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DECREE OF

MINISTER OF INDUSTRY AND TRADE OF THE REPUBLIC OF INDONESIA

NUMBER : 9/MPP/Kep/1/2004

REGARDING

PROVISION OF RICE IMPORT

MINISTER OF INDUSTRY AND TRADE THE REPUBLIC OF INDONESIA Considering:

a. that rice is a strategic commodity as staple food for Indonesians, accordingly rice production, supply, procurement and distribution are considerably important in the framework of sustaining food security, raising income and welfare of rice farmers as well as keeping people consumption need stability in general;

b. therefore, it is deemed necessary to issue a Decree of Minister of Industry and Trade regarding Provision of Rice Import.

In View of:

1. Bedrijfsreglementering Ordonnantie 1934 (Staatsblad Year 1938 Number 86) as amended and supplemented;

2. Law Number 16 Year 1992 regarding Animal, Fish and Plant Quarantine (State Gazette of 1992 Number 56, Supplement to State Gazette Number 3482);

3. Law of Health Number 23 Year 1992 regarding Health (State Gazette of 1992 Number 100, Supplement to State Gazette Number 3495);

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5. Law Number 10 Year 1995 regarding Customs Office (State Gazette Of 1995 Number 75, Supplement to State Gazette Number 3612);

6. Law Number 7 Year 1996 regarding Food (State Gazette Of 1996 Number 99, Supplement to State Gazette Number 3656);

7. Law Number 5 Year 1999 regarding the Ban of Monopoly and Unfair Business Practices (State Gazette of 1999 Number 33, Supplement to State Gazette Number 3806);

8. Law Number 8 Year 1999 regarding Consumer Protection (State Gazette Of 1999 Number 42, Supplement to State Gazette Number 3821);

9. Government Regulation Number 68 Year 2002 regarding Food Security (State Gazette of 2002 Number 142, State Gazette Number 4254);

10. Presidential Decree of The Republic of Indonesia Number 260 Year 1967 regarding Confirmation on Duty and Responsibility of Minister of Industry and Trade on Foreign Trade Issues; 11. Presidential Decree of The Republic of Indonesia Number 228/M

Year 2001 regarding the Gotong Royong Cabinet Formation; 12. Presidential Decree of The Republic of Indonesia Number 102

Year 2001 regarding Position, Duty, Function, Authority, Re; Composition of Organization and Working Procedure of Ministry;

13. Presidential Decree of The Republic of Indonesia Number 109 Year 2001 regarding Organization Unit and Duty of Echelon I of Ministry;

14. Decree of Minister of Industry and Trade Number 229/MPP/Kep/7/1997 Regarding General Provision of Import 15. Decree of Minister of Industry and Trade Number 230/MPP/Kep/7/1997 regarding Imported Good Trade Procedure as amended several times and lastly amended with Decree of Minister of Industry and Trade Number 520/MPP/Kep/8/2003; 16. Decree of Minister of Industry and Trade Number

86/MPP/Kep/3/2001 Regarding Organization and Working Procedure of Ministry of Industry and Trade;

17. Decree of Minister of Industry and Trade Number 141/MPP/Kep/3/2002 regarding Special Importer Identity Number (NPIK);

18. Decree of Minister of Industry and Trade Number 40/MPP/Kep/1/2003 regarding Importer Identity Number (API). In View of:

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DECIDE

Stipulate:

DECREE OF MINISTER OF INDUSTRY AND TRADE OF THE REPUBLIC OF INDONESIA REGARDING THE PROVISION OF RICE IMPORT.

