COPY OF REGULATION OF THE MINISTER OF FINANCE THE REPUBLIC OF INDONESIA NUMBER 96/PMK.011/2014 CONCERNING THE IMPOSITION OF SAFEGUARD MEASURE TAX

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MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

-1- COPY OF

REGULATION OF THE MINISTER OF FINANCE THE REPUBLIC OF INDONESIA NUMBER 96/PMK.011/2014

CONCERNING

THE IMPOSITION OF SAFEGUARD MEASURE TAX

REGARDING IMPORTED PRODUCT OF COTTON YARN OTHER THAN SEWING THREAD

BY THE GRACE OF GOD ALMIGHTY

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

Considering: a. whereas pursuant to the provision of Article 70 of Government Regulation number 34 Year 2011concerning anti-dumping, Action Benefits and Precautions: Trade, on imported goods, in addition to the tax imposed on Safeguards may include the imposition of Safeguard Measures Tax;

b. whereas in order to protect domestic industries from import volume surges, it is necessary to amend the provisions of the Regulation of the Minister of Finance No. 87 / PMK.011 / 2011 on the Imposition of Safeguard Measures tax regarding Imports of Cotton Yarn Products other than Sewing Thread (Cotton Yarn Other Than Sewing Thread) whose validity period will end on June 5, 2014;

c. whereas based on the considerations of the final investigation Indonesian Trade Security Committee, where Safeguard of Duty is proved still a trend, the increase of the volume of imports of cotton yarn other than sewing thread which caused detriment to domestic industry, and if the imposition of Safeguard Measures

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tax ends, there will be an increase in the volume of imports of yarn cotton than sewing thread which will obstruct the recovery performance of the domestic industry.

d. whereas based on the considerations as referred, Indonesian Trade Security Committee has submitted recommendations of the imposition of Safeguard Measures tax to The Minister of Trade, which is an extension of the imposition of Safeguard Measures tax on imports of cotton yarn other than sewing thread;

e. whereas in order to follow up the results of the investigation by letter d, the Minister of Trade, through letter No. 635 / M-DAG / SD / 4/2014 dated April 10, 2014, and No. 597 / M-DAG / SD / 3/2014 dated March 19, 2014 expressed a extension proposal of the imposition of Safeguard Measures tax on imports of cotton yarn products other than sewing thread;

f. whereas based on the considerations as referred to point a, b, c, d and e, as well as in implementing the provisions of Article 23, paragraph D (2) of Law No. 10 of 1995 concerning Customs as amended by Act No. 17 of 2006, it is necessary to stipulate Regulation of the Minister of Finance concerning Imposition of Safeguard Measures tax regarding Imported Cotton Yarn other than Sewing Thread;

In the view of: 1. Law No. 7 of 1994 on Ratification of Agreement Establishing the World Trade Organization (State Gazette of the Republic of Indonesia of 1994 Number 57, Supplement to State Gazette of the Republic of Indonesia Number 3564);

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2. Law No. 10 Year 1995 on Customs (State Gazette of the Republic of Indonesia Year 1995 Number 75, Supplement to State Gazette of the Republic of Indonesia Number 3612) as it has been amended by Law No. 17 of 2006 (State Gazette of the Republic of Indonesia Year 2006 Number 93, Gazette of the Republic of Indonesia Number 4661);

3. Government Regulation No. 34 of 2011 on Antidumping Measures, Action Benefits and Trade Protection Measures (State Gazette of the Republic of Indonesia Year 2011 No. 66, State Gazette addition of the Republic of Indonesia Number 5225);

To enact: 1. Letter of the Minister of Trade No. 635 / M-DAG / SD / 4/2014 dated 10 April 2014 concerning the Extension Proposal of Imposition of Safeguard Measures tax regarding Imports BMTP Cotton Yarn other than Sewing Thread to the HS No. 5205 and 5206 (excluding No. HS. 5205.27.00.00, 5205.28.00.00, 5205.33.00.00, 5205.34.00.00, 5205.46.00.00, 5206.33.00.00, 5206.34.00.00, 5206.44.00.00);

