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CIRCULAR OF THE DIRECTOR OF EXPORT OF INDUSTRIAL PRODUCTS OF THE MINISTRY OF INDUSTRY AND TRADE

NO. 562/Dekin-I/VIII/2001 DATED AUGUST 13, 2001

PROVISIONS ON THE REALIZATION OF FIXED QUOTAS (KT) LOWER THAN 50% UP TO AUGUST 31, 2001

To :

1. Heads of Regional Offices of the Ministry of Industry and Trade overseas Textile and Clothing Production Regions

2. President Director of PT (P) Kawasan Berikat Nusantara (KBN) 3. Head of the Batam Industrial Region Development Authority 4. Head of Branch Office of KBN P. Bintan

Pursuant to the Decision of the Director General of Foreign Trade No. 03/DJPLN/KP/I/2001 on procedural directives for application for the allocation of quotas as well as the issuance of certificates of export of textile and clothing (SKET) and observing the Circular No. 534/DEKIN-I/VII/2001 dated July 17, 2001 as well as considering the proposals from API and API through the Letter No. 237 API-AMI/VIII/2001 dated August 8, 2001 as well as from textile and clothing producers, it is herewith stipulated that :

1. As a result of the provision on the annulment of Fixed Quotas (KT) on November 15, 2001 (Technical Directive No. 5 paragraph (1) letter b of the Decision of the Director General of Foreign Trade No. 03/DJPLN/KP/I/2001), the provision on the annulment of KT stipulated in Technical Directive No. 5 paragraph (6) point b.iv of the Decision of the Director General of Foreign Trade No. 03/DJPLN/KP/I/2001 is regulated by the provisions as mentioned in the following point 2 up to point 6.

2. Approved Exporters of Textile and Clothing (ETTPT) not yet realized 50% of their KT are given opportunity to deposit part or all of KT not yet realized to the Ministry of Industry and Trade in this case the Directorate of Export of Industrial Products not later than August 31, 2001 by continuously referring to the provision in Article 21 of the Decree of the Minister of Industry and Trade No. 01/MPP/Kep/I/2001 on the depositing of Fixed Quotas (KT), paragraph (2) up to paragraph (5). The depositing after August 31, 2001 will not be accepted and the relevant ETTPT are considered capable of realizing the quotas.

3. ETTPT not depositing their KT should promptly realize the KT (on behalf of ETTPT owning initial KT). In the case of the remainder of KT not yet realized by ETTPT being existent up to November 15, 2001, the KT not yet realized will be nullified wholly with a risk of facing the reduction of KT in the allocation of KT for 2002 as many as the quantity of the nullified KT.

4. ETTPT planning to export after the depositing on August 31, 2001 and after the annulment on November 15, 2001 can submit flexibility quotas (KF) to the Ministry of Industry and Trade and KF will be allocated as long as the reserves of national quotas remain available.

5. In the case of ETTPT being found out to violate the provisions as meant in points 2 and 4, the relevant ETTPT are liable to a sanction in the form of revocation of their status as ETTPT.

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This is for dissemination to TPT exporters within your working areas and any kind of cooperation is appreciated.

FOR THE DIRECTOR GENERAL OF FOREIGN TRADE THE DIRECTOR OF EXPORT OF INDUSTRIAL PRODUCTS sgd.

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