Article 1

In this decision, the followings shall mean: 1. Rice is:

a. Unhusked rice (paddy or unhulled paddy): - Post Tariff/HS 1006.10.90.00: others; b. hulled rice:

- Post Tariff/HS 1006.20.10.00 : Thai’s rice hom mali; - Post Tariff/HS 1006.20.90.00 : others;

c. half-milled rice or totally milled, cleaned, shined or not: - Sweet rice;

- Post Tariff/HS 1006.30.11.00 : intact;

- Post Tariff/HS 1006.30.12.00 : not more than 5% crushed;

- Post Tariff/HS 1006.30.13.00 : more than 5but less than 10% crushed;

- Post Tariff/HS 1006.30.14.00 : more than 10% but less than 25% crushed;

- Post Tariff/HS 1006.30.19.00 : others;

- Post Tariff/HS 1006.30.20.00 : semi- rippen; - Post Tariff/HS 1006.30.40.00 : basmati rice;

- Post Tariff/HS 1006.30.50.00 : Thai’ rice hom mali; - Others;

- Post Tariff/HS 1006.30.61.00 : intact;

- Post Tariff/HS 1006.30.62.00 : not more than 5% crushed; - Post Tariff/HS 1006.30.63.00 : more than 5% but less than

10% crushed;

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- Post Tariff/HS 1006.30.69.00 : others; d. Post Tariff/HS 1006.40.00.00 : crushed rice.

2. Importer is a company as the owner of Importer Identity Number (API) dealing with commerce of imported goods, either private company or state/regional-owned corporate.

3. Recommendation is a letter issued by relevant agency/unit providing technical description but not an import permit/approval.

4. Minister is Minister of Industry and Trade.

5. Director General is Director General of Foreign Trade, Ministry of Industry and Trade.

Article 2

Rice referred to in Article 1 item 1 can only be imported by Importer authorized as Rice Producer Importer, hereinafter abbreviated as IP Rice, and by an Importer officially appointed as Registered Importer of Rice, hereinafter abbreviated as IT Rice.

Article 3

(1) Rice import is banned within 1 (one) month period prior to grand harvest, during grand harvest, and 2 (two) month after grand harvest.

(2) Grand harvest referred to in paragraph (1) above shall be stipulated by Minister of Agriculture.

Article 4

(1) Rice imported by IP Rice and IT Rice referred to in Article 2 can only be performed beyond the periods set out in Article 3 paragraph (1).

(2) Rice import performance by IT Rice referred to in paragraph (1) can only be unloaded at the destination port as set forth in the import approval issued by Director General.

Article 5

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(2) Authorization as IP Rice referred to in Article 2 shall be made by Director General.

(3) To be authorized as IP Rice referred to in paragraph (2), an importer shall submit a written application to Director General attaching:

a. Copy of Business Industrial Permit/Industrial Registered Permit or other business permit of the same kind issued by appropriate agency;

b. Copy of Corporate Registered Permit (TDP); c. Copy of Tax Payer Number (NPWP);

d. Copy of Producer Importer Identity Figure (API-P) or Limited Importer Identity Figure (API-T);

e. Copy of Special Importer Identity Number (NPIK);

f. Recommendation from Director General of Chemical Industry, Agro and Forest Products (Director General of IKAH) Ministry of Industry and Trade.

(4) Authorization as IP Rice pertaining to import approval on number and type of rice, destination port and shipping timeline.

(5) Authorization as IP Rice referred to in paragraph (2) shall be valid at the longest 1 (one) year and be re-extendable.

Article 6

(1) Upon receiving an application from importer referred to in Article 5 paragraph (3), Director General approves to issue or reject such authorization as IP Rice at the latest 10 (ten) business days after the application thereof has been received.

(2) Standard Form of authorization document as IP Rice is as set forth in Appendix I of this Decree.

Article 7

(1) An importer having been authorized as IP Rice shall be obliged to report in writing realization of its import to Director General cq. Director of Import, Ministry of Industry and Trade on monthly basis, at the latest on 15th day of the month during which the import is performed with copy thereof is sent to Director General of IKAH cq. Director of Agro Industry, Ministry of Industry and Trade. (2) Written report form of IP Rice referred to in paragraph (1)

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(1) Appointment as IT Rice, referred to in Article 2 shall be made by Director General.

