REGULATION OF THE MINISTER OF TRADE
No. 12/M-DAG/PER/4/2008

CONCERNING
PROVISIONS ON THE IMPORT AND EXPORT OF RICE

THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA,

Attachment

Considering:

a. that rice is a strategic food commodity for the Indonesian society, therefore activities in the production, supply, procurement, and distribution of rice becomes very essential for food tenacity, increasing the income and prosperity of rice farmers, interest of consumers, and the creation of national economic stability;

b. that in order to achieve food tenacity, increasing the income and prosperity of rice farmers, interest of consumers, and creation of national economic stability, it requires a more effective and adequate policy supports, particularly policies in the field of import and export of rice;

c. that Decree of the Minister of Industry and Trade No. 9/MPP/Kep/1/2004 concerning Provisions on the Import of Rice as amended several times, the latest by Decree of the Minister of Industry and Trade No. 368/MPP/Kep/5/2004 is no longer in conformance with rent conditions, and therefore should be revoked and re-regulated.

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

In view of:

1. Trade Law 1934 (Statute Book No. 86/1938) as amended and supplemented;

2. Law No. 3/1982 concerning Obligatory Corporate Registry (Statute Book No. 7/1982, Supplement to Statute Book No. 3214);

3. Law No. 16/1992 concerning Animal, Fish and Plant Quarantine (Statute Book No. 56/1992, Supplement to Statute Book No. 3482);

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

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

6. Law No. 7/1996 concerning Food (Statute Book No. 99/1996, Supplement to Statute Book No. 3656);

7. Law No. 5/1999 concerning Prohibition on Monopoly and Unfair Business Competition (Statute Book No. 33/1999, Supplement to Statute Book No. 3806);

8. Law No. 8/1999 concerning Consumer Protection (Statute Book No. 42/1999, Supplement to Statute Book No. 3821);

9. Government Regulation No. 14/2002 concerning Plant Quarantine (Statute Book No. 35/2002, Supplement to Statute Book No. 4196);

10. Government Regulation No. 68/2002 concerning Food Tenacity (Statute Book No. 142/2003, Supplement to Statute Book No. 4254);

11. Presidential Decree No. 260/1967 concerning Affirmation of Task and Responsibility of The Ministry of Trade in the Foreign Trade Sector;

12. Presidential Decree No. 187/M/2005 concerning the Establishment of Work Together Cabinet as amended several times, the latest by Presidential Decree No. 171/M/2005;

13. Presidential Regulation No. 9/2005 concerning Status, Tasks, Functions, Organization Structures, and Work Procedures of State Ministries of the Republic of Indonesia, as amended several times, the latest by Presidential Regulation No. 94/2006;

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

15. Decree of the Minister of Industries and Trade No. 229/MPP/Kep/7/97 concerning General Provisions in Import;

16. Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/97 concerning Goods Where the Import Thereof are Regulated, as amended several times, the latest by Decree of the Minister of Industry and Trade No. 789/MPP/Kep/12/2002;

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

18. Decree of the Minister of Industry and Trade No. 141/ MPP/Kep/3/2002 concerning Special Importer’s Identification No., as amended several times, the latest by Regulation of the Minister of Trade No. 07/M-DAG/PER/1/2007;

19, Regulation of the Minister of Trade No. 01/M-DAG/PER/1/2005 concerning Organization and Work Procedure of the Ministry of Trade as amended several times, the latest by Regulation of the Minister of Trade No. 34/M-DAG/PER/8/2007;

20. Regulation of the Minister of Trade No. 31/M-DAG/PER/7/2007 concerning Importer’s Identification Number (API);

Observing:

1. Presidential Instruction No. 3/2007 concerning Policy on Rice;

2. Decree of the Coordinating Minister for Economy Affair No. KEP-44/M.EKON/08/2007 concerning Staple Food Stabilization Coordination Team;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS ON THE IMPORT AND EXPORT OF RICE.

CHAPTER I
GENERAL PROVISIONS

Article 1

In this Ministerial Regulation:

1. Rice is a kind of grains with/without skin, either processed or not, originating from the Oriza sativa species, with types as contained in Attachment I of this Ministerial Regulation.

