TEXTILE AND TEXTILE PRODUCT EXPORT QUOTAS (Decree of the Minister of Industry and Trade No.02/MPP/Kep/I/2001
dated January 4, 2001)
THE MINISTER OF INDUSTRY AND TRADE, Considering:
a. that to increase and develop textile and textile product exports particularly to quota countries, there must be efforts to improve transparent quota management system to ensure the optimum one of quotas as well as business certainties for the business world;
b. that the improvement of the quota management system must yield added value for economic activities and facilities the issuance of certificates of textile export (SKET); c. that in conjunction with the matters in letters a and b, it is necessary to stipulate a
decree of the Minister of Industry and Trade to that effect: In view of :
1. Trade ordinance of 1934 (Statute Book of 1938 No.86);
2. Presidential Decree No.260/1967 concerning the tasks and responsibilities of the Minister of Trade in the field of foreign trade;
3. Presidential decree No.234/M/2000 concerning the formation of Cabinet for the 1999 – 2004 period;
4. Presidential Decree No.234/M/2000 concerning the position, tasks, function, authority, organizational structure and working system of ministries;
5. Presidential Decree No.177/2000 concerning the organizational structure and task of ministries;
6. Decree of the Minister of Industry and Trade No.444/MPP/Kep/II/1998 adj. No.24/MPP/Kep/I/1999 concerning the organization and working system of the Minister of Industry and Trade;
7. Decree of the Minister of Industry and Trade No.558/MPP/Kep/12/1998 concerning general provisions in the export sector, as has been amended by Decree of the Minister of Industry and Trade No.146/MPP/Kep/1999;
8. Decree of the Minister of Industry and Trade No.53/MPP/Kep/2/2000 concerning the takeover of textile and textile product quotas,
DECIDES : By revoking :
1. Decree of the Minister of Industry and Trade No.67/MPP/Kep/3/2000 concerning textile and textile product export quotas;
2. Decree of the Minister of Industry and Trade No.67/MPP/Kep/5/2000 concerning amendment to Decree of the Minister of Industry and Trade No.67/MPP/Kep/3/2000 concerning textile and textile product export quotas;
To stipulate :
THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE CONCERNING TEXTILE AND TEXTILE PRODUCT EXPORT QUOTAS
Article 1 DEFINITION Hereinafter referred to as :
1. Textile and Textile Products (TPT) shall be fibers, yarns, textile sheets, garments and other finished goods made of textiles included in the Indonesian Customs Duty Book under headings 42.02, 50.01 up to 63.10, 64.05, Ex.-65.01, Ex.-.65.02, Ex-65.03, Ex-65.04, Ex-65.t35, Ex-70.19, Ex-94.04, Ex-96.12,
2. Registered exporters of textiles and textile products (ETTPT) shall be the companies approved by the Ministry of Industry and Trade to export quota-based TPT,
3. Quota –based TPT shall be the category or group of TPT subjected to quotas,
4. Non-quota-based TPT shall be the category or group of TPT not subjected to quotas, 5. Producer ETTPT shall be the ETTPT having production facilities to produce TPT as
referred to in No.1,
6. Non producer ETTPT shall be the ETTPT having no production facilities to produce TPT as referred to in No.1
7. Quota shall be the maximum volume of the category or group of TPT allowed to be exported to quota countries,
8. Quota countries shall be the TPT importing countries imposing quotas on the basis of a bilateral agreement,
9. Non-quota countries shall be the TPT importing countries imposing no quotas,
10.Category or group of TPT shall be a certain group of TPT contained in an agreement between the importing country and the exporting country,
11.Quota year shall start from January 1 to December 31,
12.Base level quota shall be the quantity of initial quota in the current quota year for a certain category or group of TPT,
13.Growth quota (KPt) shall be the additional quota given by quota countries in each quota year with the quantity adjusted to a bilateral agreement,
14.Working level quota shall be the quota in the current quota year gained after adjustment is made on the basis of a bilateral agreement,
15.Carryover quota shall be the unused quota in the previous year which can be used in the current quota year on the basis of a bilateral agreement,
16.Swing shall be the quota which can be changed from one category or group of TPT to another category or group of TPT,
17.Swap shall be the quota which can be exchanged for quota from other countries in the current quota year
