PROVISIONS ON EXPORT OF PRODUCTS OF FORESTRY INDUSTRY
(DECREE OF HE MINISTTER OF INDUSTRY AND TRADE No. 32/MPP/Kep/1/2003 datedJanuary 22, 2003)
THE MINISTER OF INDUSTRY AND TRADE
Considering :
a. that since products of forestry industry constitute non-o il and gas commodities resulting in
state foregn exchange whose continous production needs to be maintained through eternal supply of raw materils coming from production forests managed in sustainable manner, provisions on export of producs of forestry ind ustry need to be stipulated;
b. that in relation thereto, it is necessary to stipulate a decree of the Minister of Industry and
Trade;
In view of :
1. Law No. 5/1984 on industry (Statute Book of 1984 No. 22, Supplement to Statute Book No.
32/4);
2. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute
Book No. 3612);
3. Law No. 22/1999 on regional administration (Statute Book of 1999 No. 60, Supplement to
Statute Book No. 3839);
4. Law No. 41/1999 on forestry;
5. Government Regulation No. 1/1982 on export, import and traffic of foreign exchange
(Statute Book of 1982 No. 1, Supplement to Statute Book No. 3210) as already amended by Government Regulation No. 24/1985 (Statute Book of 1985 No. 33, Supplement to Statute Book No. 3291);
6. Government Regulation No. 25/2000 on the authority of the government and the authority of
provinces as autonomous regions;
7. Government Regulation No. 34/2002 on the arrangement of forests, utilization of forests and
the use of forest areas;
8. Presidential Decree No. 260/1967 on the affirmation of tasks and responsibility of he
Minister of Trade in the foreign trade sector;
9. Presidential Decree No. 228/M/2001 on the establishment of Mutual Cooperation Cabinet;
10.Presidential Decre No. 102/2001 on status, tasks, functions, authority, organizational
structures and working arrangements of ministries;
11.Presidential Decree No. 109/2001 on first echelon organizational units and tasks of
ministries;
12.Joint Decree of the Minister of Industry and Trade and the Minister of Forestry No.
803/MPP/Kep/12/2002 and No. 1026/Kpts-II/2002 on the establishment of the Forestry Industry Revitalization Agency (BRIK);
13.Decree of the Minister of Industry and Trade No. 441/MPP/Kep/9/1998 on provisions on
exports of round rattan;
14.Decree of the Minister of Industry and Trade No. 441/MPP/Kep/9/1998 concrning provisions
15.Decree of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 jo. No. 31/MPP/Kep/1/2003 on export general provisions;
DECIDES :
To stipulate :
DECREE OF THE MINISTER OF INDUSTRY AND TRADE CONCERNING PROVISIONS ON EXPORT OF PRODUCTS OF FORESTRY INDUSTRY,
CHAPTER I
SCOPE AND GENERAL PROVISION Article 1
Produts of forestry industry regulated in this degree shall be commodities subsumed into tariff heading (HS) No. 1401.20.500, HS. No. 1401.20.600, HS. No. 1401.20.700, HS. No. 1401.20.900, HS. No. 4406, HS. No. 4407, HS. No. 4408, HS. No. 4409, HS. No. 4410, HS. No. 4411, HS. No. 4412, HS. No. 4413, HS. No. 4414, HS. No. 4415, HS. No. 4416, HS. No. 4417, HS. No. 4418, HS. No. 4419, HS. No. 4421, HS. No. 4601, HS. No. 4602, HS. No. 9401, HS. No. 9403, HS. No. 4703, HS. No. 4801, HS. No. 4802, HS. No. 4803, HS. No. 4804, HS. No. 4805, HS. No. 4806, HS. No. 4808, HS. No. 4809, HS. No. 4810, HS. No. 4811, HS. No. 4812, HS. No. 4813, HS. No. 4814, HS. No. 4816, HS. No. 4817, HS. No. 4818, HS. No. 4820, HS. No. 4821, HS. No. 4823, HS No. 9406 which are produced by forestry industry.
Article 2
(1) The products of forestry industry as meant in Article 1 of this decree only can be exported by
forestry manufacturers already recognized as Registered Exporters of Producs of Forestry Products (ETPIK) by he Minister of Industry in this case he Director General of Foreign Trade
(2) Manufacturers which can be recognized as ETPIK shall be forestry manufacturers already
having industrial business license issued on the basis of laws in force and other reguirements as stipulated in Article 3 of this decree
(3) The export of products of forestry industry shall be executed on the basis of Cost and Freight
(C&F) or Cost Insurance and Freight (CIF), except that HS No. 1410, HS No. 4421, HS No. 4601, Hs No. 4602, HS No. 9401 and HS No. 9403 can be exported on the basis of Cost and Freight (C & F) or Cost Insurance and Freight (CIF) or Fr on Board (FOB) as well as the payment is done through banking instiution
(4) The export of the products of forestry industry subsumed into HS No. 4406, HS. No. 4407,
CHAPTER II
PROVISIONS ON RECOGNITION OF REGISTERED EXPORTERS OF PRODUCTS OF FORESTRY INDUSTRY (ETPIK)
Article 3
(1) Procedures and requirements for recognizing ETPIK shall be submitting application to the
Director General of Foreign Trade through the Director of Export of Agricultural Products and Minerals or Director of Export of Industrial Products in accordance with the respective scopes of responsibility by enclosing;
a. Recommendation from BRIK;
b. Industrial business license on the basis of laws in force;
c. Corporate registry number (TDP);
d. Taxpayer code number (NPWP);
e. Notarial deed of establishment of company;
f. Corporate general data.
