PROVISIONS ON THE EXPORT OF COFFEE. (Decree of the Minister of Industry and Trade No. 29/MPP/Kep/1/1999 dated January 29, 1999)

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1 PROVISIONS ON THE EXPORT OF COFFEE (Decree of the Minister of Industry and Trade No. 29/MPP/Kep/1/1999 dated January 29, 1999) THE MINISTER OF INDUSTRY AND TRADE Considering: a. that membership of Indonesia in the International Coffee Organization (ICO) and the Association of Coffee Producing Countries (ACPC) is considered beneficial to both international political cooperation and economic interest and as a consequence, Indonesia is obliged to pay contributions borne by the Association of Indonesian Coffee Exporters (AEKI); b. that in relation thereto, in the framework of increasing the export of coffee, it is necessary to improve provisions on the export of coffee by issuing a decree of the Minister of Industry and Trade. In view of: 1. Government Regulation No. 1/1982 on the realisation of exports imports and the flow of foreign exchange (Statute Book of 1982 No. 1, Supplement to Statute Book No. 3210) as already amended by Government Regulation No. 24/1985 (Statute Book of 1985 No. 3291); 2. Presidential Decree No. 3/1 995 dated January 17, 1995 on ratification of the International Coffee Agreement; 3. Presidential Decree No. 58/1995 dated August 23, 1995 on ratification of the ACPC agreement; 4. Presidential Decree No. 61/1998 on the functions, tasks, organizational structures and working arrangements of ministries as already amended several times the latest by Presidential Decree No. 142/1998; 5. Presidential Decree No. 1 22/M/1 998 on the development reforms cabinet; 6. Decree of the Minister of Industry and Trade No. 108/MPP/Kep/5/1996 on standardization, accreditation and supervision of the quality of products within the Ministry of Industry and Trade;

2 7. Decree of the Minister of Industry and Trade No. 130/MPP/Kep/6/1996 on the certificate of origin of Indonesian export goods as already amended by the Decree of the Minister of Industry and Trade No. 101/MPP/Kep/2/1998; 8. Decree of the Minister of Industry and Trade No. 444/MPP/Kep/11/1998 jo. No. 24/MPP/Kep/1 /1 999 on the organization and working arrangement of the Ministry of Industry and Trade; 9. Decree of the Minister of Industry No. 558/MPP/Kep/12/1998 on the general provisions in the field of export. D E C 1 D E S : To revoke : Decree of the Minister of Industry and Trade No. 265/LP/X/89 on the improvement of provisions on the export of coffee; To stipulate : THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE CONCERNING PROVISIONS ON THE EXPORT OF COFFEE. Article 1 Referred to in this decree as : a. Exported coffee shall be the kinds of coffee included in Tariff Headings HS and 21.01, as contained in Attachment 1 to this decree. b. The conversions of coffee as meant in letter a of this article shall be as contained in Attachment 11 to this decree. c. letters of Approval of the Export of Coffee (SPEK) shall be letters of realisation of the export of coffee to all destination countries which are issued by Regional Offices of the Ministry of Industry and Trade to exporters of coffee, as contained in Attachment Ill to this decree.

3 d. ICO Form Certificates of Origin shall be certificates used as supporting documents of coffee exported from throughout Indonesia, certifying that the coffee is produced and/or processed in Indonesia. Article 2 (1) Coffee shall only be exported by companies already approved as. exporters of coffee by the Director General of International Trade. (2) Approval as exporters of coffee shall be valid indefinitely as long as the relevant companies undertake their business activities in accordance with the provisions in force. (3) Approval as exporters of coffee as meant in paragraph (2) shall be declared null and void in the case of the relevant exporters of coffee conducting no export activities for one year. Article 3 In order to secure approval as exporters of coffee, companies can submit applications to the Director General of International Trade by enclosing the following documents: a. Trading Business Licences (SIUP) or Trading Business Registry Certificates (TDUP) from technical ministries/nonministerial government institutions; b. Corporate Registry Numbers (TOP); c. Taxpayer Code Numbers (NPWP); d. Recommendations from Heads of Regional Offices of the Ministry of Industry and Trade. Article 4 (1) The export of coffee shall have SPEK as meant in Article 1 letter c. (2) SPEK as meant in paragraph (1) shall be issued in the domiciles of the relevant exporters and can be used for shipment purposes from throughout Indonesia.

