DECREE
MINISTER OF INDUSTRY AND TRADE THE REPUBLIC OF INDONESIA
NOMOR : 527/MPP/Kep/9/2004 REGARDING
PROVISION OF SUGAR IMPORT
MINISTER OF INDUSTRY AND TRADE THE REPUBLIC OF INDONESIA
Considering:
a. that upon the issuance of Presidential Decree of the Republic of Indonesia Number 57 Year 2004 regarding Stipulation of Sugar as Commodity Under Supervision and Presidential Decree of the Republic of Indonesia Number 58 year 2004 regarding Handling of Illegal Imported Sugar, accordingly in the framework of achieving food security and increasing Indonesian people economic growth as well as creating sugar self-sufficiency, raising competitive power, sugar cane farmer’s income and sugar industry income, it is deemed necessary to take action to control Sugar supply as raw material and as consumption of imported goods;
b. that with respect to the matters referred to in letter a, it is deemed necessary to revoke Decree of Minister of Industry and Trade Number 643/MPP/Kep/9/2002 regarding Sugar Import Trade by rearrange provision of Sugar Import;
c. that, therefore, it is necessary to issue Decree of Minister of Industry and Trade;
In View of:
1. Bedrijfsreglementerings Ordonnantie 1934 (Staatsblad Year 1938 Number 86);
2. Law Number 7 D at Year 1955 regarding investigation, indictment and proceeding of Economic Criminal Act (State Gazette of The Republic of Indonesia Year 1955 Number 27, Additional to State Gazette Number 801) as severally and lastly amended with Law Number 17 Year 1964 (State Gazette of the Republic of Indonesia Year 1962 Number 101, Additional to State Gazette Number 2695);
3. Law Number 8 Prp Year 1962 regarding Trade on Goods Under Supervision (State Gazette of The Republic of Indonesia Year 1962 Number 42, Additional to State Gazette Number 2469);
4. Law Number 5 Year 1984 regarding Industry (State Gazette of The Republic of Indonesia year 1984 Number 22, Additional to State Gazette Number 3274);
5. Law Number 23 Year 1992 regarding Health (State Gazette of The Republic of Indonesia Year 1992 Number 100, Additional to State Gazette Number 3495);
6. Law Number 7 Year 1994 regarding Ratification of Agreement Establishing The World Trade Organization (State Gazette of The Republic of Indonesia Year 1994 Number 57, Additional to State Gazette Number 3564);
7. Law Number 10 Year 1995 regarding Customs Office (State Gazette of The Republic of Indonesia Year 1995 Number 75, Additional to State Gazette Number 3612);
8. Law Number 7 Year 1996 regarding Food (State Gazette of The Republic of Indonesia Year 1996 Number 99, Additional to State Gazette Number 3656);
9. Law Number 8 Year 1999 regarding Consumer Protection (State Gazette of The Republic of Indonesia Year 1999 Number 42, Additional to State Gazette Number 3821);
10. Government Regulation of The Republic of Indonesia Number 11 Year 1962 regarding Trade of Goods Under Supervision (State Gazette of The Republic of Indonesia Year 1962 Number 46, Additional to State Gazette Number 2473) as amended with Government Regulation Number 19 Year 2004 (State Gazette of The Republic of Indonesia Year 2004 Number 68, Additional to State Gazette Number 4402);
4254);
12. Presidential Decree of The Republic of Indonesia Number 260 Year 1967 regarding Confirmation to Task and Responsibility of Minister of Trade in Foreign Trade Issues;
13. Presidential Decree of The Republic of Indonesia Number 228/M Year 2001 regarding the Formation of The Gotong Royong Cabinet;
14. Presidential Decree of The Republic of Indonesia Number 102 Year 2001 regarding Title, Task, Function, Authority, Structure, Organization and Working Procedure of Ministry;
15. Presidential Decree of The Republic of Indonesia Number 109 Year 2001 regarding Organization Unit and Task of Echelon I Ministry;
16. Presidential Decree of The Republic of Indonesia Number 57 Year 2004 regarding Stipulation of Sugar as Goods Under Supervision;
17. Presidential Decree of The Republic of Indonesia Number 58 Year 2004 regarding Handling of Illegal Imported Sugar;
18. Decree of Minister of Industry and Trade Number 229/MPP/Kepn/1997 regarding General Provision for Import;
19. Decree of Minister of Industry and Trade Number 230/MPP/Kep/7/1997 regarding Trade Provision of Imported Goods as amended several times and lastly amended with Decree of Minister of Industry and Trade Number 406/MPP/Kep/6/2004;
20. Decree of Minister of Industry and Trade Number 86/MPP/Kep/3/2001 regarding Organization and Working Procedure of Ministry of Industry and Trade;
21. Decree of Minister of Industry and Trade Number 141/MPP/Kep/3/2002 regarding Specific Importer Identity Number (NPIK);
22. Decree of Minister of Industry and Trade Number 40/MPP/Kep/1/2003 regarding Importer Identity Number (API);
23. Decree of Minister of Industry and Trade Number 545/KMK01/2003 regarding Stipulation of Classification System on Imported Goods;
D E C I D E:
Revoke : Decree of Minister of Industry and Trade of the Republic of Indonesia Number 643/MPP/Kep/9/2002 regarding Sugar Import Trade;
Stipulate:
DECREE OF MINISTER OF INDUSTRY AND TRADE OF THE REPUBLIC OF INDONESIA REGARDING PROVISION OF SUGAR IMPORT.
