework to support public health through consumption, increasing income and welfare of salt farmers as well as in the framework to meet the needs of the domestic industry;

b. that domestic salt production either quality or quantity, has no yet to meet the needs of the domestic salt demand, especially salt as industrial raw materials, so it is still needed salt sourced from imports;

c. that in order to support the effective implementation of policies in the field of import of salt and make adjustments to the determination of a new classification system of goods, it is necessary to re-regulate provisions on the import of salt;

d. that based on the considerations as intended in paragraphs a, b, and c, 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. 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);

3. Law No. 7/1994 concerning Ratification of the 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);

4. 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);

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

6. Law No. 5/1999 concerning the Prohibition of Monopolistic Practices 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);

7. Law No. 8/1999 concerning Consumer Protection (Statute Book of the Republic of Indonesia No. 42/1999, Supplement to Statute Book of the Republic of Indonesia No. 3821);

8. Law No. 32/2004 concerning Regional Government (Statute Book of the Republic of Indonesia No. 125/2004, Supplement to Statute Book of the Republic of Indonesia No. 4437) as amended by Law No. 12/2008 (Statute Book of the Republic of Indonesia No. 59/2008, Supplement to Statute Book of the Republic of Indonesia No. 4844);

9. Law No. 36/2009 concerning Health (Statute Book of the Republic of Indonesia No. 144/2009, Supplement to Statute Book of the Republic of Indonesia No. 5063);

10. Government Regulation No. 69/1999 concerning Food Label and Advertisement (Statute Book of the Republic of Indonesia No. 131/1999, Supplement to Statute Book of the Republic of Indonesia No. 3867);

11. Government Regulation No. 58/2001 concerning the Development and Supervision of Consumer Protection (Statute Book of the Republic of Indonesia No. 103/2001, Supplement to Statute Book of the Republic of Indonesia No. 4126);

12. Government Regulation No. 38 Year 2007 concerning Divisions of Administrations between the Government, Provincial Government and Regency/Municipality Government (Statute Book of the Republic of Indonesia No. 82/2997, Supplement to Statute Book of the Republic of Indonesia No. 4737);

13. Presidential Decree No. 260/1967 concerning Affirmation of Tasks and Responsibilities of the Minister of Trade in the Foreign Trade Field;

14. Presidential Decree No. 69/1994 concerning Procurement of Iodized Salt;

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

16. Presidential Regulation No. 47/2009 concerning the Establishment and Organization of State Ministries as amended by Presidential Regulation No. 91/2011;

17. Presidential Regulation No. 24/2010 concerning the Position, Duties, and Functions of the State Ministries as well as Organizational Structure, Duties and Functions Echelon I of State Ministries as amended by Presidential Regulation No. 92/2011;

18. Decree of the Minister of Industry No. 77/M/SK/5/1995 concerning Technical Requirements for Processing, Packaging and Labeling of Iodized Salt;

19. Regulation of the Minister of Trade No. 28/M-DAG/PER/6/2009 concerning the Provisions of Export and Import Licensing Services by Electronic Systems through INATRADE in the Framework of Indonesia National Single Window;

20. Regulation of Minister of Trade No. 54/M-DAG/PER/9/2009 concerning General Provisions in Import Field;

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

22. Regulation of the Minister of Trade No. 27/M-DAG/PER/5/2012 concerning Provisions on Importer’s Identity Number (API);

DECIDES:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS ON THE IMPORT OF SALT.

Article 1

In this Ministerial Regulation:

1. Salt is a chemical compound that main components consist of natrium chloride (NaCl) and has compound of water, magnesium, calcium, sulphate and iodine additives, anti-caking or free-flouring or not, which includes in Tariff Heading/HS:

2. K1 and K2 are groupings of types of farming salt to determine the sale price of salt at the farm level.

3. The consumption salt is salt used for consumption with levels of NaCl at least 94.7% calculated on a dry basis, with the tariff heading/HS ex. 2501.00.90.10.

4. Industrial salt is the salt that is used as a raw material or auxiliary material for the needs of the industry with high levels of NaCl at least 97% calculated on a dry basis, with the Tariff Heading/HS ex. 2501.00.90.10.

5. Salt maker is individual or a group who is doing the production of salt.

6. Producer Importer of Consumption Salt, hereinafter called as IP of Consumption Salt is industrial owner of Producer Importer’s Identity Number (API-P) that is approved to import of consumption salt as a raw material needed for the production process and can not be traded or transferred.

7. Producer Importer of Industrial Salt, hereinafter called as IP of Industrial Salt is salt user industry out of consumption salt of Producer Importer‘s Identity Number (API-P) that is approved to import industrial salt, as raw material or auxiliary material needed for the production process and not to be traded or transferred.

8. Registered Importer of Salt, hereinafter called as IT Salt is State Owned Enterprises (BUMN), which is engaged in the salt industry that is approved to import salt to meet the needs of industries that do not import their own Industrial Salt.

