Regulation of the Minister of Trade No. 09/M-DAG/PER/2/2007 on Provisions on the Export of Products of Forestry Industry

20A PROVISIONS ON THE EXPORT OF PRODUcrS OF FORESTRY INDUSTRY (Regulation of the Minister of Trade No. 09/M-DAGjPER/2/2007 dated February 14, 2007) THE MINISTER OFTRADE OF THE REPUBUC OF INDONESIA, Considering: a. that efforts to smooth the export of products of forestry industry by means of stipulating clear regu lation regarding provisions on the export ofproducts of the forestry products as regulated in Regulation of the Minister of Trade No. 02/M~DAG/PER/2/2006 have remained unable to meet the target; b. that the scope of products of the forestry industry regulated in RegUlation of the Minister of Trade No. 02/M-DAG/PER/2/2006 has not covered all products of the forestry industry thus causing serious prob lem in the enforcement of provisions on the export of products of the forestry industry; c. that technical criteria used for determining certain forestry industry products which can be exported as contained in Regulation of the Minister of Trade No. 02/M-DAG/PER/2/2006, in developments, are longer suitebie to the existingconditionthus needing amend ment; d. that in connection with the matters as meant in let ters a, band c, it is necessary to revoke Regulation of the Minister of Trade No. 02/M~DAG/PER/2/2006 and re~regulate the provisiOns; e. that based on the considerations as mfYInt in letters a, b, c andd, it is necessary to stipulateareguhttfon of the Minister of Trade;. In view of: 1. Trade Ordinance of 1934 (Statute Book of 1938 No. 86) as already amended and supplemented; 2. Law No. 5/1984 Industry (Statute Book of 198422, Supplementto Statute Soak No. 3274); Business News 7507-7508/5~9-2007 3. Law No. 10/1995 on Customs Affairs (Statute Book of 1995 No. 75, Supplement to StatuteBook No.3612) as already amended by Law No. 17/2006 (Statute Book of 2006 No. 93, Supplement to Statute Book No. 4661); 4. Law No. 41/1997 on Forestry (Statute Book of 1999 NO. 30, Supplement to Statute Book No. 3888); 5. Government Regulation No. 34/2002 on Forest Management and Forest Area Exploitation (Statute Book of 2002 No. 66, Supplement to Statute Book No. 4206)"; 6. Presidential Decree No. 260/1967 on Affirmation of Tasks and Responsibility of the Minister of Trade in the ForeignTrade Sector; 7. Presidential Decree No. 187/M/2004 on the Estab lishment of the United Indonesia cabinet as already amended several times and the latest by Presiden tial Decree No. 171/M/2005; 8. Presidential RegUlation No. 9/2005 on Status,Tasks, Functions, Organizational StructuresandWorkingAr rangements of State MInistrIes as already amended by Presidential Regulation No. 90/2006; 9. Decree of the Ministerof Industry andTrade No.558/ MPP/Kep/12/1998 concerning General Provisions on the Export as already amended several times and thelatest by Regulation of the Minister of Trade No.. 01/M'-OIttG/P!R/1/200?; lO.Regulation of the Mlnister of Trade No. 01M~DAG/ P!ft,l3/200s on Organzat1on and Working Arrange ment of the Ministry of Trade as already amended the latest by·Regulation of the Minister of Trade No. 30/M-DAG/PER/12/200S; 11. Joint •••.• l1.Joint Regulation of the Minister of Industry, Minister of Trade and 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 Minister of Industry and Trade No. SK.3JO/Menhut-VI/2004 arid 59B/MPP/ Kep/9/2004 regarding Prohibition on the Export of Wooden Railway Sleepers and Sawn Timber; Observing: Resultsof Meetings regarding Deliberation about Revision for Regulation of the Minister of Trade No. 02/ M-DAG/PER/2/2006 concerning Provisions on the Export of Forestry Industry Products and the latest held on Janu ary 31,2007. DECIDES: To revoke: REGULATION OF THE MINISTER OF TRADE NO. 02/ M-DAG/PER/2/2006 DATED FEBRUARY 1,2006 CON CERNING PROVISIONS ON THE EXPORT OF PRODUCTS OF THE FORESTRY INDUSTRY To stipulate: THE REGULATION OF THE MINISTER OF FINANCE REGARDING PROVISIONS ON THE EXPORT OF PRODUcrS OF THE FORESTRY INDUSTRY Article 1 Referred to in this regulation as: 1. Wooden railway sleepers are timber sawn or cut lengthwise, sliced or peeled, planed or not, polished or not, of a thickness, witdth and length not restricted, of the timber subsumed into Tariff Her;tding/HS No. 4406. 