DECREE OF THE MINISTER OF INDUSTRY AND TRADE
No. 418/MPP/Kep/6/2003

ON
THE PROVISION ON IMPORT OF NITRO CELLULOSE (NC)

THE MINISTER OF INDUSTRY AND TRADE,

Considering:

a. that Nitro Cellulose (NC) is a chemical substance containing sensitive nitrogen which constitutes a raw material of explosives widely used for military need and raw material or auxiliary material for the production need of certain industries and other purposes;
b. that due to the sensitive characteristic, NC can be misused for destructive purposes and disturbing security so that the procurement of the substance needs to be controlled without discouraging the supply of the substance, particularly imported production;
c. that in relation thereto, it is necessary to issue a decree e; ',e Minister of Industry and Trade;

In view of:

1. Trade Ordinance of 1934 (Statute Book of 1938 No. 86);
2. Law No. 7/1994 on ratification of agreement establishing the World Trade Organization (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3612);
3. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
4. Law No. 5/1999 on prohibition of monopolistic practices and unfair business competition (Statute Book of 1999 No. 33, Supplement to Statute Book No. 3817);
5. Law No. 8/1999 on consumer protection (Statute Book of 1999 No. 42, Supplement to Statute Book No. 3821);
6. Law No. 3/2002 on state defense (Statute Book of 2002 No. 3, Supplement to Statute Book No. 4169);
7. Presidential Decree No. 260/1967 on the affirmation of tasks and responsibility of the Minister of Trade in the foreign trade affairs;
8. Presidential Decree No. 125/1999 on explosive;
9. Presidential Decree No. 228/M/Z001 on the establishment of the mutual cooperation cabinet;
10. Presidential Decree No. 102/2001 on the status, tasks, functions, authority, organizational structures and working arrangements of ministries;
11. Presidential Decree No. 109/2001 on first-echelon organizational units and tasks of ministries;
12. Decree of the Minister of Industry and Trade No. 299/MPP/Kep/7/1997 on import general provisions;
13. Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 on goods subjected to import control as already amended several times and the latest by Decree of the Minister of Industry and Trade No. 789/MPP/Kep/12/2002;
14. Decree of the Minister of Defense No. Kep/10/M/VII/2000 on guidelines on the fostering and control over commercial explosive business entities;
15. Decree of the Minister of Industry and Trade No. 86/MPP/Kep/3/2001 on the organization and working arrangement of the Ministry of Industry and Trade;
16. Joint Decree of the Minister of Finance and Minister of Industry and Trade No. 527/KMK.04/2002 and No. 819/MPP/Kep/12/2002 on orderly administration of importers;
17. Decree of the Minister of Industry and Trade No. 40/MPP/Kep/I/2003 on importer identity number (API);

Observing:

Letter of the Minister of Defense No. K/514/25 02/11/DTI dated November 16, 2001 on supervision and control over nitro cellulose.

DECIDES:

To stipulate:

THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE CONCERNING THE PROVISION ON IMPORT OF NITRO CELLULOSE (NC)

Article 1

Referred to in this decree as:

1. Cellulose Nitrates also called Nitro Cellulose (NC) is a chemical substance containing nitrogen which can be used as raw material of explosive and raw/auxiliary material for the need of certain industries and other purposes, subsumed into HS 3912.20.000.
2. IP-NC is a NC producer importer recognized by the Director General of Foreign Trade and approved to import NC solely designated for the need of its production.
3. IT-NC is a non-producer registered importer of NC appointed by the Director General of Foreign Trade that obtains a special task to import NC and acts as distributor to channel the imported NC to other industries of institutions as end users.
4. End users are business entities or institutions using NC in accordance with its designation and prohibited from transacting/trading or transferring NC to whomever.
5. Minister is the Minister of Industry and Trade.
6. Director General of Foreign Trade is the Director General of Foreign Trade at the Ministry of Industry and Trade.
7. Director General of IKAHH is the Director General of Chemical, Agro and Forest based Product Industries at the Ministry of Industry and Trade.
8. Director General of Ranahan is the Director General of Defense Facilities at the Ministry of Defense.
9. Recommendation is a letter issued by related units/institution which contains technical explanations and is not a import permit/approval.

Article 2

(1) NC as meant in Article 1 point 1 only can be imported by IP-NC and IT-NC.

(2) NC for the military need is further regulated by the Minister of Defense.

Article 3

(1) In order to secure recognition as IP-NC, companies must submit applications to the Director General of Foreign Trade by enclosing the following documents:

a. photocopy of industrial business license/industrial registry number or the equivalent from technical institutions overseeing the said business;
b. photocopy of producer importer identity number (APIP) or limited importer identity number (API-T);
c. photocopy of corporate registry number (TDP);
d. photocopy of taxpayer code number (NPWP);
e. production plan;
f. recommendation for the Director General of IKAHH.

