Decree of the Minister of Industry and Trade No. 360/MPP/KEP/5/2004 on Provisions on the import of salt

PROVISIONS ON THE IMPORT OF SALT (Decree of the Minister of Industry and Trade No. 360/MPP/Kep/5/2004 dated May 31,2004) THE MINISTER OF INDUSTRY AND TRADE, Considering: a. that salt constitutes a strategic commodity as raw material of industry and foodstuff of Indonesian people so that the production, supply, procurement and distribution of salt in very important in the framework of supporting the public health through ionization program, enhancement of income and welfare of salt farmers and fulfilling the need of domestic industry; b. that domestic production has not been able to meet the domestic need so as to need to be imported; c. that in the framework of fulfilling the domestic need for salt as raw material of industries as well as increasing income and welfare of salt farmers, it is necessary to regulate provisions on the import of salt; d. that in relation thereto, it is necessary to issue a decree of the Minister of Industry and Trade concerning provisions on the import of salt; In view of: 1. Trade Ordinance of 1934 (Statute Book of 1938 No. 86); Business News 7083/9-7-2004 L. Law l'.JO. :>/1~84 on industry (Statute Book of 1984 No. 22, Supplement to Statute Book No. 3274 ); 3. Law No. 23/1992 on health (Statute Book of 1992 No. 100, Supplement to Statute Book No. 3495); 4. Law No. 7/1994 on ratification of the Agreement Es tablishing the World Trade Organization (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3564); 5. Law No. 10/1995 on customs (Statute Book of 1995 No .. 75, Supplement to Statute Book No. 3612); 6. Law No. 7/1996 on food (Statute Book of 1996 No. 99, Supplement to Statute Book No. 3656); 7. Law No. 5/1999 on prohibition on monopolistic prac~ tices and unfair business competition (Statute Book of 1999 No. 33, Supplement to Statute Book No. 3817); 8. Law No. 8/1999 on consumer protection (Statute Book of 1999 No. 42, Supplement to Statute Book No. 3821); 9. Government Regulation No. 69/1999 on food label and advertisement (Statute Book of 1999 No. 131, Supple ment to Statute Book No. 3867); 10.Government Regulation No. 25/2000 on the authority of the government and the authority of provinces as autonomous regions (Statute Book of 2000 No. 54, Supplement to Statute Book No. 3952); 11.Government Regulation No. 58/2001 on fostering and supervision over consumer protection (Statute Book of 2001 No. 103, Supplement to Statute Book No. 4126); 12.Presidential Decree No. 260/1967 on affirmation of tasks and responsibility of the Minister of Trade in the international trade sector; 13. Presidential Decree No. 69 / 1994 on provision of io dized salt; 14.Presidential Decree No. 228/M/2001 on the establish ment of the Mutual Cooperation Cabinet; 15. Presidential Decree No. 102/2001 on the status, tasks, Business News 7083/9-7-2004 functions, authority, organizational structures and work ing arrangement of ministries; 16. Presidential Decree No. 109/2001 on first-echelon or ganizational units and tasks of ministries; 17. Decree of the Minister of Industry and Trade No. 77 / M/SK/5/1995 on technical requirements for process ing, packing and labeling iodized salt; 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. 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. 478/ MPP/Kep/7 /2003; 20. Decree of the Minister of Industry and Trade No. 86/ MPP/Kep/3/2001 on the organization and working ar rangement of the Ministry of Industry and Trade; 21. Decree of the Minister of Industry and Trade No. 40/ MPP/Kep/1/2003 on Importer Identity Number (API}; DECIDES: To stipulate : THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE CONCERNING PROVISIONS ON THE IMPORT OF SALT Article 1 Referred to in this decree as: 1. Salt shall be chemical compound with the main com ponent containing natrium chloride and compound of water, magnesium, calcium, sulfate and additive of iodium, anti-caking or free-flowing or not, namely: a. table salt: HS 2501.00.10.00 b. mineral salt, not processed, solid or water solution, namely: HS. 2501.00.21.00; and HS. 2501.00.29.00 c. other salt, namely: HS. 2501.00.31.00; HS. 2501.00.32.00; and HS. 2501.00.33.00 d. others, namely HS. 2501.00.90.00 2. Salt K shall be salt whose quality has met the Indone sian National Standard (SNI) of salt being raw material of iodized salt industry. 3. Salt K2 and K3 shall be salt whose quality has not met the Indonesian National Standard (SNI) of salt being raw material of iodized salt industry, but can be pro cessed into Kl or used as raw/auxiliary material for the need of other industries. 4. Registered Importer of Salt, hereinafter called Salt IT shall be company having Importer Identity Number· (AP!) approved to import salt to be used for the need of industries and/or public consumption. 5. Recommendation shall be a letter issued by official of institution/unit concerned, who is authorized to give technical explanation and not being import license/ap proval. 6. Collecting point shall be places of collection of salt by side/edge of highway reachable by trucks or the simi lar. 7. Minister shall be the Minister of Industry and Trade, unless otherwise mentioned firmly. 