(PP) Number 3 of 2008 (State Gazette of the Republic of Indonesia of 2008 Number 16, Addendum to State Gazette of the Republic of Indonesia Number

Transcription

1 "This translation is provided as a non-sworn and legal translation from Bahasa Indonesia into English. This translated version is provided as referral knowledge purpose only. For any legal use of this document, we suggest user to obtain the legal translation version." THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA REGULATION OF THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA NUMBER 64/M-DAG/PER/I0/2012 CONCERNING PROVISIONS ON EXPORT OF FORESTRY INDUSTRY PRODUCTS WITH THE BLESSINGS OF GOD ALMIGHTY THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA, Considering: a. That in the framework of developing the downstream of forestry industry products it is necessary to support it with source of material which is both legal and sustainably managed; b. That in order to encourage export and prevent illegal timber and wood product trade, and adjustment to the new classification system of export goods and standard verification on legality of timber, it is necessary to re-arrange the export regulation for forestry industry products; c. That based on consideration as specified in letter a and letter b, it is necessary to stipulate this regulation of the Minister of Trade; In View of: 1. Bedrijfsreglementerings Ordonnantie of 1934 (State Gazette of 1938 Number 86); 2. Law No.5 of 1984 concerning Industry (State Gazette of the Republic of Indonesia of 1984 Number 22, Addendum to State Gazette of the Republic of Indonesia Number 3274); 3. Law No.10 of 1995 concerning Custom (State Gazette of the Republic of Indonesia of 1995 Number 75, Addendum to State Gazette of the Republic of Indonesia Number 3612) as already amended by Law No.17 of 2006 (State Gazette of the Republic of Indonesia of 2006 Number 93, Addendum to State Gazette of the Republic of Indonesia Number 4661); 4. Law No.41 of 1999 concerning Forestry (State Gazette of the Republic of Indonesia of 1999 Number 167, Addendum to State Gazette of the Republic of Indonesia Number 3888) as already amended by Law No.19 of 2004 concerning Decision on Government Regulation (PP) as Substitute to Law No.1 of 2004 concerning Amendment on Law No.41 of 1999 concerning Forestry into Law (State Gazette of the Republic of Indonesia of 2004 Number 86, Addendum to State Gazette of the Republic of Indonesia Number 4412); 5. Government Regulation (PP) Number 6 of 2007 concerning Forest Management and the Making of Forest Management Plan, as well as Forest Utilization (State Gazette of the Republic of Indonesia of 2007 Number 22, Addendum to State Gazette of the Republic of Indonesia Number 4696) as already amended by Government Regulation

2 (PP) Number 3 of 2008 (State Gazette of the Republic of Indonesia of 2008 Number 16, Addendum to State Gazette of the Republic of Indonesia Number 4814); 6. Presidential Decree Number 260 of 1967 concerning Confirmation on Duty and Responsibility of the Minister of Trade in Domestic Trade Affairs; 7. Presidential Decree Number 84/P of 2009 concerning Establishment of Indonesia Bersatu II Cabinet as already amended by Presidential Decree Number 59/P of 2011; 8. Presidential Regulation Number 47 of 2009 concerning Establishment and Organization of State Ministry as already amended by Presidential Regulation Number 91 of 2011; 9. Presidential Regulation Number 24 of 2010 concerning Position, Duty and Function of the State Ministry as well as the Organization Structure, Duty and Function of Echelon I of the State Ministry as already amended several times, lastly by the Presidential Regulation Number 92 of 2011; 10. Decision of the Minister of Trade Number 92/M-DAG/KEP/3/2007 concerning Redelegation and Distribution of Authority for Signing of Acknowledgement, Registration, Permit letter, or Certain Approval for Export and Import; 11. Regulation of the Minister of Trade Number 31/M-DAG/PER/7/2010 concerning Organization and Procedure of Work in the Ministry of Trade; 12. Regulation of the Minister of Trade Number 35/M-DAG/PER/11/2011 concerning provisions on Export of Rattan and Rattan Products; 13. Regulation of the Minister of Forestry Number P.38/Menhut-II/2009 concerning Standard and Guideline for Performance Assessment of Management of Sustainable Production Forest and Verification on Legality of Timber on Permit Holder or on Private Forest as already amended by Regulation of the Minister of Forestry Number P.68/Menhut-II/2011; 14. Regulation of the Minister of Trade Number 13/M-DAG/PER/3/2012 concerning General Provisions on Export; HAS DECIDED: To Stipulate THE REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS ON EXPORT OF FORESTRY INDUSTRY PRODUCTS. Article 1 In this Regulation of the Minister what is meant by: 1. Forestry industry product is any processed timber product and their subsequent products as well as ready-to-use rattan products. 2. Timber or wood is part of the tree trunk containing cambium (ligno cellulose) not including bamboo and/or other types of trees.