Article 1
In this Decree, the followings shall mean:
1. Sugar is Raw Crystal Sugar (Raw Sugar), Refined Sugar, and Plantation White Sugar.
2. Raw Sugar is Sugar used as raw material in production process, including in Post Tariff/HS. 1701.11.00.00 and 1701.12.00.00.
3. Refined Sugar is Sugar used as raw material in production process, including in Post Tariff/HS. 1701.99.11.00 and 1701.99.19.00.
4. Plantation White Sugar is Sugar directly consumable without further processing, including in Post Tariff/HS. 1701.91.00.00 and 1701.99.90.00.
6. Recommendation is a letter issued by appropriate authority from relevant agency/unit giving technical elucidation and not constituting import permit/approval.
7. Verification to sugar import is inspection to Sugar import by surveyor with respect to the completeness and verification of permit document and administrative requirements possessed by sugar importer and technical specification on imported Sugar.
8. Minister is Minister of Industry and Trade.
9. Director General is Director General of Foreign Trade, Ministry of Industry and Trade.
Article 2
(1) Importable Raw Sugar referred to in Article 1 item 2 shall possess ICUMSA numeric minimum 1200 IU and Importable Refined Sugar referred to in Article 1 item 3 shall possess ICUMSA numeric maximum 45 lU.
(2) Raw Sugar and Refined Sugar referred to in paragraph (1) can only be imported by company having recognition as Sugar Producer Importer, hereinafter referred to as Sugar IP.
(3) Raw Sugar and Refined Sugar imported by Sugar IP referred to in paragraph (2) is only usable as raw material for production process of industry having Sugar IP and banned to be traded on handed over. (4) Refined Sugar industrial product possessed by Sugar IP whose raw material comes from imported raw
sugar shall only be traded or distributed to sugar industry and banned from being traded on domestic market.
Article 3
(1) Recognition as Sugar IP referred to in Article 2 is stipulated by Director General.
(2) Any company that wants to be recognized as Sugar IP referred to in paragraph (1), shall apply a written proposal to Director General by affixing:
a. Industry Permit/Industry Register or other business permits of the same kind issued by appropriate agency;
b. Producer Importer Identity Number (API-P) or Limited Importer Identity Number (API- T); c. Company’s Registration (TDP);
d. Sugar Special Importer Identity Number; e. Tax Registration Number (NPWP); f. Recommendation from:
1) Director General of Chemical Industry, Agro and Forest Product Ministry of Industry and Trade in case Raw Sugar and Refined Sugar import is to be used as raw material for refinery industry or other industries; or
2) Director General of Plantation Production Development, Ministry of Agriculture in case the Plantation White Sugar import is to be used as raw material for sugar plant.
(3) Recognition as Sugar IP referred to in paragraph (2) with respect to among others the term of recognition as Sugar IP, total Sugar, type of Sugar and destination port.
Article 4
(1) Upon a written application of company referred to in Article 3 paragraph (2), Director General may accept or reject to issue recognition as Sugar IP at the latest within 15 (fifteen) working days as of the application is received.
(2) Recognition document for as Sugar IP is as included in Appendix I of this Decree.
Recognition as Sugar IP as referred to in Article 2 shall be valid at the longest 1 (one) year and subject to be extendable.
