REGULATION OF THE MINISTER OF TRADE
No. 24/M-DAG/PER/6/2006

CONCERNING
PROVISIONS ON THE IMPORT OF OZONE DEPLETING SUBSTANCES

THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA,

Considering:

• a. that since the Vienna Convention and Montreal Protocol contain an obligation of the member countries are obliged to eliminate the use of chemical substances categorized as Ozone Depleting Substances (BPO) in phases, the member countries, including Indonesia are given opportunity to implement a program for eliminating the use of BPO up to a specified period;
• b. that while Indonesia is undertaking the elimination of the use of BPO, the fact shows that various industries in the country still need raw materials or auxiliary materials whose procurement is mostly realized through the import from other countries;
• c. that in connection with the matters in letters a and b, and in the framework of ensuring better effective supervision and control over the procurement of BPO in Indonesia, it is deemed necessary to re-regulate provisions on the import of BPO;
• d. that based on the considerations as meant in letters a, b and c, it is necessary to stipulate a regulation of the Minister of Trade;

In view of:

• 1. Trade Ordinance of 1934;
• 2. Law No. 5/1984 on Industry;
• 3. Law No. 32/1992 on Health;
• 4. Law No. 7/1994 on Ratification of the Agreement Establishing the World Trade Organization;
• 5. Law No. 10/1995 on Customs Affairs;
• 6. Law No. 23/1997 on Environmental Management;
• 7. Law No. 8/1999 on Consumer Protection;
• 8. Government Regulation No. 7/1973 on Supervision over Distribution, Storage and Use of Pesticides;
• 9. Government Regulation No. 74/2001 on Management of Dangerous and Poisonous Substances;
• 10. Presidential Decree No. 260/1967 on Affirmation of Tasks and Responsibility of the Minister of Trade in the Foreign Trade Sector;
• 11. Presidential Decree No. 23/1992 on Ratification of Vienna Convention for the Protection of the Ozone Layer and Montreal Protocol on Substances that Deplete the Ozone Layer as adjusted and amended by the Second Meeting of the Parties in London, June 27 - 29,1990;
• 12. Presidential Decree No. 92/1998 on Ratification of Montreal Protocol on Substances that Deplete the Ozone Layer, Copenhagen 1992;
• 13. Presidential Decree No. 187/M/2004 on the Establishment of the United Indonesia Cabinet as already amended several times and the latest by Presidential Decree No. 171/M/2005;
• 14. Presidential Regulation No. 9/2005 on the Status, Tasks, Functions, Organizational Structures and Working Arrangements of State Ministries as already amended by Presidential Decree No. 62/2005;
• 15. Presidential Regulation No. 10/2005 on First-echelon Organizational Units and Tasks of State Ministries as already amended several times and the latest by Presidential Decree No. 80/2005;
• 16. Presidential Regulation No. 33/2005 on Ratification of Beijing Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer;
• 17. Presidential Regulation No. 46/2005 on Ratification of the Montreal Protocol on Substances that Deplete the Ozone Layer;
• 18. Decree of the Minister of Industry and Trade No. 229/MPP/KEP/7/1997 on Import General Provisions;
• 19. Decree of the Minister of Industry and Trade No. 110/MPP/KEP/1/1998 concerning Prohibition on Production and Trade of Ozone Depleting Substances and Trade of New Goods Using Ozone Depleting Substances as already amended several times and the latest by Decree of the Minister of Industry and Trade No. 790/MPP/KEP/12/2002;
• 20. Decree of the Minister of Industry and Trade No. 40/M/PP/KEP/I/2003 on Importer Identity Number (API);
• 21. Regulation of the Minister of Trade No. 01/M-DAG/PER/3/2005 on the Organization and Working Arrangement of the Ministry of Industry as already amended by Regulation of the Minister of Trade No. 30/M-DAG/PER/12/2005;

DECIDES :

To Stipulated :

THE REGULATION OF THE MINISTER OF TRADE ON PROVISIONS ON THE IMPORT OF OZONE DEPLETING SUBSTANCE

Article 1

Referred to in this regulation as:

