DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE NO. KEP-22/BC/2001 DATED APRIL 20, 2001 PACKAGES OF RETAILED TOBACCO PRODUCTS

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1 DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE NO. KEP-22/BC/2001 DATED APRIL 20, 2001 PACKAGES OF RETAILED TOBACCO PRODUCTS THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE, Considering : that in the framework of creating a fair business climate and competition among tobacco manufacturers as well as in order to implement Government Regulation No. 81/1999 on the safeguarding of cigarettes for health (Statute Book of 1999 No. 186, Supplement to Statute Book No. 3906) jo. Government Regulation No. 38/2000 on the amendment to Government Regulation No. 81/1999 on the safeguarding of cigarettes for health, it is deemed necessary to stipulate decision of the Director General of Customs an Excise on packages of retailed tobacco products; In view of : 1. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612); 2. Law No. 11/1995 on excise affairs (Statute Book of 1995 No. 76, Supplement to Statute Book No. 3613); 3. Law No. 23/1992 on health (Statute Book of 1992 No. 100, Supplement to Statute Book No. 3495); 4. Government Regulation No. 81/1999 on the safeguarding of cigarettes for health (Statute Book of 1999 No. 186, Supplement to Statute Book No. 3906) jo. Government Regulation No. 38/2000 on the amendment to Government Regulation No. 81/1999 on the safeguarding of cigarettes for health; 5. Decree of the Minister of Finance No. 247/KMK.05/1996 on the collection, import, export, transport and trade of excisable goods; 6. Decree of the Minister of Health and the People's Welfare No. 1755/Menkes-Kesos/SK/XII/2000 on the writing of medical warning in cigarette label. DECIDES : To stipulate : THE DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON PACKAGES OF RETAILED TOBACCO PRODUCTS. Article 1 Referred to in this decision as packages of retailed tobacco products shall be packages of tobacco products with the content of certain quantity as meant in Article 6 of this decision of the Director General of Customs and Excise, by using materials or goods capable of protecting the content from damage as well as being able to increase the marketing of the products in the country and abroad, including those given free of charge to employees of factories, third parties such as Presidential Palace, Vice Presidential Palace, and guests or relatives of factories. Article 2 Permanent writing shall be printed in packages of retailed tobacco products destined for domestic sale, while attached writings can be affixed to packages of imported tobacco products clearly and in a way easy to read, which contains information on : a. brands and kinds of the packaged tobacco products;

2 c. sentence of government warning about the danger of smoking; and d. other provisions required by institutions concerned. Article 3 Permanent writings shall be printed clearly and in a way easy to read in packages of retailed tobacco products destined for export, which are among others : a. brands and kinds of the packaged tobacco products; c. the exception from the provision as meant in letter b only can be given on the basis of the written approval of the relevant brand holder and/or principals abroad. Article 4 (1) Packages of retailed tobacco products given free of charge to employees of factories only can be made of plain-color material and shall be prohibited from using brands. (2) Permanent writings shall be mentioned in the packages as meant in paragraph (1) clearly and in a way easy to read, which are among others : a. names and locations of factories or statutory bodies, according to those mentioned in NPPBKC. b. sentence of government warning about the danger of smoking; c. sentence "Especially for Employees" or "For Employees"; and d. sentence "Not To Be Sold" or "Not Sold". Article 5 (1) In order to enable the use of packages of retailed tobacco products specially designated to Presidential Palace and Vice Presidential Palace by mentioning the presidency symbol, manufacturers shall secure prior approval from the authorized palace official. (2) Before the approval as meant in paragraph (1) is obtained, manufacturers shall not be permitted to order excise tapes of the relevant tobacco products. (3) The sentence of government warning about the danger of smoking shall be mentioned in the packages as meant in paragraph (1) clearly and in a way easy to read. Article 6 (1) In the case of tobacco products being given free of charge to guests of factories, manufacturers can packages of retailed tobacco products destined for domestic sale or separate brands. (2) In the packages as meant in paragraph (1), the following permanent writings shall be printed out clearly and in a way easy to read : a. brands and kinds of the packages tobacco products; c. sentence of government warning about the danger of smoking; d. sentence "Especially for Guests" or "For Guests"; e. sentence "Not To Be Sold" or "Not Sold"; and f. other provisions required by institutions concerned. Article 7

