Dughall Aitken at Spica Services (S) Pte Ltd, our correspondents in Singapore, has provided us with the following information.
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As we close in on the May 6th deadline, the situation appears to be getting more, not less, complicated. See below:
Kindly be advised that this Ministry Regulation No. 7 year 2012 iro “Increase in Mineral’s Added Value Through Mineral’s Processing and Refining Activities” is intended to come into force on May 6th 2012, which is 3 months after the issuance of this regulation and even though many protests arisen because of this until now there’s no indication that this regulation will be put on hold.
We do however have a glimpse of what may come when Minister of Energy and Resources on May 1st, 2012 announced a government plan to impose tax / tariff for exporting 14 (fourteen) kinds of mining goods, such as Gold, Silver, Nickel, Bauxite, Iron Ore, Iron Sand, Copper, Tin, etc. After the announcement of this tax / tariff regulation on these 14 mining goods, it is said that there will be some kind of clarification / revision on the Ministry Regulation No. 7 year 2012.
On the same day, May 1st 2012, Coordinating Minister of Economy, after meeting together with Minister of Energy and Resources, said that prior 6th of May 2012 a mining company intends to export has to satisfy three requirements;
1. submit proposal / action plan for smelting / refining activities before year 2014
2. sign a pack of integrity
3. under “clean & clear” status (no problem)
If the above three requirements have been met then the qualified company is allowed to export raw materials after 6th May onwards until 2014, subject to the applicable new tariff / tax.
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Please find below the latest update from Spica Services, Jakarta:
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1. Currently at Pomalaa alone there are 9 vessels still anchored, which had not completed loading, loading being terminated since 6 May 2012 at 0000 LT.
There are reported 3 vessels are planning to discharge their cargo back on shore due to there being no Export Licence letter (PEB). In Kolaka anchorage, there are left only two vessels at the anchorage.
2. Based on advice from Customs, the information found as follows:
– All vessels that have already completed loading are allowed to sail leaving Indonesia.
– All vessels that have not completed loading, are not allowed to continue loading. Only vessels that have already arranged of Export Notification Letter (PEB) with Customs before 6 May 2012 are allowed to sail leaving Indonesia.
– All vessels that have not completed loading and do not have Export Notification Letter (PEB) are not allowed to sail, unless all cargo that was already loaded be discharged back and vessel can sail-off leaving Indonesia in empty condition.
3. Checks with the harbour Master in Kolaka resulted in advice that that their position is clear, when all vessel documentation completed as arranged by agent and vessel has fulfilled all safety requirements, they will issue the vessel clearance. They are not involved in the trading concern.
4. Despite all of the above, there remains confusion as there are reportedly some vessels with un-sealed vessels who intend to continue loading until completed as per B/L. It is possible that the local Shippers have arranged some “special permit” with the authority (Custom/Harbour Master) to continue loading or they have applied the new tax level under new regulation.
Spica Jakarta’s advice to date has been to urge Members who are in a position to sail, to do so, as there appears to be no clear direction as to what will happen with partially loaded vessels, but the likelihood is that the cargo will have to be discharged. This is a lengthy and expensive operation.
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Member Alert is published by The Swedish Club as a service to members. While the information is believed correct, the Club cannot assume responsibility for completeness or accuracy.