Regulation of the Minister of Trade No. 02/M-DAG/PER/2/2006 on Rules on Export of Products of Forestry Industries

2A RULES ON EXPORT OF PRODUCTS OF FORESTRY INDUSTRIES (Regulation of the Minister of Trade No. 02/M-DAG/PER/2/2006 dated February 2, 2006) THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA, Considering: a. that, in the framework of acceleration and effective ness of implementation of regulations on export of products of forestry industries and in maintaining of sustainable availability of raw materials for products of forestry industries originating from conserved for est, in increasing of export of products of forestry industries with high added value and business cer tainty, it is deemed necessary to revoke Decree of the Minister of Industry and Trade No. 647 /MPP/Kep/ 10/2003 and to re-stipulate the above regulations; b. that, in the realization of export of products of for estry industries, there are technical problems regard ing specifications of exportable products; c. that, based on the considerations as meant in para graphs a and b above, it is necessary to issue Regu lation of the Minister of Trade. In view of: 1. Bedrijfsreglementerings Ordonantie of 1934 (Stat ute Book of 1938 No. 86); 2. Law No. 5/1984 on Industry (Statute Book of 1984 No. 22, Supplement to Statute Book No .. 3274); 3. Law No. 10/1995 (BN No. 5812 p. 19A-20A ar:id so on).on Customs (Statute Book of 1995 No. 75, Supple ment to Statute Book No. 3612); 4. Law No. 41/1999 (BN No. 6412 p. 1A-6A and so on) on Forestry (Statute Book of 1999 No. 80, Supple m·ent to Statute Book No. 3888); 5. Government Regulation No. 34/2002 (BN No. 6828 p. SA-15A and so on) on Forest Areas (Statute Book of 2002 No. 66, Supplement to Statute Book No. 4206); Business News 7336-7337/15-3-2006 6. Presidential Decree No. 260/1967 on Confirmation of Duties and Responsibilities of the Minister of Trade in Foreign Trade Affairs; 7. Presidential Decree No. 187/M/2004 (BN No. 7128 p. 30A-31A) on Establishment of United Indonesia Cabinet as already amended several times and lat est by Presidential Decree No. 171/M/2005; 8. Presidential Regulation No. 9/2005 (BN No. 7182 p. 2A-3A) on Positions, Duties, Organizational Struc tures, and Work Procedures of State Ministries of the Republic of Indonesia as already amended several times and latest by Presidential Regulation No. 62/ 2005; 9. Presidential Regulation No. 10/2005 on Organizational Units and Duties of Echelons I of State Ministries of the Republic of Indonesia as already amended sev eral times and latest by Presidential Regulation No. 63/2005; 10.Presidential Instruction No. 4/2005 (BN No. 72'15 p. 1A-3A) on Elimination of Illegal Logging in Forest Areas and Cir.culation of Logs in Indonesian Terri tory; 11.Joint Regulation of the Minister of Industry, the Minis ter of Trade, and the Minister of Forestry No. 08/M Ind/PER/2/2006, No. 01/M-DAG/PER/2/2006, and No. P.08/Menhut-VI/2006 on Revocation of Joint Decree of the Minister of Forestry and the Minister of Indus try and Trade No. SK.350/Menhut-Vl/2004 and No. 698/MPP/Kep/9/2004 on Restriction of Export of Rail way Sleepers Made of Wood and Timber for Lumber; 12.Decree of the Minister of Industry and Trade No. 558/ MPP/Kep/12/1998 (SN No. 6252 p. 10A-12A and so on) on General Rules on Export as already amended several times and latest by Regulation of the Minis ter of Trade No. 07/M-DAG/PER/4/2005 (BN No. 7244 p. 17A-23A); 13. Regulation ..... 13.Regulation of the Minister of Trade No. 01/M-DAG/ PER/3/2005 on Organization and Work Procedure of the Ministry of Trade. Observing: 1. Letter of the Minister of Forestry No. S.717/Menhut 11/2005 dated November 30, 2005 on Format of Joint Regulation of the Minister of Industry, the Minister of Trade, and the Minister of Forestry on Restriction of Export of Railway Sleepers Made of Wood and Timber for Lumber; 2. Letter of the Minister of Industry No. 476/M-IND/12/ 2005 dated December 5, 2005 on Joint Regulation and Regulation of the Minister of Trade. DECIDES: To revoke: DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 647/MPP/KEP/10/2003 DATED OCTOBER 16, 2003 ON RULES ON EXPORT OF PRODUCTS OF FORESTRY INDUSTRIES. To stipulate: REGULATION OF THE MINISTER OF TRADE ON RULES ON EXPORT OF PRODUCTS OF FORESTRY INDUSTRIES. Article 1 Hereinafter referred to as: 1. Railway Sleepers Made of Wood is wqod sawn or cut lengthwise, sliced or skinned, planed or not, sand papered or not, with thickness, width, and length not limited from all kinds of wood, included in HS 4406. 