2. The import of rice for the purpose of price stabilization, tackling of emergencies, poor communities, and food vulnerabilities, is the procurement of rice from overseas as reserve to be used by the Government at anytime.

3. The import of rice for certain purposes is the procurement of rice from overseas related with factors of health/dietary, special consumption or certain segments, and procurement of seeds as well as requirements of industry raw/auxiliary materials not supplied or not yet fully supplied by domestic sources.

4. The import of donated rice is the procurement of rice from overseas by social institutions/organization or government agencies to be given to the public in Indonesia and not for sale.

5. Rice importers are companies performing rice import activities.

6. Rice Importer-Producer hereinafter called as IP-Rice, is a processing industry of rice products acknowledged and approved by the Director General to import certain rice needed or required merely as raw/auxiliary materials in the production process of its industry.

7. Export of rice is an activity to release rice from Customs Area.

8. Rice exporters are companies performing rice export activities.

9. Recommendation is a letter issued by the official of the related service/unit having the authority to provide technical explanations, and not a permit/approval for import and export.

10. Coordination Team is the Staple Food Stabilization Coordination Team established by the Coordinating Minister in the Field of Economy to carry out coordination on the stabilization of staple food;

11. Director General is the Director General of Foreign Trade of the Ministry of Trade.

12. Minister is the Minister of Trade.

Article 2

Types of rice that are entitled to be imported and exported are as contained in Attachment II and Attachment Ill of this Ministerial Regulation.

CHAPTER II
IMPORT OF RICE FOR THE PURPOSE OF PRICE STABILIZATION, MITIGATION OF EMERGENCIES, POOR COMMUNITY, AND FOOD VULNERABILITY

Article 3

(1) Rice that are entitled to be imported for the purpose of price stabilization, tackling of emergencies, poor community, and food vulnerability are rice (tariff post/HS 1006.30.90.00) on condition that the highest level of breakage is 25% (twenty five percent).

(2) The rice as intended in paragraph (1) may only be imported outside of the 1 (one) month period before grand harvest, grand harvest period, and 2 (two) months after the grand harvest.

(3) Stipulation of the grand harvest period as intended in paragraph (2) is made by the Minister of Agriculture.

(4) The execution of rice import as intended in paragraph (2) may be exempted only by the Minister based on an agreement result of the Coordination Team.

Article 4

(1) The import of rice as intended in Article 3 paragraph (1) is only authorized to be performed by BULOG Public Company.

(2) In order to be stipulated as an importer as intended in paragraph (1), BULOG Public Company must submit a request in writing to the Minister by attaching:

(3) BULOG Public Company as intended in paragraph (1) may perform rice import after receiving an import approval from the Minister based on result of the Coordination Team meeting.

(4) The import approval as intended in paragraph (3) must contain information at least on the following:

(5) The imported rice as intended in paragraph (1) should be packed in packing with clear identity containing at least the following information:

CHAPTER III
IMPORT OF RICE FOR CERTAIN REQUIREMENTS

Article 5

(1) The import of rice for certain purpose related with factors of health/dietary, special consumption or certain segments, and procurement of seeds is as contained in Attachment II of this Ministerial Regulation.

(2) Imported rice as intended in paragraph (1) may be performed only by importers who have received import approval from the Director General on behalf of the Minister.

(3) In order to obtain the import approval as intended in paragraph (1), the importer must submit a request in writing to the Minister, in this case the Director General by attaching:

(4) On the written request as intended in paragraph (3), the Director General can issue an approval or rejection in 5 (five) working days at the latest from the date the request is received.

Article 6

The imported rice as intended in Article 5 should be packed in packing with clear identity containing at least the following information:

Article 7

(1) Rice import for certain purposes to meet requirements on raw/auxiliary materials for industries not produced or not yet fully produced domestically, is contained in Attachment II of this Ministerial Regulation.

(2) The import of rice as intended in paragraph (1) may be performed only by importers who had received acknowledgement as IP-Rice from the Director General on behalf of the Minister.