8. Director General shall be the Director General of For eign Trade, Ministry of Industry and Trade. Article 2 ( 1) The salt as meant in Article 1 point only can be im ported by Salt IT. (2)Salt imported by Salt IT as meant in paragraph (1) applies the following provisions: a. as raw/auxiliary material of production for self con sumption, it cannot be traded or transferred, ex cept that salt as raw/auxiliary material of produc tion of ionization industry and other industry un able to import directly can be traded or transferred by ionization industry already securing the appoint ment of Salt IT; b. for the need of public consumption, it can be traded or transferred. Business News 7083/9-7-2004 (3)The salt as meant in paragraph (2) letter a shall be: a. mineral salt, not processed, solid or water solution, namely: 1. HS. 2501.00.21.00: salt contains natrium chlo ride of 94.7% at the minimum, calculated from the dry basis in package with net weight of 50 kg or over; and 2. HS.2501.00.29.00: others. b. others salt contains natrium chloride of 96% at the minimum, namely: 1. HS. 2501.00.31.00 pure salt; 2. HS. 2501.00.32.00 other in a package of 50 kgs or over; 3. HS. 2501.00.33.00 : other in a packaae of less than 50 kg. c. Other : HS 2501.00.90.00 (4)Salt for the need of public consumption shall be table salt, HS 2501.00.10.000. (5)Ionization industry and other industries unable to im port directly, which obtain salt from ionization industry already securing the appointment as Salt IT as meant in paragraph .(2) letter a shall be prohibited from trad ing or transferring the salt to whomever. Article 3 (l)The import of salt shall be prohibited in one month before the peak harvest of smallholder salt, during the peak harvest of smallholder salt and two months after the peak harvest. (2)The peak harvest as meant in paragraph (1) shall be stipulated by the Minister of Marine and Fishery. (3)In addition to the provision as meant in paragraph (1), the import of salt also shall be prohibited if the prices of salt Kl, K2 or K3 in bulk in collecting points on trucks remain below Rp 145,000 (one hundred and forty five thousand rupiahs) per ton, Rp 100,000 (one hundred thousand rupiah) per ton and Rp 70,000 (seventy thou sand rupiahs) per ton respectlvely. (4)Stipulation of the prices as meant in paragraph (1) can be reviewed and adjusted on the basis of consider ation about the benefit and economic principles. Article ..... Article 4 The appointment as Salt IT as meant in Article 2 shall be stipulated by the Director General. Article 5 ( 1) Companies intending to obtain the appointment of Salt IT shall meet the acquisition of salt at least 50% (fifty percent): a. from salt farmers/producers of local raw material salt; or b. result of cooperation with local salt farmers/pro ducers of local raw-material salt. (2)The obligation as meant in paragraph (1) shall apply to Salt IT for the need as meant in Article 2 paragraph (2) letter a, except Salt IT importing salt as auxiliary material for self consumption. (3)The obligation as meant in paragraph (1) shall be proven by Statement of Acquisition of Salt from Salt Farmers made Salt IT and legalized by regental/mu nicipal service in charge of industrial and trading af fairs and local salt-farmer association/group. ( 4) The example of the Statement of Acquisition of Salt from Salt Farmer as meant in paragraph (3) shall be mentioned in Attachment I to this decree. Article 6 ( 1) In order to obtain recognition as Salt IT as meant in Article 4, companies shall submit written application to the Director General by enclosing: a. copy of industrial business license or trading busi ness license or other equivalent business license issued by the authorized institution; b. corporate registry number (TDP); c. taxpayer code number (NPWP); d. copy of importer identity number (API); e. the need for salt for one year for the need of pro duction of the said industry; f. recommendation from the Director General of Chemical, Agro and Forest Product Industries, Min istry of Industry and Trade. g. statement of acquisition of salt from salt farmer made Salt IT and legalized by regental/municipal service in charge of industrial and trading affairs Business News 7083/9-7-2004 and local salt-farmer association/group, which cer tifies the acquisition of salt raw material as high as 50% (fifty percent) in accordance with the provi sion in Article 5 paragraph (3); and h. import declaration for salt IT applicant for the need of ionization showing experience in the import of salt in the last three years. (2)The model of document of appointment as Salt IT shall be mentioned in Attachment II to this decree. Article 7 Based on the written application of the company as meant in Article 6, the Director General shall consider to issue or deny the appointment as Salt IT not later than. 10 (ten) working days as from the date of receipt of appli cation. Article 8 The appointment as Salt IT as meant in Article 6 shall apply for 3 (three) years at the maximum and can be extended. Article 9 ( 1) The import of salt by every importers already securing appointment as Salt IT shall secure import approval firstly from the Director General with regard to the quantity, kind, destination port, country of origin and validity period of the import. (2)The quantity of salt, which can be imported as meant in paragraph ( 1) shall be given proportionally