9. Import Approval of Industrial Salt, hereinafter called as PI Industrial Salt is Industrial Salt import permits.

10. People’s Salt Harvest Period is harvesting in which all or most salt makers in major salt production centers to harvest in the dry season or the most optimal harvest.

11. Recommendation is a letter issued by the official of agency or related units authorized to give technical explanations and not an import permit or approval.

12. Collecting Points is a collection of salt on the road side to be reached by the truck or the like.

13. Coordination Meeting is an inter-agency meeting organized by the Coordinating Ministry for Economic Affairs.

14. Minister is the minister who held government affairs in the field of trade.

15. Director General is the Director General of Foreign Trade, Ministry of Trade.

Article 2

(1) The salt can be imported only Consumption Salt and Industrial Salt.

(2) Consumption Salt as intended in paragraph (1) may only be imported by companies that have gained recognition as IP of Consumption Salt from the Director General.

(3) Industrial as intended in paragraph (1) may only be imported by companies that have gained recognition as IP of Industrial Salt or determination as IT Salt from the Director General.

Article 3

(1) IP of Consumption Salt is banned to import Consumption Salt in period 1 (one) month before the People's Salt Harvest Period, during the People's Salt Harvest period, and 2 (two) months after The People's Salt Harvest Period by considering the stock position in salt makers.

(2) The People’s Salt Harvest Period as intended in paragraph (1) shall be determined by the Minister of Industry to consider the results of climate forecasts from the Meteorology, Climatology and Geophysics Agency (BMKG) and the agreement of coordination meetings between the ministries and related associations.

(3) The import ban period of Consumption Salt as intended in paragraph (1) may be extended or shortened according to the production achievement of People’s Salt Harvest Period, so consumption salt supplies can still meet national needs.

(4) The extension or shortening Consumption Salt import ban period as intended in paragraph (3) appointed by the Minister by consider the opinions of related ministries.

Article 4

(1) Consumption Salt for consumption salt industry is prohibited to be imported if the average price of bulk salt on the truck at collecting points under K1 and K2 salt prices.

(2) Price of K1 and K2 salt as intended in paragraph (1) shall be determined by the Director General based on agreement with other related agencies and associations.

Article 5

(1) Determination of quantity for import allocation of salt national consumption each year determined and agreed in the Coordination Meeting at the ministerial level by consider the domestic production and consumption.

(2) Industrial Salt that is used to meet the needs of the industry that technically can not be produced domestically is exempted from the provisions as intended in paragraph (1).

(3) Determination of quantity for import allocation of salt national consumption as intended in paragraph (1) shall be allocated to the IP of Consumption Salt proportionally based on the quantity of purchasing of domestic production salt.

(4) Purchasing of domestic production salt as intended in paragraph (3) proven by an statement of salt procurement from Salt Maker that is made by IP of Consumption Salt and legalized by District/Municipality Agency that responsible in salt affair, association of Salt Maker and people’s salt business group that state quantity of salt bought and purchase price in farmer level is same or higher than K1 and K2 salt prices.

Article 6

(1) The company can be recognized as IP of Consumption Salt:

(2) Acquisition of salt from salt maker as intended in paragraph (1) a should be proven by statement of salt procurement fro Salt Maker and legalized by District/Municipality Agency that charge of salt affairs.

(3) Cooperation with salt maker as intended in paragraph (1) b shall be proven by a copy of the agreement validated by District/Municipality Agency that charge of salt affairs.

Article 7

(1) To obtain recognition as IP of Consumption Salt and IP of Industrial Salt as intended in Article 2, the company must submit a written application to the Director General by enclosing:

(2) On the written request as intended in paragraph (1), the Director General shall issue recognition as IP of Consumption Salt and IP of Industrial Salt maximum in 5 (five) working days after the complete and correct application is received.

(3) In case written application as intended in paragraph (1) is not complete and correct, the Director General issues notification of rejection of application maximum in 5 (five) working days after the application is received.

(4) Recognition as IP of Consumption Salt and IP of Industrial Salt as intended in paragraph (2) shall contain at least the period of validity of recognition as IP of Salt, the quantity of salt, salt type, and destination port.

(5) Recognition as IP of Consumption Salt and IP of Industrial Salt as intended in paragraph (2) apply a maximum of 1 (one) year and may be extended.

Article 8

(1) Port of destination as intended in Article 7 paragraph (4) should be the port closest to the factory location owned by IP of Consumption Salt and IP of Industrial Salt.

(2) The factory location as intended in paragraph (1) shall be in accordance with the locations listed in the Industrial Permit or other similar business permit from Technical Ministry/Non Ministry Government Agency in charge of the business.

Article 9

(1) Any importation of industrial salt by the IT of Salt should have PI of Industrial Salt from the Director-General.

(2) To obtain PI of Industrial Salt as intended in paragraph (1), a company that has earned determination as IT of Salt must submit a written application to the Director General by enclosing:

(3) On the written application as intended in paragraph (2), the Director General shall issue PI of Industrial Salt in maximum of 5 (five) working days after received complete and correct application.