(2) To be Appointed as IT Rice referred to in paragraph (1), an importer shall submit a written application to Director General attaching:

a. Copy of Business Permit or Other business permit of the same kind issued by appropriate agency;

b. Copy of Corporate Registered Permit (TDP); c. Copy of Tax Payer Number (NPWP);

d. Copy of General Importer Identity Figure (API-U); e. Copy of Special Importer Identity Number (NPIK);

f. Copy of Goods Import Notice (PIB) showing it has at least 3 (three) year experience in import business.

g. Name and address of distributor/sub distributor having cooperation with the importer to distribute rice domestically and those acknowledged by Local Provincial Office for Trade.

(3) Appointment as IT Rice referred to in paragraph (1) shall be valid at the longest 1 (one) year and be extendable thereof.

Article 9

(1) Upon receiving an application from importer referred to in Article 8 paragraph (2), Director General approves to issue or reject such authorization as IT Rice at the latest 10 (ten) business days as of the application thereof is received.

(2) Form of Document for Appointment as IT Rice is as referred to in Appendix III of this Decision.

Article 10

(1) IT Rice shall obtain approval from Director General regarding the number and type of rice, destination port and importing timeline any time it performs rice import. (2) Import approval referred to in paragraph (1) shall be issued

after considering recommendation of Director General of Processing and Marketing Development of Agriculture Product (BPPHP), Department of Agriculture.

(3) Form of rice import approval referred to in paragraph (2) is set forth in Appendix IV of this Decision.

Article 11

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day of the subsequent month of every month import realization with the copy thereof is sent to Director General of BPPHP cq. Director of Processing and Marketing of Food Plant Product, Minister of Agriculture and Director General of Domestic Trade cq. Director of Market and Distribution Development, Minister of Industry and Trade.

(2) The standard form of the Report referred to in paragraph (1) is a set forth in Appendix V of this Decision.

Article 12

(1) Any realization of import by IP Rice and IT Rice shall be verified first at country of origin of the import.

(2) Technical verification referred to in paragraph (1) shall be applied also to importation of:

Unhusked rice suitable to be sowed as included in Post Tariff/HS 1006.10.10.00;

- Glutinous rice included in Post Tariff/HS 1006.30.30.00; - Rice flour included in Post Tariff/HS 1102.30.00.00; - Other flours included in Post Tariff/HS 1102.90.00.00.

(3) The technical verification referred to in paragraph (1) and (2) shall be performed by surveyor appointed by Minister. (4) Upon the implementation verification referred to in

paragraph (3), surveyor is entitled to impose fee on importer/importer institution/grantor.

(5) To be eligible to perform verification on rice, unhusked rice suitable to be sowed, glutinous rice, rice flour and other flour import, a surveyor shall have the following qualification:

(a) Experience as a surveyor for minimum 5 (five) years; (b) Has branch office or representative or affiliate

overseas.

(6) Details of procedures of verification or shall be specified by Director General.

Article 13

Obligation to perform verification referred to in Article 12 does not apply for importation of rice, unhusked rice suitable to be sowed, glutinous rice, rice flour and other flour import constituting:

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c. Personal goods of passenger or crew or crosser of border; d. Promotional articles;

e. Goods delivered through air courreer service Article 14

(1) Status as IP Rice or IT Rice shall be revoked in case the relevant party:

a. fails to perform its oblitation to submit a written report twice referred to in Article 7 or Article 11; or b. under investigation for an alleged criminal action

relating to abuse its status as IP Rice or IT Rice.

(2) Status as IP Rice or IT Rice can be reinstated after the relevant party has obtained a clarification from Director General upon its negligence in performing obligation referred to in Article 7 or Article 11 or the relevant party is in fact not substantiated to commit a criminal action relating to the abuse of its status as IP Rice or as IT Rice.

(3) Revocation of status as IP Rice or IT Rice referred to in paragraph (1) and the reinstatement of the status set forth in paragraph (2) shall be done by Director General.

Article 15

(1) Status as IP Rice or IT Rice shall be revoked in case the relevant party:

a. fails to perform its obligation to submit a written report more than 2 (two) times referred to in Article 7 or Article 11;

b. Amend or add and or change any content included in the acknowledgment document as IP Rice or designation document as IT rice or in rice import approval; or

c. is declared guilty by court of justice upon a criminal action relating to the abuse of its status as Rice or IT Rice.