2. Timber for Lumber is wood sawn or cut lengthwise, sliced or skinned, not planed, not sandpapere~, not end-jointed with thickness of more than 6 mm in cluded in HS 4407. 3. Surface Four Side (S4S) is processed wood produced from timber for lumber, which is dried and its fours sides are flattened so that its surface becomes flat and fine, included in HS 4407. Business News 7336-7337/15-3-2006 3A 4. End-Jointed is processed wood acquired by jointing timber for lumber, which is already dried and planed, included in HS 4407. Article 2 Export of railway sleepers made of wood (in cluded in HS 4406) as meant in Article 1 paragraph 1 and timber for lumber (included in HS 4407) as meant in Article 1 paragraph 2 is restricted in the Indonesian territory. Article 3 Products of forestry industries, which export is regulated, are products as specified in Attachment I to this Regulation. Article 4 (!)Products of forestry industries may be exported if meeting the criteria as meant in Attachment II to this Regulation. (2)Exceptions from the provisions as set forth in At tac;:hment II to this Regulation shall be stipulated by the Minister of Trade or his authorized officer after getting the opinion of the Ministry of Industry and the Ministry of Forestry. Article 5 (!)Export of products of forestry industry as contained in Attachment I may only be operated by Forestry Companies that are already certified as Registered Exporters of Products of Forestry Industry (ETPIK) by the Minister of Trade, in this matter, the Director General of Foreign Trade of the Ministry of Trade. (2)Forestry companies certifiable as ETPIK are forestry companies that already obtain industrial business li cense issued pursuant to the applicable laws and al ready fulfilled the terms and conditions stipulated in this Regulation. Article 6 (1)Export of products of forestry industries included in HS.4408, HS.4410, and HS.4412 shall be done based on Cost and Freight (C&F), Cost, Insurance, and Freight ..... . Freight (CTF), and payment shall be remitted through the bank. (2)Export of products of forestry industries included in HS.4407, HS.4408, HS.4409, HS.4410, HS.4411, HS.4412, HS.4413, HS.4415, HS.4418. HS.4421.90.50.00, HS.9406.00.92.00 must obtain en dorsement from Forestry Industry Revitalization Agency (BRIK). (3)The endorsement as meant in paragrap,h (2) shall function as supporting document of Export Declara tion (PEB). (4)Procedure of endorsement by BRIK shall be further stipulated in Regulation of the Director General of Foreign Trade of the Ministry of Trade, (S)BRIK must report the implementation of endorse ment every month to the Minister of Trade, in this matter the Director General of Foreign Trade of the Ministry of Trade, and the carbon copies of the re port shall be delivered to the Director General for Agricultural and Chemical Industries of the Ministry of Industry and the Director General of Forestry Pro duction Development of the Ministry of Forestry. Article 7 {l)To obtain certificate of ETPIK, forestry companies must file a request in writing to the Director General of Foreign Trade of the Ministry of Trade via the Direc tor for Export of Agricultural and Forestry Products. {2)The request as meant in paragraph (1) must be com pleted with the following documents: Audit Report and recommendation from technical institution in the region responsible for forestry in dustry affairs pursuant to the applicable regula tions; Photocopy of Industrial Business License; Photocopy of Certificate of Registration of Com pany (TOP); Photocopy of Taxpayer's Identification Number (NPWP); and Photocopy of Deed of Establishment and the amendments pursuant to the applicable regulations. Business News 7336-7337/15-3-2006 4A (3) The Director General of Foreign Trade of the Ministry of Trade shall issue approval or rejection to the re quest as meant in paragraph (1) within not later than ten (10) working days since receipt of the applica tion in complete form. ( 4)If necessary, an audit might be conducted into the requesting company by officer of the Directorate Gen eral of Foreign Trade of the Ministry of Trade and or another institution appointed by the Director Gen eral of Foreign Trade of the Ministry of Trade. Article 8 (l)Companies that