• 1. Ozone Depleting Substances, hereinafter called BPO shall be chemical compounds potential to react against ozone molecule in the stratosphere.
• 2. Producer Importers of Ozone Depleting Substances, hereinafter called IP-BPO shall be manufacturers using BPO as raw materials or auxiliary materials in the production.
• 3. Approved Importers of Ozone Depleting Substances, hereinafter called IT-BPO shall be trading companies securing appointment from the government to import and distribute BPO.
• 4. Recommendation shaii be a letter issued by authorized institutions/agencies concerned, containing technical explanation and being not import license/ approval.
• 5. Director General shall be the Director General of Foreign Trade, Ministry of Trade.
• 6. Director General of IAK shall be the Director General of Agro and Chemical Industries, Ministry of Industry.
• 7. Deputy Men LH shall be the Deputy in charge of protection of the ozone layer at the Ministry of Environmental Affairs.
• 8. Head of BPOM shall be the Head of the Food and Drug Supervisory Board.

Article 2

(1) BPO as meant in Article 1 point 1 shall be contained in Attachments I, II and III to this regulation.

(2) BPO as contained in Attachment I cannot be imported, except Carbon Tetrachloride for laboratory and analytical use.

(3) BPO as meant in Attachments II and III only can be impoerted from countries contained in the list issued by the State Ministry for Environmental Affairs, by companies already securing recognition as IP-BPO or appointment as IT-BPO

(4) The import of BPO as meant in paragraph (3) only can be realized through the following ports:

• a. Belawan Seaport, Medan;
• b. Tanjung Priok Seaport, Jakarta;
• c. Merak Seaport, Cilegon;
• d. Tanjung Mas Seaport, Semarang;
• e. Tanjung Perak Seaport, Surabaya;
• f. Soekarno-Hatta Airport, Jakarta.

(5) BPO as meant in Attachment II only can be imported to the Indonesian customs area up to December 31, 2007, proven by inward manifest.

Article 3

(1) Stipulation for the deadline of the import of BPO as meant in Article 2 paragraph (5) can be reviewed if technical benefit of BPO and effectiveness of their use have remained replaceable.

(2) The review of the deadline of the import as meant in paragraph (1) shall be stipulated on the basis of consideration resulting from the coordinative meeting between institutions/agencies concerned and observing the implementation of provisions of the Montreal Protocol.

Article 4

The quantity of BPO, which can be imported by IP-BPO and IT-BPO shall be stipulated by referring to the volume of BPO, which may be used nationally, stipulated by the State Ministry for Environmental Affairs.

Article 5

(1) BPO imported by IP-BPO as meant in Article 2 paragraph (3) only shall be used as raw materials/auxiliary materials in the production process of manufacturers and cannot be traded or handed over.

(2) The Director General shall stipulated recognition as IP-BPO

(3) In order to obtain recognition as IP-BPO as meant in paragraph (2), the companies shall meet the following provisions:

a. In the case of application for IP-BPO so as to be able to import non-methyl bromide BPO, the applicants must submit application for the Director General by enclosing:

• 1. Copy of Industrial Business License/Industrial Registry Number or other equivalent business license issued by the authorized institution;
• 2. Copy of API-P/API-T;
• 3. Plan for Using BPO in one year;
• 4. Recommendation from the Director General of IAK in the case of non-pharmaceutical industries and/or Head of BPO in the case of pharmaceutical industries;
• 5. Recommendation from Deputy MenLH.

b. In the case of application for IP-BPO so as to be able to import methyl bromide BPO, the applicants must submit application for the Director General by enclosing:

• 1. Copy of Industrial Business License/Industrial Registry Number or other equivalent business license issued by the authorized institution;
• 2. Copy of API-P/API-T;
• 3. Plan for Using BPO in one year;
• 4. Recommendation from the Director General of IAK in the case of non-pharmaceutical industries and/or Head of BPO in the case of pharmaceutical industries;
• 5. Copy of Decree of the Minister of Agriculture on Registration of Pesticides;
• 6. Recommendation from Deputy MenLH.

Article 6

(1) Based on the application for recognition as IP-BPO as meant in Article 5 paragraph (3), the Director General shall issue approval or rejection in not later than 15 (fifteen) working days as from the date of receipt of the application.

(2) The recognition as IP-BPO shall contain, among others, data or information about corporate identity, validity period of recognition, kind, quantity and no. of classification of goods (harmonized system/HS), country of origin and destination port.