3 3. Registered Exporters of Forestry Industry Products or hereinafter shall be abbreviated as ETPIK is the forestry industry company already obtaining acknowledgement or permit to conduct export of Forestry industry products. 4. Non-Producer Registered Exporters of Forestry Industry Products or hereinafter shall be abbreviated as ETPIK Non-Producer is trade company already obtaining acknowledgement or permit to conduct export of forestry industry products. 5. Verification Agency on legality of timber or hereinafter shall be abbreviated as LVLK is a legal entity agency operating under the law of Indonesia and performing verification on legality of timber. 6. Certificate of Legality of timber or hereinafter shall be abbreviated as SLK is a certificate letter provided to the Permit Holder, holder of concession right, or owner of Private Forest stating that the said permit holder, holder of concession right, or owner of the private forest has complied to the standard legality of timber. 7. V-Legal Document is documents stating that a timber product has complied with the standard verification on legality of timber in accordance to the provisions in prevailing laws and regulations. 8. Verification Information Unit on legality of timber or Licensing Information Unit (LIU) is a management unit for verification information on legality of timber domiciled in the Ministry of Forestry. 9. Minister is the Minister whose duties include the governance of trade sector. 10. Director General is the Director General under the Ministry of Trade whose duties include international trade sector. 11. Director is the Director whose duties include management of export of forestry product under the Directorate General of International Trade of the Ministry of Trade. Article 2 Forestry Industry products being limited for export are listed in the Attachment I which make an inseparable part of this Regulation of the Minister. Article 3 (1) Export of forestry industry products as listed in Article 2 can only be performed by: a. a forestry industry company already obtaining acknowledgement or permit as ETPIK company; and b. a trade company which exports forestry industry products and already obtaining acknowledgement or permit as ETPIK Non-Producer company. (2) ETPIK and ETPIK Non-Producer permits as specified in paragraph (1) letter a and letter b shall be issued by the Director General. (3) Director General shall delegate the authority to issue ETPIK and ETPIK Non- Producer permits as specified in paragraph (2) to the Director.

4 Article 4 (1) To obtain acknowledgement or permit as ETPIK as specified in Article 3 paragraph (1) letter a, the forestry industry company must submit written application letter to the Director. (2) The application as specified in paragraph (1) must be attached with documents as follows: a. copy of Industrial Business License (lui) or Industrial Business Registration (TOI); b. copy of Company Registration Certificate (TDP); c. copy of Taxpayer Registration Number (NPWP); d. copy of Company Establishment Deed including any amendment, for business entity company either as legal entity or non-legal entity; e. copy of certification of the legal entity issued by authority, for legal entity business company; and f. recommendation from the technical instance at local level whose duties include assistance and supervision of forestry industry sector in accordance to the provisions in prevailing laws and regulations. Article 5 (1) To obtain acknowledgement or permit as ETPIK Non-Producer as specified in Article 3 paragraph (1) letter b, an export trade company of forestry industry products must submit written application letter to the Director. (2) The application as specified in paragraph (1) must be attached with documents as follows: a. copy of Trade Business License (SIUP); b. copy of Company Registration Certificate (TDP); c. copy of Taxpayer Registration Number (NPWP); d. copy of Company Establishment Deed including any amendment, for business entity company of either legal entity or non-legal entity; e. copy of certification of legal entity issued by authority, for legal entity business company; f. copy of contract agreement with small-scale forestry industry non-owner of ETPIK legalized by local notary; and g. recommendation from the district/municipality office whose duty and responsibility is in trade sector in accordance to the domicile of the applying company.