18.Allocation shall be the allocation of quotas for categories or groups of TPT by the government to ETTPT,
19.Fixed quota (KT) shall be the quota allocated every year and originated from base level quota,
21.Transfer of fixed quotas shall be the change in the ownership of fixed quotas from one ETTPT to another ,
22.Flexibility quota (KF) shall be the quota originated from carryover quota, swing, swap, entrusted fixed quota and handicraft quota,
23.Special shift quota (KSS) shall be the quota originated from the change in certain categories of TPT based on a bilateral agreement,
24.Donor category shall be the certain category of TPT which based on a bilateral agreement is used as a source of change for other certain category of TPT,
25.Recipient category shall be the certain category of TPT which based on a bilateral agreement is used as the recipient of change from the other certain category of TPT, 26.Lent quota (KP) shall be the quota borrowed from the base level quota in the ensuing
quota year and used in the current quota year on the basis of a bilateral agreement, 27.Export obligation shall be the obligation to realize quotas already allocated,
28.Realization achievement (PR) shall be the realization of TPT exports by ETTPT compared to their export obligation in one quota year,
29.National realization achievement (PRN) shall be the realization of TPT export nationwide compared to base level quotas in one quota year,
30.Certificate of TPT export (SKET) shall be the document accompanying quota-based TPT to prove that the quota-based TPT are originated from Indonesia on the basis of a bilateral agreement,
31.SKET issuing agency shall be the agency or institute appointed by the Minister of Industry and Trade to issue SKET,
32.Global quotas shall be the quota allocated to IPSKET at a certain time for further distribution to ETTPT in its territory,
33.Non global quota shall be the quota allocated any time so long as the requested quota is still available,
34.Partnership shall be the model of cooperation among small businesses/cooperatives as ETTPT (ETTPT-PKK) or between ETTPT-PKK and medium and large businesses as ETTPT (ETTPT-PMB) in realizing quotas already allocated,
35.Under Name shall be the model of cooperation among ETTPT-PMB in realizing quotas already allocated
Article 2 ETTPT
(1) IPSKET shall dealers small businesses and cooperatives as ETTPT-PKK after they have fulfilled the following requirements:
a. having a production unit with 15 to 150 high speed sewing machines or knitting machines which are all in operation;
b. being a separate business establishment which does not constitute a subsidiary or branch company owned/controlled by or affiliated directly or indirectly to a medium or large businesses.
c. the location of plant conforms with the address in their permit and does not accommodate more than one producer ETTPt in one address.
(3) The Director of Industrial and Mining Product Exports, Directorate General of Foreign Trade shall give computer codes to ETTPT-PKK and ETTPt-PMB.
(4) Application for ETTPt shall be complete with: a. commercial business permit (SIUP)
b. industrial business permit (IUI) or industrial registry code (TDI); c. own’s realization of non-quota-based TPt exports;
d. corporate registry code (TDP);
e. official report on the physical audit of office and production unit as well as production capacity endorsed by the official of IPsKET where the applicants/companies are domiciled.
(5) The companies which have been already declared as ETTPT, shall report to the IPSKET any change in the contents of the documents as referred to in paragraph (4) (6) Non producer ETTPT which have been already operational before the issuance of this
decree shall remain valid
Article 3 IPSKET (1) The Minister of Industry and Trade shall declare
a. PT (limited liability company) Kawasan Berikat Nusantara;
b. The Authorities for the Development of Industrial Estate in Batam Island; c. Certain agencies subordinate to the Industry and Trade Ministry;
d. Other agencies or institutes endorsed by the Minister of Industry and Trade. (2) IPSKET shall be authorized to issue SKET on the basis of a bilateral agreement,
including:
a. Visaeled Commercial Invoices for the United States of America; b. Export Licenses for Europe and Turkey;
c. Certificates of Origin, Form K, for Canada. d. Certificates of Origin, Form N, for Norway.
(3) ETTPT which will export categories or groups of TPT to quota countries, shall apply for SKET by fulfilling the requirement for the origin of goods imposed by the said quota countries.
