Obligation to Utilize National Maritime Transportation and National Insurance
The Provisions regarding utilization of National Maritime Transportation and National Insurance in export and import apply to:
1. Exporter who exports Coal and/or Crude Palm Oil (“CPO”) by using maritime transportation with carrying capacity up to 10,000 (ten thousand) deadweight tonnage; and
2. Importer who import Rice and/or goods for government procurement by using maritime transportation with a carrying capacity of up to 10,000 (ten thousand) deadweight tonnage.
Exporters of Coal and/or CPO and Importers of Rice and/or goods for the procurement of government must submit a report concerning utilization of National Maritime Transportation and/or National Insurance (in the form of policy data or insurance certificates) to the Director General of Foreign Trade at the Ministry of Trade.
The report referred to above concerning the utilization of National Maritime Transportation and/or National Insurance shall at least consist of:
a. Name of the National Maritime Transportation Company;
b. Number of International Maritime Organization;
c. Name of the National Insurance Company or export financing institution that is established by the government; and
d. Number and date of policy or insurance certificate.
The report shall also be accompanied by the scan copy of the Exporter or Importer’s tax invoice.
Further, Exporters of Coal and Importers of Rice can only export or import their goods after they receive a surveyor report. This surveyor report can only be issued if the relevant Exporter and Importer utilize National Insurance.
Exemptions
Provisions on the utilization of National Maritime Transportation and National Insurance as provided under the Regulation shall not apply if the export of Coal and/or CPO and import of Rice and/or goods is for a government procurement, or for special exemptions as laid out in the regulation.
For export of Coal and/or CPO, this Regulation shall not apply if the goods are: (i) sample goods that are not for sale; (ii) goods for scientific research and development purposes; (iii) imported goods that are rejected by the domestic buyer then re-exported with a minimum amount equal to the amount as mentioned in the Goods Import Notification; and/or (iv) goods that are exported through a land border.
Meanwhile the exemptions extend to Import of Rice and/or goods for the procurement of government, and shall not apply if the goods are: (i) sample goods that are not for sale; (ii) goods for scientific research and development purposes; (iii) goods which will be given as grants, prizes or gifts for charity, social or cultural needs; and/or (iv) goods that are imported through a land border.
However, in order for Exporters and Importers to receive exemption, the relevant Exporter and/or Importer shall make an application and receive approval from the Director General.
Sanctions for Exporter and Importer
Exporters of Coal and/or CPO or Importers of Rice and/or goods for the procurement of government who utilize maritime transportation with a carrying capacity of up to 10,000, but do not utilize National Sea Transportation and National Insurance in carrying out their business activities, will be subject to administrative sanctions in the form of recommendation for suspension of their Business Identification Number (NIB).
(DRP/SCN)