4 (3) SPEK can be issued by Regional Offices of the Ministry of Industry and Trade in the case of exporters of coffee already paying contributions to the Association of Indonesian Coffee Exporters (AEKI). (4) SPEK shall already be issued not later than 3 (three) days starting from the receipt of applications already completed by exporters of coffee. (5) SPEK shall only be valid for 30 (thirty) days as from the issuance and can only be extended once. (6) SPEK whose validity period is up to the end of the coffee year or up to September 30, can no longer be extended. Article 5 The contributions as meant in Article 4 paragraph (3) shall be stipulated on the basis of consensus of members achieved at the general meeting of AEKI members or the meeting of the AEKI plenary board. Article 6 SPEK shall be issued in 5 (five) copies consisting of : a. the original sheet to Customs and Excise Inspection Offices; b. the first copy to foreign exchange banks; c. the second copy to Regional Offices of the Ministry of Industry and Trade; d. the third copy to the Directorate General of International Trade, in this case, the Directorate of Export of Agricultural and Chemical products, Ministry of Industry and Trade; e. the fourth copy to the relevant exporters. Article 7 The export of coffee shall be protected by ICO Form Certificates of Origin (SKA) as meant in Article 7 paragraphs (1) and (2) letter a of the Decree of the Minister of Industry and Trade No. 130/MPP/Kep/6/1996 as already amended by the Decree of the Minister of Industry and Trade No. 101/MPP/Kep/

5 Article 8 Exported coffee shall be in accordance with standards of the coffee quality stipulated by the Minister of Industry and Trade. Article 9 Exporters of coffee violating the provisions in this decree and its technical directives shall be subjected to sanctions in the form of the freezing and revocation of approval as exporters of coffee and/or other sanctions according to the laws in force. Article 1 0 This decree shall come into force as from the date of stipulation. For public cognizance, this decree shall be published by placing it in State Gazette of the Republic of Indonesia. Stipulated in Jakarta On January 22, 1999 THE MINISTER OF INDUSTRY AND TRADE Sgd RAHARDI RAMELAN

6 Attachment 1 List of Tariff Headings (Harmonized System Numbers) of Coffee Tariff Heading D e a c r i p t i o n (HS) Number Coffee, whether or not roasted or decaffeinated, coffee husks and skins; coffee substitutes containing coffee in any proportion Not decaffeinated --- Coffee, not roasted Arabica WIB Robusta OIB other --Decaffeinated Arabica WIB Robust& OIB other coffee, roasted not decaffeinated decaffeinated in powder form other other extracts, essences and concentrates of coffee and preparations with a basis these extracts, essences or concentrates or with a basis of coffee extracts, essences and concentrates preparations with a basis of extracts, essences or concentrates or with a basin of coffee.

7 Attachment II DEFINITIONS AND CONVERSIONS OF COFFEE The kind of coffee used as the basis for determining the weight gree coffee before being roasted. The equivalent weight of other kinds of coffee against green coffee is as follows : Roasted coffee is green coffee which is roasted including that which is ground and its equivalent weight against green coffee is Decaffeinated coffee is green, roasted or soluble coffee free from caffein and its equivalent weights against green coffee are set at 1.00, 1.19 and 2.60 respectively. Soluble coffee is dry coffee soluble in water which originates in roasted coffee and its equivalent weight against green coffee is Liquid coffee is coffee originating in roasted coffee in the form of solution and its equivalent weight against green coffee is the net weight of the content of its dry coffee multiplied by 2.60.

8 Attachment III THE MINISTRY OF INDUSTRY AND TRADE REGIONAL OFFICE OF THE MINISTRY OF INDUSTRY AND TRADE LETTER OF APPROVAL OF THE EXPORT OF COFFEE (SPEK) NO. Pursuant to the Decree of the Minister of Industry and Trade No..../MPP/KEP/I/99, in accordance with the letter of exporter No dated., approval of the export of coffee is herewith granted to: 1. Name of company : 2. Address : 3. Volume : 4. Quality : 5. Destination countries : 6. Shipment period : 7. Names and addresses of : buyers abroad with the provisions that : a. SPEK is valid for thirty days up to b. In the above mentioned period, the relevant exporter must already settle sales contracts, receive L/C and close Export Declaration (PEB)... THE EXPORTER ( ) THE HEAD OF REGIONAL OFFICE OF THE MINISTRY OF INDUSTRY AND TRADE OF PROVINCE OF.. (.)

9 ATTENTION : SPEK can be issued by the head of the regional office of the Ministry of Indulltry and Trade in the case of the relevant exporter has already paid the contribution to AEKI by showing the payment receipt. This SPEK is made out in four copies and delivered to the following parties a Original sheet to the Customs and Excise Inspection Office. 1st copy : to the foreign exchange bank 2nd copy : to the Regional Office of the Ministry of Industry and Trade. 3rd copy : to the Director General of International Trade, in this case, the Director of Export of Agricultural and Chemicalproduct, Ministry of Industry and Trade. 4th copy : to the relevant exporter