(4) In case the written application as intended in paragraph (2) is not complete and correct, the Director General issue notification of rejection of application in maximum of 5 (five) working days after the application is received.

(5) PI of Industrial Salt as intended in paragraph (3) shall contain at least the validity of PI Industrial Salt, the names of companies in cooperation with the IT of Salt and the quantity of salt for each company, the type of salt, the countries of loading and ports of destination.

Article 10

(1) The company has gained recognition as IP of Consumption Salt is required to submit reports on the implementation of the importation of Consumption Salt to the Director General in this case the Director of Import, Ministry of Trade every 1 (one) month no later than the 15th of the ensuing month, with a copy sent to the Director General of Manufacturing Industry Base in this case the Director of Basic Chemical Industry, Ministry of Industry.

(2) The company has gained recognition as IP of Industrial Salt and the company that has gained the determination as IT of Salt that already gained PT of Industrial Salt shall submit a report on the implementation of the importation of Industrial Salt to the Director General in this case the Director of Import, Ministry of Trade, every 3 (three) months no later than the 15th of the first month of the next quarter, with a copy sent to the Director General of Industrial Manufacturing Base in this case the Director of Basic Chemical Industry, Ministry of Industry.

(3) The report as intended in paragraphs (1) and (2) is submitted through http://inatrade.kemendag.go.id and attach a copy of Actual Import Control Card initialed and stamped by Customs and Excise official.

Article 11

(1) IP of Consumption Salt and IP Industrial Salt are banned trade in or transfer Consumption Salt or Industrial Salt which has been imported.

(2) IT of Salt is banned trade in or transfer Industrial Salt that has been imported to IP of Consumption Salt and IP of Industrial Salt.

Article 12

(1) Each implementation of importation of salt by IP of Consumption Salt, IP of Industrial Salt and IT of Salt must first do verification or technical inquiry in the country of loading.

(2) The verification of technical inquiry as intended in paragraph (1) is carried out by the Surveyor appointed by the Minister.

(3) To be appointed as implementer of verification or technical inquiry on the import of salt, Surveyor shoult meet the following requirements:

Article 13

(1) Verification or technical inquiry as intended in Article 12 paragraph (1) is conducted on the imported salt, include data or information of:

(2) The results of verification or technical inquiry as intended in paragraph (1) is written in the Surveyor Report (LS) to be used as a customs complementary documents for customs settlement in the field of import.

(3) On the implementation of verification or technical inquiry as intended in paragraph (1), Surveyor collect fees from IP of Consumption Salt, IP of Industrial Salt, and IT of Salt such rate in according with the cost-benefit principle.

Article 14

Verification or technical inquiry activities on the importation of salt by the surveyor as intended in Article 13 do not diminish the authority of the Directorate General of Customs and Excise, the Ministry of Finance to conduct customs inspection.

Article 15

Salts are imported in violation of the provisions of this Ministerial Regulation will fined sanction in accordance with the regulation.

Article 16

(1) Recognition as IP of Consumption Salt and IP of Industrial Salt and the determination as IT of Salt is frozen if the company concerned:

(2) Freezing of recognition as IP of Consumption Salt and IP of Industrial Salt and the determination as IT of Salt can be reactivated after the company concerned:

(3) Freezing of recognition as IP of Consumption Salt and IP of Industrial Salt and the determination as IT of Salt as intended in paragraph (1) as well as the reactivation of recognition as IP of Consumption Salt and IP of Industrial Salt and the determination as IT of Salt as intended in paragraph (2) shall conducted by the Director General.

Article 17

(1) Recognition as IP of Consumption Salt and IP of Industrial Salt and the determination of the IT of Salt will be revoked if the company concerned:

(2) Revocation of recognition as IP of Consumption Salt and IP of Industrial Salt and the determination as IT of Salt as intended in paragraph (1) is conducted by the Director General.

Article 18

The provisions of this Ministerial Regulation shall not apply to imports of salt which is:

Article 19

Implementation provisions and technical matters not covered under this Ministerial Regulation may be determined by the Director General.

Article 20

IP Iodized Salt, IP Non-Iodized Salt, IT Salt and PI Industrial Salt have been issued by the Regulation of the Minister of Trade No. 20/M-DAG/PER/9/2005 concerning Provision on the Import of Salt as amended by Regulation of the Minister of Trade No. 44/M-DAG/PER/10/2007 shall remain valid until they expire.

Article 21

When this Ministerial Regulation applies, Regulation of the Minister of Trade No. 20/M-DAG/PER/9/2005 concerning Provision on the Import of Salt as amended by Regulation of the Minister of Trade No. 44/M-DAG/PER/10/2007 shall be revoked and declared null and void.

Article 22

This Ministerial Regulation shall come into force on the date of promulgation.

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

Stipulated in Jakarta
on September 4, 2012
MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA,
signed,
GITA IRAWAN WIRJAWAN