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(1)

DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 751/MPP/Kep/11/2002 DATED NOVEMBER 7, 2002

ON

PROVISIONS ON IMPORT OF FLAT -ROLLED IRON OR STEEL

THE MINISTER OF INDUSTRY AND TRADE,

Considering :

a. that in the framework of preventing domestic industry from suffering losses arising from the abundant supply of flat-rolled iron and steel in the international market and in order to maintain a conducive business climate, enhance efforts to protect consumers, create a fair business-competition climate as well as to ensure orderly administration in the import field, it is deemed necessary to stipulate provisions on import of flat-rolled iron and steel;

b. that in relation thereto, a decree of the Minister of Industry and Trade needs to be issued.

In view of :

1. Trade Ordinance of 1934 (Statute Book of 1934 No. 86) as already amended and supplemented;

2. Law No. 7/1994 on Ratification of Agreement Establishing The World Trade Organization (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3564);

3. Law No. 110/1995 on Custom Affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);

4. Law No. 8/1999 on Consumer Protection (Statute Book of 1999 No. 42, Supplement to Statute Book No. 3821);

5. Government Regulation No. 58/2001 on the fosterin g and supervision over the realization of consumer protection (Statute Book of 2001 No. 103, Supplement to Statute Book No. 4126);

6. Presidential Decree No. 228/M/2001 on the Establishment of the Mutual Cooperation Cabinet;

7. Presidential Decree No. 102/2001 on the Position, Task, Function, Authority, Organizational Structure and Work Mechanism of Ministry;

8. Presidential Decree No. 109/2001 on the Organizational Unit and Task of First Echelon Officials of Ministry;

9. Decree of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 on import general provisions; 10.Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 on goods subjected to import

control;

9. Decree of the Minister of Industry and Trade No. 86/MPP/Kep/3/2001 on the organization and working arrangement of the Ministry of Industry and Trade.

DECIDES :

To stipulate :

THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE CONCERNING PROVISIONS ON IMPORT OF FLAT-ROLLED IRON OR STEEL.

GENERAL PROVISIONS

(2)

1. Flat-rolled iron or steel shall be iron or steel plates resulting from hot or cold rolling process, subsumed into Tariff Headings/HS 72.08, 72.08, 72.10, 72.11, 72.12, 72.19, 72.20, 72.25 and 72.26.

2. Iron-Steel IP shall be producer importers of flat-rolled iron or steel recognized by the Director General of Foreign Trade and approved to import flat-rolled iron or steel directly which is solely designated to meet their production need.

3. Iron-steel IT shall be registered importers of flat-rolled iron or steel appointed by the Director General of Foreign Trade to import flat-rolled iron or steel for distributing to consumers.

4. Director General of PLN shall be the Director General of Foreign Trade, Ministry of Industry and Trade.

5. Director Genera l of LIMEA shall be the Director General of Metal, Machine, Electronic and Multifarious Industries, Ministry of Industry and Trade.

6. Surveyor shall be PT Surveyor Indonesia and PT Sucofindo.

Article 2

(1) Flat-rolled iron or steel subjected to import control shall be as contained in Attachment I to this decree. (2) Excepted from the import control as meant in paragraph (1) shall be flat-rolled iron or steel as contained in

Attachment II to this decree.

Article 3

The flat-rolled iron or steel as meant in Article 2 paragraph (1) only can be imported by Steel IP and Iron-Steel IT.

Article 4

(1) In order to secure recognition as Iron-Steel IP, the relevant companies shall submit applications to the Director General of PLN by enclosing the following documents :

a. Industrial Business License/Industrial Registry Number or the equivalent from technical institutions in charge of the said businesses;

b. Producer-importer identity number (API-P) or approved importer identity number (API-T); c. Corporate registry number (TDP);

d. Taxpayer Code Number (NPWP);

e. Technical considerations of the Director General of ILMEA.

(2) The approval or rejection of the applications as meant in paragraph (1) shall be decided in 7 (seven) working days as from the date of receipt of applications.

