Certificate of Origin (“SKA”) for export goods

The Minister of Trade released in October last year a new regulation regarding the Certificate of Origin (Surat Keterangan Asal / SKA). This new Minister of Trade’s Regulation No. 43/M-DAG/PER/10/2007 revokes the previous regulation of the Minister of Trade, No. 17/M-DAG/PER/9/2005.Among the considerations for the issue of the regulation are the increased misuse and abuse of the SKA in line with the growth of Indonesian exports and use of the SKA, and the need for Indonesia to keep up with international agreements and technology development. The regulation stipulates two types of SKA, respectively referred to as “Prefential SKA” and “Non-Prefential SKA”. The Prefential SKA is for export goods that are elligible for reduced import duties or import duties exemption provided by certain countries or a group of countries or on the basis of a unilateral agreement. The Non-Prefential SKA is for export goods that must fulfil the requirements imposed by a country or a group of countries on the basis of an international or bilateral agreement.The following are institutions that may become issuers of SKAs: a. Institutions or Service Departments on the provincial or city level which have bveen appointed by the Director General on behalf of the Miniater of Trade;b. PT. (Persero) Kawasan Berikat Nusantara and its business unit;c. Batam Industrial Regional Development Authority (OPDI); andd. The Surakarta and Medan branch of the Tobacco Institution, Bureau for the Evaluation and Certification of Goods (BPSMB) and the Surabaya and Jember Tobacco Institution. Exporters may choose to file for their SKA with an SKA issuer based on the SKA issuer’s location or work area