already obtain certificate of ETPIK prior to issuance of this Regulation, a verification might be performed on the companies into the le gality of documents, existence, export and produc tion activities according to the licenses they possess and implementation of the required regulations. (2)The verification as meant in paragraph (1) shalt be performed by officer of the Directorate General of Foreign Trade of the Ministry of Trade, the Director ate General for Agricultural and Chemical Industries of the Ministry of Trade, and the Directorate General for Forestry Production Development of the Ministry of Trade jointly and or by an independent surveyor appointed by the Minister of Trade. (3)The result of the verification as meant in paragraph (2) shall be written on a Verification Report (LHV ETPIK). ( 4)The LHV-ETPIK as meant in paragraph (3) must be submitted to the Directorate General of Foreign Trade of the Ministry of Trade. (S)Procedure for performance of verification of holders of ETPIK will be further stipulated in Regulations of the Director General of Foreign Trade of the Ministry. of Trade. Article 9 (1)0n export of certain wood products, veriftcatiop/tech nical examination must be performed. (2) The .....• (2)The certain wood products as meant in paragraph (1) are wood products included in Ex. HS.4407 (S45, door jamb or window jamb in S4S form, door jamb or window jamb in S4S form and end jointed), HS.4409, Ex HS.4415 (palette), Ex. HS.4418 (door jamb and window jamb), and HS.9406. (3)The verification/technical examination as n1eant in paragraph (1) shall be performed by an independent surveyor appointed by the Minister of Trade. ( 4)The surveyor as meant in paragraph (3) must have experiences in verification of export of products of forestry industries and must have a wide network of services in Indonesian territory. (S)Expenses arising from the verification/technical ex amination as meant in paragraph (3) shall be paid by the government. (6)Result of the verification/technical examination as meant in paragraph (3): a. If in accordance with the applicable regulations, shall be written on a Surveyor's Report (LS) to be used as supporting document of Export Declara tion (PEB); b. If 'not in accordance with the applicable regula tions, shaH be written on Report on Result of Ex amination (LHP). (7)The report on result of verification/technical exami nation of export of certain wood products as meant in paragraph (6) must be submitted by the surveyor every month to the Director General of Foreign Trade of the Ministry of Trade and the carbon copies of the report shall be delivered to the Director Gen eral for Agricultural and Chemical Industries of the Ministry of Industry and the Director General for Forestry Production Development of the Ministry of Forestry. (8) Procedure for performance of verification/technical examination of export of certain wood products will be further stipulated in Regulation of the Director General of Foreign Trade of the Ministry of Trade. Business News 7336-7337/1.5-3-2006 SA Article 10 Forestry companies already certified as ETPIK as meant in Article 5 must send report of: a. Annual production plan; b. Realization of production per semester; c. Annual export plan; d. Export realization per semester to the Director General of Foreign Trade of the Ministry of Trade and the carbon copies of the above report shall be delivered to the Director General for Agricul tural and Chemical Industries of the Ministry of Indus try; the Director General for Forestry Production De velopment of the Ministry of Forestry, and the Forestry Industry Revitalization Agency (BRIK) using the for mat as specified in Attachments III, IV, V, and VI to this Regulation. Article 11 On forestry companies already certified as ETPIK as meant in Article 5, their ETPIK certificate will be fro zen if the companies and/or the Management/Directors of the companies: a. do not operate production and export within one (1) year; b. do not perform the obligations as meant in Article 10 within one.