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Update on the Policy and Provisions of Export

The Minister of Trade recently updated the export provisions through the issuance of Regulation of Minister of Trade Number 23 of 2023 (Regulation 23/2023), which revokes and replaces Regulation of the Minister of Trade Number 19 of 2021 (Regulation 19/2021) and its amendments. Regulation 23/2023 has been in force since 17 July 2023. 

 

Updated export provisions are necessary for all exporters. Therefore, this legal update will summarize various matters that are affected by the issuance of Regulation 23/2023. The following is a summary of the comparison between Regulation 19/2021 and Regulation 23/2023: 

 

AreasRegulation 19/2021Regulation 23/2023
Export RequirementsExporters must obtain:

  1. Business Identification Numbers (NIB);
  2. Export-related business licenses, such as:
  1. Registered export certificates; and/or
  2. Export Approvals. 
For certain goods as listed under Appendix I of Regulation 23/2023, it is clarified that:

  1. certain exporters may be exempted from the requirement to obtain NIB;
  2. certain exporters may obtain more than one Export Approvals; and/or
  3. Export Approvals may remain valid for submission of more than one export customs notification. 
Other Required Supporting Documents for Exports of Certain GoodsExporters must prepare other supporting documents for the exports of certain goods during the submission of export customs notification, as follows: 

  1. Certificates of animal product sanitation (KH-12); and
  2. Proof of the legality of export-oriented timber and timber products (V-Legal Documents). 
It has now been specified that various data elements are required to be featured in any KH-12 and V-Legal documents that will be submitted, and these elements will be subject to examinations along with the submitted export customs notification. 
Export Business License Exemptions Both regulations state that certain exporters may be exempted from having to obtain certain licenses, with the following provisions:

  1. For certain exempted items for commercial purposes, the exporters are exempted from having to obtain NIB, while they are still required to obtain the following documents:
  1. Export-related business licenses;
  2. Fulfillment of other supporting documents; and/or
  3. Verifications and/or technical searches. 
  1. The exemption in point 1 should be proven through a description letter from the Director-General of Foreign Trade, which should be issued upon an application submitted through the SINSW and then forwarded to the INATRADE system. 
Export Periods for Certain Mining Products and Processed Timber Various export deadlines for certain commodities are featured under Regulation 19/2021 between 2021 and 2023. The export periods of certain commodities are specifically regulated under Regulation 23/2023, as follows:

  1. Mining products resulting from refining and/or processing may only be exported until 31 May 2024 :
  1. laterite concentrate with >= 50% Fe and >= 10% AI203+SIO2 content;
  2. copper concentrate with >= 15% Cu content;
  3. lead concentrate with >= 56% Pb content;
  4. zinc concentrate with >= 51% Zn content; and
  5. anode slime. 

By 1 June 2024, the above commodities are allowed to be exported for the following purposes:

  1. research and development;
  2. re-exportation; and/or
  3. export of industrial products containing scrap metal and/or imported main materials. 

2. Processed timber in the form of surfaced four sides (S4S), eased two edges (E2E) or eased four edges (E4E), with certain details:

  1. Merbau, white meranti and yellow meranti woods with cross-sectional areas of no larger than 15,000 mm2; and/or other types of woods with cross-sectional areas of no larger than 4,000 mm2 may only be shipped between 1 August 2023 and 31 July 2024;
  2. Merbau woods with a cross-sectional area of no larger than 10,000 mm2; and/or other woods with cross-sectional areas of no larger than 4,000 mm2 may only be shipped until 1 August 2024. 

 

policy export update

Read More: Business Licenses for Clinics

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