THE PROVISION ON EXPORT QUOTAS OF TEXTILE AND CLOTHING (Decree of the Minister of Industry No. 67/MPP/Kep/3/2000 dated March 15, 2000)
THE MINISTER OF INDUSTRY AND TRADE, Considering :
a. that in the framework of further increasing and boosting exports of textile and clothing, especially to quota countries, it is necessary to stipulate steps of improvement of a transparent quota management system so that the utilization of quotas becomes more optimal and better assures business certainty for business entities;
b. that in the framework of increasing exports of textile and clothing (TPT), especially to quota countries, it is deemed necessary to facilitate the issue of Export Certificates of Textile (SKET);
c. that in connection with the matters in points a and b above, it is necessary to issue a decree of the Minister of Industry and Trade.
In view of :
1. The Trade Ordinance 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 field of international trade;
3. Presidential Decree No. 136/1999 on the status, tasks, organizational structures and working arrangements of ministries as already amended by Presidential Decree No. 147/1999;
4. Presidential Decree No. 355/M/1999 on the establishment of the cabinet for the 1999-2004 period;
5. Decree of the Minister of Industry and Trade No. 444/MPP/Kep/II/1998 jo. No. 24/MPP/Kep/I/1999 on the organization and working arrangement of the ministry of industry and trade;
6. Decree of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 on the general provisions in the field of export as already amended by the Decree of the Minister of Industry and Trade No. 146/MPP/Kep/1999;
7. Decree of the Minister of Industry and Trade No. 53/MPP/Kep/2/2000 on the taking over of quotas of textile and clothing.
D E C I D E S :
To revoke :
Decree of the Minister of Industry and Trade No. 374/MPP/KEP/8/1998 concerning the provisions on export quotas of textile and clothing and No. 366/MPP/KEP/8/1999 on the amendment to Article 11 of the Minister of Industry and Trade No. 374/MPP/KEP/8/1998 concerning the provisions on export quotas of textile and clothing.
To stipulate :
THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE CONCERNING THE PROVISIONS ON EXPORT QUOTAS OF TEXTILE AND CLOTHING.
Article 1 Referred to in this decree as :
1. Textile and Clothing (TPT) shall be fibres, yarns, textile sheets, garments and other products made of textile which are contained in the Book of Custom Tariff of Indonesia under tariff headings HS Ex-42.02.50.01 up to 63.10, 64.05, 65.01, 65.02, 65.03, 65.04, 65.05, 70.19, 94.04 and Ex-96.12.
3. Quota countries shall be importing countries which on the basis of bilateral agreements on TPT impose quotas on the import of certain categories and/or groups of TPT from Indonesia in a certain quota year. 4. A quota year shall be a period of 12 (twelve) months which constitutes a validity period of quotas whose
dates of beginning and end are determined in bilateral agreements on TPT between Indonesia and quota countries.
5. Non-quota countries shall be importing countries of TPT which impose no quotas on the import of TPT from Indonesia.
6. Quotas shall be maximum quantities permitted to be exported to quota countries.
7. Categories and/or groups of TPT shall be certain groups of TPT according to agreements between importing and exporting countries.
8. Quota TPT shall be categories and/or groups of TPT subjected to quotas. 9. Non-quota TPT shall be categories and/or groups not subjected to quotas.
10. Base-level quotas shall be quotas in the beginning of a year which are derived from base-level quotas in the previous year added by growth quotas, whose quantities are in accordance with bilateral agreements on TPT between Indonesia and quota countries.
11. Growth quotas (KPt) shall be additional quotas granted by quota countries in the current quota year whose percentage is based on bilateral agreements and regulated in the World Trade Organization (WTO).
12. Working-level quotas of adjusted-level quotas shall be base-level quotas in the current quota year which are deducted by carry forward quotas in the previous quota year and added by shift quotas, swing quotas, carry over quotas, carry forward quotas and swap quotas approved in bilateral agreements between Indonesia and quota countries.
13. Fixed quotas (KT) shall be quotas derived from base-level quotas which are allocated in the current quota year to certain ETTPT and can be re-allocated to ETTPT according to quantities of fixed quotas realized in the previous year.
14. Depositing shall be the entrusting of KT which can not be realized wholly or partly in the current quota year by ETTPT to the Ministry of Industry and Trade.