2. Sawn TImber is timber sawn or cut lenqthwise, sliced or peeled, not planed, not polished, not end-jointed, of a thickness exceeding 6 mm, subsumed in to Tariff Heading/HS No. 4407. 3. Products of the Forestry Industry are processed timber products and derivatives as well as articles of Business News 7507-7508/5-9-2007 21A rattan as contained in Attachment 1 to this regula tion. Article 2 The wooden railway sleepers (subsumed into H$ 4406) as meant in Article 1 poir'lt 1 and sawn timber (subsumed into HS 4407) as meant in Article 1 para graph (2) cannot be exported. Article 3 The export of the products of the forestry in dustry as meant in Article 1 point 3 is regulated in ac cordance with this regulation. Article 4 (l}The products of the forestry industry belonging to groups Ex HS 4407/ EX HS 4409, Ex HS 4412/ Ex HS 4415, EX HS 4418 and Ex HS 9406 only can be ex ported if the technical criteria as contained in At tachment II to this regulation are fulfilled. (2) Exception from the provision regulated in Attachment II to this regulation is stipulated by the Minister of Trade after securing consideration from the a team set forth by the Minister of Trade. Article 5 (l)The products of the forestry industry as meant in Article 1 point 3 only can be exported by forestry manufactures already recognized as Approved Ex porters of Products of the Forestry Industry (ETPK) by the Director General of Foreign Trade of the Min istry of Trade. (2)Forestry Manufactures which can be recognized as ETPIK are foresty manufactures already securing busi ness license issued on the basis of legislation in force and fulfilling. the requirements stipulated in this regu lation. Article 6 (l)1n order to secure recognition as ETP1K, forestry manufactures must submit a written application to the Director General of Foreign Trade, Ministry of Trade. (2) The ..... (2)The applicatton as meant in paragraph (1) must be accompanied by the following documents: a. Protocol of Physical Inspection of Industry and recommendation from technical institution in charge of forestry industry affairs in regions, in accordance with the provisions in force; b. Copy of industrial license; c. copy of corporate reglstraty number (TDP)i d. Copy of taxpayer code number (NPWP)i and e. Copy of notary deed of the establishment of com pany and amendment(s) in accordance with the provisions in force. (3)The Director General of Foreign Trade issues approval or rejection of the application as meant in paragraph (1) in not later than 10 (ten) working days as from the date of receipt of application. (4)Forestry manufactures already securing recognition as ETPIK are obliged to convey every change in data contained in the documents as meant in paragraph (2) in not later than 30 (thirty) days as from the change. Article 7 (l)Verification of legitimacy of documents, existence of companies, export acttvlttas and production in accordance with the owned license as well as provi sions in force can be applied to companies already securing recognition as ETPK. 22A (4)LHV ETPIK as meant in paragraph (3) is conveyed in not later than 30 (thirty) days after the verification to the Director General of Foreign Trade of the Trade Ministry. (5)Technical Procedures for the Verification as meant in paragraph (1) are regulated further by a regulation of the Director General of Foreign Trade, Ministry of Trade. Article 8 (l)The export of products of the forestry industry subsumed into HS 4408, liS 4410 and Ex 1-15 4412 (especially for plywood) is realized on the basis of Cost & Freight (C&F), Cost Insurance and Freight (OF) as well as the payment is realized through bank ing institution. (2)The export of products of the forestry products sub sumed into HS 4407, HS 4408, HS 4409, HS 4411, HS 4412, HS 4413, HS 4415, HS 4418, Ex. HS. 4421.90.99.00 (especially for wooden pavingblock), HS9406.00.92.00 must secure endorsement from the Forestry Industry Revitalization Board (BRIK). (3)The