Article 5

(1) In order to secure appointment as Iron-Steel IT, the relevant companies shall submit applications to the Director General of PLN by enclosing the following documents :

a. General importer identity number (API-U); b. Corporate registry number (TDP);

c. Taxpayer Code Number (NPWP);

(3)

(2) The approval or rejection of the applications as meant in paragraph (1) shall be decided in 7 (seven) working days as from the date of receipt of applications.

.

Article 6

(1) Import by Iron-Steel IT shall secure import approval containing the quantity, kind and time of the import. (2) The import approval of iron or steel as meant in paragraph (1) shall be issued by the Director General of

PLN on the basis of technical considerations of the Director General of ILMEA.

Article 7

(1) The recognition as Iron-Steel IP and appointment of Iron-Steel IT shall apply for one year.

(2) The model of recognitio n as Iron-Steel IP shall be as contained in specimen in Attachment III to this decree (2) The model of appointment as Iron-Steel IT shall be as contained in specimen in Attachment IV to this

decree.

Article 8

(1) Import of products of flat-rolled iron or steel as meant in Article 2 paragraphs (1) and (2) shall be firstly verified/investigated technically in countries of origin of the goods by surveyors at expense of importers. (2) The technical verification/investigation by surveyor as meant in paragraph (1) shall include countries of

origin, mill certificate, description of goods, size and quantity of goods to be imported.

Article 9

(1) Even though flat-rolled iron or steel is imported or not, companies owning Iron-Steel IP and Iron-Steel IT shall conve y reports in writing to the Director General of PLN with a copy made available to the Director General of ILMEA every 3 (three) months, starting from the date of issuance of recognition as Iron-Steel IP or appointment as Iron-Steel IT.

(2) The model of reports on realization of import of steel products by Iron-Steel IP and Iron-Steel IT shall be as contained in specimen in Attachment V to this decree.

Article 10

(1) Any violation against the provisions in this decree, either intentionally or due to negligence, shall be liable to the following sanctions :

a. revocation of recognition as Iron-Steel IP, in the case of the relevant companies : 1) trading or handing over the goods as contained in import approval;

2) importing goods of the same kind and/or in a quantity not suitable to what is mentioned in recognition as Iron-Steel IP;

3) importing goods mentioned in recognition as Iron-Steel IP that have their validity period expiring and not yet extended;

4) failing to report the realization of import twice consecutively as regulated in Article 9 paragraph (1).

b. revocation of appointment as Iron-Steel IT, in the case of the relevant companies :

1) importing goods of the same kind and/or in a quantity not suitable to what is mentioned in the import approval as meant in Article 6;

2) importing the flat-rolled iron or steel as meant in Article 2 paragraph (1), whereas the validity period of appointment as Iron-Steel IT has expired and has not been extended;

(4)

(2) Unless the goods imported by Iron-Steel IP or Iron-Steel IT are suitable to what is mentioned in letters of recognition as Iron-Steel IP or import approval of Iron-Steel IT, the said Iron-Steel IP or Iron-Steel IT shall re-export the imported goods at expense of the relevant companies or be subjected to a sanction in accordance with the customs provisions in force.

Article 11

Companies holding API, which import and have opened L/C or paid by means commonly used in international trade before the date of stipulation of this decree shall remain able to import the flat-rolled iron or steel as meant in Article without abiding by the provisions as regulated in this decree with the provisions that the goods must have arrived at Indonesia's destination ports not later than 15 (fifteen) working days as from the date of stipulation of this decree.

Article 12

This decree shall come into force as from the date of stipulation and expire on January 1, 2004.

For public cognizance, this decree shall be announced by placing it in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta On November 7, 2002

THE MINISTER OF INDUSTRY AND TRADE sgd.