Article 6
(1) Company having obtained recognition as Sugar IP shall submit written report to:
a. Director General cq. Import Director, Ministry of Industry and Trade on monthly basis regarding Import performance of Raw Sugar and Refined Sugar, at least on the 15th day of the subsequent month of import performance;
b. Director General of Chemical Industry, Agro and Forest Product cq. Director of Agro Industry, Ministry of Industry and Trade every 6 (six) month regarding realization of production and processed product distribution of refined or other industries, at the latest on the subsequent 15th day of every 6 (six) months of production realization and distribution of the said processed product;
c. Director General of Plantation Production Development cq. Director of Seasonal Plan, Ministry of Agriculture every 6 (six) months regarding production realization and distribution of processed product of Plantation White Sugar Plan, at the latest on the 15th day of subsequent months of realization of production and distribution of the processed product.
(2) Written report form of the company having recognition as IP Sugar referred to in paragraph (1) is:
a. as included in Appendix " of this Decree in case the import implementation realization report addressed to Director General cq. Import Director, Ministry of Industry and Trade.
b. stipulated by Director General of Chemical Industry, Agro and Forest Product, Ministry of Industry and Trade and Director General of Plantation Production Development, Ministry of Agriculture in the case of production realization and distribution of processed product referred to in paragraph (1) letter b and c.
Article 7
(1) Importable Plantation White Sugar referred to in Article 1 item 4 shall have ICUMSA numeric from 100 IU to 300 IU.
(2) (Plantation White Sugar) referred to in paragraph (1) is only importable: a. beyond of:
- 1 (one) month before milling season of people’s sugar cane; - milling season people’s sugar care; and
- 2 (two) months after people’s sugar cane milling season;
a. if Plantation White Sugar’s price reaches over Rp.3,410,-/kg (three thousand four hundred rupiah per kilogram); and or
b. if domestic production and or supply of Plantation White Sugar is inadequate to the need.
(3) People’s sugar cane milling season referred to in paragraph (2) letter a shall be stipulated by Minister of Agriculture.
(4) The price of Plantation White Sugar in farmer level reaches over Rp.3.410,-/kg (three thousand four hundred and ten rupiah per kilogram) and or domestic production condition and or supply of Plantation White Sugar' is inadequate for need referred to in paragraph (2) letter b and c shall be based on coordinating meeting result of inter-agency/institution and the relevant association.
(5) Plantation White Sugar' price at farmer level is Rp.3.410,-/kg (three thousand four hundred and ten rupiah per kilogram) is changeable and can be specified otherwise by Minister after considering coordinating meeting result of the relevant agency/institution.
Article 8
Import of Plantation White Sugar to fulfill the provision referred to in Article 7 paragraph (1) and paragraph (2) shall only be carried out by company having status as Sugar Register Importer, hereinafter referred to as Sugar IT.
Article 9
(1) Appointment as Sugar IT referred to in Article 8 shall be stipulated by Director General.
(2) Company desiring to be appointed as Sugar IT referred to in paragraph (1) is company having at minimum 75% (seventy five percent) sugar cane product:
a. from sugar cane farmer; or
b. as a result of cooperation between local sugar cane farmer.
(3) Evidence of sugar cane production referred to in paragraph (2) is based on information letter from local Sugar Cane Association.
(4) Company having fulfilled the provision referred to in paragraph (2) shall submit a written application to Director General by affixing:
a. Business Permit or other permits of the same kind issued by appropriate authorities; b. Importer Identity Figure (API);
c. Company Register Number (TDP); d. Sugar Special Importer Identity Number; e. Tax Register Number (NPWP).
Article 10
(1) Upon company’s written application referred to in Article 9 paragraph (4), Director General shall issue the approval or rejection of appointment as Sugar IT at the latest within 15 (fifteen) business days as of the application is received.
(2) Appointment document form as Sugar IT is included in Appendix III of this Decree.
Article 11
Appointment as Sugar IT referred to in Article 9 shall be valid at the longest 3 (three) years and subject to be extendable.
Article 12
(1) Every Plantation White Sugar importation by Sugar IT shall obtain prior import approval from Director General.
(2) Import approval referred to in paragraph (1) pertaining to among others, term of import approval validity, total Sugar, type of Sugar and destination port.
Article 13
(1) Any company having obtained appointment as Sugar IT is obliged to have sugar pricing buffer if Plantation White Sugar price in farmer level is under Rp.3.410,/kg (three thousand four hundred and ten rupiah per kilogram), cooperate with other parties having obtained approval from Local Sugar Cane Association. (2) Other than Sugar IT referred to in paragraph (1), Minister or an appointed official may appoint other
Article 14
(1) Every import performance of Raw Sugar, Crystal Refined Sugar and Plantation White Sugar is obliged to have prior verification or covering investigation to:
a. Permit document and administrative requirements; b. Technical at the nation of, which commodity is loaded.