document of endorsement as meant in para graph (2) is used as customs complementary docu-' ment required for registration of Export Declaration (PEB) or Customs Declaration of Single Admlnistra tive Document (PP SAD) for customs service offices already applying the system. (2)The verification as meant in paragraph (1) is executed by offICialsof the Directorate General of Foreign Trade of the Trade Ministry, Directorate General of Agro and Chemical Industries of the Industrial Trade and Directorate General of Forestry Production Develop ment of the Forestry Industry in coordination and/or independent surveyors stipulated by the Minister of Trade. (3) Results of the verification as meant in paragraph (1) are mentioned in the form of a Report on Results of VerifICation of ffPIK (LHV ETPIK). (4)Technical procedures for endorsement by BRIK are regulated further by a regulation of the Director Ge~ neraf of Foreign Trade of the Trade Ministry. (S)BRIK is obHged to report the implementation of endorsement in not later than the 15th of the ensu ing month to the Minister of Trade, in this case the Director GE!neral of Foreign Trade with a copy made available to the Director General of Agro and Chemi cal Industries of the Industrial Trade and Director Genera~ of Forestry Production Development of the Forestry Industry. Business News 7507-7S08/5~9-2007 Article 9 • • ~ • I 23A Article 9 (l)The export of products of the forestry industry subsumed into HS 4407, HS 4409, EX HS 4412 . (especially for laminated wood), HS 4415, HS4418 and Ex HS9406(especially for wooden pre-fabricat ing structure) Is subjected to technical verification/ surveillance, (2)The techical verification/surveillance as meant in paragraph (1) is executed by independent surveyors stipulated by the Minister of Trade. (3)The surveyors as meant in paragraph (2) must have technical capability in the verification of products of the forestry industry as well as broad service net works in Indonesia's territory. (4) Costs arising from the tehnical verification/surveil lance as meant in paragraph (1) are borne by the government. (5)Results of the technical verification/surveillance as meant in paragraph (1) are mentioned in the form of a Surveyor Report (lS) to be used as as customs complementary document required for registration of Export Declaration (PEB) or Customs Declaration of Single Administrative Document (PP SAD) for cus toms service offices already applying the system. (6)The reporton results of the technical verification! surveillance as meant in paragraph (5) must be conveyed by surveyors in not later than the 15th of the ensuing month to the Director General of Foreign Tracie with a copy made available to the Director General of Agro and Chemical Industries of the Industrial Trade and DirectorGeneral of Forestry Production Development of the Forestry Industry. (7)Technical Procedures for the technlcalverificationj surveillance as meant in paragraph (1) are regUlated further by the Director General of Foreign Trade, Ministry of Trade. Article 10 (l)Forestry manufactures already recognized as ETPIK Business News 7507-7508/5-9-2007 as meant in ArtiCle 5 are Obliged to report: a. Annual Production Plan; b. Realization of semester Production; c. Annual Export Plan; d. Realization of Semester Export. (2)The reports as meant in paragraph (1) is conveyed to the Director General of Foreign Trade with a copy made available to the Director General of Agro and Chemical Industries of the Industrial Trade and Director General of Forestry Production Development of the Forestry Industry by using the formats of report as contained in Attachments III, IV, Vand VI to this regulation. Article 11 Recognition as ETPIK as meant in Article 5 is frozen if manufactures holding ETPIKand/or executives/ directors of the manufactures holding ETPIK: a. do not undertake production and export in a period of one year; b. do not fulfill the obligation as meant in Article 10 in one year; c. do not fulfill the ObligatIon as meant In Article 6 para graph (4) in 30 (thirty) days after the change in the data; or d. are In the course of