after the said Salt IT show acquisition of salt from salt farmers on the basis of evidence of acquisition legalized by re gental/municipal service in charge of industrial and trad ing affairs and local salt-farmer association/group. (3)The provision as meant in paragraph (2) shall not ap ply to Salt IT importing salt as auxiliary material for self consumption, wherein the quantity of salt which can be imported is adjusted to the need of production of the said industry. ( 4) The model of document of the import approval as meant in paragraph (1) shall be mentioned in Attachment III to this decree. Article ..... Article 10 ( 1) Importers already securing the appointment as Salt IT shall convey report in writing on the realization of the import of salt to the Director General in this case the Director of Import, Ministry of Industry and Trade ev ery month, not later than the 15th of the ensuing month after the montt\ when the import is realized, with a copy made available to the Director General of Chemi cal, Agro and forest Product Industries in this case the Director of Downstream Chemical Industry, Ministry of Industry and Trade. ( 2) The models of the written reports of Salt IT as meant in paragraph (1) shall be respectively mentioned in At tachment III to this decree. Article 11 ( 1 )The import of salt by every Salt IT shall be first sub Jected to verification or technical inquiry in loading countries. (2)The verification or technical inquiry as meant in para graph ( 1) shall be done surveyor appointed by the Min ister. ( 3) Result of the v~rification or technical inquiry by the surveyor as menat in paragraph (2} shall be mentioned in Survey Report (LS), whlch constitutes import docu ment. ( 4) Based on the verification or technical inquiry as meant in paragraph (2), the surveyor shall entitle to collect compensation for service from importer/granters with the amount stipulated on the basis of the principles of benefit. ( 5) In order to obtain the appointment as the executor of the verification or technical inquiry into the import of salt, surveyor shall meet the following requirements: a. experiencing as surveyor for 5 (five) years at the minimum; and b. having branch or representative or affiliate abroad. ( 6) The provisions and technlcal procedures for verifica tion or technical inquiry into the import of salt shall be stipulated by the Director General. Business News 7083/9-7-2004 Article 12 The obligation to undertake verification or tech nical inquiry as meant in Article 11 paragraph (1) shall be declared ineffective for the import of salt which consti tutes: a. goods for the need of technology research and devel opment; b. sample; c. luggage of passengers or crew rne.mbers of transport means or cross-bordering people; d. promotion goods; and/or e. delivery goods through courier service by using air borne service. Article 13 Activities of the verification or technical inquiry into the import of salt by surveyors as meant in Article 11 shall not reduce the authority of the Directorate General of Customs and Excise to undertake customs inspection. Article 14 ( 1) The appointment as Salt IT shall be frozen if the rel evant: a. fails to execute the obligation to convey the written report as meant in Article 10 twice; or b. is in the course of investigation into the alleged crime related to the misuse of appointment as Salt IT and/or the misuse of import approval of salt. (2)The freezing of appointment as Salt IT can be liqui dated after the relevant obtains clarification from the Director General with regard to their negligence in ex ecuting the obligation as meant in Article 10 or the relevant is not proven to commit crime related to the misuse of appointment. (3)The freezing of appointment as Salt IT as meant in paragraph (1) and liquidation of the appointment as Salt IT as meant in paragraph (2) shall be done by the Director General. Article 15 (l)The appointment as Salt IT shall be revoked if the rel evant: a. do not execute the obligation to acquire salt from salt farmers; b. do not execute the obligation to convey the written report as meant in Artic:;le 10 more than twice; c. changes and/or supplements and/or replaces con tent mentioned in document of appointment as Salt IT and/or misuse of im12ort approval of salt. d. is declared guilty b~e' court for crime related to the misuse of appointment as Salt IT or misuse of import approval of salt. ( 2) Revocation of the appointment as Salt IT as meant in paragraph (1) shall be done by the Director General. Article 16 ( 1) With the stipulation of this decree, the provisions on the import of salt in Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 shall be declared null and void. (2)The import approval already issued on the basis of De cree of the Minister of Industry and Trade No. 230/ MPP/Kep/7/1997 shall be revoked and declared null and void. Article 17 The exception from the provisions regulated in this decree only can be stipulated by the Minister or the appointed official. Article 18 Technical directives and matters not yet regulated in this decree shall be stipulated by the Director General. Article 19 The decree shall come into force as from July 1,2004. For public cognizance, the decree shall be pub lished by placing it in State Gazette' of the Republic of Indonesia. Stipulated