DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 311/MPP/Kep/10/2001 DATED OCTOBER 30, 2001
PROVISION ON EXPORT QUOTAS OF TEXTILE AND TEXTILE PRODUCTS
THE MINISTER OF INDUSTRY AND TRADE,
Considering :
a. that in the framework of further increasing and boosting exports of textile and textile products mainly to quota countries, it is necessary to stipulate improving measures of a transparent quota management system so that the quotas can be utilized optimally and better guarantee business certainty for business entities;
b. that the improvement of the quota management system must produce added value to economic activities and facilities in the issuance of Certificates of Exports of Textile (SKET);
c. that in relation to the matters in points a and b, it is necessary to stipulate a decree of the Minister of Industry and Trade.
In view of :
1. Trade Ordonantie of 1934 (Statute Book of 1938 No. 86);
2. Presidential Decree No. 260/1967 on the affirmation of tasks and responsibility of the Minister of Trade in the foreign trade sector;
3. Presidential Decree No. 228/M/2001 on the establishment of the mutual cooperation (gotong royong) cabinet;
4. Presidential Decree No. 102/2001 on the status, tasks, functions, authority, organizational structures and working arrangements of ministries;
5. Presidential Decree No. 177/2000 on the organizational structures and tasks of ministries;
6. Decree of the Minister of Industry and Trade No. 444/MPP/Kep/II/1998 jo. No. 24/MPP/Kep/1/1999 on the organization and working arrangement of the Ministry of Industry and Trade;
7. Decree of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 concerning general provisions in the export field as already amended by the Decree of the Minister of Industry and Trade No. 146/MPP/Kep/1999;
8. Decree of the Minister of Industry and Trade No. 53/MPP/Kep/2/2000 on the taking over of quotas of textile and textile products.
The Decree of the Minister of Industry and Trade No. 02/MPP/Kep/1/2001 concerning provisions on export quotas of textile and textile products.
To stipulate :
The Decree of the Minister of Industry and Trade Concerning provisions on export quotas of textile and textile products.
Article 1 DEFINITION Referred to in this decree as :
1. Textile and Textile Products (TPT) are fiber, yarn, textile sheet, garment and other products made of textile, which subsumed into the Indonesian Customs Tariff Book with tariff headings of H.S. 42.02, 50.01 up to 63.10, 64.05, 65.01, 65.02, Ex-65.03, Ex-65.04, Ex-65.05, Ex-70.19, Ex-94.04, Ex-96.12.
2. Registered Exporters of Textile and Textile Products (ETTPT) are companies permitted to export TPT quotas by the Ministry of Industry and Trade.
3. Quota TPT are categories or groups of TPT subjected to quotas. 4. Non-quota TPT are categories or groups of TPT subjected to quotas.
5. Producer ETTPT are companies being ETTPT which have production facilities that produce the TPT as meant in number 1.
6. Non-producer ETTPT are companies being ETTPT which have no production facilities that produce TPT as meant in number 1.
7. Quotas are maximum volumes of categories or groups of TPT licensed to be exported to quota countries.
8. Quota countries are importing countries of TPT applying quotas on the basis of a bilateral agreement.
9. Non-quota countries are importing countries of TPT not applying quotas.
10.Categories or groups of TPT are groups of certain TPT mentioned in agreements between importing and exporting countries.
11.Quota year is that starting from January 1 to December 31.
12.Base level quotas are quotas of a category or group of certain TPT at the beginning of the current year.
13.Growth quotas (KPt) are additional quotas given by quota countries every year with the volume according to a bilateral agreement.
14.Working level quotas are quotas obtained in the current quota year after making adjustment on the basis of a bilateral agreement.
16.Swing is quotas which can be removed from a category of group of TPT to other category or group of TPT.
17.Swap is quotas removed or exchanged with quotas of other countries in the current year.
18.Allocation is the distribution of quotas of TPT categories or groups by the government to ETTPT.
19.Fixed quotas are quotas allocated every year which originate from base level quotas.
20.Depositing of KT is fixed quotas given up to the Ministry of Industry and Trade because they can not be realized in the current quota year.
21.Shift of fixed quotas is the transfer of ownership of fixed quotas from an ETTPT to another ETTPT.