investigation by the authorized investigators because they are allegedly committng crime related to the misuse of ETPIK and/or violat ing the effective provisions in the export sector. Article 12 The frozen recognition as ETPIK as referred to in Article 11 Can be re-activated if manufactures holding ETPK and/or executives/directors of manufactures hold ing ETPIK: a. resume production and plan to export; b. in not tater than 30 (thirty) days as from the freez ing, have fulfilled the obligation as meant in Article 10; c. have been issued with order to discontinue investi gation into the allegatIon as meant in Article 11 letter d; and d. are declared guilty/exempt from all legal charges on the basis of a legally fixed decision. Article 13 ..... 24A Article 13 Recognition as ETPIK as meant in Article 5 is revoked if manufactures holding ETPK and/or executives/ directors of manufactures holding ETPIK: a. based on their application, discontinue production and export; b. do not fulfill the obligation as meant in Article 10 in 30 (thirty) days as from the date of freezing; c. based on results of the verification as meant in Article 7 paragraph (1), are proven not complying With the owned license; d. are declared guilty by the court for crime related to the misuse of ETPIK and/or violation of provisions in the export field by a legally flxed court.decislon: or e. have had their ETPIK frozen twice and fulfilled reason for re-freezing. Article 14 (l)The freezing, re-activation and revocation of ETPIK as meant in Articles 11, 12 and 13 are executed by the Director General of Foregn Trade, Ministry of Trade. (2)The Director General of Foreign Trade conveys notification about the freezing, re-activation and revocation of ETPIK as meant in paragraph (1) to holders of ETPIK with a copy made available to the Director General of Agro and Chemical Industries of the Industrial Trade, Director General of Forestry Production Development of the Forestry Industry and the Forestry Industry Revitalization Board (BRIK). Article 15 (l)Surveyors violating the provision as meant in Article 9 paragraph (6) are subjected to sanction in the form of revocation of right to receive service fee from the executed verification in the month, which is not reported. (2)BRIK violating the provision as meant in Article 8 paragraph (5) is SUbjected to administrative sanction in the form of written warning. Article 16 The export of products of the forestry products, in the form of samples, substances of research and goods for the need of overseas exhibition is excepted from the provisions in this regulation after securing approval from the Director General of Foreign Trade, Ministry of Trade. Article 17 Technical provisions on this regulation can be regulated further by the Director General of Foreign Trade, Ministry of Trade. Article 18 Recognition as 8"PIK Issued before the issuance of this regulation applies as long as it does not contravene the provisions in this regulation. Article 19 The regulation comes into force 2 (two) months as from the date of stipulation. For public cognizance, the regulation shall be placed in State Gazette of the Republic of Indonesia. Stipulated in Jakarta On February 14,2007 THE MINISTER OFTRADE Sgd MARl ELKA PANGESTU Business News 7507-7508/5-9-2007 ATTACHMENT I ..... 25A FORESTRY~INDUSTRY PRODUCTS SUBJECTED TO ETPIK ATTACHMENT I NO TARIFF HEADINGS (HS) DESCRIPTION OF GOODS l. Ex 4401 and Ex 4404 Timber chips 2. Ex 4407 Sawn timber already processed further by leveling the four sides so as to have flat and fine surface, of a thickness exceeding 6 mm (545) 3. Ex 4407 Processed wood obtained by jointing sawn timber already dried and planed in the four sides after finger jointing, of thickness exceeding 6 mm 4. 4408 veneer sheets and sheets for plywood (whether or not spliced) ad other swan lengthwise, sliced or peeled, whether or not planed 5. 4409 Wood (induding strips and friezes for parquet flooring, not assembled) continu ously shaped (fongued, grooved, rebated, chamfered, V-jointed, beaded, moul ded, rounded or the like) along any of its edges or faces, whether or not planed, sanded or finger-jointed 6. 