15. Transfer of fixed quotas shall be the move of KT from ETTPT to other ETTPT.
16. Pure Provisional Quotas (KSM) shall be quotas derived from base-level quotas which are deducted by KT allocated.
17. Pure Provisional Quotas left over (KSM-S) shall be quotas derived the remainder of KSM.
18. Flexibility Quotas (KF) shall be quotas derived from carry over, swing, swap quotas and remainders of KSM and KSM-S, KT deposited for a certain time.
19. Special Shift Quotas (KSS) shall be quotas derived from inter-exchange of certain categories according to bilateral agreements on TPT.
20. Donor categories shall be certain categories which on the basis of bilateral agreements on TPT can be used as sources of donors (guarantors) that can be exchanged with certain other categories.
21. Recipient categories shall be certain categories which on the basis of bilateral agreements on TPT can receive certain other categories of donors exchanged.
22. Carry forward quotas (KP) shall be quotas borrowed from base-level quotas in the following year which can be used in the current quota year according bilateral agreements.
23. Export obligations (KE) shall be obligations to realize export quotas of TPT from recipients of quotas which consist of KT, KPt, KSM, KSM-S, KF, KSS and KP.
24. Achievement of realization (PR) shall be achievement of certain ETTPT measured from the ratio of realization of export to KE in a quota year.
25. Achievement of National Realization (PRN) shall be the ratio of national export to working-level quotas in the current year.
26. Export Certificates of TPT (SKET) shall be documents accompanying quota TPT exported from the customs areas of the Republic of Indonesia to quota countries which are proven that the quota TPT come from Indonesia and have already fulfilled bilateral agreements on TPT between Indonesia and quota countries, consisting of :
c. SKA (certificate of origin) Form K; or d. SKA Form N
27. Institutions issuing export certificates of textile and clothing (IPSKET) shall be institutions authorized by the Minister of Industry and Trade to register and issue SKET as well as to validate Evidences of Transfers of Rights to Quotas (TBHK), including :
a. regional offices of the Ministry of Industry and Trade in textile regions; b. State-owned limited liability company PT (Persero) National Bonded Zone; c. the Executive Unit of Authority for the Development of Batam Industrial Region; d. other institutions stipulated by the Ministry of Industry and Trade
28. Proportional Quota Allocation by IPSKET regions shall be quantities allocated to the respective IPSKET on the basis of proportional numbers of ETTPT companies already having computer codes upon the allocation of global quotas.
29. Global quotas shall be a number of quotas of TPT allocated to IPSKET to be distributed to ETTPT. Article 2
APPROVED EXPORTERS OF TEXTILE AND CLOTHING
(1) The export of quotas TPT can only be done by exporters recognized as ETTPT by the Director General of Foreign Trade on behalf of the Minister of Industry and Trade.
(2) Companies which can be recognized for the first time as ETTPT shall be producer companies submitting applications to the Director General of Foreign Trade or officials appointed by completing forms already stipulated and validated by IPSKET where the companies are domiciled.
(3) The applications as meant in paragraph (1) shall be accompanied by the following documents : a. Trade Business Licenses (SIUP);
b. Industrial Business Licenses (IUP) or Industrial Registry Numbers (TDI); c. Individual realization of export of non-quota TPT;
d. Corporate Registry Numbers (TDP);
e. accounts of physical inspection of offices and production units as well as production capacities of companies which are validated by officials of IPSKET where the companies are domiciled.
(4) Companies already recognized as non-producer ETTPT before this decree is issued shall remain effective and be only entitled to KT owned.
(5) Companies already recognized as ETTPT shall report any change to institutions issuing ETTPT. Article 3
FIXED-LEVEL QUOTAS
(1) Fixed-level quotas (KT) shall be determined by the Director General of Foreign Trade in two phases and announced through local IPSKET as follows :
a. First-phase (provisional) KT are announced not later than the fourth week of December in the current quota year.
b. Second-phase (definitive) KT are announced not later than the third week of January in the ensuing quota year.
(2) If KT which are allocated as meant in paragraph (1) letter b is not in accordance with the calculation from STTPT, the relevant ETTPT can submit applications for review.
(3) ETTPT having KT and realizing their export in the current quota year shall obtain the allocation of KT for the ensuing quota year as meant in paragraph (1) letters a and b.
Article 4
GROWTH QUOTAS (KPt)
(1) ETTPT which are small-scale businesses and cooperatives (ETTPT-PKK) can submit applications for securing KPt for the ensuing year to local IPSKET.