22.Pure provisional quota (KSM) are differences between base level quotas and the allocated KT nationally.
23.Flexibility quotas are quotas originating from carry-over quotas, swing, swap, depositing of KT, handicraft quotas, remainder of KSM and swap.
24.Special shift quotas (KSS) are quotas originating from the inter-category shift of certain TPT according to a bilateral agreement.
25.Donor categories are categories of certain TPT used as source of the move of certain TPT categories on the basis of a bilateral agreement.
26.Recipient categories are categories of certain TPT used as source of the move of other certain donor categories on the basis of a bilateral agreement.
27.Carry forward quotas (KP) quotas borrowed from the base level quotas in the following year which are used in the current year in accordance with a bilateral agreement.
28.Export obligation (KE) is the obligation to realize quotas already allocated.
29.Realization Achievement (PR) is the realization of exports of an ETTPT compared to its export obligation in a quota year.
30.National Realization Achievement (PRN) is the national export realization compared to the base level quotas in a quota year.
31.Certificate of exports of TPT (SKET) is a document accompanying quota TPT which proves that the said quota TPT coming from Indonesia already fulfilled a bilateral agreement.
32.Institutions Issuing Certificates of Exports of Textile and Textile products (IPSKET) are institutions or agencies appointed by the Minister of Industry and Trade to issue SKET. 33.Global quotas are quotas allocated to IPSKET in a specified period to be distributed to
ETTPT in their respective regions.
34.Non-global quotas are quotas distributed at anytime as long as the requested quotas remain available.
small-scale businesses/ ETTPT-PKK or between ETTPT-PKK and ETTPT being medium- and large-scale businesses/ETTPT-PMB or among ETTPT-PMB) in the realization of quotas already allocated.
36.Under name is a model of joint cooperation between ETTPT (among ETTPT being small-scale businesses and cooperatives/ETTPT-PKK or between ETTPT-PKK and ETTPT being medium- and large-scale businesses/ETTPT-PMB or among ETTPT-PMB) in the realization of quotas already allocated.
Article 2
REGISTERED EXPORTERS OF TEXTILE AND TEXTILE PRODUCTS
(1) The recognition of ETTPT-PKK is done by official of local IPSKET, fulfilling the following criteria :
a. having production units as many as 15-150 units of high speed machines (industrial sewing machines) or flat knitting machines in operational condition;
b. being independent, not subsidiaries or branches of companies owned, controlled by or affiliated directly or indirectly to medium or large-scale companies.
c. location of factory being in accordance with the address of license owned with not more than one ETTPT producer company in one address.
(2) The recognition of ETTPT-PMB is done by the Director General of Foreign Trade.
(3) The numbering of computer codes to ETTPT-PKK and ETTPT-PMB is regulated by the Director of Exports of Industrial Products, Directorate General of Foreign Trade.
(4) Applications for the issuance of ETTPT must be completed with the following documents :
a. trading business license (SIUP);
b. industrial business license (IUI) or industrial registry number (TDI); c. self-realization of exports of non-quota TPT;
d. corporate registry number (TPT);
e. accounts of physical inspection of corporate office and production unit as well as production capacity approved by officials of IPSKET where the company is domiciled. (5) Companies already securing recognition as ETTPT are obliged to report any change in the documents as meant paragraph (4) to IPSKET.
(6) Non-producer ETTPT already existing before the issuance of this decree are declared to remain effective and only obtain the allocation of KT owned.
Article 3
INSTITUTIONS ISSUING CERTIFICATES OF EXPORTS OF TEXTILE AND TEXTILE PRODUCTS
a. PT (Persero) Kawasan Berikat Nusantara;
b. the Batam Island Industrial Development Authority;
c. institutions or service in provinces or second-level regions in charge of industrial and trading affairs;
d. other institutions or agencies stipulated by the Minister of Industry and Trade.
(2) IPSKET are authorized to issue SKET in accordance with bilateral agreements in the form of :
a. visaed commercial invoice for the United States; b. export license for Europe and Turkey;
c. SKA Form K for Canada.
(3) ETTPT planning to export TPT categories or groups to quota countries are obliged to submit applications for SKET fulfilling provisions on the origin of goods in the said quota countries.