Article 7

(1) Companies already securing recognition as IP-BPO shall report the realized import and use of BPO to the Director General every 3 (three) months with a copy made available to the Deputy MenLH as well as the Director General of IAK in the case of non-pharmaceutical industries or Head of BPOM in the case of pharmaceutical industries.

(2) Model of the report as meant in paragraph (1) shall be contained in Attachment IV to this regulation.

Article 8

1) The Director General shall stipulate the appointment as IT-BPO as meant in Article 2 paragraph (3).

2) In order to obtain the appointment as IT-BPO, as meant in oaraaraoh (1). the companies shall meet the following requirements:

a. In the case of the application for IT-BPO aiming at enabling the relevant to import non-methyl bromide BPO, the applicants must submit application to the Director General by enclosing:

• 1. Copy of API-U/API-T;
• 2. Recommendation from the Director General of IAK; and
• 3. Recommendation from Deputy MenLH.

b. In the case of the application for IT-BPO aiming at enabling the relevant to import methyl bromide BPO, the applicants must submit application to the Director General by enclosing:

• 1. Copy of API-U/API-T;
• 2. Copy of Decree of the Minister of Agriculture on Registration of Pesticides; and
• 3. Recommendation from Deputy MenLH.

c. In the case of the application for IT-BPO aiming at enabling the relevant to import non-methyl bromide and methyl bromide BPO, the applicants must submit application to the Director General by enclosing:

• 1. Copy of API-U/API-T;
• 2. Recommendation frorn the Director General of IAK, and
• 3. Copy of Decree of the Minister of Agriculture on Registration of Pesticides; and
• 4. Recommendation from Deputy MenLH.

Article 9

(1) Based on the application for appointment as IT-BPO as meant in Article 8 paragraph (2), the Director General shall issue approval or rejection of appointment as IT-BPO in not later than 15 (fifteen) working days as from the date of receipt of the application.

(2) The document of appointment as IT-BPO shall contain, among others, data/information about corporate identity, validity period of appointment, kind and no. of classification of goods (Harmonized System/HS).

Article 10

(1) The import of BPO by IT-BPO shall secure prior import approval from the Director General with regard to the quantity, kind, and no. of classification of goods (Harmonized System/HS), loading country, destination port and moment of shipment.

(2) The Director General shall issue the import approval as meant in paragraph (1) after considering the plan for distribution of BPO by IT-BPO, which must be enclosed upon submitting application for securing import approval, as well as already securing recommendation from the Director of IAK in the case of non-pharmaceutical industries and/or Head of BPOM in the case of pharmaceutical industries.

(3) Methyl bromide imported by IT-BPO only can be distributed in accordance with provisions stipulated by the Minister of Agriculture.

Article 11

(1) Companies already securing appointment as IT-BPO shall report the realized import and distribution of BPO to the Director General every 3 (three) months, with a copy made available to the Deputy MenLH as well as the Director of IAK in the case of non-pharmaceutical industries and/or Head of BPOM in the case of pharmaceutical industries or the Head of the Licensing and Investment Center of the Ministry of Agriculture in the case of the realized import of methyl bromide.

(2) Model of the report as meant in paragraph (1) shall be contained in Attachment V to this regulation.

Article 12

The import of BPO by IP-BPO and IT-BPO shall follow the provisions in force on classification, label of chemical substance and safety data sheet.

Article 13

(1) The provision applied to secure recognition as IP-BPO or appointment as IT-BPO shall be in exception in the case of the imported BPO being:

• a. goods for the need of laboratories of scientific and technological research and development; and/or
• b. goods for the need of the government.

(2) The imported BPO as meant in paragraph (1) shall not been designated to trade/transfer and secure prior import-approval from the Director General, which is issued on the basis of recommendation from the DeputyMenLH.

(3) Violation of the provision in paragraph (2) shall be subjected to sanction in accordance with the provisions of legislation in force.

Article 14

(1) Recognition as IP-BPO and appointment as IT-BPO shall be frozen in the case of the said IP-BPO or ITBPO:

• a. violating the provision as meant in Article 5 paragraph (1), Article 10 paragraph (1) and Paragraph (3) and/or Article 12;
• b. not executing the obligation to convey the written report as meant in Article 7 or Article 11 two times; and/or
• c. being in the course of investigation for alleged crime related to the misuse of recognition as IPBPO or appointment as IT BTO or import approval.