(2) The approval or rejection of the applications as meant in paragraph (1) is issued in 10 (ten) working days as from the date of receipt of the applications.

Article 4

(1) NC imported by IP-NC only can be used for the need of production process and is prohibited from being transacted/traded or transferred.

(2) The recognition as IP-NC as meant in Article 3 covers the moment of shipment, destination port, quantity and kinds of NC which can be importer, by observing production capacity and plan for one year.

Article 5

(1) In order to secure the appointment as IT-NC, the relevant companies are obliged to submit applications to the Director General of Foreign Trade by enclosing the following documents:

a. photocopy of Trading Business License (SIUP);
b. photocopy of General Importer Identity Number (APIU);
c. photocopy of Corporate Registry Number (TDP);
d. photocopy of Taxpayer Code Number (NPWP);
e. photocopy of Import Declaration (PIB) indicating experience in the import of NC for 3 (three) years;
f. recommendation from the Director General of Ranahan in connection with the capability of the said companies to store, warehouse, distribute and destroy NC.

(2) The approval or rejection of the applications as meant in paragraph (1) is issued in a period of 10 (ten) working days as from the date of receipt of the applications.

Article 6

(1) IT-NC must secure import approval containing the quantity, kind and moment of import and destination port upon importing.

(2) The import approval of IT-NC as meant in paragraph (1) is stipulated by the Director General of Foreign Trade in the basis of recommendation of the Director General of Ranahan.

Article 7

(1) The recognition as IP-NC and the appointment of IT-NC are effective for one year and can be extended.

(2) The model of the recognition as IP-NC is as contained in Attachment I to this decree.

(3) The model of the appointment as IT-NC is as contained in Attachment II to this decree.

Article 8

(1) The transport of NC from destination port as far as end users must abide by the procedures and provisions in force. .

(2) The distribution of NC by IT-NC to end users is done directly and cannot be done through the third party.

Article 9

(1) The import of NC by IP-NC and IT-NC as meant in Articles 4 and 6 must be subjected to verification/technical surveillance firstly in loading countries by surveyors at expense of importers.

(2) The verification/technical surveillance by surveyors as meant in paragraph (1) includes producing countries, specifications of goods, chemical composition and quantity of goods to be imported.

(3) Results of the verification/technical surveillance by surveyors as meant in paragraph (2) are contained in a surveyor report.

Article 10

In order to secure the appointment as the executor of verification/technical surveillance of import of NC as meant in Article 9 paragraph (1), surveyors must meet the following requirements:

a. experiencing as surveyors for 5 (five) years at the minimum,
b. having branch or representative or affiliate abroad.

Article 11

(1) Whether NC is imported or not, companies owning IP-NC and It-NC are obliged to convey a written report to the Director General of Foreign Trade with a copy made available to the Director General of IKAHH and the Director General of Ranahan every 3 (three) months, starting from the date of issuance of recognition as IP-NC or appointment as IT-NC.

(2) The model of report on the realization of import of NC by IP-NC and IT-NC is as contained in Attachment III to this decree.

Article 12

(1) Any violation against the provisions in this decree intentionally or due to negligence is liable to sanctions:

a. revocation of recognition as IP-NC in the case of the relevant:
1) trading or transferring the goods as contained in the import approval;
2) importing goods of the same kind or the quantity not according to that contained in recognition of IP-NC;
3) importing goods contained in recognition of IPNC whose validity period expired and is not extended yet;
4) not reporting the realization of import twice in one year.
b. revocation of appointment as IT-NC in the case of the relevant:
1) importing goods of the same kind or the quantity not according to that contained in appointment of IT-NC;
2) importing goods contained in appointment of ITNC whose validity period expired and is not extended yet;
3) not reporting the realization of import twice in one year.

(2) Unless NC imported by IP-NC or IT-NC is in accordance with that contained in the letter of recognition as IP-NC or appointment as IT-NC, and/or the imported goods are accompanied by surveyor report, the relevant IP-NC or IT-NC must re-export the said NC at their expense and they are subjected to sanctions in accordance with the customs provisions in force.

Article 13

Provisions not yet regulated in this decree are stipulated by a decision of the Director General of Foreign Trade.

Article 14

This decree comes into force as from the date of stipulation and is effective 2 (two) months as from the date of stipulation.

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

Stipulated in Jakarta
On June 17, 2003
THE MINISTER OF INDUSTRY AND TRADE
sgd
RINI M. SUMARNO SOEWANDI

DECREE OF THE MINISTER OF INDUSTRY AND TRADE No. 418/MPP/Kep/6/2003

ON THE PROVISION ON IMPORT OF NITRO CELLULOSE (NC)