Article 4
APPLICATIONS FOR QUOTA ALLOCATIONS
(1) Producer ETPT-PKK which have been in possession of fixed quota (KT) can apply for KPt, KF, KSS and KP allocations.
(2) Producer ETTPT-PKK which have not been in possession of KT can only apply for KPt and KF allocations.
(3) Producer ETTPt-PMB which have been in possession of KT can apply for KF, KSS, and KP allocations.
(4) Producer ETTPT-PMB which have not been in possession of KT can only apply for KF allocations.
(5) KT, KPt, KF, KSS and KP shall be allocated to producer ETTPT in accordance with the categories or groups of TPT produced by the relevant producer ETTPT.
Article 5 KT
(1) The Director General of Foreign Trade shall realize KT allocations in 2 (two) stages and announce KT allocations through the relevant IPSKET as follows:
a. First state (temporary) they shall be announced no later than the fourth week of December in the current quota year.
b. Second state (definitive) they shall be announced no later than the third week of January in the ensuing quota year
(2) ETTPT which have KT and realize exports in the current quota year shall be eligible for KT allocation for the ensuing quota year as referred to in paragraph (1) letters a and b.
(3) In the event that the KT allocations as meant in paragraph (1) letter b deviate from the calculation by ETTPT, the relevant ETTPT can apply for a review of KT calculations.
(4) KT under which exports are not realized shall be deducted from KT allocations in the ensuing quota year.
(5) ETTPT can transfer their KT to other ETTPT directly and shall report the transfer of KT to the relevant IPSKET for endorsement.
(6) Kt allocated to ETTPT shall not be absolute in nature and can be allocated to other ETTPT in order to get added value and/or higher export value.
(7) The Director General of Foreign Trade shall approve KT allocations to other ETTPT as referred to in paragraph (6) after receiving approval from the Minister of Industry and Trade.
Article 6 KPt
(1) ETTPT-PKK can apply to the relevant IPSKET for KPt in the ensuing quota year. (2) KPt for ETTPT-PKK shall originate from the growth of base level quotas.
(3) The Director General of Foreign Trade shall give the quantity and categories or groups of TPT under KPt to each IPSKET on a global basis.
(4) Following are the criteria to gain KPt:
a. ETTPT have never sold KPt already obtained:;
b. Individuals or business entities having more than one ETTPT can only apply for KPt for one of the ETTPT;
c. ETTPT which have already gained KPt twice or more shall not be eligible for KPt in the ensuing quota year;
d. ETTPT which can apply for KPt shall hold an industrial business permit/TDI which has been valid for 1 (one) year or more.
(5) The Director General of Foreign Trade shall notify the quantity and categories or groups of TPT which can be allocated as KF for ETTPt-PKK, to each IPSKET. (6) The Director General of Foreign Trade shall allocate the quantity and types of quotas
to each IPSKET on a global basis and in proportion to the number of ETTPT-PKK (7) IPSKET shall decide KF allocations to ETTPT-PKK
a. if the KF for which ETTPt-PMB apply are smaller than the available KF, then Kf shall be allocated to each ETTPt-PMB a maximum of the quantity they apply for, b. If the KF for which ETTPT-PMB apply exceed the available KF, then KF shall
be allocated to ETTPt-PMB in proportion to the installed production capacity as contained in their industrial business permit.
(9) Global KF shall be valid for 6 (six) month starting from the issuance date of allocation permit and cannot be extended, while non global KF shall be valid for 3 (three) months.
Article 7 KF (1) Producer ETTPT shall be eligible for KF by :
a. filing applications to the relevant IPSKEt (for ETTPT-PKK);
b. filing applications to the Director of Industrial and Mining Product Exports, Directorate General of Foreign Trade, (for ETTPT-PMB).
(2) Global KF shall be allocated in April and non global KF shall be allocated any time starting from February as long as the quotas are still available.
(3) The available KF shall be allocated to ETTPT-PKK and ETTPT-PMB.
(4) ETTPT which transfer or entrust 10% (ten percent) of their KT or more, shall not be eligible for KF for the category in the current quota year.