4410 Particle board and similar board of wood or other ligneous materials, whether or not angglomerated with resins or other organic binding substances 7. 4411 Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other organic binding substances 8. 4412 Plywood, veneered panels and similar laminated wood 9. 4413.00.00.00 Densified WOOd, in blocks, plates, strips or profile shapes 10. 4414.00.00.00 Wooden frames for paintings, photographs, mirrors or similar objects 11. 4415 Packing cases, boxes, crates, drums and similar packings, of woods, cable drums of wood, pallets, box pallets and other load boards, of wood 12. 4416 casks, barrels, vats, tubs and other coopers' products and parts thereof, of wood, including staves 13. 4417 Tools, tool bodies, tool handles, broom or brush bodies and handles, of wood, boot or shoe lasts and trees, of wood 14. 4418 Builders' joinery and carpentry ofwood, including cellular wood panels, assembled parquet panels, shingles and shakes 15. 4419.00.00.00 Tableware and kitchenware of wood 16. 4421.90.20.00 Match splints 17. Ex. 4421.90.99.00 Paving blocks of wood 18. Sandal wood and articles of sandal wood 19. 4601.22.00.00 Matsand curtains of rattan 20. 4602.12.00.00 Baskets and plaited materials of rattant 21. 9401.51.00.00 Rattan chairs 22. 9401.61.00.00 Other seats with wooden frames, given covering layer 23. 9401.69.00.00 Others (other seats of wooden frames, not given covering layer) 24. 9403.30.00.00 Wooden furniture of a kind used in office 25. 9403.50.00.00 Wooden furniture of a kind used in kitchen 26. 9403.50.00.00 Wooden furniture of a kind used in bedroom 27. 9403.60.00.00 Other wooden furniture 28. 9403.81.00.00 Bedroom, dining room and family room appliances, of rattan 29. 9403.90.00.00 Parts of wooden furniture 30. 9406.00.92.00 Pre-fabricating structure of wood Business News 7507-7508/5-9-2007 ATTACHMENT II ..•.. ATTACHMENT 11 TECHNICAL CRITERIA FOR DETERMINING FORESTRY-INDUSTRY PRODUCTS WHICH CAN BE EXPORTED 1. Size and Processed Degree a. Processed wood in the form of 545 (including HS 4407) must be in the form of processed wood products resulting from sawntimber alreadydried and leveled on the four sides so as to have flat and smooth surface with the flat sizenot exceed ing 4/000 mm, b. Derivative processed wood of S4S in the form of E2E, E3E and E4E (including HS 4409), of a size not exceeding 4,000 mm2 c. Finger jointed (including HS 4407) Must be in the form of processed wood obtained by jointing sawn-timber already dried andsanded on the four sides after finger jointing with the provision that the length of every jointed piece doesnot exceed 1,000mm with the sizeof every jointed piece not exceeding 15,000 mm d. Laminated board (jointed board) (including HS 4412): Processed woodresulting from jointing two pieces of wood towards the wide side by mean of press ing by binding substance with the provision as follows: ,- Width of every piece not exceeding 80 mm; Thickness of every piecenot exceeding 40 mm; Lengthof everypiecenot exceeding 1,000mm. e. Laminated Block (including HS 4412) Processed wood resulting from the jointing of pieces of wood towards the thick side by means of pressing by using binding substances with the provision as follow: Width of every piece not exceeding 150mm; Thickness of every piecenot exceeding 40 mm. Business News 7507-7508/5-9-2007 26A f. Decorative profile (Including HS 4409) Processed wood resulting from the shaping of sawn timber by moulder in such a way so as to display decorative function and be directlyVisible without changing the shape, unless otherwise cutting in accordance with the required length, with the provision as follows: 1) Size: ~ Width not exceeding 170 mm Thickness not exceeding 75 mm 2) Decorative profile of the broad shape Decorative minimally a halfof thewideshape on one side; Thickness not exceeding 25 mm, decorative depth minimally 3 mm Thickness exceeding 25 mm up to 50 mm, decorativedepth minimally 6 mm; • Thickness over 50mm up to 75 mm,decora tive depth minimally 10 mm 3) Oecorative profile af the thick shape: Decorative