3 (1) The sentence of government warning about the danger of smoking as meant in Articles 2, 4, 5, and 6 can be picked up from one of the following five sentences : a. "SMOKING CAN CAUSE CANCER AND IMPOTENCE" b. "SMOKING CAN CAUSE HEART ATTACK AND IMPOTENCE" c. "SMOKING CAN CAUSE PREMATURE AGING AND IMPOTENCE" d. "SMOKING CAN CAUSE IMPOTENCE, DISTURBANCE TO PREGNANCY AND FETUS" e. "SMOKING CAN CAUSE CANCER, HEART ATTACK, IMPOTENCE AND DISTURBANCE TO PREGNANCY AND FETUS" (2) One of the sentences as meant in paragraph (1) shall apply to a kind of tobacco products produced by a factory. (3) The writing and placement of the warning sentence as meant in paragraph (1) shall refer to the following requirements : a. being mentioned in the wide-edge of packages; b. being placed in a box with black line of one millimeter and the box base being white; and c. black-color writing with the size of 3 mm (three millimeters). Article 8 (1) The sentence of the government warning as meant in Article 7 shall be mentioned in samples of packages of retailed tobacco products whose applications for stipulation of new retail prices are requested. (2) Tobacco products already securing the stipulation of new retail prices or the stipulation of the increase in retail prices shall be given opportunity to adjust to the choices of the government warning as meant in Article 7 not later than the production of tobacco products based on excise document CK-4 up to June 30, (3) Before adjusting to the choices of the government warning as meant in paragraph (2), manufacturers shall submit notification to heads of local Customs and Excise Service Offices by using a duty-stamped letter. (4) Before changing the choice of the government warning as meant in Article 7, manufacturers shall submit notification to heads of local Customs and Excise Service Offices by using a duty-stamped letter. Article 9 The content of packages of retailed tobacco products belonging to respective kinds of tobacco products and categories of manufacturers, including imported tobacco products, those destined for domestic sale or given free of charge to employees and third parties shall be stipulated as follows : Kind of tobacco products Categories of manufacturers Content of package (grams/cigarette) S K M Large 12, 16, 20, and 50 cigarettes S P M Large 20 cigarettes 20 cigarettes 20 cigarettes S K T Large 12, 16, 20, and 50 cigarettes Very small 10, 12, and 16 cigarettes

4 KLB or KLM All categories 6, 10, 12, 16, and 20 cigarettes C R T All categories Maximally 100 cigarettes T I S All categories Maximally cigarettes H P T L All categories Maximally 100 grams Article 10 Manufacturers can freely determine the content of packages of retailed tobacco products destined for export. Article 11 (1) Packages of retailed tobacco products destined for export shall be prohibited from : a. being attached by print out resembling to the original excise tape as meant in provisions force; b. being attached by print out or additional print out, which is not in accordance with decisions on the stipulation of retail prices of tobacco products that are granted to brands of packages of the relevant tobacco products. (2) Manufacturers violating the provisions as meant in paragraph (1) shall be subjected to administrative sanction in the form of the revocation of decisions on the stipulation of retail prices of tobacco products granted to brands of packages of the relevant tobacco products. (3) Tobacco products in retailed packages destined for export shall be prohibited from being used for selfconsumption, distributed, offered, sold or provides for sale or given free of charges to other parties in the country. (4) Manufacturers violating the provisions as meant in paragraph (3) shall be liable to a criminal sanction on the basis of laws in force. Article 12 With the enforcement of this decision of the Director General of Customs and Excise, the Decision of the Director General of Customs and Excise No. KEP-20/BC/1998 on packages of retailed tobacco products and the Director General of Customs and Excise No. KEP-30/BC/1999 on packages of retailed tobacco products destined for export shall be declared null and void. Article 13 This decision of the Director General of Customs and Excise shall come into force as from the date of stipulation. For public cognizance, this decision shall be published by placing it in State Gazette of the Republic of Indonesia. Stipulated in Jakarta On April 20, 2001 THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE

5 sgd. DR. PERMANA AGUNG D, M.Sc. NIP

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