(5) The Director General of Foreign Trade shall notify the quantity and categories or groups of TPT which can be allocated as KF for ETTPT-PKK, to each IPSKET. (6) The Director General of Foreign Trade shall allocate the quantity and types of quotas
to each IPSKET on a global basis and in proportion to the number of ETTPT-PKK. (7) IPSKET shall decide KF allocations to ETTPT-PKK
(8) The Director General of Foreign Trade shall decide global KF allocations to ETTPT-PMB with the provision that :
a. if the KF for which ETTPT-PMB apply are smaller than the available KF, then KF shall be allocated to each ETTPT-PMB a maximum of the quantity they apply for.
b. if the KF for which ETTPT-PMB apply exceed the available KF, then KF shall be allocated to ETTPT-PMB in proportion to the installed production capacity as contained in their industrial business permit.
(9) Global KF shall be valid for 6 (six) months starting from the issuance date of allocation permit and cannot be extended, while non global KF shall be valid for 3 (three) months.
Article 8 KP (1) Producer ETTPt shall be eligible for KP by :
a. filing applications to the relevant IPSKET (for ETTPt-PKK);
b. Filing applications to the Director of Industrial and Mining Product Exports, Directorate General of Foreign Trade, (for ETTPT-PMB)
a. starting from January in the current quota year, producer ETTPT as Kt owners can apply for KP a maximum of the quantity laid down in the bilateral agreement and must not exceed KT already realized;
b. starting from June in the current quota year, producer ETTPT as KT owners which have realized 50% (fifty percent) of TPT quotas or more can apply for KP in excess of the quantity laid down in the bilateral agreement but a maximum of the volume of exports realized using KT.
c. applications for next KP will be processed, if the export of TPt under the previous KP allocations has been 100% (a hundred percent) realized.
(3) In the event that producer ETTPt which have KT do not benefit from KP rights partially or wholly in the current quota year, ETTPT which have no Kt can use the KP rights using guarantees from ETTPT which have the said KT and are ready to have their KT reduced in the ensuing quota year.
(4) The quotas as meant in paragraph (3) shall be allocated in the from of KF by observing provisions in paragraph (2).
(5) KP shall be valid for a maximum of 3 (three) months starting from the issuance date of allocation permit and can not be extended.
(6) The Director General of Foreign Trade shall allocate KP to ETTPT-PKK in the working territory of IPSKET on a global basis and in proportion to KT owned by ETTPT-PKK in the working territory of respective IPSKET.
(7) IPSKET shall decide KP allocations for ETTPT-PKK based on certain percentages in accordance with the bilateral agreement and the KP allocations shall not exceed KT already realized by each of the ETTPt-PKK.
(8) The Director of Industrial and Mining Product Exports, Directorate General of Foreign Trade, shall decide KP allocation for ETTPT-PMB.
(9) KP realized shall be calculated in the ensuing quota year, except if quota countries do not reduce base level quotas nationwide or national exports are lower than or equal to base level quota.
(10)if quota countries reduce base level quotas based on the realization of KP in the previous quota year, KP shall be allocated to each of the ETTPt in proportion to the realization of KP by each of the ETTPT.
Article 9 KSS
(1) Producer ETTPT which have Kt under donor category and KT under recipient category shall be eligible for KSS by :
a. filing applications to IPSKET (for ETTPT-PKK);
b. filing applications to the Director of Industrial and Mining Product Exports, Directorate General of Foreign Trade, (for ETTPT-PMB).
(2) KSS shall be allocated to producer ETTPT which have Kt under both categories as referred to in paragraph (1) in 2 (two) states in the current quota year.
(3) The stages as referred to in paragraph (2) shall be as follows ; a. First state starting from the first week of March.
(4) The Director General of Foreign Trade shall allocate the quantity and categories of TPT under KSS to ETTPt-PKK in the working territory of respective IPSKET on a global basis using certain percentages in accordance with the bilateral agreement. (5) IPSKET shall decide KSS allocations for ETTPt-PKK.
(6) The Director General of Industrial and Mining Product Exports, Directorate General of Foreign Trade, shall decide KSS allocations for ETTPT-Pt 1B
(7) KT under the recipient and donor categories which can be exchanged for KSS shall be KT which do not originate from the change of ownership or KPt.
(8) KSS realized shall be treated as KT under the category of origin in the ensuing quota year.