5 Article 6 (1) The Director shall issue acknowledgement or permit as ETPIK and acknowledgement or permit as ETPIK Non-Producer at the latest five working days after receiving the application as specified in Article 4 and Article 5 in correct and complete set. (2) In case that the application as specified in Article 4 and Article 5 is incorrect and incomplete, Director shall reject the application acknowledgement or permit as ETPIK and acknowledgement or permit as ETPIK Non-Producer at the latest five working days after receiving the application by issuing letter of rejection with the rationale. Article 7 (1) Acknowledgement or permit as ETPIK and ETPIK Non-Producer shall be valid for five years as from the issuance date and extendable. (2) Validity period for ETPIK as specified in paragraph (1) only applies if the said company is still doing production and export activity of forestry industry products. (3) Validity period for ETPIK Non-Producer as specified in paragraph (1) only applies if the said company is still doing export of forestry industry products. Article 8 (1) In case that any data written on the documents as specified in Article 4 paragraph (2) or Article 5 paragraph (2) changes, holder company of ETPIK or ETPIK Non- Producer permit must submit application for revision of ETPIK or ETPIK Non- Producer as from the date of such data change by attaching the said documents containing the changes. (2) In case that the validity period of one of the documents as specified in Article 4 paragraph (2) or Article 5 paragraph (2) will expire, holder company of ETPIK or ETPIK Non-Producer permit must submit application for revision of ETPIK or ETPIK Non-Producer permits at least 10 (ten) working days before the said document expires its validity. (3) The Director shall issue revision of ETPIK and ETPIK Non-Producer permit at the latest five working days after receiving the application as specified in paragraph (1) and/or paragraph (2) in correct and complete set. (4) In case that the application as specified in paragraph (1) and/or paragraph (2) is incorrect and incomplete, the Director shall reject application for revision of ETPIK and ETPIK Non-Producer permits at the latest five working days after receiving such application. Article 9 ETPIK Non-Producer may work in partnership with other forestry industry company holder of lui but not owner of ETPIK.

6 Article 10 In case that export shall be performed by ETPIK Non-Producer, the forestry industry products must come from the forestry industry company working in partnership as specified in Article 5 paragraph (2) letter f and Article 9 as shown in ETPIK Non- Producer permit document. Article 11 (1) If necessary, to the company already obtaining acknowledgement or permit as ETPIK or ETPIK Non-Producer, the Director may assign an officer to conduct inspection concerning: a. validity of documents as required during the application of ETPIK or ETPIK Non- Producer as specified in Article 4 paragraph (2) and Article 5 paragraph (2); b. existence and domicile of the company or industry and/or their office; and c. production or export business activity in accordance to the ETPIK or ETPIK Non-Producer they have. (2) Inspection as specified in paragraph (1) can be performed by officer from the Ministry of Trade, Ministry of Industry, and Ministry of Forestry and/or by independent surveyor. (3) Investigation result as specified in paragraph (1) shall be put into investigation report of ETPIK or ETPIK Non-Producer. (4) The investigation report of ETPIK or ETPIK Non-Producer as specified in paragraph (3) should be submitted to the Director at least 30 (thirty) days after the said inspection is concluded. Article 12 (1) Forestry industry products included in Tariff Post/HS Ex up to Ex ; Ex up to Ex ; Ex up to Ex (particularly for laminated block, laminated board and barecore), Ex up to Ex (except for door and window board) and (particularly for prefabricated building material made of wood) are allowable for export if complying to provisions and technical criteria as specified in the Attachment II which make an inseparable part of this Regulation of the Minister. (2) Forestry industry products from coconut wood and palm tree wood in the form of Surfaced Four Side (S4S) or further remanufactured products are allowable for export without any restriction in volume. (3) Forestry industry products as listed in paragraph (1) not complying to provisions and technical criteria as specified in the Attachment II are allowable for export after being approved in coordination meeting among relevant technical instances. Article 13 (1) Every export of forestry industry products using the material of iron wood (kayu ulin) must first obtain Export Approval Letter (SPE) from the Director General after obtaining recommendation from the Ministry of Forestry.

7 (2) To obtain SPE as specified in paragraph (1), holder company of ETPIK and ETPIK Non-Producer must submit written application letter to the Director General by attaching: a. copy of ETPIK and ETPIK Non-Producer permit documents; b. recommendation from the Director General of Forestry Management Assistance of the Ministry of Forestry; and c. copy of timber product verification report on processed iron wood (Prokalino) from an independent surveyor. (3) The Director General shall issue SPE at the latest 10 (ten) working days after receiving the application as specified in paragraph (2) in correct and complete set. (4) In case that the application as specified in paragraph (2) is incorrect and incomplete, The Director General shall reject the application SPE at the latest 10 (ten) working days after receiving such application. (5) Validity period for an SPE is at the latest one year after the issuance date. Article 14 (1) Export of forestry industry products as listed in Article 2 must be accompanied by a V-Legal Document except for forestry industry products as listed in the Attachment I Group C. (2) V-Legal Document as specified in paragraph (1) shall be issued by LVLK already accredited by the National Accreditation Committee (KAN) and approved by the Minister of Forestry. (3) V-Legal Document as specified in paragraph (1) shall be used as obligatory custom support document when submitting export custom notice to custom authority. (4) Each one of V-Legal Document can only be used for one time submission of export custom notice. (5) LVLK through LIU shall deliver the V-Legal Document as specified in paragraph (1) to the Indonesia National Single Window (INSW) portal electronically through Inatrade system immediately after the issuance. (6) Any incurring cost on the service delivery of the issuance of V-Legal Document as specified in paragraph (1) should be paid by the exporter of which the amount will be determined by considering the principle of benefit. Article 15 The obligation to obtain V-Legal Document as specified in Article 14 paragraph (1): a. shall be applicable starting from 1 January 2013 for forestry industry products as listed in the Attachment I Group A. b. shall be applicable starting from 1 January 2014 for forestry industry products as listed in the Attachment I Group B.