2. Letter of the Minister of Trade No. 597 / M-DAG / SD / 3/2014 dated March 19, 2014 concerning the Request for Consideration of Imposition Proposal of Safeguard Measures tax regarding Imports of Cotton Yarn other than Sewing Thread to the HS No. 5205 and 5206 (excluding No. HS. 5205.27.00.00, 5205.28.00.00, 5205.33.00.00, 5205.34.00.00, 5205.46.00.00, 5206.33.00.00, 5206.34.00.00, 5206.44.00.00);

3. Letter of The Head of the Agency for the Assessment and Development of Trade as the Chairman of the National Interest Team No. 15 / BPPKP / PKN / SD / 04/2014 dated 29 April 2014

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cern

ing the Amendment List Excluded Countries From Imposition of Safeguard Measures tax regarding Imports of Cotton Yarn other than sewing thread to HS No. 5205 and 5206;

4. Report of Indonesian Trade Security Committee on Outcome Measures Investigation Extension of the Imposition of Trade Security Products Cotton Yarn other than Sewing Thread to No. Harmonized System (HS.) 5205 and 5206;

BE IT HEREBY RESOLVED:

To enact: REGULATION OF THE MINISTER OF FINANCE ON IMPOSITION OF SAFEGUARD MEASURES TAX REGARDING IMPORTED PRODUCTS OF YARN COTTON OTHER THAN SEWING THREAD.

Article 1

(1) On the import of cotton yarn products other than sewing thread, it is taxed Safeguard Measures tax.

(2) Imported products such as cotton yarn products other than sewing thread as referred to in paragraph (1) are as set out in Appendix I, which is an integral part of this regulation.

Article 2

Safeguard Measures Tax referred to in Article 1 shall be imposed for three (3) years with these following conditions:

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-5- Article 3

Safeguard Measures tax as referred to in Article 1 shall be imposed on the importation of all countries, except for products of cotton yarn other than sewing thread manufactured from

1 Year 1, the period from June 6, 2014 to June 5, 2015 Rp 28.065/kg 2 Year II, the period from June 6, 2015 to June 5 2016 Rp 25.522/ kg 3 Year III, The period from June 6, 2016 to June 5, 2017 Rp 22.979/ kg

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countries as contained in Appendix II, which is an integral part of this regulation.

Article 4

(1) Imposition of Safeguard Measures tax referred to in Article 1 is: a. Additional general import tax (Most Favored Nation); or b. Additional import tax preferences based on the schemes of

international goods trade agreements in force, in the case of import from countries included in the schemes of international goods trade agreements and the provisions in the schemes of international goods trade agreement.

(2) If the provisions in the schemes of international goods trade agreements are not met, the imposition of Safeguard Measures Import Tax on the importation of the countries included in the schemes of international goods trade agreement referred to in paragraph (1) letter b is an additional general tax (Most Favored Nation).

Article 5

On the import of cotton yarn products other than sewing thread coming from countries that are excluded from imposition of Safeguard Measures Import Tax as referred to in Article 3 and the countries that have trade cooperation with Indonesia as referred to in Article 4 paragraph (1) letter b, the importer shall submit a Certificate of Origin (Certificate of Origin).

Article 6

The provisions concerning the imposition of Safeguard Measures Import Tax rates referred to in Article 2 shall apply to the

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importation of goods which the notification document of import customs that is referred gets the registration number of the port of entry customs offices from the date of entry into force of this regulation.

Article 7

(1) This Ministry Regulation shall be valid for three (3) years from the date of entry into force of this regulation.

(2) This Regulation comes into force on June 6, 2014.

For public cognizance, this Regulation of Minister shall be promulgated by placing it in the State Gazette of the Republic of Indonesia. Stipulated in Jakarta on May 28, 2014 MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA, Signed,

Muhamad Chatib Basri

Promulgated in Jakarta on June 3, 2014

MINISTER OF JUSTICE AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA,

Signed

AMIR SYAMSUDIN

STATE GAZETTE OF THE REPUBLIC OF INDONESIA of 2012 NUMBER 175 Appendix ……….

