The Minister of Trade
(“Minister”) has issued Regulation
No. 119/M-DAG/PER/12/2015 on Export Provisions for Processed and Purified Mining Products
(“2015 Regulation”).
In essence, the 2015 Regulation aims to simplify the procedures governing mining businesses looking to export mining products which have been processed and purified in Indonesia. Prior to the issuance of the 2015 Regulation, these matters were addressed by four different regulations, namely:
The 2015 Regulation is of relevance to all companies currently involved in, or intending to become involved in, the export of processed and purified mining products and their related business activities.
Mining Products
The Appendices to the 2015 Regulation sets out a list of processed and purified mining products (“Mining Products”) which can be exported under specific conditions, as well as the products which are prohibited from being exported. Details of these Mining Products and their relevant export conditions are as follows:
|
Appendix |
Mining Products |
Conditions |
|
I |
|
• |
Metals and Non-metals (e.g. quartz, kaolin, silver, gold, carbonic calcium; and so forth); and |
|
• |
Rocks (e.g. slate, marble, granite, onyx, opal, and so forth).[2] |
|
These Mining Products must undergo a verification/technical assessment process conducted by an appointed surveyor.[3] |
|
II |
|
• |
Iron concentrates; |
|
• |
Manganese concentrates; |
|
• |
Copper concentrates; |
|
• |
Zinc concentrates; |
|
• |
Titanium concentrates; and so forth.[4] |
|
These products can only be exported under the following conditions:
|
• |
If Export Approval has first been secured from the Minister; |
|
• |
If the products have undergone a process of verification/technical assessment conducted by an appointed surveyor; and[5] |
|
• |
Products can only be exported until 12 January 2017.[6] |
|
|
III |
|
• |
Ores/raw materials (e.g. manganese ore, nickel ore, cobalt ore, aluminum ore, and so forth); |
|
• |
Mining Products which do not meet the minimum threshold for processing (e.g. iron concentrates containing < 62% FE and > 1% TiO2, and so forth); and |
|
• |
Mining Products which do not meet the minimum threshold for processing and/or purification (e.g. cullet quartz containing < 80% SiO2, and so forth).[7] |
|
These products are prohibited from being exported.[8] |
However, it should be noted that the export limitations set out under the 2015 Regulation do not apply to the following Mining Products:
[9]
|
a. |
Products to be used for exhibition purposes; |
|
b. |
Products carried by passengers or crews of transportation vehicles as part of their personal belongings; |
|
c. |
Products deemed to be of artistic value; |
|
d. |
Products made from fully imported materials; and |
|
e. |
Industrial products which are completely made from scrap materials. |
In general, no substantial changes have been made to the 2015 Regulation and the Previous Regulation, except for a few minor additions and subtractions being made to the list of Mining Products which can and cannot be exported, as stipulated in the Appendices.
Export Approval
Mining Products listed in Appendices I and II to the 2015 Regulation can only be exported by companies (“
Company”) which have already secured:
[10]
|
a. |
A Mining-Business License (Izin Usaha Produksi – “IUP”) for operation and production with the relevant Clean and Clear (“CnC”) certificate; |
|
b. |
A Special-Mining-Business License (Izin Usaha Pertambangan Khusus – “IUPK”) with the relevant CnC certificate; |
|
c. |
A special operation and production IUP for the processing and purification stages; |
|
d. |
An Industrial Business License (Izin Usaha Industri – “IUI”); or |
|
e. |
An Industrial Registration Certificate (Tanda Daftar Industri – “TDI”) |
Inorder to secure the relevant Export Approval, the Company must submit a written application to the Director General of Foreign Trade at the Ministry of Trade
(“Director General”) along with the following documents:
[11]
|
a. |
A copy of a business license (e.g. IUP, IUPK, or IUI); |
|
b. |
A copy of a taxpayer identification number (NPWP); |
|
c. |
A copy of a TDI; and |
|
e. |
An original recommendation letter from the Director General of Coals and Minerals (which should contain, at the least, information relating to the loading port, as well as the type, description, and quantity of the Mining Products in question, and so forth).[12] |
The Director General will then issue the relevant Export Approval within five working days of taking receipt of a completed application.