8 Article 16 (1) Export of forestry industry products as listed in Article 12 paragraph (1) can only be done after the verification or technical inspection prior to loading. (2) The implementation of verification or technical inspection as specified in paragraph (1) shall be performed by independent surveyor as specified by the Minister. (3) In order to get the appointment as the implementing agency for verification or technical inspection on forestry industry products, a surveyor must comply to the following requirements: a. having a Survey Business Operation Permit; b. already accredited as Inspection Agency by KAN; c. already obtained their brevet as registered and acknowledged surveyor having the technical capability to do verification or technical inspection on forestry industry products; and d. having network of service all around Indonesia. (4) Verification or technical inspection on forestry industry products shall include: a. Administrative verification on physical inspection and/or electronic verification, to include: 1. validity of the ETPIK and ETPIK Non-Producer permit document; and 2. validity of the V-Legal Document. b. The physical verification shall include: 1. volume, type, brand and packaging number; 2. volume of goods; 3. type of timber; 4. technical criteria; 5. category based on Tariff Post/HS; The surveyor must observe the loading of goods into container, if the shipping is using container; and apply a seal on the said container if all goods inside the container have been checked by the Surveyor. (5) The verification or technical inspection result as specified in paragraph (4) shall be put into a Surveyor Report (LS) to be used as one of obligatory custom support documents when submitting export custom notice to custom authority. (6) The LS as specified in paragraph (5) must be submitted by the surveyor at least on 15 th day of the next month to the Director General with copies sent to the Director General of Agro Industry of the Ministry of Trade, and Director General of Forestry Management Assistance of the Ministry of Forestry. (7) Any incurring cost on the verification or technical inspection activity as specified in paragraph (4) should be paid by the Government.

9 Article 17 (1) Holder company of ETPIK or ETPIK Non-Producer permit as specified in Article 3 must submit the following reports: a. annual production plan and realization, as well as annual export plan and realization for holder of ETPIK permit; or b. annual export plan and realization for holder of ETPIK Non-Producer permit. (2) The report as specified in paragraph (1) should be submitted at least by end of February for: a. production and export realization of previous year, as well as production and export plan of current year for holder of ETPIK permit; or b. export realization of previous year and plan export of current year for holder of ETPIK Non-Producer permit. (3) Format of the report as specified in paragraph (2) is shown in Attachment III, Attachment IV, Attachment V, and Attachment VI which makes inseparable parts of this Regulation of the Minister. (4) The report as specified in paragraph (1) should be submitted to the Director General with copies sent to the Director General of Agro Industry of the Ministry of Trade, and Director General of Forestry Management Assistance of the Ministry of Forestry. Article 18 Acknowledgement or permit as ETPIK or ETPIK Non-Producer as specified in Article 4 paragraph (1) and Article 5 paragraph (1) shall be suspended if the company and/or management of the holder company of ETPIK permit or owner of ETPIK Non-Producer permit is found to: a. have done no production and export activity within the period of one year for a holder company of ETPIK permit or have done no export activity within the period of one year for a holder company of ETPIK Non-Producer permit; b. fail to perform the requirements as specified in Article l0; c. fail to perform the obligation as specified in Article 8 paragraph (2); and/or d. fail to perform the obligation as specified in Article 17. Article 19 (1) Acknowledgement or permit as ETPIK or ETPIK Non-Producer already suspended as specified in Article 18 can be reactivated if the company and/or management of the holder company of ETPIK or owner of ETPIK Non-Producer permit is found to: a. have resumed their production activity and have planned to do their export activity for a holder company of ETPIK permit or will do the export for a holder company of ETPIK Non-Producer permit; b. have complied with provisions as specified in Article 10;