in Jakarta On May 31,2004 THE MINISTER OF INDUSTRY AND TRADE sgd RINI M SUMARNO SOEWANDI Business News 7083/9-7-2004 ATTACHMENT I STATEMENT OF ACQUISITION OF SALT FROM SALT FARMERS The undersigned: Name/form of company Business line Address of company Personnel in responsible Address of personnel in responsible Telephone/facsimil~ no. of company No. of Industrial Business License Importer Identity Number (API) Corporate Registry Number (TOP} Taxpayer Code Number (NPWP) Certifies truthfully that we purchased salt from salt farmers as follows: a. Names of farmers/groups of salt farmers b. Address c. Kind of salt d. Quantity The statement is made truthfully and we are ready to accept sanction in accordance with the provisions in force in the case of the statement being untrue. Place, month/date/year Making the statement Duty stamp (Full name) Acknowledging and legalized Regental/Municipal service Association/group of in charge of industrial and salt farmers trading affairs Seal/signature Seal/signature Full name Full name ATTACHMENT II APPOINTMENT AS REGISTERED IMPORTER OF SALT No ......... In connection with Application ....... No. . ........ . date ........... on and on the basis of Decree of the Minis ter of Industry and Trade No ............... date ........ con cerning provisions on the import of salt, it is herewith granted the appointment as: REGISTERED IMPORTER OF SALT To: Name/form of company Business line Address of company Personnel in responsible Telephone/facsimile no. of company No. of Industrial Business License General Importer Identity Number (API-U) Corporate Registry Number (TDP) Taxpayer Code Number (NPWP) With the provision as follows: a.. The appointment as registered importer of salt is not effective as import approval. b. To report any change in the company to the Director General of For.eign Trade not later than 30 (thirty) days after the change. c. To provide data/information and/or ready to accept field inspection (business location/office) if necessary by the authorized official within the Ministry of Industry and Trade. d. The appointment as Registered Importer of Salt ap plies up to .............. . e. Violation of the provision as meant in letter a up to letter d is liable to sanction in the form of freezing, nullification of import approval of salt or revocation of Registered Importer of Salt. CC: Jakarta, THE DIRECTOR GENERAL OF FOREIGN TRADE The Minister of Industry and Trade; Business News 7083/9-7-2004 The Director General of Chemical, Agro and Forest-Prod uct Industries, Ministry of Industry and Trade; The Inspector General, Ministry of Industry and Trade; The Director General of Customs and Excise, Ministry of Finance; Head of Provincial Industrial and Trading Service ...... ATTACHMENT III No. Jakarta, Attachment Subject : Import approval of salt To: Referring to Decree of the Minister of Industry and Trade No. .. ............ date ............ concerning provisions on the import of salt and in connection with Application of PT ................ No. . ............. date on the matter as con tained in the subject of the letter, it is herewith notified that PT ........ , owning: No. of Registered Importer of Salt (Salt IT) No. of Trading Business License (SIUP) General Importer Identity Number (API-U) Corporate Registry Number (TOP) Taxpayer Code Number (NPWP) is approved to imoort: Kind of salt Tariff Heading/HS No. Quantity Destination port With the provision that: 1. The import of salt must be in accordance with the pro visions on customs procedures in force. 2. You are obliged to show the original sheet of the import approval to local customs and excise officers for every activity of the import of salt for filling the Controlling Card of Import Realization (enclosed) covering verifica tion of quantity and kind of the imported salt. 3. You are obliged to convey copy of the controlling card as meant in point 2, already marked and sealed by cus toms and excise officers to the Directorate of Import for every activity of the import of goods not later than 2 (two) weeks after the goods are released from the des tination port. 4. Violation of the provision on the obligation to convey report is liable to sanction of freezing as Salt IT. 5. The import approval of salt is revoked if the content in this import approval is changed, supplemented and/or replaced. 6. The approval is effective up to ................ . fhrs is for your attention. THE DIRECTOR GENERAL OF FOREIGN TRADE CC: The. Minister of Industry and Trade; The Director General of Chemical, Agro and Forest-Product Industries, Ministry of Industry and Trade; The Inspector General, Ministry of Industry and Trade; The Director General of Customs and Excise, Ministry of Finance; Head of Provincial Industrial and Trading Service ...... ATTACHMENT IV Name of company Address of head office. Appointment of Salt IT Import Approval of Salt Quantity Tariff Heading/HS No. Unloading Port REPORT ON REALIZATION OF THE IMPORT OF SALT {SALT IT) No ................... date ................ . No .. , ................ date .............. .. Realization of Import Realization of Distribution . No. No. of PIB Quantity Names of Companies Addresses Volume Value Jakarta, Quantity PT/CV ............................ .. {Director} ==={R)=== Business News 7083/9-7-2004 Remarks