THE EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF GOODS AND/OR MATERIALS FROM BONDED WAREHOUSES TO BE PROCESSED, ASSEMBLED OR lNSTALLED IN OTHER GOODS FOR
MANUFACTURING MOTOR VEHICLES DESTINED FOR EXPORT (Decree of the Minister of Finance No. 347/KMK.01/1999 dated June 24, 1999)
THE MINISTER OF FINANCE, Considering :
a. that in order to increase exports of motor Vehicles, it is necessary to exempt from import duty on the import of goods and/materials from bonded warehouses to be processed, assembled or installed in other goods for manufacturing motor vehicles destined for export;
b. that in relation thereto, it is deemed necessary to issue a decree of the Minister of Finance; in view of :
1. Law No. 10/1995 on customs affairs (Statute Book of 1 995 No. 75, Supplement to Statute Book No. 3612); 2. Government Regulation No. 33/1996 on bonded stockpiling areas (Statute Book of 1996 No.50, Supplement to
Statute Book No. 3638) is already amended by Government Regulation No. 43/1997 (Statute Book of 1997 No. 40. Supplement to Statute Book No. 3717);
3. Presidential Decree No. 1 22/M/l 998;
4. Decree of the Minister of Finance No. 399/KMK.01/1996 on bonded warehouses;
D E C 1 D E S To stipulate :
THE DECREE OF THE MINISTER OF FINANCE ON THE EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF GOODS AND/'OR MATERIALS FROM BONDED WAREHOUSES TO BE PROCESSED, ASSEMBLED OR INSTALLED IN OTHER GOODS FOR MANUFACTURING MOTOR VEHICLES DESTINED FOR EXPORT
Article 1 Referred to in this decree as :
1. Import shall be an activity to supply goods into customs areas; 2. Export shall be an activity to release goods from customs areas;
3. Exemption shall be the exemption from import duty on the import of goods and/or materials to be processed, assembled or installed in other goods for manufacturing motor vehicles destined for export;
4. Customs and Excise Officials shall be employees of the Directorate General of Customs and Excise appointed in certain positions to execute certain tasks;
5. Bonded warehouses shall be buildings or places with certain limits, in which activities such as stockpiling, packaging, sorting, packing, labeling or other activities in line with their function as the center for the distribution of imported goods for other Indonesian customs areas (DPIL), bonded zones or re-export without further processing are carried out.
Article 2
Goods and/or materials originating in bonded warehouses to be processed, assembled or installed in other goods for manufacturing motor vehicles, which are imported by automotive assembly manufacturers, shall be given exemption facilities.
Article 3
In order to obtain the facilities as meant in Article 2, manufacturers shall fuifill the following requirements : 1. submitting applications to the Director General of Customs and Excise by using the form as meant in specimen
stipulated in Attachment I to this decree;
2. being submitted by automotive assembly manufacturers imported goods and/or goods from bonded warehouses; 3. attaching lists of linkage between imported goods and/or materials and exported motor vehicles by using the form
as meant in the specimen stipulated in Attachment II to this decree;
4. using goods and/or materials imported from bonded varehouses to be processed, assembled or installed in other goods for manufacturing motor vehicles wholly destined for export.
Article 4
The applications as meant in Article 3 shall be processed for approval or rejection in the period of 14 (fourten) working days as from the date of receipt of complete and correct applications.
Article 5
1. to deliver guarantees in the form of bank guarantees, castoms bonds or other guarantees to the Directorate General of Customs and Excise with the value being the same as import duty owed before the release of goods and/or materials is done;
2. to keep and maintain documents, books and reports connected with import and export activities at least for 10 (ten) years;
3. to convey reports on exoorts o the Directorate General of Customs and Excises at least once in 6 (six) months by using the forms as meant in specimens stipulated in Attachments Ill and IV to this decree. along witn the following documents :
a. photocopies of import Declarations (PIB) already given release approval by Customs and Excise officials; b. photocopies of receipts of guarantees from the Directorate General of Customs and Excise;
c. photocopies of Export Declarations (PEB) already securing loading approval from Customs and Excise officlass;
d. photocopies of Bills of Lading or airway bills.
4. to convey reports on the delivery of goods to the country for using imported goods and materials securing the exemption facilities from the Directorate General of Customs and Excise at least once in 6 (six) months by using the forms as meant in specimens stipulated in Attachments V and VI to this decree, along with the following documents;
a. photocopies of Import Declarations (PIB) already given release approval by Customs and Excise officials; b. photocopies of SSBC.
Article 6
The granting of the exemption facilities as meant in Arficle 2 shall be done by the Director General of Customs and Excise on behalf of the Minister of Finance in the form of a decree of the Minister of Finance as meant in the specimen stipulated in Attachment VII to this decree.
Article 7
(1) Exports shall be realized in the period of 6 (six) months as from the date of imports.
(2) In the case of the provision as meant in paragraph (1) being fulfilled, the guarantees shall be returned not later than 14 (fourten) working days after reports on the realisation of exports are approved.
(3) In the case of the provision as meant in paragraph (1) failing to be fulfilled, the owed import duty on the import of the goods and/or materials shall be paid and subjected to interest as high as 2% (two percent) of the import duty owed per month, starting from the maturity period of 6 (six) months up to the realisation of exports for 1 2 (twelve) months at the maximum.
(4) In the case of the exports being realized after the import duty is paid for 12 (twelve) months at the maximum as from the date of imports, import duty restitution can be given.