(9) ETTPT which transfer 10% (ten percent) of KT under the donor or recipient category or more, shall not be eligible for KSS in the current quota year.
Article 10 PARTNERSHIP
(1) Producer ETTPT which cannot realize their own export quotas can apply to the relevant IPSKET for partnership with other producer ETTPT.
(2) The types of TPT quotas which can be realized under a partnership schema shall include KT, KF and KPt.
(3) SKET shall be issued under the name of quota recipients.
(4) Partnership export realization achievement shall be given to quota owners.
(5) The quotas realized under a partnership schema as referred to in paragraph (2) shall not be realized under a partnership schema again with other producer ETTPT.
Article 11
UNDER NAME QUOTAS
(1) In the event that ETTPT cannot realize quotas on their own, the quotas can be used to export the categories or groups of TPT belonging to other ETTPT (under name quotas)
(2) The other ETTPT as referred to in paragraph (1) shall report the realization of under name quotas to the relevant IPSKET with a copy addressed to the Director of Industrial and Mining Product Exports.
(3) The under name quotas reported as referred to in paragraph (1) and (2) shall be those realized since this decree took effect.
(4) The under name quotas shall include KT, KF and KPt.
(5) SKET shall be issued under the name of ETTPT as quota owners.
(6) Under name quota export realization achievement shall be given to ETTPT as goods owners in the form of KF in the ensuing quota year.
Article 12 ENTRUSTED KT
(1) ETTPT can file applications to the Director of Industrial and Mining Product Exports, Directorate General of Foreign Trade, to entrust KT after the relevant IPSKET has signed the applications no later than June 30.
entrusted KT from KT and return the entrusted KT to the Director of Industrial and Mining Product Exports, Directorate General of Foreign Trade.
(3) ETTPT who have entrusted KT for 2 (two) consecutive years, shall have the average quantity of KT entrusted over the period deducted from KT.
(4) The deduction of entrusted KT from KT shall be done at the start of the ensuing quota year.
(5) The types of quotas which can be entrusted to the Director of Industrial and Mining Product Exports, Directorate General of Foreign Trade shall be KT which do not originate from :
a. the transfer as referred to in article 4 paragraph (5) or
b. the allocations received from other ETTPT as referred to in article 4 paragraph (6).
Article 13
THE MONITORING OF TPT QUOTAS
(1) To help ensure that the realization of TPT exports runs smoothly as well as to boost TPT exports, PT Sucofindo shall monitor the realization of TPT exports.
(2) The monitoring as referred to in paragraph (1) shall be conducted on the basis of working agreement between PT Sucofindo and the Ministry of Industry and Trade (3) The monitoring shall be conducted through a TPT export quota monitoring system
which can be accessed by TPT producers/associations through the websites of the Ministry of Industry and Trade and PT Sucofindo.
Article 14 SANCTIONS (1) ETTPT shall be liable to written warnings if :
a. they do not report the change as referred to in Article 2 paragraph (5), to IPSKET,
b. they violate provisions in Article 3 paragraph (3) and Article 10 paragraph (5), c. They do not report the realization of exports as referred to in Article 11
paragraph (2).
(2) The written warnings as referred to in paragraph (1) shall be given three times consecutively with a span of 2 (two) weeks by the official authorized to issue ETTPT (3) ETTPT shall be frozen if they do not heed provisions in paragraph (2).
(4) While the relevant ETTPT are frozen, they shall be banned from exporting TPT to quota countries.
(5) The freezing period of time as referred to in paragraph (3) shall cover 6 (six) months. (6) ETTPT frozen can resume TPT exports if they have heeded the warnings by making
improvements and fulfilling obligations in accordance with this decree. (7) ETTPT shall be revoked if:
a. ETTPT are obtained on the basis of incorrect or take information/data from the relevant companies.
b. the relevant ETTPT make no improvement after the freezing period of time has passed.
Article 15
The Director General of Foreign Trade shall stipulated further provisions required for the implementation of this decree.
Article 16
This decree shall come in to force as from the date of stipulation.
For public cognizance, this decree shall be announced by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta On January 4, 2001 THE MINISTER OF INDUSTRY AND TRADE
sgd.