(3) The imported rice as intended in paragraph (1) is prohibited for to be purchased or transferred.

(4) To get acknowledged as IP-Rice, the importer must submit a request in writing to the Minister, in this case the Director General, by attaching:

(5) On the written request as intended in paragraph (4), the Director General can issue an approval or rejection on the request to be acknowledged as IP, in 5 (five) working days at the latest from the date the request is received.

(6) The acknowledgement as IP-Rice as intended in paragarph (4) is an import approval concerning:

CHAPTER IV
IMPORT OF RICE ORIGINATING FROM DONATIONS

Article 8

(1) Rice which can be imported originating from donation are Other Rice (tariff post/HS 1006.30.19.00 and 1006.30.90.00) with a maximum breakage level as of 25% (twenty five percent) as stated in Attachment II.

(2) The import of rice as intended in paragraph (1) may be performed only by social institutions/organizations or government agencies, without the requirement of possessing Importer’s Identification Number and Special Importer’s Identification Number.

(3) The imported rice as intended in paragraph (1) should be packed in packing with clear identity containing at least the following information:

Article 9

(1) The performance of rice import as intended in Article 8 paragraph (1) may be performed only by social institutions/organizations or government agencies after having received an import approval from the Director General on behalf of the Minister.

(2) In order to obtain the import approval as intended in paragraph (1), the social institution/organization or government agency must submit a request in writing to the Minister, in this case the Director General by attaching the following documents:

(3) On the written request as intended in paragraph (2), the Director General can issue an approval or rejection on the request for rice import approval in 5 (five) working days at the latest from the date the request is received.

(4) The import approval as intended in paragraph (3) should contain information at least on:

CHAPTER V
RICE EXPORT

Article 10

(1) Rice export may only be performed if domestic supply of rice had exceeded requirements for certain types of rice stated in Attachment III of this Ministerial Regulation.

(2) Rice export as intended in paragraph (1) for husked rice types (paddy) specially for seed requirements of tariff post/HS 1006.10.00.00, Fragrant Rice (not Thai Horn Mali) tariff post/HS 1006.30.19.00 with a maximum breakage level between 5% until 25%, is entitled to be performed only by BULOG Public Company after receiving an export approval from the Minister by paying due observance on the recommendation of the Coordination Team.

(3) Any Company may export rice as intended in paragraph (1) for Sticky Rice type with tariff post/HS 100630.30.00.

(4) The export of rice as intended in paragraph (3) may be performed only after receiving an export approval from the Director General on behalf of the Minister by paying due observance on the recommendation of the Director General of Processing and Marketing of Farming Products.

(5) In order to obtain the approval for rice export, the companies as intended in paragraph (2) and paragraph (3) must submit request in writing to the Minister through the Director General by attaching:

(6) On the written request as intended in paragraph (5), the Minister, or the Director General on behalf of the Minister, shall issue an approval or rejection on the request for rice export approval in 5 (five) working days at the latest accounted for from the date the request is received.

(7) The exported rice as intended in paragraph (2) and paragraph (3) must be packed in packing with identity in accordance with the request of the country of destination.

CHAPTER VI
VERIFICATION OR TECHNICAL TRACING OF RICE IMPORT AND EXPORT

Article 11

(1) Any execution of rice import must firstly be verified or technically traced at the port of loading of the country of origin of the imported rice.

(2) Any execution of rice export must firstly be verified or technically traced at the port of loading of the rice.

(3) Performance of the verification or technical tracing as intended in paragraph (1) and paragraph (2) shall be made by a surveyor stipulated by the Minister.

(4) On the performance of the verification or technical tracing as intended in paragraph (1) and paragraph (2), the surveyor is authorized to collect fee for services provided to the importer or exporter, the amount thereof is determined by observing the principle of benefit.

Article 12

(1) The verification as intended in Article 11 paragraph (1) shall be carried out on:

(2) Result of the verification as intended in paragraph (1) shall be set forth in the form of Surveyor Report to be used as customs complementary documents in the settlement of customs in the field of import.