(2) Sources of KPt for ETTPT-PKK shall come from the growth of base-level quotas.
(3) Quantities and kinds of KPt shall be given proportionally to the respective IPSKET in a global manner by the Director General of Foreign Trade.
(4) In order to obtain KPt, every ETTPT-PKK shall fulfill the required criteria for small-scale businesses and cooperatives (PKK) of textile and clothing (TPT).
Article 5 PURE PROVISIONALLY QUOTAS (KSM)
(1) ETTPT having production units which have and have no KT can submit applications for securing KSM to the Director General of Foreign Trade in this case the Director of Export of Industrial Products and Minerals.
(2) Producer ETTPT having KT or having no KT which export non-quota TPT can submit applications for securing KSM or Incentive KSM (KSM-in) in kinds of the same categories to the Director General of Foreign Trade in this case the Director of Export of Industrial Products and Minerals.
(3) Sources of national KSM available shall be calculated on the basis of differences between base-level quotas and national base-level quotas allocated.
(4) KSM shall be allocated proportionally to ETTPT on the basis of achievement of realization (PR) of the respective ETTPT.
(5) The stipulation of KSM allocated to the respective ETTPT shall be done by the Director General of Foreign Trade through local IPSKET.
(6) In the case of ETTPT having PR as high as 90% of the export obligation (KE) at the minimum, the total of KSM realized can become KT in the following year.
Article 6 PURE PROVISIONALLY QUOTAS LEFT OVER (KSM-S)
(1) Producer ETTPT can submit applications for securing KSM-S to the Director General of Foreign Trade in this case the Director of Export of Industrial Products and Minerals.
(2) Sources of KSM-S shall be derived from the remainder of KSM.
(3) ETTPT already securing KSM shall not be entitled to obtain KSM-S unless the remainder of KSM-S remains available after being distributed to ETTPT.
(4) The allocation of KSM-S to the respective ETTPT shall be stipulated by the Director General of Foreign Trade through local IPSKET.
Article 7
FLEXIBILITY QUOTAS (KF)
(1) Producers ETTPT can submit applications for securing KF, by the following means : a. ETTPT-PKK can file applications to local IPSKET.
(2) Sources of KF shall come from quotas not realized in the previous quota year (carry over quotas), swing quotas, remainder of KSM or KSM-S, KT deposited for a time and transfer of quotas between countries (SWAP).
(3) KF shall be allocated in 2 (two) phases in the current quota year.
(4) Sources of KF available shall be allocated to ETTPT-PKK as high as 60% and ETTPT which are medium and large-scale businesses (PMB) as high as 40%.
(5) ETTPT shifting or depositing 10% or more of KT owned shall not be entitled to obtain flexibility quotas for the said categories in the current quota year.
(6) Quantities and kinds of categories of TPT which can be allocated as KF to ETTPT-PKK shall be notified to the respective IPSKET by the Director General of Foreign Trade.
(7) Quantities and kinds of quotas for the respective regions of IPSKET shall be allocated globally and proportionally according to numbers of ETTPT-PKK by the Director General of Foreign Trade.
(8) The allocation of KF to ETTPT-PKK shall be stipulated by local IPSKET
(9) The allocation of KF to ETTPT-PMB shall be stipulated by the Director General of Foreign Trade in this case the Director of Export of Industrial Products and Minerals.
Article 8 CARRY FORWARD QUOTAS (KP)
(1) Producer ETTPT can submit applications for securing KP, by the following means : (a) ETTPT-PKK can submit applications to local IPSKET
(b) ETTPT-PMB can submit applications to the Director General of Foreign Trade in this case the Director of Export of Industrial Products and Minerals.
(2) KP can be allocated to ETTPT already realizing KT in the current quota year with the provision that :
(a) In the first (7) seven months of the current quota years, ETTPT owning KT can submit KP equal to KT already realized by the relevant ETTPT at the maximum and the percentage is according to bilateral agreements on TPT.
(b) In the ensuing 5 (five) months of the current quota year, KP can be allocated at a bigger quantity than the percentage as meant in letter a above by calculating the quantities of KT already realized by the relevant ETTPT, number of ETTPT applying for KP and the remainder of national KP for categories and/or groups of TPT available.