(2) Recognition as IP-BPO and appointment as IT-BPO already frozen can be re-activated in the case of:

• a. the relevant being not proven violating the provision as meant in Article 5 paragraph (1), Article 10 paragraph (1) and Paragraph (3) and/or Article 12;
• b. in not later than 30 working days as from the date of the freezing, IP-BPO or IT-BPO has executed the obligation as meant in Article / or Article 11;
• c. the investigator already issuing order to discontinue investigation or the relevant being declared not guilty or exempt from all legal charges on the case of a court decision already having permanent legal power.

(3) The freezing of recognition as IP-BPO or appointment as IT-BPO as meant in paragraph (1) as well as the re-activation as IP-BPO or IT-BPO as meant in paragraph (2) shall be done by the Director General.

Article 15

(1) Recognition as IP-BPO and appointment as IT-BPO shall be revoked in the case of the relevant:

• a. changing and/or supplementing and/or replacing content mentioned in document of recognition as IP-BPO or appointment as IT-BPO or import approval of BPO; and/or
• b. being declared guilty by the court for crime related to the misuse of recognition as IP-BPO or appointment of IT-BPO or import approval.

(2) The Director General shall revoke IP-BPO or IT-BPO as meant in paragraph (1).

(3) All BPO still owned by companies having their recognition as IP-BPO or appointment as IT-BPO revoked as meant in paragraph (2) shall be re-exported or destroyed at expense of the companies or treated in accordance with the provisions of legislation in force.

Article 16

(1) Recognition as IP-CFC or appointment as IT-CFC or as IT for methyl bromide already issued before the issuance of this regulation shall be declared effective as IP-BPO or IT-BPO until the validity period of IP-CFC or IT-CFC or IT of methyl bromide expires.

(2) Imported BPO not suitable to the provisions in this regulation shall be re-exported or destroyed at expense of the companies or treated in accordance with the provisions of legislation in force.

Article 17

Only The Minister of Trade can stipulate exception from the provisions regulated in this regulation.

Article 18

The Director General shall further stipulate matters not yet regulated in this regulation.

Article 19

With the enforcementof this regulation:

1. Provisions regulating -the deadline of trade of BPO as contained in Decree of the Minister of Industry and Trade No. 110/MPP/KEP/1/1998 on Prohibition on Production and Trade of Ozone Depleting Subtances as well as Production and Trade of New Goods Using Ozone Depleting Substances as already amended several times and the latest by Decree of the Ministry of Industry and Trade No. 790/MPP/KEP/12/2002 shall be declared null and void.

2. Provisions regulating the procedures for the import of BPO as contained in Decree of the Minister of Industry and Trade No. 111/MPP/KEP/1/1998 on the Amendment to Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 concerning Goods Subjected to Import Control as already amended the latest by Decree of the Minister of Industry and Trade No. 789/MPP/KEP/12/2002 shall be declared null and void.

Article 20

The regulation shall come into force one month as from the date of stipulation.

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

Stipulated in Jakarta
On June 22, 2006

THE MINISTER OF TRADE
(signature)
MARI ELKA PANGESTU

ATTACHMENTS TO REGULATION OF THE MINISTER OF TRADE
NO. 24/M-DAG/PER/6/2006
DATE : JUNE 22, 2006

LIST OF ATTACHMENTS

• ATTACHMENT I : KINDS OF OZONE DEPLETING SUBSTANCES WHICH CANNOT BE IMPORTED
• ATTACHMENT II : KINDS OF OZONE DEPLETING SUBSTANCES WHICH CAN BE IMPORTED DECEMBER 31,2007
• ATTACHMENT III : KINDS OF OZONE DEPLETING SUBSTANCES WHICH STILL CAN BE IMPORTED AFTER DECEMBER 31,2007
• ATTACHMENT IV : REPORT ON THE REALIZED IMPORT BY PRODUCER IMPORTER OF OZONE DEPLETING SUBSTANCES
• ATTACHMENT V : REPORT ON DISTRIBUTION OF OZONE DEPLETING SUBSTANCES

THE MINISTER OF TRADE
(signature)
MARI ELKA PANGESTU