Article 4
SUBMISSION OF QUOTA ALLOCATION
(1) Producer ETTPT-PKK already having KT can submit applications for obtaining allocations of KPt, KSM, KF and KSS.
(2) Producer ETTPT-PKK not yet having KT only can submit applications for obtaining allocations of KPt, KSM and KF.
(3) Producer ETTPT-PMB already having KT can submit applications for obtaining allocations of KSM, KP, KF and KSS.
(4) Producer ETTPT-PKK not yet having KT only can submit applications for obtaining allocations of KSM and KF.
(5) Non-producer ETTPT only can submit allocations as many as the maximum realization of KT in the previous quota year.
Article 5 FIXED QUOTAS
(1) KT are allocated by the Director General of Foreign Trade in 2 (two) phases and announced through local IPSKET as follows :
a. First phase (provisional) is announced not later than the fourth week of December in the current quota year.
b. Second phase (definitive) is announced not later than the third week of January in the following quota year.
(3) In the case of the allocated quotas as meant in paragraph (1) letter b being not in accordance with the calculation by ETTPT, the relevant ETTPT can submit applications for the review of calculation of KT.
(4) KT having their exports not realized are to be deducted from the allocations of KT for the following year as many as KT which are not realized.
(5) ETTPT can shift their KT to other ETTPT directly and report it to local IPSKET for ratification.
Article 6 GROWTH QUOTAS
(1) ETTPT-PKK can submit applications for KPt in the following year to local IPSKET
(2) KPt for ETTPT-PKK originate from the growth of base level quotas as high as 6%, except categories whose growth rate is less than 6%.
(3) The number of ETTPT-PKK entitled to obtain allocations of KPt is determined after passing a selection by the Team for Assessing the Feasibility of ETTPT.
(4) The quantity and TPT categories or groups of KPt are granted to the respective IPSKET globally by the Director General of Foreign Trade.
(5) Criteria for obtaining KPt are regulated as follows : a. never shifting KPt obtained
b. individuals or business entities having more than one ETTPT only can obtain KPt for one of the ETTPT
c. ETTPT once obtaining KPt three times or more do not obtain KPt in the following year
d. ETTPT allowed to apply for KPt have industrial business licenses/industrial registry number already effective for one year or more
(6) Applications for KPt are signed by owners of ETTPT and in the case of partnership with other ETTPT, the applications must be accompanied by letters of join cooperation agreements.
Article 7
PURE PROVISIONAL QUOTAS
(1) ETTPT having production units which either have KT or have no KT can submit applications for obtaining KSM to the Director of Exports of Industrial Products, Directorate General of Foreign Trade
(2) Producer ETTPT having or not having KT which export TPT to non-quota countries can submit applications for obtaining KSM of the same categories to the Directorate General of Foreign Trade in this case the Director of Exports of Industrial Products
(3) Sources of national KSM available are calculated on the basis of differences between base level quotas and allocations of fixed quotas nationally
the respective ETTPT
(5) Allocations of KSM to the respective ETTPT are stipulated by the Directorate General of Foreign Trade through local IPSKET
(6) If ETTPT have realization achievement as high 90% or above of the export realization in the previous quota year, in the following quota year the quantity of KSM realized can become KT.
Article 8
FLEXIBILITY QUOTAS (1) Producer ETTPT can obtain KF by means of :
a. submitting applications to local IPSKET, in this case of ETTPT-PKK
b. submitting applications to the Director of Exports of Industrial Products, Directorate General of Foreign Trade, in this case of ETTPT-PMB
(2) Global flexibility quotas (KF) are allocated in March and July, while non-global KF are allocated every month, starting from February as long as the quotas remain available
(3) The available KF are allocated to ETTPT-PKK as high as 60% and to ETTPT-PMB as high as 40%
(4) ETTPT shifting 10% or more of KT owned are not entitled to obtain KF of the said categories in the current quota year
(5) The Directorate General of Foreign Trade notifies the quantity and categories or groups of TPT which can be allocated as KF for ETTPT-PKK to the respective IPSKET
(6) The Directorate General of Foreign Trade allocates the quantity and kind of quotas to the respective IPSKET regions globally and proportionally in accordance with the number of ETTPT-PKK
(7) Local IPSKET stipulate allocations of KF to ETTPT-PKK
(8) The Directorate General of Foreign Trade stipulates allocations of global KF to ETTPT-PMB with the provision that :
a. in the case of the requested KF being smaller than the available KF, KF are allocated to the respective companies in accordance with the requested quantity at the maximum; b. in the case of the requested KF being higher than the available KF, KF are allocated to
the respective companies proportionally in the basis on their installed production capacities mentioned in industrial business licenses of the relevant companies.