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APPENDIX I

REGULATION OF THE MINISTER OF FINANCE NUMBER 96/PMK.011/2014

CONCERNING

THE IMPOSITION OF SAFEGUARD MEASURE TAX REGARDING IMPORTED PRODUCT OF COTTON YARN OTHER THAN SEWING THREAD

THE IMPORTED PRODUCT SUCH AS COTTON YARN OTHER THAN SEWING THREAD IMPOSED WITH THE SAFEGUARD MEASURE TAX

NO. POS/SUB POS HEADING/ SUB POS HEADING

URAIAN BARANG DESCRIPTION OF GOODS

(1) (2) (3) (4)

52.05 Benang kapas (selain benang jahit) mengandung kapas 85% atau lebih menurut beratnya, tidak disipakan untuk penjualan eceran.

Cotton yarn (other than sewing thread) containing 85% or more by weight of cotton, not put up for retail sell

- Benang tunggal, dari serat tidak disisir: - Single yarn, of uncombed fibres: 1. 5205.11.00.00 - ukuran 714,29 atau lebih (tidak melebihi

nomor metrik 14)

- Measuring 714,29 decitex or more (not exceeding 14 metric number)

2. 5205.12.00.00 - Ukuran kurang dari 714,29 desiteks tetapi tidak kurang dari 232,56 desiteks (melebihi nomor metrik 14 tetapi tidak melebihi nomor metrik 43 )

- Measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number

3. 5205.13.00.00 - Ukuran kurang dari 232,56 desiteks tetapi tidak kurang dari 192,31 desiteks (melebihi nomor metrik 43 tapi tidak melebihi nomor metrik 52 )

- Measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number)

4. 5205.14.00.00 - Ukuran kurang dari 192,31 desiteks tetapi tidak kurang dari 125 desiteks (melebihi nomor metrik 52 tetapi tidak melebihi nomor metrik 80 )

- Measuring less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number)

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NO. POS/SUB POS HEADING/ SUB POS HEADING

(1) (2) (3) (4)

5. 5205.15.00.00 - Ukuran kurang dari 125 desiteks (melebihi nomor metrik 80 )

- Benang tunggal, dari serat disisir:

- Measuring less than 125 decitex (exceeding 80 metric number)

- Single yarn, of combed fibres 6. 5205.21.00.00 - Ukuran 714,29 desiteks atau lebih (tidak

melebihi nomor metric 14)

- Measuring 714.29 decitex or more (not exceeding 14 metric number)

7. 5205.22.00.00 - Ukuran kurang dari 714,29 desiteks tetapi tidak kurang dari 232,56 desiteks (melebihi nomor metrik 14 tetapi tidak melebihi nomor metrik 43)

9. 5205.24.00.00 - Ukuran kurang dari 192,31 desiteks tetapi tidak kurang dari 125 desiteks (melebihi nomor metrik 52 tetapi tidak melebihi nomor metrik 80)

10. 5205.26.00.00 - Ukuran kurang dari 125 desiteks tetapi tidak kurang dari 106,38 desiteks (melebihi nomor metrik 80 tetapi tidak melebihi nomor metrik 94)

- Benang rangkap (dilipat) atau benang kabel, dari serat tidak disisir

- Measuring less than 125 decitex but not less than 106,38 decitex (exceeding 80 metric number but not exceeding 94 metric number)

- Multiple (folded) or cable yarn, of uncombed fibres;

11. 5205.31.00.00 - Ukuran tiap barang tunggal 714,29 desiteks atau lebih (tidak melebihi nomor metrik 14 benang tunggal)

- Measuring per single yarn 714,29 decitex or more (not exceeding 14 metric number per single yarn)

12. 5205.32.00.00 - Ukuran tiap benang tunggal kurang dari 714,29 desiteks tetapi tidak kurang dari 232,56 desiteks (melebihi nomor metrik 14 tetapi tidak r:nelebihi nomor metrik 43 tiap benang tunggal)

- Measuring per single yarn less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number per single yarn)