10 c. have complied to the obligation as specified in Article 8 paragraph (2); and d. have complied with the obligation as specified in Article 17. (2) Reactivation of ETPIK or ETPIK Non-Producer as specified in paragraph (1) can only be done based on written application letter from the management of the holder company of ETPIK permit or owner of ETPIK Non-Producer permit to the Director. (3) The application for reactivation of ETPIK or ETPIK Non-Producer should be accompanied by the following documents: a. copy of Industrial Business License (lui) or Industrial Business Registration (TOI), for owner of ETPIK PERMIT; b. copy of Trade Business License (SIUP), for owner of ETPIK Non-Producer permit; c. copy of Company Registration Certificate (TDP); d. copy of Taxpayer Registration Number (NPWP); e. copy of Company Establishment Deed; and f. other documents to demonstrate compliance to requirements for reactivation as specified in paragraph (1). Article 20 Acknowledgement or permit as ETPIK or ETPIK Non-Producer as specified in Article 4 paragraph (1) and Article 5 paragraph (1) might be revoked if the company and/or management of the holder company of ETPIK permit or owner of ETPIK Non-Producer permit: a. has failed to perform the obligation as specified in Article 17 within the period of 30 (thirty) days since the date of permit suspension; b. is found to have perform any activity not in accordance to the permit they hold based on the investigation result as specified in Article 11 paragraph (1); c. has failed to comply to provisions as specified in Article 10 within the period of 14 (fourteen) days since the date of permit suspension; d. has failed to perform the obligation as specified in Article 8 paragraph (2) within the period of 14 (fourteen) days after such data change occurs; e. has been ruled by the court as guilty for a civil case related to misuse of the ETPIK or ETPIK Non-Producer permit and/or violation of provisions in export sector based on a court ruling with permanent legal power; f. has been suspended for their ETPIK or ETPIK Non-Producer permit twice and have committed another violation or incompliance; g. has failed to submit application for reactivation of their ETPIK or ETPIK Non- Producer permit after already being suspended for one year; and/or h. is found to have submitted false data or document in the permit application of:

11 1. ETPIK or ETPIK Non-Producer; or 2. revision of ETPIK or ETPIK Non-Producer. Article 21 (1) Such suspension, reactivation, and revocation of ETPIK or ETPIK Non-Producer permit as specified in Article 18, Article l9, and Article 20 shall be performed by the Director. (2) The Director shall issue notification letter of suspension, reactivation, and revocation of ETPIK or ETPIK Non-Producer permit as specified in paragraph (1) to the owner of ETPIK or ETPIK Non-Producer permit with copies sent to the Director General, Director General of Customs of the Ministry of Finance, Director General of Agro Industry of the Ministry of Trade, and Director General of Forestry Management Assistance of the Ministry of Forestry, and other technical instances at local level with responsibility on forestry industry and trade sector. To surveyor which: Article 22 a. doing violation against any provisions as specified in Article 16 paragraph (6) they shall be subject to sanction of revocation of their right to receive compensation for the service of verification or technical inspection performed during the un-reported months; b. issues an LS not in accordance to the provisions as specified in Article 16 paragraph (5), the surveyor shall be delisted from list of approved implementing agency to do verification or technical inspection related to export of forestry industry products. Article 23 Any export of forestry industry products which are samples, research material, and overseas exhibition material shall be excluded from the provisions in this Regulation of the Minister after obtaining approval from the Director General. Article 24 A technical guideline for the implementation of this Regulation of the Minister can be issued by the Director General. Article 25 Acknowledgement or permit as ETPIK already issued based on Regulation of the Minister of Trade Number 20/M-DAG/PER/5/2008 shall remain valid until 31 December Article 26 As this Regulation of the Minister starts to be put in force, 1. Regulation of the Trade Minister Number 20/M-DAG/ PER/5/2008 concerning Export Regulation of Forestry Industry Products; and

12 2. Decision of the Minister of Trade Number 405/M-DAG/KEP/7/2008 concerning Appointment for Revitalization Body for Forestry industry (BRIK) As the Implementing Agency for Endorsement Shall be revoked and declared no longer valid. Article 27 This Regulation of the Minister shall be put in force starting on 1 January In order that everyone understands it, it has been instructed to announce this Regulation of the Minister in the State Gazette of the Republic of Indonesia Stipulated in Jakarta on 22 October 2012 THE MINISTER OF TRADE R.I., Signed GITA IRAWAN WIRJAWAN