(9) The validity period of global KF is 4 (four) months starting from the date of issuance of letters of allocations and cannot be extended and the validity period of non global KF is also 4 (four) months.
Article 9
a. submitting applications to local IPSKET, in the case of ETTPT-PKK;
b. submitting applications to the Director of Exports of Industrial Products, in the case of ETTPT-PMB;
(2) Carry forward quotas can be allocated to producer ETTPT already realizing KT in the current quota year and not shifting 10% or more of KT of the said TPT categories or groups by the following means :
a. starting from January in the current quota year, producer ETTPT owning KT can apply for KP with the maximum quantity according to bilateral agreements and not exceeding KT already realized;
b. starting from June in the current quota year, producer ETTPT owning KT which have realized TPT quotas as high as 50% or more can apply for KP higher than bilateral agreements and as many as the realization of exports of their KT at the maximum;
c. applications for the following KP will be processed if exports of the previously allocated KT have been realized as high as 80% at the minimum.
(3) In the case of producer ETTPT having KT and not utilizing rights to the said KP partly or wholly in the current quota year, the rights to the said KP can be utilized by ETTPT having not KT by using a guarantee for ETTPT which have the said KT and they are ready to have their quotas cut in the following quota year.
(4) The allocations of quotas as meant in paragraph (3) are given in the form of KP by following the provisions as meant in paragraph (2)
(5) The validity period of KP is 4 (four) months at the maximum, starting from the date of issuance of letters of allocations and cannot be extended.
(6) The Director General of Foreign Trade allocates globally KP to ETTPT-PKK in IPSKET regions on the basis of KP owned by ETTPT-PKK in the respective IPSKET.
(7) Allocations of KP to ETTPT-PKK are stipulated by local IPSKET on the basis of certain percentage in accordance with bilateral agreement and not exceeding KT already realized by the respective ETTPT-PKK.
(8) The Director of Exports of Industrial Products, Directorate General of Foreign Trade stipulates allocations of KP to ETTPT-PMB.
(9) The realized KP are to be calculated in the following quota year unless quota countries reduce base level quotas nationally or the realization of national exports is lower than or same as the base level quotas.
(10) In the case of quotas countries reducing base level quotas, which are calculated from the realization of KP in the previous quota year, the calculation of KP to the respective ETTPT is done proportionally in accordance with the realization of KP of the respective ETTPT.
Article 10
SPECIAL SHIFT QUOTAS
a. submitting applications to local IPSKET, in the case of ETTPT-PKK;
b. submitting applications to the Director of Exports of Industrial Products, in the case of ETTPT-PMB
(2) KSS are allocated to producer ETTPT having KT of the two categories as meant paragraphs (1) and (2) in 2 (two) phases in the current quota year
(3) The phases as meant in paragraph (2) are stipulated as follows : a. first phase, starting from the first week of March;
b. second phase, starting from the first week of July.
(4) The quantity TPT and categories of KSS to ETTPT-PKK in the respective IPSKET regions are allocated globally by the Director General of Foreign Trade on the basis of certain percentage according to bilateral agreements.
(5) Local IPSKET stipulate allocations of KSS to ETTPT-PKK
(6) The Director of Exports of Industrial Products, Directorate General of Foreign Trade stipulate allocations of KSS to ETTPT-PMB
(7) KT of recipient and donor categories exchangeable with KSS are KT not originating from the shift or KPt.
(8) The realized KSS are calculated as KT of their origin categories in the following quota year.
(9) ETTPT shifting 10% or more of KT of the recipient category are not entitled to obtain KSS in the current quota year.
Article 11 PARTNERSHIP
(1) Producer ETTPT unable to realize their export quotas can submit applications for partnership with other producer ETTPT to local IPSKET.