(2) Revocation of status as IP Rice or IT Rice referred to in paragraph (1) shall be done by Director General.

Article 16

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January 20, 2004 shall not be liable to the provision under this Decree.

Article 17

Verification conducted by surveyor shall not reduce the authority of Directorate General of Customs Office to conduct inspection.

Article 18

(1) In the framework of supervising the enforcement of this Decree, a Monitoring Team whose members consist of the relevant agencies shall be established accordingly.

(2) The structure of organization, the composition of membership and function of Monitoring Team shall be stipulated by Director General.

Article 19

Exception of provision set forth under this Decree shall only be stipulated by Minister.

Article 20

This Decree shall be put into effect as of the date it is stipulated.

In order to make it familiar with any body, this Decree shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta Date: January 10, 2004

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APPENDIX OF DECISION OF MINISTER OF INDUSTRY AND TRADE OF ROI

NUMBER : 9/MPP/Kep/1/2004 DATE : January 10 2004

---LIST OF APPENDICES

1. Appendix I : ACKNOWLEDGEMENT AS PRODUCER IMPORTER OF RICE 2. Appendix II : REPORT ON REALIZATION AND THE CONTRACTOR

USE OF IMPORTED RICE (IP-RICE)

3. Appendix III: APPOINTMENT AS REGISTERED IMPORTER OF RICE 4. Appendix IV : RICE IMPORT APPROVAL

5. Appendix V : REPORT ON REALIZATION AND THE USE OF IMPORTED RICE (IT-RICE)

MINISTER OF INDUSTRY AND TRADE OF REPUBLIC OF INDONESIA

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Appendix I ACKNOWLEDGEMENT

AS PRODUCER IMPORTER OF RICE No. :

With respect to the application of ………. No. ……….. dated ……… and upon the consideration of Recommendation letter of Directorate General of IKAH, Ministry of Industry and Trade No. ………….. dated ………., based on the Decree of Minister of Industry and Trade of ROI No. …………. dated ……….., regarding the Provision of Rice Import, it is hereby granted a status as:

PRODUCER IMPORTER OF RICE (Post Tariff/HS.No. ………) To:

Name of Company :

Nature of Business :

Company’s address :

Responsible Person :

Company phone/Fax Number : Industrial Business Permit Number :

Producer Importer Identity Figure Number/: Limited (API-P/T)

Special Importer Identity Number (NPIK) : Number of Corporate Registered Permit (TDP) : Tax Payer Number (NPWP) :

Destination Port :

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Under the following provision:

1. The imported rice is only for ………. and not for trade or transfer;

2. You are obliged to show the original import approval letter to local Customs Office officials every time you perform importation activities. The requirement is for completion of Import Realization Control Card (attached) which covers verification of total and type of imported commodities;

3. You are obliged to submit the copy of signed and sealed Import Realization Control Card referred to in item (2) by Customs Office Officer to Directorate of Import for every importation activities at the latest 2 (two) weeks after the imported goods are taken out from the destination port;

4. Failure to comply with the obligation to submit the report is liable to revocation of status as IP Rice;

5. Status as IP Rice shall be revoked if it amend, add and/or change the contents included in the acknowledgement as IP Rice and declared guilty by court of justice on any criminal action related to the abuse of the status;

6. Letter of Approval as Rice Producer Importer shall be valid until ………

Jakarta,

DIRECTOR GENERAL OF FOREIGN TRADE Copy is sent to:

- Minister of Industry and Trade;

- Directorate General of IKAH, Ministry of Industry and Trade - Directorate General of BPPHP, Ministry of Agriculture;

- Inspectorate General of Ministry of Indusry and Trade; - Directorate of Customs Office, Ministry of Finance; - Head of Provincial Industry and Trade Office ………..

Appendix II

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(Month : ………... Year ………..) Name of Company :

Head Office Address : Plant’s Address :

Status as IP Rice : No. Date :

Total :

Post Tariff/HS No. : Unloading Port :

No. Import Realization Realizationof the Use Realizationof Production

Remark PIB

No.

