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Circular Letter

SE.11/PHPL-PPHH/2015 1

This is an unofficial translation. In the event of any discrepancy between the Indonesian text and the English translation, the Indonesian text shall be decisive

\

Dear,

1. The owners of Forestry Products Importer Producer Identification

Number (API-P)

2. The owners of Forestry Products General Importer Identification Number

(API-U)

C I R C U L A R L E T T E R NUMBER : SE.11/PHPL – PPHH/2015

CONCERNING

DUE DILIGENCE PROCEDURES

1. General

Based on the Regulation of the Minister of Trade of the Republic of Indonesia Number: 97/M-DAG/PER/11/2015 on Imports of Forestry Products in lieu of the Regulation of the Minister of Trade of the Republic of Indonesia Number: 78/M-DAG/PER/10/2014, it is necessary to regulate the procedures on the implementation of due diligence for the API-P and API-U owners. With this regard, it is necessary for a smooth implementation for a Circular Letter from the Director General of the Sustainable Forest Management.

2. Purpose and Objectives

Provides explanation on the due diligence procedures of forest product imports.

MINISTRY OF ENVIRONMENT AND FORESTRY DIRECTORATE GENERAL OF SUSTAINABILE FOREST

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Circular Letter

SE.11/PHPL-PPHH/2015 2

This is an unofficial translation. In the event of any discrepancy between the Indonesian text and the English translation, the Indonesian text shall be decisive

3. Scope

3.1. Owners of Forestry Products Importer Producer Identification

Number (API-P)

3.2. Owners of Forestry Products General Importer Identification

Number (API-U)

4. Basics

4.1. Regulation of the Minister of Trade No. 27/M-DAG/PER/5/2012

concerning the Provisions of the Importer Identification Number (API).

4.2. Regulation of the Minister of Forestry Number:

SK.418/Menhut-VI/2012 on Timber Legality Verification Information System.

4.3. Regulation of the Minister of Trade of the Republic of Indonesia Number: 97/M-DAG/PER/11/2015 on Imports of Forest Products.

4.4. Regulation of the Minister of Forestry Number: P.43/

Menhut-II/2014 on the Assessment of Sustainable Production Forest Management Performance and Verification of Timber Legality for License Holders or in Private Forests, as amended by the Regulation of the Minister of Environment and Forestry Number: P.95/Menhut-II/2014.

4.5. The Regulation of the Director General of Sustainable Forest

Management No. P.7/PHPL-SET/2015 regarding the Procedure of Due Diligence Implementation, Publishing of Import Declaration and Forestry Product Import Recommendation.

5. The procedure setting for conducting due diligence in the

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Circular Letter

SE.11/PHPL-PPHH/2015 3

This is an unofficial translation. In the event of any discrepancy between the Indonesian text and the English translation, the Indonesian text shall be decisive

5.1. The understanding of Import Declaration is a written statement

from the importer stating forestry products to be imported is in accordance with the results of the implementation of due diligence undertaken by the importer.

5.2. Thus the implementation of due diligence is no longer carried out

by the Ministry of Environment and Forestry as Article 1 point 7 Minister of Trade of the Republic of Indonesia Regulation Number 78/M-DAG/PER/10/2014 Jo No.07/M-DAG/PER/1/2015 Jis No.63/M-DAG/PER/8/2015.

6. Companies that can import forestry products are owner of either

Forestry Products Importer Producer Identification Number (API-P) or owner of Forestry Products General Importer Identification Number (API-U) which has been approved by the Ministry of Trade. Thus, the provisions of the Registered Importers (IT) of Forestry Products is no longer valid.

Thereby, for your consideration and implementation.

Stipulated in Jakarta On 28 December 2015

DIRECTOR GENERAL OF SUSTAINABLE FOREST MANAGEMENT,

Signature

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Circular Letter

SE.11/PHPL-PPHH/2015 4

This is an unofficial translation. In the event of any discrepancy between the Indonesian text and the English translation, the Indonesian text shall be decisive

Copy:

1. The Minister of Environment and Forestry (as a report);

2. Governors throughout Indonesia;

3. Regents / Mayors throughout Indonesia;

4. Secretary General of the Ministry of Environment and Forestry;

5. Director General of Foreign Trade, Ministry of Commerce;

6. Director General of Agro Industry, Ministry of Industry;

7. Director General of Small and Medium Enterprises, Ministry of Industry;

8. Deputy for Food and Biological Resource Conservation, Ministry of

Coordinating Economic Affairs;

9. Chairman of the National Accreditation Committee;

10. Intra-Regional Cooperation Director of United States of America and

Europe, the Ministry of Foreign Affairs;

11. Technical Director of Customs, Directorate General of Customs, Ministry

of Finance;

12. Head of the Provincial Office in charge of Forestry;

13. Head of the Provincial Office in charge of Industry;

14. Head of the Provincial Office in charge of Trade;

15. Head of the Regency/City in charge of Forestry;

16. Head of the Regency/City in charge of Industry;

17. Head of the Regency/City in charge of Trade;

18. Head of Production Forest Utilization Monitoring Center Region I until XVIII;

19. Timber associations (APHI, APKINDO, ISWA, APKI, ASMINDO, MPI,

GPEI, AMKRI, ASEPHI, APKJ, HPKJ, and AWKMI);

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