(2) The Scopes of responsibility of he Director of Export of Agricultural Products and Minerals
and Director of Expot of Industrial products as meant in paragraph (1) shall be further regulated through a decision of the Director General of Foreign Trade.
(3) The recognition as ETPIK shall be nullified if the relevant ETPIK undertake no production
and export activities for one year consecutively and face change in data on one or more requirements as meant in paragraph (1).
(4) The nullification as meant in paragraph (1) shall be conveyed through a letter of
reommendation of BRIK to he Director General of Foreign Trade.
CHAPTER III
OBLIGATIONS OF REGISTERED EXPORTERS OF PRODUCTS OF FORESTRY PRODUCTS (ETPIK)
Article 4
(1) ETPIK shall report to the Director General of Foreign Trade and Director General of Agro
Chemical and Foest Product Industry of the Ministry of Industry and Trade, Director General of Forestry Production Development of the Ministry of Forestry, he Forestry Indusry Revitalization Agency (BRIK) the following matters:
a. Annual production plan and quarterly production realization;
b. Annual export plan and quarterly export realization.
(2) In Addition o the provision as meant in paragraph (1), ETPIK operating in the sawn timber,
CHAPTER IV
TRANSITIONAL PROVISION
Article 5
(1) The recognition as ETPIK especialy for raw plywood and secondry processed plywood,
block board and veneer before the issuance o his decre can be reneed not later than February 28, 2003
(2) Procedures for submitting applications for recognition as ETPIK shall be as contained in
Article 3 of this decree
(3) ETPIK for raw plywood and secondary processed wood, block board and veneer wich are
not renewed up February 28,2003 as meant in paragraph (1) shall be declared null and void.
CHAPTER V SANCTION Article 6
The recognition as ETPIK shall be frozen if manufacturers hoding ETPIK and/or executives/directors of manufacturers holding ETPIK are:
a. Being investigated by authorized investigators because they are allegedly commiting crimes
related to the abuse of ETPIK;
b. Not executing the obligation as meant in Article 4;
c. Violating the provisions in force in the export sector; or
d. In certain cases on the basis of request of the Minister or the appointed officials.
Article 7
The recognition as ETPIK already frozen as meant in Article 6 can be liquidated in the case of:
a. Investigators already issuing order to discontinue the investigation;
b. The relevant parties being declared not guilty/freed from all legal charges already having
permanent legal power by enclosing verdict of the court;
c. The relevant parties being not proven to violate the provision as meant I Article 6 letter c;
d. The Minister or the appointed official requesting.
Article 8
(1) The recognition as ETPIK shall be revoked if manufacturers holding ETPIK and/or
executives/directors of manufacturers holding ETPIK:
a. Face the freezing of ETPIK twice;
b. Fail to execute the obligation as meant in Article 4 not later than 30 (thirty) days as from
the date of the freezing;
c. Violate export provisions in force;
d. Falsify an/or misuse export documents of letters related to export;
e. Are declared guilty by the court for crime related to the misuse of ETPIK and already
f. Are in certain cases on the basis of the request of the Minister or the appointed official.
(2) The recognation as ETPIK already revoked because of the mistake as meant in paragraph (1)
letter a and/or b can renew ETPIK after 3 (three) years as from the date of revocation of ETPIK.
(3) The recognition as ETPIK already revoked because of the mistake as meant in paragraph (1)
letters c, d, e and f can renew ETPIK (5 (five) years as from the date of revocation of ETPIK.
(4) Application for securing recognition as new ETPIK as meant in paragraps (2) and (3) shall
be fulfilled by the following requirements:
a. The provision as meant in Article 3; and
b. The return of original ETPIK already revoked.
Article 9
(1) The freezing, liquidation and revocation of ETPIK as meant in Article 6,7 and 8 shall be
done by the Director General of Foreign Trade.
(2) The Director General of Foreign Trade shall conve y letter of notification of freezing,
liquidation, and revocation of ETPIK as meant in Articles 6, 7 and 8 to the Director General of Agro Chemical and Forest Product Industry of the Ministry of Industry and Trade, Director General of Forestry Production Development of the Ministry of Forestry, Director General of Customs and Excise of the Ministry of Finance and the Forestry Industry Revitalization Agency (BRIK).
CHAPTER VI CONCLUSION
Article 10
(1) With the enforcement of this decree, Decree of the Minister of Industr and Trade No.
28/MPP/Kep/1/1998 on plywood export provisions shall be declared null and void.
(2) Matters not yet regulated in this decree shall be further stipulated by the Director General of
Foreign Trade.
(3) This decree shall come into force as from March 1, 2003.
For public cognizance, this decree shall be published by placing it in State Gazette of Republik of Indonesia.
Stipulated in Jakarta On January 22, 2003
THE MINISTER OF INDUSTRY AND TRADE Sgd