(5)

Attachment I

LIST OF FLAT-ROLLED IRON OR STEEL SUBJECTED TO IMPORT CONTROL

NO. DESCRIPTION OF GOODS H.S NO. IMPORT

CONTROL

I. Flat-rolled products of non-alloy iron or steel, of a width of

600 mm or more, hot rolled, not clad, not plated/coated 72.08 IT/IP

II. Flat-rolled products of non-alloy iron or steel, of a width of

600 mm or more, cold reduced, not clad, not plated/coated 72.09 IT/IP

III. Flat-rolled products of non-alloy iron or steel, of a width of

600 mm or more, clad, plated/coated 72.10 IT/IP

IV. Flat-rolled products of non-alloy iron or steel, of a width less

than 600 mm, not clad, not plated/coated 72.11 IT/IP

V. Flat-rolled products of non-alloy iron or steel, of a width less than 600 mm, clad, plated/coated

(6)

Attachment II

LIST FLAT-ROLLED IRON OR STEEL EXCEPTED FROM IMPORT CONTROL

NO. DESCRIPTION OF GOODS H.S NO. IMPORT

CONTROL

I. Hot rolled steel in coils, of a thickness above 2 mm, maximum tensile strength of 550 Mpa, width of up to 1,250 mm, for those having checker on surface or pickled or not

1. Ex.7208.10.000 -

2. Ex.7208.25.000 -

3. Ex.7208.26.000 -

4. Ex.7208.27.000 -

5. Ex.7208.36.000 -

6. Ex.7208.37.000 -

7. Ex.7208.38.000 -

8. Ex.7208.39.000 -

9. Ex.7208.90.000 -

10. Ex. 7211.13.100 -

11. Ex. 7211.13.911 -

12. Ex. 7211.13.919 -

13. Ex. 7211.13.990 -

14. Ex. 7211.14.100 -

15. Ex. 7211.14.911 -

16. Ex. 7211.14.919 -

17. Ex. 7211.14.990 -

18. Ex. 7211.19.100 -

19. Ex. 7211.19.911 -

20. Ex. 7211.19.919 -

21. Ex. 7211.19.990 -

II. Hot rolled steel in coils, of a thickness above 2 mm,

containing by weight less than 0.6% of carbon, a width of up to 3,300 mm, maximum tensile strength of 550 Mpa, for those having checker on surface or pickled or not

1. Ex.7208.40.000 -

2. Ex.7208.51.910 -

3. Ex.7208.51.990 -

4. Ex.7208.52.000 -

5. Ex.7208.53.000 -

6. Ex.7208.54.000 -

7. Ex.7208.90.000 -

III. Cold-rolled steel in coils, of a thickness of 0.14 up to 3 mm, a width of up to 1,250 mpa, for those having checker on surface or pickled or not

(7)

2. Ex.7209.17.900 -

3. Ex.7209.18.990 -

4. Ex.7209.26.900 -

5. Ex.7209.27.900 -

6. Ex.7209.28.900 -

7. Ex.7211.23.911 -

8. Ex.7211.23.919 -

9. Ex.7211.23.990 -

10. Ex. 7211.29.911 -

11. Ex. 7211.29.919 -

12. Ex. 7211.29.990 -

IV. Flat-rolled products of stainless steel, of a width of 600 mm or more

72.19 -

V. Flat-rolled products of stainless steel, of a width less than 600 mm

72.20 -

VI. Flat-rolled products of other alloy steel, of a width of 600 mm or more

72.25 -

VII. Flat-rolled products of other alloy steel, of a width of less than 600 mm

(8)

Attachment III

THE DIRECTORATE GENERAL OF FOREIGN TRADE THE MINISTRY OF INDUSTRY AND TRADE

RECOGNITION AS PRODUCER -IMPORTER OF IRON OR STEEL (IRON -STEEL IP)

NO :

In connection with your application No. ……… on behalf of company ………., on Letter No. ………….. date ……… based on the Decree of the Minister of Industry No. ………. date ………., it is herewith granted :

RECOGNITION AS PRODUCER-IMPORTER OF IRON OR STEEL ( IRON-STEEL IP )

To :

Name/form of company :

Address of company :

Telephone/Facsimile No. :

No. of Industrial Business License : Industrial Registry No. of API-P/API-T : Corporate Registry Number (TDP) : Taxpayer Code Number (NPWP) : Technical Consideration of the Director General of : ILMEA, Ministry of Industry and Trade

