The Ministry of Trade Does Not Fully Support the Implementation of the SVLK

The Ministry of Trade Does Not Fully Support the Implementation of the SVLK

15 HS code
Register 15 Post Rates (HS) that do not use V-Legal Documents

A surprising morning for independent monitors who continue to push for full implementation of the SVLK. How not, after the release of the news published by thejakartapost.com that the ministry of trade would withdraw the SVLK obligation for downstream industries, we were confronted with the fact that the Minister of Trade Regulation No. 89 of 2015 concerning the provisions on the export of forestry industry products that contradict the news.

The Minister of Trade Regulation is addressed to forestry industry companies that have an Industrial Registration Certificate (TDI) or Industrial Business License (IUI) and Company Registration Certificate (TDP), and trading companies in the field of exportation of Forestry Industrial Products that have a Trade Business License (SIUP) and Signs Company List (TDP). In conducting exports, these companies must be equipped with V-Legal Documents issued by the Timber Legality Verification Agency (LVLK). V-Legal Documents are documents that state that timber products for export purposes meet legalita timber verification standards in accordance with statutory provisions. If it’s just like this it will certainly sound good.

However, these provisions do not apply to all forestry industry products. Especially for 15 Post Tariffs (HS) without being equipped with V-Legal Documents, but must be accompanied by documents that can prove that the raw material comes from wood obtained from raw material providers who already have S-LK or in accordance with the provisions on administration of forest products based on provisions legislation.

The decision of the Minister of Trade to encourage increased competitiveness of the national industry by simplifying licensing in the field of trade, especially exports of forestry industry products, actually provided a defect in a system built since 2001 to combat illegal logging and trade in illegal timber. This proves that the Ministry of Trade is half-hearted in supporting the full implementation of the SVLK.

With the issuance of the Regulation of the Minister of Trade also at the same time declare the non-entry into force of the Minister of Trade Regulation number 35 / M-DAG / PER / 11/2011 concerning the provisions on the Export of Rattan and Rattan Products; and Permendag Number. 97 / M-DAG / PER / 12/2014 concerning provisions on the export of forestry industry products as amended by the regulation of the minister of trade No. 66 / M-DAG / PER / 8/2015. (NA)