13 ATTACHMENT I REGULATION OF THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA NUMBER 64/M-DAG/PER/10/2012 CONCERNING PROVISIONS ON EXPORT OF FORESTRY INDUSTRY PRODUCTS FORESTRY INDUSTRY PRODUCTS WITH LIMITATION FOR EXPORT GROUP A NO. NO. TARIFF POST (HS) DESCRIPTION OF GOODS 1 Ex up to Ex Ex up to Ex Ex up to Ex Ex up to Ex Ex up to Ex Ex up to Ex Cut-out wood ready for further process with its four sides flat so that the surface is flat and smooth with thickness over 6 mm (S4S); processed wood produced with joining cut-out wood already dried out and polished on all four sides after the finger jointed process with thickness over 6 mm. Sheet of veneer wood (jointed or not) and other wood being diagonally sawed, cut in the middle, or skinned either polished, sandblasted, "end jointed" or not with thickness not more than 6 mm. Wood (including timber line and chunks for floor plank, not installed) uncut form (with tongue, with groove, edges refined, with slopes, with tongue and groove, inclined edges, V shaped, beaded, with shape pole, rounded or the like), along the edge or on its surface, polished or not sandblasted or "finger-jointed'. Plank particle and plank or the like made of wood or other material containing lignin, agglomerated using resin or other organic glue or not. Plank made of wooden fiber or other material containing lignin, glued with resin or other organic material, or not. Plywood, wooden multilayer panel and multi-layered wood or the like. 7 Ex Solidified wooden chips into block, plate, rods or profile. 8 Ex Ex Crate, box, packaging box, drum and the like made of wood, cable roller made of wood, box palette and plank for other contents made of wood, palette collars made of wood. 9 Ex Furniture and home construction material from wood,

14 NO. NO. TARIFF POST (HS) DESCRIPTION OF GOODS Ex Ex Paving Block made of wood. including cellular wooden panel, assembly of panel for floor covering, or roof panel and "shake" Prefabricated building material made of wood Wood pulp made by mechanical process Chemical wood pulp, of dissolving grade up to up to Chemical wood pulp, soda or sulphate, other than dissolving grade. Chemical wood pulp, sulfite, other than dissolving grade Wood pulp produced through combined process of mechanical and chemical pulp making up to Toilet paper or paper tissue for facial wipe, paper towel or paper handkerchief and other similar use of papers to be used for household or sanitary purpose, made of cellulose lumps and web made of cellulose fiber, shrunk, retracted, embossed, perforated, surface colored, decorated or printed its surface or not, in roll or sheet. Kraft paper for paper bag unbleached and similar type used for production of cement bag. Kraft paper for paper bag unbleached of other types. Vegetable paper, fat-free paper, drawing paper and glossy paper as well as transparent papers glossed or other transparent papers, in roll or sheet Kraft Paper for sack bag up to Carbon papers, self-copy paper and copier paper or other transfer papers (including coated paper or soaked paper for duplicator stencil or offset plate), printed or not, in roll or sheet Block, slab sheet and filter plate, made of pulp paper up Cigarette paper, cut to fit the size or not, either the form of

15 NO. NO. TARIFF POST (HS) DESCRIPTION OF GOODS to sheet or tube up to up to Wallpaper and wall covers or the like; transparent papers for windows. Carbon paper, self-copy paper and copier paper or other transfer papers (other than those included in post 48.09), duplicator stencil or offset plate, made of paper, prepared in a box or not. Toilet paper and papers or the like, cellulose lumps or web made of cellulose fiber, of type to be used for household or sanitary purpose, in roll at width not more than 36 cm, or cut to fit certain size or form; paper handkerchief, cleaning tissue, paper towel, paper table cloth, napkin, cover and other household purpose or the like, sanitary goods or hospital, clothing and accessories, made of pulp papers, papers, cellulose lumps or web cellulose fiber. GROUP B 1 Ex Ex Ex Ex Wood in the form of chips or particles. Chip wood. 3 Ex Wooden frame for painting, photo, mirror, or others or the like. 4 Ex Ex Ex Ex Wooden vessel, drum, container, cylinder and other products wholly and partly made of wood, including arching plank to make wooden vessel. Tools, body of tools, handle for tools, broom or rake body and handles, made of wood; soles and other parts of boot shoes made of wood. 6 Ex Dining table utensils and kitchen utensils made of wood. 7 Ex Wooden matches Seating tools with frames made of wood, with covering layers.