(3) The verification on rice export as intended in Article 11 paragraph (2) covers type and volume of rice, name and address of exporter, and breakage level if required;

(4) Result of the verification as intended in paragraph (3) shall be set forth in the form of Surveyor Report to be used as customs complementary documents obligated in the submission of export customs notification.

Article 13

(1) To be stipulated as performer of verification or technical tracing of rice import and export as intended in Article 11 paragraph (3), the surveyor must meet the following requirements:

(2) The surveyor as intended in Article 11 paragraph (3) is obliged to submit reports in writing on the execution of the verification or technical tracing of rice imports and rice exports it had performed to the Director General each month no later than day 15 of the ensuing month.

Article 14

The verification or technical tracing activities on the import and export of rice by the Surveyor shall not reduce the authority of the Director General of Customs and Excise of the Ministry of Finance to make customs checks.

CHAPTER VII
REPORTING ON THE PERFORMANCE OF RICE IMPORT AND EXPORT

Article 15

(1) BULOG Public Company as intended in article 4 paragraph (3) and Article 10 paragraph (2) having received rice import approval or rice export approval, is obliged to submit report on the performance of the import of rice and rice export in writing to the Minister, with copies to:

(2) The report as intended in paragraph (1) should be submitted each month no later than day 15 of the ensuing month.

Article 16

(1) Importers and exporters who had received rice import approval or rice export approval as intended in Article 5 paragraph (2) or Article 7 paragraph (1) and Article 10 paragraph (4) are obliged to submit report on the performance of rice import and rice export in writing to the Director General, with copies to:

(2) The report as intended in paragraph (1) should be submitted each month no later than day 15 of the ensuing month.

Article 17

(1) Importers who had received acknowledgement as IP-Rice as intended in Article 7 paragraph (2), are obliged to submit report in writing on the performance rice import rice and rice export each month to the Director General, with copies to the Director General of Agro and Chemical Industries, in this case the Director of Agro Industries of the Ministry of Industries, and to the Director General of Processing and Marketing of Farming Products; Ministry of Agriculture.

(2) The report as intended in paragraph (1) shall be submitted no later than day 15 of the ensuing month.

Article 18

(1) Social institutions/organizations or government agencies who had received approval to import rice originating from donations as intended in Article 8 paragraph (2) are obliged to submit report in writing on the performance of rice import each month no later than day 15 of the ensuing month of the import performance month.

(2) The report as intended in paragraph (1) shall be submitted to the Minister, in this case the Director General, with copies to:

CHAPTER VIII
SANCTIONS

Article 19

Stipulation as rice importer and/or rice import approval or export approval will be frozen if the importer or exporter did not perform the obligation to submit the written report as intended in articles 15, 16, 17 or 18 for three (3) times.

Article 20

Freezing of the stipulation as rice importer and/or rice import approval or export approval as intended in Article 19 may be re-activated if the importer or exporter had resumed performing all of its obligations to submit the written report as intended in articles 15, 16, 17 or 18 within a period of 2 (two) months after being frozen.

Article 21

Stipulation as rice importer and/or import approval or export approval will be revoked if the rice importer or exporter:

Article 22

(1) The freezing, revocation and re-activation of the stipulation as rice importer and/or rice import approval or export approval provided to Importers, IP-Rice, social institutions/organizations or government agencies as intended in Article 4 paragraph (2), Article 6 paragraph (2), Article 7 paragraph (2), or Article 9 paragraph (1) or Article 10 paragraph (3) shall be stipulated by the Director General on behalf of the Minister.

(2) The freezing, revocation and re-activation of rice import approval or export approval provided to BULOG Public Company as intended in Article 3 paragraph (3) or Article 10 paragraph (2), and to social institutions/organizations shall be stipulated by the Minister.

Article 23

The Surveyor as intended in Article 11 paragraph (3) shall be revoked as of its stipulation if:

Article 24

Importers or Exporters carrying out import or export of rice not in accordance with provisions of this Ministerial Regulation may be imposed of sanctions in accordance provisions on customs and/or other provisions based on prevailing statutory regulations.