minimally a half of the thick shape on one sidei Widthnotexceeding SO rnrn, decorative depth minimally 3 mm Width exceeding 50 mm u" to 80mm,deco rative depth minimally 6 mm; Widthover 80 mm up to 100 mm, decorative depth minimally 15 mm Width over 100 mm up to 170 mm, decora tive depth minimally 20 mm Decorative profile having the sizeof lessthan 1/000 mm2 is not subjected to the provisions n the size and depth of decoratiVe. g. Profile wood for DoorJambor WindowJamb, in cluding HS 4409: With the provision as follows: ~ Thickness not exceeding 30 mm ~ Witdth not exceeding 120mm ~. Profile wood for Door Frame or Window Frame, including HS 4409; With the provision as follows: Thickness ..... 27A Thickness not exceeding 60 mm Witdth not exceeding 200 mm i. Wall Panel, Flooring (including HS 4409) or the width not exceeding 150 mm and tickness not exceeding 25 mm in the form of tongue and groove, with the provision as follows: ~ Width not less than 50 mm, having depth of groove and height of tongue minimally 2 mm; Width 50 mm up to 100 mm, having depth of groove and height of tongue minimally 3 mm; Width exceeding 100 mm up to 150 mm, hav ing depth of groove and height of tongue mini mally 3 mm; J. Decking (including HS 4409) Of a thickness not exceeding 35 mm and width not exceeding 200 mm with the provision as fol lows: Thickness not less than 20 m, having groove depth minimally 2 mm; Thickness of 20 mm up to 35 mm, ·having groove depth minimally 4 mm Minimally a half of the wide surface must be given grove along the wood, k, Flooring for Truck, Container, Ship Deck, Wagon (including HS 4409): Must use shiplap or tongue or groove, accompa nied by technical specification picture with the provision as follows: 1) In the form of tongue and groove: • Width not exceeding 220 mm; . - Thickness not exceedng SO mm; Height of tongue and groove minimally 5 mm 2) In the form of shiplap: WIdth not exceeding 120 rnm; Thickness not exceedngSO mm; Business News 7507-7508J5~9-2007 Height of tongue and groove minimally 5 mm Especially for pole, main sill, cross s11l and truck body, they must be accompanied by picture con taining technical specification completely and must be exported along wth their flooring. I. Box and board pallets (including HS 4415): Must be in the installed condition. m. Elements of wooden structure (Including HS 4418), which constitutes an Integrated unit of the structure: Must be in the form of a set of structure ele ments accompanied by picture of technical speci fication completely without changing the shape and cutting it. n. Prefabricating structure of wood (including HS 9406): Must be In the form or a set of pre-fabricating structure elements 'accompanied by picture of technical specification completely without chang ing the shape and cutting it. 2. Tolerable size and reject as well as water content a. All sizes of the exported processed wood are given tolerable limit as follows: Thickness not exceeding 0.5 mm; Width not exceeding 1 mm; Length not exceeding 50 mm b. Tolerable machine defect is not exceeding 5% of the total exported volume. c. The processed wooden products as regulated in point 1 have water content not exceeding 16%, except for decking, truck. flooring, ship deck, wagon and pallet,.not Subjected to restriction of watercontent. AJIACHMENI III , .... ATTACHMENT IU REPORT ON ANNUAL PRODUCTION PLAN YEAR: Name of Company No.ofETPIK Quantity of Goods No Description of Goods Total Unit TOTAL ATTACHMENT IV REPORT ON REAliZATION OF SEMESTER PRODUCTION Semester : YEAR: Name of Company No. ofETPIK Quantity of Goods No Description of Goods Total Unit TOTAL Business News 7507-7508/5~9-2007 28A .ATTACHMENT V REPORT ON ANNUAL EXPORT PLAN YEAR: Name of Company No.of ETPIK Tariff Quantity of No Hea<iing Description Goods Destination (HS) of Goods Countries Unit Total TOTAL REPORT ONREAliZATION OF SEMESTER EXPORT Semester : YEAR: Name of COmpany No. ofETPIK Tenlff Descrip Quantity Value No Headi~ tionof of Goods Destination (HS) Goods Countries Unit Total Value MTU*) TOTAL Note: *) MTU : Code of Currency of the relevantcoun tries ===( AL )=:::=