16 NO. NO. TARIFF POST (HS) DESCRIPTION OF GOODS Others (Other seating tools with frames made of wood without covering layers) Wooden furniture of type to be used in office Wooden furniture of type to be used in kitchen Wooden furniture of type to be used in bedroom Other wooden furniture Part of wooden furniture. GROUP C Divider and blinds made of rattan Basket and other woven material made of rattan Seating tools made of rattan Bedroom, dining room or living room furniture made of rattan up to up to and up to up to Papers and cartoon papers not covered, of type used for writing, printing or other graphical purposes, as well as papers for punch card and tape both perforated and not perforated, in roll or sheet of rectangle box (including square box) made into various size, other than from post or 48.03; hand-made papers and cartoon papers. Papers and cartoon kraft paper not covered, in roll or sheet, other than those included in post or Other papers and cartoon papers not covered, in roll or sheet, not further treated or processed other than those detailed in Note 3 in this Chapter Composite papers and cartoon papers (made by glued several flat layers of papers or cartoon papers using glue), its surface not covered or soaked, with inner part hardened

17 NO. NO. TARIFF POST (HS) DESCRIPTION OF GOODS or not, in roll or sheet and up to s.d s. d s.d s.d s.d s.d Papers and cartoon papers, corrugated (with or without flat sheet glued on its surface), shrunk, retracted, embossed or perforated, in roll or sheet, other than papers from the types as described in post Papers and cartoon papers, coated in one or two sides with kaolin (Chinese clay) or other unorganic substance, with or without bonding material, and without other coating, colored, decorated or printed its surface or not, in roll or sheet of rectangle box (including square box) made into various size. Papers and cartoon papers, cellulose lumps and web made of cellulose fiber, coated, soaked, coated, surface colored, decorated or printed its surface, in roll or sheet of rectangle box (including square box), made into various size, other than goods from the types as described in post or Envelope, card paper, blank post card and correspondence paper, made of paper or cartoon papers: box, bag, purse and writing compendium, made of paper or cartoon papers, containing various types of paper letter. Label papers or cartoon papers of all kinds, printed or not. Bobbin, cellos, cap and support tools or the like made of pulp paper, papers or cartoon papers (perforated or hardened or not). Papers, cartoon papers, cellulose lumps and other web cellulose fibers, cut to fit the size or form; other goods made of pulp paper, papers, cartoon papers, cellulose lumps or web cellulose fiber. Copy provided similar to the original THE MINISTER OF TRADE R.I., signed GITA IRAWAN WIRJAWAN

18 ATTACHMENT II REGULATION OF THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA NUMBER 64/M-DAG/PER/10/2012 CONCERNING PROVISIONS ON EXPORT OF FORESTRY INDUSTRY PRODUCTS TECHNICAL CRITERIA TO BE USED TO DETERMINE CERTAIN FORESTRY INDUSTRY PRODUCTS ALLOWABLE FOR EXPORT 1. Volume and degree of treatment a. Processed wood in the form of S4S (surfaced four sides) included in HS.4407: Processed timber product with its four sides smoothened so that its surface becomes smooth and flat. - made of kayu merbau provided that the cut-out diameter area not more than mm 2. - made of other than kayu merbau provided that the cut-out diameter area not more than mm 2. b. Processed wood in the form of E2E or E4E included in HS.4409: Processed timber as further manufacture product from S4S with rounded corner on two corners (E2E) or four corners (E4E) provided that the rounded corner is at minimum 3 mm (R3). - made of kayu merbau provided that the cut-out diameter area not more than mm 2. - made of other than kayu merbau provided that the cut-out diameter area not more than mm 2. c. Finger Jointed included in HS.4407: Processed timber product produced by connecting sawed timber already dried-up and polished at four sides after the finger jointed process provided that the length of every chip being jointed is not more than mm. d. Laminated Board (Jointed Board) included in HS.4412: Processed timber product produced by joining wooden sections toward its wide cross-section by pressing using glue, provided that the cut-out diameter area of each section is not more than mm 2. e. Laminated Block included in HS.4412: Processed timber product produced by joining wooden sections toward its wide cross-section by pressing using glue, provided that the cut-out diameter area of each section is not more than mm 2 f. Decorative Profile included in HS.4409: Processed timber product is produced by shaping the wood using molder machinery, in a way that it shows its decorative function and immediately can be