{1) year; c. do not report every amendment of data on one or more of the documents as meant in Article 7 para graph (2); d. are assumed as violating the applicable regulations on export; or e. are being investigated by competent investigators because of assumed as committing criminal act with regard to misuses of ETPIK. Article 12 Certificate of ETPIK, which is already frozen, as meant in Article 11, could be re-activated if: a. The., .. a. The holder operates production and will operate ex port; b. The holder already reported amendment of data on the documents as meant in Article 7 paragraph (2); c. Within less than thirty (30) years since date of freez ing, the holder already performed the obligations as meant in Article 10; d. The holder is not proven as violating the provisions of Article 11 paragraph d; e. An order of stop of investigation is already issued by the investigator; or f. The holder is declared not guilty/freed from all legal claims based on a final and binding court verdict. Article 13 On forestry companies already certified as ETPIK as meant in Article 5, their ETPIK Certificate will be re voked if the companies and/or the Management/Direc tors of the companies: a. At their own request, close down their production or export operations; b. their ETPIK Certificate has been frozen for two (2) times; c. are de~lared guilty by the court for criminal act relat ing to misuses of ETPIK based on a final and binding court verdict; d. based on the result of verification as meant in Article 8 paragraph (1) are proven not acting in accordance with the licenses they possess; or e. are proven violating export regulations as meant in Article 11 paragraph d. Article 14 (l)The freezing, reactivating, and revocation of ETPIK Certificate as meant in Articles 11, 12, and 13 sh::1II be done by the Director General of Foreign Tra.:ie of the Ministry of Trade. Business News 7336-7337/15-3-2006 6A (2)The Director General of Foreign Trade of the Ministry of Trade shall send a letter of notification regarding the freezing, reactivating, and revocation of ETPIK certificate as meant in paragraph (1) to holder of ETPIK certificate and the carbon copies of the letter shall be submitted to the Director General of Cus toms and Excise of the Ministry of Finance, the Di rector General for Agricultural and Chemical Indus tries of the Ministry of Industry, the Director General of Forestry Production Development of the Ministry of Forestry, and the Forestry Industry Revitalization Agency (BRIK). Article 15 Delivery of products of forestry industries as sample goods or goods for exhibition abroad shall be excepted from the provisions of Article 5 paragraph (1) with prior approval of the Director General of Foreign Trade of the Ministry of Trade. Article 16 Enforcement regulations of this Regulation may be further stipulated by the Director General of Foreign Trade of the Ministry of Trade. Article 17 ETPIK Certificate already issued prior to issu ance of this Regulation shall be declared valid as long as it is not in contradiction with the provisions of this Regulation. Article 18 This Regulation shall be valid thirty (30) days since the date it is stipulated. For public cognizance, this Regulation shall be published by placing it in the State Gazette of the Re public of Indonesia. Stipulated in Jakarta On February 2, 2006 THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA Sgd MARI ELKA PANGESTU ATTACHMENT ..... 7A ATTACHMENT I NO NO HS CODE DESCRIPTION OF GOODS 1 Ex.4404 Chipwood 2 Ex.4407 Timber for lumber further pro cessed by flattening its four sides 12 so that its surface becomes flat and fine (54S). 3 Ex.4407 Processed wood acquired by joint ing timber for lumber, which four sides are already dried and planed 13 after end-jointing process. 4 4408 Veneer wood sheets (jointed or not) and other wood sawn length wise, cut, or skinned, either 14 planed, sandpapered, or end jointed or not with thickness of not exceeding 6 mm 5 4409 Wood (including stripes and wood 15 cuts into wooden planks, not in stalled), moulded (long-winded, 16 grooved, its sides are scraped, 17 sloped, long-winded and grooved, 18 its sides slant, moulded to V, 19 beaded, a pole is formed, rounded, 20 or others), along its sides or sur face, planed or not sandpapered 22 or finger-jointed. 23 6 4410 Particle planks and similar planks made of wood or other materials 24 containing lignin, agglomerated by resin or other organic adhesive 25 materials or not 26 7 4411 Planks made of wood fibre orother 27 materials containing lignin, glued 28 by resin, other organic materials 29 or not. 8 4412 Plywood, wood layer panel and 30 similar layer woods. 31 9 4413 Wood solidified into beam, plate, stripe, or profile. 