Total

Volume Value

Jakarta, ……….. PT/CV ………

(Director)

Appendix III APPOINTMENT AS

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No. :

With respect to the application of ………. No. ……….. dated ………, regarding and based on the Decree of Minister of Industry and Trade No. …………. dated ……….., regarding the Provision of Rice Import, it is hereby granted a status as:

REGISTERED IMPORTER OF RICE To :

Name of Company :

Nature of Business :

Company’s address :

Responsible Person :

Company phone/Fax Number : Industrial Business Permit Number :

General Importer Identity Figure Number (API-U: Special Importer Identity Number (NPIK) : Number of Corporate Registered Permit (TDP) : Tax Payer Number (NPWP) :

Under the following provision:

a. Appointment as Registered Importer of Rice shall not apply as approval of import;

b. Report any change of company to Director General of Foreign Trade at the latest 30 (thirty) days following such change occurs;

c. Provide data/information and or be preprared for field inspection (business location/office) if required by the appropriate authority of Ministry of Industry and Trade;

d. Status as Registered Importer of Rice shall be valid until ………;

e. Any violation against the provision set forth in letter a to d shall be liable to sanction of freezing or revocation as Registered Importer of Rice.

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DIRECTOR GENERAL OF FOREIGN TRADE

Copy is sent to:

- Minister of Industry and Trade;

- Directorate General of IKAH, Ministry of Industry and Trade - Directorate General of BPPHP, Ministry of Agriculture;

- Inspectorate General of Ministry of Indusry and Trade;

- Directorate General of Customs and Excise, Ministry of Finance;

- Head of Provincial Industry and Trade Office ………..

APPENDIX IV

Number : Jakarta,

Appendix :

Subject : Rice Import Approval To:

The director ……… ………

Referrering to the Decree of Minister of Industry and Trade No. ……….. dated ………., regarding the Provision of Rice Import and with respect to the application letter of PT. ……… No. ……….. dated ………., concerning the subject mentioned at the head of letter, it is hereby notified to PT. ………, owner of : Rice Registered Importer Number (IT Rice) :

Number of Business Permit (SIUP) :

Number of General Importer Identity Figure (API-U): Special Importer Identity Number (NPIK) :

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Number of Tax Payer (NPWP) : Is approved to perform import of:

- Type of rice :

- Post Tariff/HS No. :

- Total :

- Destination Port :

Under the following provision:

1. The implementation of rice import shall be in line with the provision of the applicable Customs Office procedure;

2. You are obliged to show the original of this import approval letter to local Customs Office officer for every importation activities. The requirement is for completion of Import Realization Control Card (attached) which covers verification of total and type of imported commodities;

3. You are obliged to deliver the copy of signed and sealed Import Realization Control Card referred to in item (2) by Customs Office Officer to Directorate of Import for every articles importation activity at the latest 2 (two) weeks after the imported articles are taken out from the destination port;

4. Any violations against obligation to submit the report is liable to freezing sanction as IP Rice;

5. Rice import approval shall be revoked if it amends, adds and/or changes the contents included in the rice import approval;

6. This approval shall be effective until ……… Jakarta,

DIRECTOR GENERAL OF FOREIGN TRADE

Copy is sent to:

- Minister of Industry and Trade;

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- Directorate General of BPPHP, Ministry of Agriculture; - Inspectorate General of Ministry of Indusry and Trade;

- Directorate General of Customs and Excise, Ministry of Finance;

- Head of Provincial Industry and Trade Office ……….. Appendix V

REPORT ON REALIZATION AND THE USE OF RICE IMPORTATION (IT-RICE)

(Month : ………... Year ………..) Name of Company :

Head Office Address :

Status as IT Rice : No. Date : Rice Import Approval : No. Date:

Total :

Post Tariff/HS No. :

Unloading Port :

No.

Import Realization

Distribution Realization

Remark No.

PIB

Total Name of

Company Address Total

Volume Value

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