CHAPTER IX
MISCELLANEOUS

Article 25

Supervision and monitoring on the distribution of imported rice shall be regulated separately by the Director General of Domestic Trade, Ministry of Trade.

Article 26

Provisions on rice import or export in this Ministerial Regulation is not applicable to the import or export of rice constituting goods for technological research and development

Article 27

Rice import approval which had been issued before this Ministerial Regulation comes to effect, is declared to be still effective up to the expiry date of such import approval.

CHAPTER X
CLOSING PROVISIONS

Article 28

With this Minister Regulation coming to effect, Decree of the Minister of Industry and Trade No. 9/MPP/Kep/1/2004 concerning Provisions on the Import of Rice as amended several times, the latest by Decree of the Minister of Industries and Trade No. 368/MPP/Kep/5/2004 is revoked and declared null and void.

Article 29

Further provisions on the implementation of this Minister Regulation may be stipulated by the Director General.

Article 30

This Ministerial Regulation shall come into effect on the date of stipulation.

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

Stipulated in Jakarta
On April 11, 2008
THE MINISTER OF TRADE
signed,
MARl ELKA PANGESTU


Attachment I

Regulation of the Minister of Trade No. 12/M-DAG/PER/4/2008
Dated: April 11, 2008

Details of Types of Rice

No. Tariff Post / HS Description of Goods
  10.06 Rice
1 1006.10.00.00 - Paddy (rice with husks)
  1006.20 - Skinned paddy
2 1006.20.10.00 - Thai Horn Mali rice.
3 1006.20.90.00 - Others.
  1006 30 - Half or totally milled rice, whitened, either shinned or not
    - Fragrant rice
4 1006.30.15.00 - Thai Horn Mali rice
5 1006.30.19.00 - Others
6 1006.30.20.00 - Parboiled rice
7 1006.30.30.00 - Sticky rice;
8 1006.30.90.00 - Others
9 1006.40.00.00 - Broken rice
  11.02. Cereal flour other than wheat or meslin
  1102.90.00 - Others
10 1102.90.00.10 - Rice Flour
11 1102.90.00.90 - Others
  11.03 Rice grains, course flour and cereal pallet – Rice grains and course flour
  1103.19 - From other cereals:
12 1103.19.20.00 - From rice

Attachment II

Regulation of the Minister of Trade No. 12/M-DAG/PER/4/2008
Dated: April 11, 2008

Types of Rice Entitled to be Imported

No. Tariff Post/HS Description of Goods Comments
10.06 Rice
1 1006.10.00.00 - Paddy (rice with husks)
1006.20 - Skinned paddy
2 1006.20.10.00 - Thai Horn Mali rice.
3 1006.20.90.00 --Others.
1006.30 - Half or totally milled rice, whitened, either shinned or not
- Fragrant rice
4 1006.30.15.00 -- Thai Horn Mali rice
5 1006.30.19.00 ---Others Maximum breaking level as of 5% (five percent), among others Japonica, Basmati rice
6 1006.30.20.00 -- Parboiled rice
7 1006.30.30.00 -- Sticky rice;
8 1006.30.90.00 --Others Breakage level between 5% up to 25%
9 1006.40.00.00 -Broken rice Breakage level 100% (one hundred percent)
11.03 Rice grains, course flour and cereal pallet
- Rice grains and course flour
1103.19 -- from other cereals;
10 1103.19.20.00 --- From rice

Note:


Attachment III

Regulation of the Minister of Trade No. 12/M-DAG/PER/4/2008
Dated: April 11, 2008

Certain Type of Rice Entitled to be Exported

No. Tariff Post / HS Description of Goods Remarks
10.06 Rice
1 1006.10.00.00 - Paddy (rice with husks) Only for seed purpose
1006.3 -Half or totally milled rice, whitened, either shinned or not
--Fragrant rice
2 1006.30.19.00 - Others Maximum breakage level as of 5% (five percent), among others Organic Rice, Red Rice, Siam Rice, Pandan Wangi Rice.
3 1006.30.30.00 --Sticky rice;
4 1006.30.90.00 --Others Breakage level between 5% (five percent) up to 25% (twenty five percent)