10 4414 Wood frame for paintings, photos, mirror, or similar articles ·11 4415 Cases, boxes, crates, vats, and similar containers made of wood, Business News 7336-7337/15-3-2006 HS CODE DESCRIPTION OF GOODS cable vaults maqe of wood, other boxes and plank palettes for car goes made of wood, palette collar made of wood. 4416 Tanks, vats, receptacles, basins, and 9ther products of vat/basin maker and their parts made of wood, including curved plank for tanks. 4417 Tools, tool bodies, tool handles, broom bodies or brush and their handles made of wood; shoe lasts for boots made of wood. 4418 Building tools and materials made of wood, including cellular wood panels, installed parquet panels, or shingle and shake. 4419.00.00.00 Tools for eating and kitchen tools made of wood. 4421.90.20.00 Wood handles of matches 4421.90.50.00 Paving blocks made of wood. Yellow sandalwood in any form. Ex.4601 Mats and blinds made of rattan. 4602.10.10.00 Baskets and plated articles made of rattan 9401.50.10.00 Chairs made of rattan.' 9401.61 Other chairs with wooden frames, with cover layer. 9401.69 Others (other chairs with wooden frames, without cover layer); 9403.30 Office furniture made of wood. 9403.40 Kitchen furniture made of wood. 9403.50 Bedroom furniture made of wood. 9403.60 Other furniture made of wood. 9403.80.10.00 Bedroom, dining room, or family room furniture made of rattan. 9403.90.00.00 Parts of wood furniture. 9406.00.92.00 Prefabricated buildings made of wood. THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA Sgd MARI ELKA PANGESTU ATTACHMENT ..... ATTACHMENT II CRITERIA TO DETERMINE CERTAIN EXPORTABLE PRODUCTS OF FORESTRY INDUSTRIES 1. Size and level of processed goods a) Processed wood in 54S form (included in, HS.4407); Must be in form of processed wood produced from timber for lumber, which four sides are already dried and flattened so that its surface becomes flat and fine, with size of its longitudinal section not exceeding 4,000 mm2. b) Processed wood being derivative product of 545 in E2E, E3E, and E4E forms (included in HS.4409) Size of longitudinal section not exceeding 4,000 mm2. c) Door jamb or window jamb in 545 form (included in HS.4407) Must be in set, and the sizes are as follows: a. Thickness not exceeding 60 mm. b. ·width not exceeding 150 mm. d) Door frame or window frame in S45 form (included in HS.4407) Must be in set, and the sizes are as follows: a. Thickness not exceeding 40 mm. b. Width not exceeding 200 mm. e) End jointed (included in HS.4407) Must be in form of processed wood acquired by jointing timber for lumber, which four sides are already dried and planed after end-jointing pro cess, and the length of each jointed piece does not exceed 1500 cm. f) Box palettes and plank palettes (included in HS.4415) Must be installed. g) Building elements made of wood (included in HS.4418.90) being integral units of the building Must be in set of building elements and pictures containing complete technical specifications with out changing their forms and cutting them. h) Prefabricated elements made of wood (included in HS.9406.00.92.00) Must be completed with pictures containing com plete tech n ica ~ specifications. Business News 7336-7337/15-3-2006 8A 2. Tolerated sizes and defects and water content a. All sizes of exported processed wood shall be given tolerance as follows: 0 Thickness not exceeding 0.5 mm O Width not exceeding 1 mm o Length not exceeding 50 mm. b. Machine defects shall not exceed 5% of total ex port volume. c. Water content of processed wood as meant in point 1 shall not exceed 16%, except palette. THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA Sgd MARI ELKA PANGESTU ATTACHMENT in REPORT ON ANNUAL PRODUCTION PLAN YEAR: Name of Company No. of ETPIK Certificate Quantity No Description of Goods Total Units Unit TOTAL ATTACHMENT IV REPORT ON REALIZATION OF PRODUCTION SEMESTER: YEAR: Name of Company No. of ETPIK Certificate No ..... . No Description of Goods Quantity Total Units Unit TOTAL ATTACHMENT V REPORT ON ANNUAL EXPORT PLAN YEAR: Name of Company No. of ETPIK Certificate No HS Code Description Quantity Country of of Goods Total Units Unit Destination TOTAL 9A ATTACHMENT VI REPORT ON REALIZATION OF EXPORT PER SEMESTER SEMESTER: YEAR: Name of Company No. of ETPIK Certificate ' Quantity Value Country of HS Descrlptlon No Destina Code of Goods Total Unit Value MTU*) tlon Units TOTAL Note:*) MTU: Code of currency.