(3) Quantities of KP for ETTPT-PKK in the respective regions of IPSKET shall be allocated globally on the basis of percentage of the total KT for ETTPT-PKK by the Director General of Foreign Trade.
(4) The allocation of KP to ETTPT-PKK shall be stipulated by local IPSKET on the basis of a certain percentage according to bilateral agreements on quantities of KT already realized by the respective ETTPT-PKK.
(5) The allocation of KP to ETTPT-PMB shall be stipulated by the Director General of Foreign Trade in this case the Director of Export of Industrial Products and Minerals.
(6) The total KP realized shall be included in the following quota year, unless national basis-level quotas are cut by export destination countries.
(7) ETTPT shifting or depositing 10% or more of KT owned shall not be entitled to obtain carry forward quotas for the said categories in the current quota year.
(8) In the case of ETTPT which own KT and do not utilize wholly and partially rights to KP in the current quota year, the rights to KP can be utilized by other companies having no KT by using guarantees from companies having KT and the companies are ready to have their KT reduced in the following quota year. (9) The quotas as meant in paragraph (8) shall be allocated in the form of KF by following the provisions as
Article 9
SPECIAL SHIFT QUOTAS (KSS)
(1) Producer ETTPT having KT for categories of donors and recipient KT can submit applications for securing KSS, by the the following means :
a. ETTPT-PKK can file applications to local IPSKET
b. ETTPT-PMB can submit applications to the Director General of Foreign Trade in this case the Director of Export of Industrial Products and Minerals.
(2) KSS shall be allocated to ETTPT having the two kinds of KT for categories as meant in paragraphs (1) and (2).
(3) Quantities and kinds of categories of KSS for ETTPT-PKK in the respective regions of IPSKET shall be allocated globally by the Director General of Foreign Trade on the basis of a certain percentage according bilateral agreements on TPT.
(4) The allocation of KSS to ETTPT-PKK shall be stipulated by local IPSKET
(5) The allocation of KSS to ETTPT-PMB shall be stipulated by the Director General of Foreign Trade in this case the Director of Export of Industrial Products and Minerals.
(6) KT of categories of donors which can be exchanged to KSS shall be KT not derived from the shift and/or KPt.
(7) The total KSS realized shall be calculated as KT of original categories in the following quota year.
(8) ETTPT shifting and/or depositing 10% or more of KT of categories of donors or recipient categories shall not be entitled to obtain KSS in the current quota year.
Article 10 PARTNERSHIP
(1) Producer ETTPT which can not realize individually their export quotas can submit applications for partnership with other producer ETTPT to the Director General of Foreign Trade in this case the Director of Export of Industrial Products and Minerals.
(2) Kinds of quotas of TPT which can be realized on a partnership basis shall be KT, KSM-S, KF and KPt. (3) The quotas resulting from the partnership as meant in paragraph (2) can not be further realized on a
partnership basis to other producer ETTPT.
Article 11
DEPOSITING OF FIXED QUOTAS
(1) ETTPT can request the depositing of KT to the Director General of Foreign Trade in this case the Director of Export of Industrial Products and Minerals after the applications for depositing are signed by local IPSKET.
(2) Kinds of quotas which can be deposited to the Director General of Foreign Trade shall be KT which are not derived from the shift.
Article 12
MONITORING OF QUOTAS OF TPT
(1) In order to help ensure the smooth implementation and boost the increase in exports of TPT, PT (Persero) Sucofindo shall monitor the realization of export of quota TPT and non-quota TPT.
(2) The monitoring activity as meant in paragraph (1) of Article 12 of this decree shall be executed on the basis of working agreements between PT (Persero) Socofindo and the Ministry of Industry and Trade.
(3) The monitoring of quotas shall be executed by a system of TPT export quota management which can be monitored by TPT producers/associations through the Web Site of TPT Quotas.
Article 13
LEGAL SANCTIONS
(1) Any violation of the provisions in this decree and its technical directives shall be liable to sanctions in the form of reduction, freezing or revocation of TPT quotas as well as the freezing and revocation of status as ETTPT.
(2) The sanctions as meant in paragraph (1) of Article 13 of this decree shall be imposed by the Minister of Industry and Trade or officials appointed.
Article 14
Technical directives for this decree shall be stipulated by the Director General of Foreign Trade. Article 15
This decree shall come 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 March 15, 2000
THE MINISTER OF INDUSTRY AND TRADE sgd