19 used without having to change its shape, except for cutting it to the exact length as needed, provided that as follows: 1) Size of cut-out diameter area not more than mm 2 ; 2) For Front Decorative Profile the width should be: - decorative should be at least half of the front width on one side; - thickness not more than 25 mm, depth of decorative should be at least 3 mm; - thickness more than 25 mm up to 50 mm, depth of decorative should be at least 6 mm; - thickness more than 50 mm, depth of decorative should be at least 10mm. 3) For Front Decorative Profile the thickness should be: - for decorative it should be at least half of the front thickness on one side; - its width not more than 50 mm, depth of decorative should be at least 3 mm; - its width more than 50 mm up to 80 mm, depth of decorative should be at least 6 mm; - its width more than 80 mm up to 100 mm, depth of decorative should be at least 15 mm; - its width more than 100 mm, depth of decorative should be at least 20mm. For Decorative Profile at the cut-out diameter area less than mm 2 this provision on the size and depth of decorative shall not apply. Should there be any profile on both sides then the depth of profile is equal to the measurement of the two sides. g. Wooden Profile for Door Jamb or Window Jamb included in HS.4409: provided that the cut-out diameter area not more than mm 2 h. Wooden Profile for Door Frame or Window Frame included in HS.4409: Provided that as follows: - thickness not more than 40 mm; - the cut-out diameter area not more than mm 2. i. Wall Panel included in HS.4409: Having its thickness not more than 20 mm with the cut-out diameter area not more than mm 2 in the form of tongue and groove, groove and groove or shiplap, provided that as follows: - its width not more than 50 mm with the dept of groove and height of tongue or shiplap should be at least 2 mm; - its width more than 50 mm up to 100 mm with the dept of groove and height of tongue or shiplap should be at least 3 mm;

20 - its width more than 100 mm with the dept of groove and height of tongue or shiplap should be at least 5 mm. j. Flooring included in HS.4409: Having its thickness not more than 35 mm with the cut-out diameter area not more than mm 2 in the form of tongue and groove, groove and groove or shiplap, provided that as follows: - its width not more than 50 mm with the dept of groove and height of tongue or shiplap should be at least 2 mm; - its width more than 50 mm to 00 mm with the dept of groove and height of tongue or shiplap should be at least 3 mm; - its width more than 100 mm with the dept of groove and height of tongue or shiplap should be at least 5 mm. k. Decking included in HS.4409: Having its thickness not more than 45 mm and the cut-out diameter area not more than mm 2, provided that: - made of wood type of merbau, keruing, kempas, bangkirai, kapur, ulin and balau; - thickness not more than 20 mm with depth of reeded/groove on the width side should be at least 1.5 mm; - thickness more than 20 mm up to 35 mm with depth of reeded/groove on the width side should be at least 3 mm; - thickness more than 35 mm up to 45 mm with depth of reeded/groove on the width side should be at least 5 mm. Should there be any reeded/groove on both sides then the depth of the reeded/groove is equal to the measurement of both sides. Should be at least half of width surface reeded or added with two grooves at proportional space throughout the wood s length. 1. Flooring for Truck, Container, Ship Deck and Wagon included in HS.4409: In the form of tongue and groove or shiplap, provided that as follows: - made of wood type of merbau, keruing, kempas and bangkirai; - thickness not more than 50 mm; - the cut-out diameter area not more than mm 2 ; - the depth of groove and height of tongue and depth of shiplap should be at least 5 mm. Particularly for pole, main sill, cross sill and truck body the wood must be accompanied with design drawing and complete technical spec (installed spec drawing) and must be exported with the flooring. m. Box palette and plank palette (HS.4415):

21 Must in the form of already installed. n. Building element made of wood which make one unit from the construction (HS.4418): Must in the form of construction element set along with drawing and complete technical spec without having to change its shape and to cut it. o. Prefabricated building material made of wood (HS.9406): Must in the form of set prefabricated building material and accompanied with the drawing containing the complete technical spec without having to change its shape and to cut it. p. Post and Beam included in HS.4409: Processed timber product in the form of E4E and added with reeded/groove, provided that as follows: - the cut-out diameter area not more than mm 2 having reeded/groove on both sides, with the depth on each side should be at least 2 mm; - the cut-out diameter area not more than mm 2 having reeded/groove on all four sides, with the depth on each side should be at least 2 mm; - the cut-out diameter area above mm 2 up to mm 2 having reeded/groove on all four sides, with the depth on each side should be at least 4 mm. q. Window Board included in HS.4409 Provided that as follows: - one of the thickness side is shaped into bullnose profile (half circle arch) ; - thickness not more than 30 mm; - the cut-out diameter area not more than mm Size and defect tolerance a. b. All sizes of the processed wood to be exported can be tolerated up to: - thickness not more than 0,5 mm; - its width not more than 1 mm; - length not more than 50 mm. Allowable machine defect is not more than 5% from the volume to be exported. THE MINISTER OF TRADE R.I., signed GITA IRAWAN WIRJAWAN Copy provided similar to the original. "This translation is provided as a non-sworn and legal translation from Bahasa Indonesia into English. This translated version is provided as referral knowledge purpose only. For any legal use of this document, we suggest user to obtain the legal translation version."