June 24 (Bloomberg) -- Indonesia will tighten regulations on tin exports, setting standards on the content and packaging of non-ingot products, to prevent inaccurate declaration of cargoes from the world’s biggest shipper.
“There will be a minimum specification based on international standards,” Deputy Trade Minister Bayu Krisnamurthi told reporters in Jakarta today, without giving details. “We have seen indications that refined tin ingots were declared as other tin products and there’s been an abnormal increase in shipments.”
Indonesia raised the minimum content for exports last year, and mandated that ingots be traded through the Indonesia Commodity and Derivatives Exchange before shipment, seeking to create a benchmark and challenge the London Metal Exchange as the global price setter. The trading requirement will apply to solder and other products from January 2015.
The government will issue the new rules as soon as possible and will maintain the policy for ingots, Krisnamurthi said.
While total exports surged 145 percent to 12,779 metric tons in May from April, shipments for the first five months were 34,456 tons, 22 percent less than the same period a year earlier, according to Trade Ministry data compiled by Bloomberg. Solder and other products represented 21 percent of exports in the January-May period, the data showed.