(2) Kinds of TPT quotas which can be realized through partnership include KT, KPt, KSM, KF and KSS
(3) The validity period of the partnership quotas for all kinds of the quotas as meant in paragraph (1) is maximally 4 (four) months from the date of allocations of the quotas and cannot be extended.
(4) SKET are issued on behalf of quota recipient
(5) Realization achievement of partnership exports is granted to owners of the quotas
(6) Quotas resulting from the partnership as meant in paragraph (2) cannot be shifted to or realized through partnership again with other producer ETTPT.
(1) Quotas whose exports cannot be realized individually can be used by other ETTPT to export the same TPT categories or group (under name)
(2) The other ETTPT as meant in paragraph (1) are obliged to report the implementation of under name to local IPSKET with copies made available to the Director of Exports of Industrial Products
(3) The under name which must be reported as meant in paragraphs (1) and (2) is the realized as from the enforcement of this decree
(4) Kinds of quotas which can be realized under name are KT, KPt, KSM, KP, KF and KSS not originating from the partnership
(5) SKET are issued on behalf of ETTPT owning the quotas
(6) Realization achievement of exports under name is granted to ETTPT owning goods in the form of KSM in the following quota year.
Article 13
DEPOSITING OF FIXED QUOTAS
(1) ETTPT can submit the depositing of KT to the Director of Exports of Industrial Products, Directorate General of Foreign Trade after the applications are validated by local IPSKET not later than October 31 of the current quota year.
(2) Not later than 2 (two) working days as from the date of receipt of depositing of KT from ETTPT as meant in paragraph (1), local IPSKET must have reduced and returned the categories as many as the quantity deposited to the Director of Exports of Industrial Products, Directorate General of Foreign Trade
(3) In the case of ETTPT already depositing KT for 2 (two) years consecutively, the said KT are to be reduced as many as the average quantity deposited for 2 (two) years
(4) The reduction of KT is done at the beginning of the following quota year
(5) Kinds of quotas which can be deposited to the Director of Exports of Industrial Products, Directorate General of Foreign Trade are KT not originating from the shift and partnership.
Article 14
MONITORING OF TPT QUOTAS
(1) To help the smooth implementation and drive up exports of TPT, PT Sucofindo monitors the realization of exports of quota TPT.
(2) The monitoring as meant in paragraph (1) is done on the basis of a working agreement between PT Sucofindo and the Ministry of Industry and Trade.
(3) The monitoring of the quotas is done by a monitoring system of export quotas of TPT which can be accessed by TPT entrepreneurs/associations through the Web Site of the Ministry of Industry and Trade and the Web Site of PT Sucofindo.
(1) ETTPT are given a written warning in the case of :
a. not reporting the change as meant in Article 2 paragraph (5) to IPSKET
b. violating the provisions as meant in Article 3 paragraph (3) and Article 11 paragraph (6); c. not reporting the realization of exports as meant in Article 12 paragraph (3)
(2) The written warning as meant in paragraph (1) is given 3 (three) times consecutively with a time interval of 2 (two) weeks by the Director General of Foreign Trade in this case the Director of Exports of Industrial Products.
(3) ETTPT are frozen unless they comply with the provisions as meant in paragraph (2).
(4) As long as ETTPT are frozen, the relevant ETTPT are prohibited from exporting to quota countries
(5) The period of freezing of ETTPT as meant in paragraph (1) is effective for 6 (six) months
(6) ETTPT already frozen can be re-enforced if the relevant ETTPT already fulfilled the warning by making improvement and exercising their obligations in accordance with the provisions in this decree
(7) ETTPT are revoked if :
a. ETTPT are obtained on the basis of untrue or false information/data on the relevant companies
b. the relevant ETTPT make no improvement after elapsing the freezing period.
(8) The freezing and revocation of ETTPT are done by officials authorized to issue ETTPT. Article 16
The Director General of Foreign Trade stipulates technical directives for this decree. Article 17
This decree comes into force as from the date of stipulation.
For public cognizance, this decree shall be published by placing it in State Gazette of the Republic of Indonesia.
Stipulated in Jakarta On October 30, 2001
THE MINISTER OF INDUSTRY AND TRADE sgd.
