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CIRCULAR OF THE DIRECTOR GENERAL OF FOREIGN TRADE No. 367/DJPLN/XI/2001 DATED November 30, 2001

ON

THE SUBMISSION OF APPLICATIONS FOR PURE PROVISIONAL QUOTAS (KSM)DESTINED FOR THE UNITED STATES, EUROPEAN UNION,

TURKEY AND CANADA FOR THE QUOTA YEAR OF 2002

To.1. Heads of Provincial Institutions or Service in charge of Industry and Trade (TPT Region) 2. President Director of PT. (P) KBN

3. Head of the Batam Industrial Region Development Authority 4. Head of the Bintan Industrial Estate Region

in the respective places

In order to follow up Decree of the Minister of Industry and Trade No. 311/MPP/Kep/10/2001 concerning provisions on export quotas of textile and clothing as well as its technical directives according to Decision of the Director General of Foreign Trade No.11/DJPLN/KP/11/2001, especially for pure provisional quotas (KSM) mentioned in Article 7, the following matters are provided :

1. The distribution of Pure Provisional Quotas (KSM) for the quota year of 2002 with the destination countries of the United States, European Union, Turkey and Canada is to be set in the fourth week of February and notified to Approved Exporters of Textile and Clothing (ETTPT) simultaneously at the same time through local Institutions Issuing Certificates of Textile Exports (IPSKET).

2. Producer ETTPT being both Small-scale Business & Cooperatives (PKK) and Medium-and Large-scale Business (PMB) that chose or posses Fixed Quotas (KT) can submit applications for obtaining Pure Provisional Quotas (KSM) to the Director General of Foreign Trade in this case the Director of Exports of Industrial Products. The applications must use form SP-KSM as contained in Attachment 1.

3. Producer ETTPT exporting to non-quota and quota countries can submit applications for KSM of the same categories by attaching recapitulation of realization of non-quota exports already having their truth examined and validated by officials of issuer institutions as follows :

a. In the case of exporters using Certificates of Origin (SKA), the document is legalized in IPSKET where the document is issued.

b. In the case of exporting using Export Declaration (PEB), the document and recapitulations is legalized at the Directorate of Customs and Excise where the document is issued.

The form of recapitulation of realized export of Non TPT to non-quota TPT or non-quota items to both non-quota and quota countries must use form SRE-NK as contained in Attachment 2.

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name, KSM are only granted to owners of goods with the provision that the implementation of quota exports under name must be attached. The list of recapitulation of realization of exports under name is validated by IPSKET where SKET are issued by using form REKAN as contained in Attachment 3.

The provision is only designated for the realization of exports under name, which is executed as from the date of enforcement of Decree of the Minister of Industry and Trade No. 311/MPP/Kep/10/2001 dated October 30, 2001.

5. The applications for KSM as meant in point 2 up to point 4 can be submitted as from December 1, 2001 to December 31, 2001 (upon working hours 8.00-16.00). The applications are considered legitimate, it the evidence of receipt has the same date as the deadline of validity period of submission of KSM.

6. The submitted applications for KSM consist of :a. application in duplicate b. supporting document

7. The total KSM available is based on the difference between Base Level Quotas and Allocation of KT nationally and Growth Quotas (KT). The allocation of the KSM is stipulated as follows :

a. 30% (thirty percent), in the case of ETTPT recording the Export Realization Achievement (PR) or performance of quota categories to quota countries as high as 90% or more;

b. 50% (fifty percent), in the case of ETTPT recording the Export Realization Achievement (PR) or performance of non-quota categories (non-quota items) to both quota and non-quota countries;

b. 20% (twenty percent), in the case of the Export Realization Achievement (PR) or under name performance for ETTPT owning goods as reward.

8. KSM are to be allocated proportionally to the respective ETTPT on the basis of the following calculation :IP of the relevant ETTPT NE (US$) of applicant ETTPT

--- x 30% + --- x 50% + Total IP of applicant ETTPT Total NE (US$) of applicant ETTPT

Under name VE of ETTPT owning goods --- x 20% X National KSM available

Total under name VE of ETTPT owning goods Remark :

IP ETTPT = Achievement Index of ETTPT, in which the Realized Volume X Unit Export Value X

(% of the Realized Export to the total export obligation) NE = Export Value in the US dollar

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9. Given the total KSM still connects with the calculation of KT in the determination of KSM, the total national KSM available cannot be announced yet and categories of TPT that producer ETTPT can apply for are as contained in Attachment 4. KSM already allocated are valid up to July 31, 2002.