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MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA NO. POS/SUB POS

HEADING/ SUB POS HEADING

(1) (2) (3) (4)

13. 5205.35.00.00 - Ukuran tiap benang tunggal kurang dari 125 desiteks (melebihi dari nomor metrik 80 tiap benang tunggal)

- Benang rangkap (dilipat) atau benang kabel, dari serat tidak disisir

- Measuring per single yarn less than 125 decitex (exceeding 80 metric number per single yarn) - Multiple (folded) or cabled yarn, of combed fibres;

14. 5205.41.00.00 - Ukuran tiap benang tunggal 714,29 desiteks atau lebih (tidak melebihi nomor metrik 14 tiap benang tunggal)

15. 5205.42.00.00 - Ukuran tiap benang tunggal kurang dari 714,29 desiteks tetapi tidak kurang dari 232,56 desiteks (melebihi nomor metrik 14 tetapi tidak melebihi nomor metrik 43 tiap benang tunggal)

17. 5205.44.00.00 - Ukuran tiap benang tunggal kurang dari 192,31 desiteks tetapi tidak kurang dari 125 desiteks (melebihi nomor metrik 52 tetapi tidak melebihi nomor metrik 80 tiap benang tunggal )

- Measuring per single yarn less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number per single yarn

19. 5205.48.00.00 - Ukuran tiap benang tunggal kurang dari 83,33 desiteks (melebihi nomor metrik 120 tiap benang tunggal)

- Measuring per single yarn less than 83,33 decitex (exceeding 120 metric number per single yarn)

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(1) (2) (3) (4)

52.06 Benang kapas (selain benang jahit),

mengandung kapas kurang dari 85%

menurut beratnya, tidak disiapkan untuk penjualaneceran

- Benang tunggal dari serat tidak disisir;

Cotton yarn (other than sewing thread), containing less than 85% by weight of cotton, not put up for retail sale.

- Single yarn, of uncombed fibres; 20. 5206.11.00.00 - Ukuran 714,29 desiteks atau lebih (tidak

melebihi nomor metrik 14)

- Measuring 714.29 decitex or more (not exceeding 14 metric number)

24. 5206.15.00.00 - Ukuran kurang dari 125 desiteks (melebihi nomor metrik 80)

- Benang tunggal, dari serat disisir

- Single yarn, of combed fibres 25. 5206.21.00.00 - Ukuran 714,29 desiteks atau lebih (tidak

melebihi nomor metrik 14)

- Measuring 714,29 or more (not exceeding 14 metric number)

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(1) (2) (3) (4)

29. 5206.25.00.00 - Ukuran kurang dari 125 desiteks (melebihi nomor metrik 80)

- Benang rangkap (dilipat) atau benang kabel, dari serat tidak disisir;

- Multiple (folded) or cabled yarn, of uncombed fibres;

30. 5206.31.00.00 - Ukuran tiap benang tunggal kurang dari 714,29 desiteks atau lebih (tidak melebihi nomor metrik 14 tiap benang tunggal)

32. 5206.35.00.00 - Ukuran tiap benang tunggal kurang dari 125 desiteks (melebihi nomor metrik 80 tiap benang tunggal)

- Benang rangkap (dilipat) atau benang kabel, dari serat disisir;

- Measuring per single yarn less than 125 decitex (exceeding 80 metric number per single yarn)

- Multiple (folded) or cabled yarn, of combed fibres; 33. 5206.41.00.00 - Ukuan tiap benang tunggal 714,29 desiteks

atau lebih (tidak melebihi nomor metrik 14 tiap benang tunggal)

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(1) (2) (3) (4)

36. 5206.45.00.00 - Ukuran tiap benang tunggal kurang dari 125 desiteks (melebihi nomor metrik 80 tiap benang tunggal)

- Measuring per single yarn less than 125 decitex (exceeding 80 metric number per single yarn)

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

Signed

MUHAMAD CHATIB BASRI Copy as the original version

HEAD OF GENERAL BEREU u.b

ADMINISTRATIVE HEAD OF THE MINISTRY Signed and stamped

GIARTO