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Minister of Trade Regulation on the Export of Mining Products
Minister of Trade Regulation No. 29/M-DAG/PER/5/2012 on the Export of Mining Products ("MoTR No.29/2012") was issued on 7 May 2012 in relation to the government policy to control the export of raw mineral ore. Previously, under a transitional provision of Minister of Energy and Mineral Resources Regulation No. 7 of 2012 on the Increase of Mineral Added Value Through Processing and Refining ("MoEMR No.7/2012"), mining companies (holders of Production Operation Mining Permits / Izin Usaha Pertambangan Operasi Produksi / "IUP OP" and Small Scale Mining Permits / Izin Pertambangan Rakyat / "IPR") whose license were issued prior to the enactment of this regulation were prohibited from exporting raw materials or ore three months as of its 6 February 2012 enactment.
Article 1 (2) of MoTR No. 29/2012 defines "mining product" as a non-renewable natural resources excavated from below the earth that has not been processed and/or purified (raw material or ore) and can be in the form of metallic minerals, non-metallic minerals, and stones. According to Article 2 of MoTR No. 29/2012, mining products whose export is regulated are listed under Appendix I of MoTR No. 29/2012. Therefore, not all mining product exports are subject to MoTR No.29/2012. Furthermore, Article 2 (2) specifies that such mining products that are exported shall be produced by the holder of an IUP OP, IPR, or Production Operation Special Mining Permit (Izin Usaha Pertambangan Khusus Operasi Produksi / "IUPK OP") and/or Contract of Work (Kontrak Karya / "KK").
Recognition as a listed mineral products exporter (Eksportir Terdaftar Produk Pertambangan) by the Minister of Trade ("Minister") is required prior to exporting the mineral products (Article 3 (1)). It can be obtained by submitting a written application to the Directorate General of Foreign Trade of the Ministry of Trade ("Directorate General") by enclosing:
a. copy of IUP OP, IPR, IUPK OP, KK, IUP OP specifically for processing and refining, or IUP OP specifically for transportation and selling;
b. copy of Company Registry;
c. copy of Tax Identification Number; and
d. recommendation from Directorate General of Energy and Mineral Resources.
The recognition as a listed exporter will be granted by the Directorate General at the latest 5 (five) working days as of the application being fully received and will be valid for 2 (two) years (Article 3 (4) and (5)). Procedure for the issuance of the recommendation will be further set out by the Directorate General of Energy and Mineral Resources (Article 6).
Other than recognition as a listed exporter, approval to undertake export of mining products shall also be acquired by submitting a written application along with the same documents as those to obtain recognition as a listed exporter. The approval will also be issued by the Directorate General at the latest 5 (five) working days as of the application being fully received.
Pursuant to Article 7, verification or technical assessment shall be undergone prior to export. Verification or technical assessment is conducted by a surveyor who meets the requirements as set out under Article 8 (1) and is appointed as a surveyor by submitting a written application to the Directorate General as set out under Article 8 (2). The exporter shall request the surveyor to undertake the obligated verification or technical assessment (Article 9 (1)).
Article 12 (1) requires listed exporters to submit monthly written reports on the implementation of export at the latest on the 15th of the month to the Directorate General with carbon copy to the Directorate General of Energy and Mineral Resources. The report can also be submitted via http://inatrade.kemendag.go.id. Surveyors are also obligated to submit a surveyor report ("Laporan Surveyor/LS") as the result of verification or technical assessment. LS shall be submitted also via http://inatrade.kemendag.go.id. which will be forwarded to the INSW portal. Other than LS, surveyors shall also submit monthly written reports on the verification of technical assessment implemented monthly.
Listed exporter status will be revoked under the following conditions (Article 15):
a. not submitting the obligated monthly report three times;
b. changing, addiing and/or amendmending of the contents of the listed exporter and/or export approval documents;
c. exporting the mining product whose type and/or amount is different from that stated within the documents of mining product export; and
d. declared guilty by a court in relation to a criminal act relating to the abuse of the recognition as a listed exporter and/or export approval.
Article 18 sets out that Minister of Trade Regulation No. 14/M-DAG/PER/5/2008 on Verification or Technical Assessment upon Export of Certain Mining Products and Minister of Trade Regulation No. 03/M-DAG/PER/1/2007 on Verification or Technical Assessment upon Export of Minerals of Group C Other Than Sand, Soil and Top Soil are still applicable, except for mining products as regulated under MoTR No.29/2012.
Source: Minister of Trade Regulation No. 29/M-DAG/PER/5/2012 on Export of Mining Products Provisions
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