10. The application process and allocation of KSM issued are not subjected to whatever cost.

This is for your information and dissemination promptly to ETTPT located in the respective working areas.

Acting DIRECTOR GENERAL OF FOREIGN TRADE

sgd.

TEDDY SETIADI

ATTACHMENT I Form SP-KSM

CORPORATE LETTERHEAD

To.

The Director of Export of Industrial Products The Directorate General of Foreign Trade The Ministry of Industry and Trade Jl. M.I. Ridwan Rais No. 5

in

J A K A R T A

APPLICATION FOR ALLOCATION OF QUOTA

No. :

Date :

Kind of quota : Pure Provisional Quota (KSM)

We herewith submit an application for obtaining the allocation of Pure Provisional Quota of Textile and Clothing (KSM-TPT) with the details as follows :

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NOKOKOM :

(Computer Code Number) Quota Year :

Quota Country :

Category/Group of TPT :

KSM requested from *) : 1. Quota achievement

2. Non-Quota (along with attachment to form SRE-NK) 3. The implementation of under name quota export

(along with attachment to form REKAN) *) pick up as required

We expect this application for processing in accordance with provisions in force in the field of TPT quota export.

Applicant

Seal and signature

Board of Executive Directors Name …………..

---Position

ATTACHMENT 2 Form SRE-NK

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Period of Realization of Export : Name of Company : Computer Code Number :

No Non-quota countries/ Non-quota

Descriptio n of goods

Categorie s of quota

Quota countrie s

SKA, PEB, B/L.AWB *) date

Tota l

Unit Value Export (US$)

Remar k

Total =

Already having its truth examined by IPSKET : Jakarta,……… (IPSKET/Customs & Excise/

OPDI/BINTAN) affixed by adequate stamp duty Seal

(……….) Name ………..

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ATTCHMENT 3 Form REKAN

RECAPITULATION OF REALIZATION OF EXPORT OF UNDER NAME QUOTA TPT

Quota Year :

Name of company owning goods : Computer Code Number : Destination country :

Category/Group :

Unit :

No. SKET No. Date Serial No. SKA, PEB, B/L, AWB

*) date

Total Exporting (quota owner)

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Total =

Already having its truth examined by IPSKET : Jakarta,……… (IPSKET/Customs & Excise/

OPDI/BINTAN) affixed by adequate stamp duty Seal

(……….) Name ………..

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ATTACHMENT 4

LIST OF CATEGORIES THAT CAN BE REQUESTED FOR THE DISTRIBUTION OF PURE PROVISION QUOTAS (KSM)

FOR THE QUOTA YEAR OF 2002

NO. USA EUROPE CANADA TURKEY

CATEGORIES UNITS CATEGORIES UNITS CATEGORIES UNITS CATEGORIES UNITS

1 200 KG 1 KG 1 PCS 1 KG

2 219 M2 2 KG 10 PCS 2 KG

3 225 M2 23 KG 11 PCS 23 KG

4 300/301 KG 2A KG 3A PCS 2A KG

5 313-O M2 3 KG 4 PCS 3 KG

6 314-O M2 35 KG 5A PCS 35 KG

7 315-O M2 3A PCS 7/8 PCS 3A KG

8 317-O/617/326-O M2 4 PCS 9 PCS 4 PCS

9 334/335 DOZ 5 PCS 7/8A PCS 5 PCS

10 336/636 DOZ 6 PCS - - 6 PCS

11 340/339 DOZ 7 PCS - - 7 PCS

12 340/640 DOZ 8 PCS - - 8 PCS

13 341 DOZ

14 342/642 DOZ

15 347/348 DOZ

16 359-C/659-S KG

17 359-C/659-C KG

18 360 NO

19 361 NO

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21 604-A KG

22 611-O M2

23 613/614/615 M2

24 618-O M2

25 619/620 M2

26 625/626/7/8/9-O M2

27 638/639 DOZ

28 641 DOZ

29 643 NO

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