THE QUANTITY AND KIND OF IRON OR STEEL WHICH CAN BE IMPORTED ARE AS ATTACHED With the provision as follows :

1. Iron or steel as attached only can be designated to the individual production need and is prohibited from trading or handing over to whomever;

2. Procedures for importing the said goods must be in accordance with the provisions of laws in force;

3. Even though the iron or steel as contained in the attachment to this recognition is imported or not, you are obliged to convey a report in writing to the Director General of Foreign Trade with a copy made available to the Director General of Metal, Machine, Electronic and Multifarious Industries every three months, starting from the date of this recognition;

4. In the case of the expansion of production needing additional raw materials already stipulated, your company can submit an additional application to the Director General of Foreign Trade by enclosing expansion permit and technical considerations of the Director General of ………, Ministry of Industry and Trade.

5. Any violation against the provisions as stipulated in Decree of the Minister of Industry and Trade No. : ………….. date………….., is liable to a sanction in accordance with the provisions in force;

(9)

Jakarta,

THE DIRECTOR GENERAL OF FOREIGN TRADE

( )

CC :

1. The Minister of Industry and Trade;

2. The Director General of ILMEA, Minister of Industry and Trade; 3. The Inspector General, Minister of Industry and Trade;

4. The Director General of Customs and Excise, Ministry of Finance; 5. The Director General of Taxation, Ministry of Finance ;

6. Bank Indonesia/Foreign Affairs Division;

7. The Director of Import, Minister of Industry and Trade; 8. The Head of Local Industry and Trade Service ;

(10)

Attachment to Letter of Recognition as Producer-Importer of Iron or Steel No. 751/MPP/Kep/11/2002

No. Description of Goods Quantity Tariff Heading

Jakarta,

THE DIRECTOR GENERAL OF FOREIGN TRADE

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Attachment IV

THE DIRECTOR GENERAL OF FOREIGN TRADE THE MINISTRY OF INDUSTRY AND TRADE

APPOINTMENT AS REGISTERED-IMPORTER OF IRON OR STEEL (IRON -STEEL IT)

NO :

In connection with your application No. ……… on behalf of company ………., on Letter No. ………….. date ……… based on the Decree of the Minister of Industry No. ………. date ………., it is herewith granted :

APPOINTMENT AS REGISTERED -IMPORTER OF IRON OR STEEL ( IRON-STEEL IT )

To :

Name/form of company :

Address of company :

Telephone/Facsimile No. :

No. of Trade Business License (SIUP) : No. of General API (API0U) : Corporate Registry Number (TDP) : Taxpayer Code Number (NPWP) : Technical Consideration of the Director General of : ILMEA, Ministry of Industry and Trade

Jakarta,

THE DIRECTOR GENERAL OF FOREIGN TRADE

( )

CC :

1. The Minister of Industry and Trade;

2. The Director General of ILMEA, Minister of Industry and Trade; 3. The Inspector General, Minister of Industry and Trade;

4. The Director General of Customs and Excise, Ministry of Finance; 5. The Director General of Taxation, Ministry of Finance ;

6. Bank Indonesia/Foreign Affairs Division;

7. The Director of Import, Minister of Industry and Trade; 8. The Head of Local Industry and Trade Service ;

(12)

Attachment to Letter of Appointment as Registered-Importer of Iron or Steel No. 751/MPP/Kep/11/2002

No. Description of Goods Quantity Tariff Heading

Jakarta,

THE DIRECTOR GENERAL OF FOREIGN TRADE

(13)

Attachment V

REPORT ON REALIZATION OF IMPORT OF STEEL PRODUCTS No. of Iron-Steel IP/Iron-Steel IT :

To. :

1. The Director General of Foreign Trade, Ministry of Ind ustry and Trade

No. Kind of imported steel products Tariff Heading/HS

Quantity Loading Port

Destination Port

Date of Arrival

No. of Import Declaration

Remarks

Corporate Seal sgd.

(Name of Company's Director)

CC :

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