(2) Verification referred to in paragraph (1) shall be carried out by surveyor appointed by Minister.
(3) Verification result carried out by surveyor referred to in paragraph (2) shall be included in Surveyor Report Form (LS) to be used as import document.
(4) Upon the verification referred to in paragraph (1), surveyor is allowed to collect payment for service rendered from Sugar IP and Sugar It or grantor in the event that sugar importation is carried out in the framework of granting.
(5) To be appointed as verification body of sugar importation, surveyor shall fulfill the following requirements: a. Experienced as a surveyor minimum 5 (five) years; and
b. Has branch office or representative or affiliate at other nations.
(6) Provision and verification procedures shall be stipulated by Director General.
Article 15
Obligation to verification referred to in Article 14 shall not apply to Sugar importation of: (1) Sugar for research material and development of technology;
(2) Sample;
(3) Personnel staff of passenger or crew of aircraft or border crosser; (4) Promotional material;
(5) Package by courier through air service.
Article 16
Verification of Sugar import by surveyor referred to in Article 14 shall not annul the authority of Directorate General of Customs Office to perform customs inspection.
Article 17
(1) A company having obtained appointment as Sugar IT is obliged to submit written report to Director General cq Import Director, Ministry of Industry and Trade on monthly basis regarding Sugar importation of Plantation White Sugar with copy thereof is sent to Director General of Home Trade, Director General of Chemical Industry, Agro and Forest Product Ministry of Industry and Trade sand Director General of Plantation Production Development Ministry of Agriculture, at the latest on the 15th day of the subsequence month of every importation performance month.
(2) Written report form of the company having appointed as Sugar IT referred to in paragraph (1) is as included in Appendix II of this Decree.
Article 18
Company that has obtained recognition as Sugar IP or appointed as Sugar IT and or import approval is banned to assign and act in the name of the Sugar IP or Sugar IT and or import approval to other party.
Article 19
(1) Recognition as Sugar IP or appointment as Sugar IT will be frozen if the party:
b. any allegation to violation against and economic criminal act related to misuse of Sugar IP or IT and or Sugar import approval recognition.
(2) Freezing to Sugar IP and appointment as Sugar IT referred to in paragraph (1) and its reinstatement shall be stipulated by Director General.
Article 20
(1) Recognition as Sugar IP or appointment as Sugar IT shall be revoked if the party:
a. amend, add and or modify contents of Sugar IP recognition document or Sugar IT appointment document; or
b. declared guilty by court upon violation against and economic criminal act related to the misuse of Sugar IP recognition or Sugar IT appointment and or Sugar import approval.
(2) Revocation to Sugar IP recognition or Sugar IT appointment referred to in paragraph (1) shall be stipulated by Director General.
Article 21
(1) Sugar which is imported illegally and which violates any provision of this Decree shall be seized and possessed by state as contemplated in Article 2 paragraph (2) Presidential Decree of the Republic of Indonesia number 58 Year 2004.
(2) sugar which is seized and possessed by state referred to in paragraph (1) shall be auctioned pursuant to the prevailing law and regulation and used to fulfill:
a. Industrial need as raw/auxiliary raw material, and or b. Consumption need outside of Java Island.
(3) Sugar used to fulfill industrial need referred to in paragraph (2) item a can solely be used for industrial need and disallowed to be traded on domestic market.
(4) The amount of Sugar put in auction referred to in paragraph (2) shall be computed as part of total Sugar to be imported.
Article 22
(1) Upon the stipulation of this Decree, any legal consequence arising out and all permits issued based on the Decree of Minister of Industry and Trade Number 643/MPP/Kep/9/2002 regarding Sugar Import Trade is stated invalid until the legal consequence is completely settled and the term of permit is expired.
(2) Provision of verification as contemplated in Article 14 shall be effective in 3 (three) months as of the date of this Decree is stipulated.
Article 23
Exception to any provision under this Decree shall only be stipulated by Minister.
Article 24
Provision to enforcement and technical matters not covered under this Decree shall be stipulated by Director General.
Article 25
To make any one be aware of this decree, this decree is ordered to be announced by putting it in State Gazette of the Republic of Indonesia.
Stipulated in Jakarta On September 17, 2004