[13] Once granted, an Export Approval is valid for six months.
[14]
Previously, the 2012 Regulation required a Company to secure Gold and Silver Export Approval before exporting any gold or silver mining products.
[15] Moreover, the 2014 Regulation also required a Company to be recognized as a Registered Importer in order to export any Mining Products.
[16]. However, these provisions are no longer incorporated under the 2015 Regulation.
Verification/Technical Assessment
As mentioned above, the Mining Products listed in Appendices I and II to the 2015 Regulation can only be exported after they have undergone a verification or technical assessment process conducted by a surveyor who has been appointed by the Director General (on behalf of the Minister).
[17] In order to be verified/assessed, a Company must first submit an application to the surveyor.
[18]
Verification or technical assessment consists of following elements:
[19]
|
a. |
Assessment of the validity of the administration and origins of the Mining Products in question;[20] |
|
b. |
Assessment of the quantity and value of the Mining Products; |
|
c. |
Assessment of the export country and destination port; |
|
d. |
Assessment of the type and specifications of the Mining Products in question; and so forth |
Data from the verification/technical assessment process is to be compiled in a Surveyor’s Report, which will be used as a supporting document for use during customs procedures.
[21] A Surveyor’s Report must be issued within one day of the Mining Products being assessed and must be posted online to the Indonesia National Single Window website (
http://inatrade.kemendag.go.id).
[22]
Reporting Obligations and Sanctions
A Company must submit a written report regarding its export implementation every month (to be submitted no later than the 15
th of each month) to the Director of Exports for Industrial and Mining Products at the Ministry of Trade, with copies also being sent to the Director General of Minerals and Coal; the Director General of Chemicals, Textiles, and Other Industries; and the Director General of the Metals Industry, Transportation Machinery, and Electronics.
[23] Moreover, this report must also be submitted electronically via
http://inatrade.kemendag.go.id.
[24]
Failure to comply with the reporting provision will result in administrative sanctions being applied in the form of a suspension of the issuance of a Surveyor’s Report for the following export activity.
[25]
The 2015 Regulation repeals and replaces the Previous Regulation.
The 2015 Regulation has been in force since 1 February 2016.
AP
[1]Art. 26, 2015 Regulation.
[2]For a complete list of Mining Products, see Appendix I to the 2015 Regulation.
[3]Art. 6 (1), 2015 Regulation.
[4]For a complete list of Mining Products, see Appendix II to the 2015 Regulation.
[5]Art. 6 (2), 2015 Regulation.
[6]Art. 3, 2015 Regulation.
[7]For a complete list of Mining Products, see Appendix 3 to the 2015 Regulation.
[8]Art. 4 (1) and (2), 2015 Regulation.
[9]Art. 20, 2015 Regulation.
[10]Art. 5, 2015 Regulation.
[11]Art. 7 (1), 2015 Regulation.
[12]Art. 7 (2), 2015 Regulation.
[13]Art. 7 (3), 2015 Regulation.
[14]Art. 7 (4), 2015 Regulation.
[15]Art. 3, 2012 Regulation.
[16]Art. 4 (1), 2014 Regulation.
[17]Art. 8 (3) and (4), 2015 Regulation.
[18]Art. 10 (1), 2015 Regulation.
[19]For a complete list of activities, see Art. 10 (2), 2015 Regulation.
[20]Art. 10 (3), 2015 Regulation.
[21]Art. 11 (1), 2015 Regulation.
[22]Arts. 12 (1) and 16 (1), 2015 Regulation.
[23]Art. 15 (1), 2015 Regulation.
[24]Art. 15 (2), 2015 Regulation.
[25]Art. 18 (1), 2015 Regulation.
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