Article 8
(1) In the case of the deliverly to the country being realized before the period of 6 (six) months, import duty shall be paid plus an administrative sanction in the form of a fine as high as 100 (one hundred percent) of the import duty which must be paid.
(2) In the case of the deliverly to the country being realized after the period of 6 (six) months, the guarantees shall be disbursed and subjected to interest as high as 12 (twelve percent) of the impart duty which must be paid.
Article 9
Supervision over the granting of the exemption facilities as meant in this decree shall be done by the Director General of Customs and Excise.
Article 10
The implementation of audits in the customs field can be made at any time in accordance with the provisions effective for the implementation of audits in the customs field.
Article 11
In the case of any failure in accounting for goods and/materials whose production must be exported or must be available at manufacturers, recipients of the facilities shall be obliged to pay import duty plus a fine as high as 100% (one hundred percent) of the import duty which must be paid.
Article 12
(2) The goods as meant in paragraph (1) shall be examined by the Directorate General of Customs and Excise, before being sold in the country.
(3) On the remaining goods and/or materials and damaged goods and/or materials as meant in paragraph (1) which must be available at manufacturers and can not be accounted for, recipients of the facilities shall be obliged to pay import duty which is owed plus a fine as high as 100 % (one hundred percent) of the import duty which should be paid.
Article 13
(1) The remaining goods andlor materials resulting from the production and damaged goods and/or materials can be destroyed.
(2) The remaining goods and/or materials resulting from the production and damaged goods and/or materials which are destroyed shall be exempted from impart duty.
(3) Applications for destruction shall be submitted to Heads of Customs and Excise Service Offices overseeing the relevant manufacturers.
(4) The results of the destruction shall be contained in acccounts of destruction.
Article 14
The payment as meant in Article 12 paragraph (1) and the destruction as meant Article 13 shall be accounted for to the Director General of Customs and Excise by using the form as meant in specimen stipulated in Attachment VIII to this decree.
(1) In the case the results of audits showing an excess of the exemption, the excess shall be returned plus interest as high as 2% (two percent) per month for 12 (twelve) months at the maximum, starting from the date of imports. (2) In the case of the excess of the exemption as meant in paragraph (1) matching criminal elements, recepient of the
exemption facilities shall be liable to criminal sanctions in accordance with the provisions stipulated in Law No. 10/1995.
Article 1 6
Technical provisions needed for the implementation of this decree shall be further stipulated by the Director General of Customs and Excise.
Article 1 7
This decree shall come into force as from the date of stipulation.
For public cognizance, this decree shall be published by placing it in State Gazette of the Republic of Indonesia.
Stipulated in Jakarta On June 24, 1999 THE MINISTER OF FINANCE
sgd
ATTACHMENT I :
NO. : Date ………….. Attachment :
Subject : Application for exemption facilities of goods and/or materials
To : Director General of Customs and Excise attn. Director of Customs Facilities in jakarta
We, the undersigned, as the executive of the following company : Name of company :
Taxpayer Code Number (NPWP) : Address of office :
Telenhone Number : Faximile :
Address of factory :
In the position as a exporting producer of motor vehicles, herewith submit ipplication for the facilities of exemption from Import Duty (BM) on the import of goods and/or materials to be processed, assembled or installed in other goods for manufacturing motor vehicles destined for export.
We also herewith submit supporting documents in the form of 1. Import and Export Plan for 12 months;
2. Realisation of exports in the past 12 months (for manufacterers executing exports); 3. Photocopies of NPWP and Corporate Taxpayer (PKP).
In the case of this application being approved, we commit ourselves to obeying regulations which become the basis for the granting of the facilities.
Applicant duty stamp (...………….) THE MINISTER OF FINANCE
sgd
BAMBANG SUBIANTO
ATTACHMENT II
IMPORT AND EXPORT PLAN AND THE NEED FOR IMPORTED GOODS AND MATERIALS FOR 12 MONTHS
NAME OF COMPANY : TAXPAYER CODE NUMBER : PERIOD :
PLAN FOR PRODUCTION/PROCESSED PRODUCT/EXPORT THE NEED FOR PORTED GOODS/MATERIALS
Serial
Number HS
Number
Description of
exported goods
Unit Total Serial
Number
ES
Number
Description of
Exported goods
Unit Total
1 2 3 4 5 6 7 8 9 10
Estimated value of import duty asked to be exempted RP. ……….. 00 ( ………. )
THE EXECUTIVE OF THE COMPANY For THE MINISTER OF FINANCE THE DIRECTOR GENERAL OF CUSTOM AND EXCISE ………. ..………….
ATTACHMENT II
LETTER HEAD OF COMPANY
=================================================================================
No. : Date ……….
Attachment :
Subject : Report an export of imported goods and/or materials
To Head of Customs and Excise Service of Type
In ………..
We, the undersigned, as the executive of the following company : Name of company :
Taxpayer Code Number (NPWP) : Address of office :
Telephone Number : Facsimile :
Address of factory :
herewith submit a report on the ... (firs etc.) export as our accountability for the use of imported goods and materials already securing the exemption facilities.
If the results of audits of the Directorate General of Customs and Excise of our account books prove that the export report that we have already made is riot true, we are ready to accept sanctions in accordance with the provisions in force.
THE EXCUTIVE OF THE COMPANY duty stamp
( ... )
CC :
1. Director of Customs Facilities 2. Director of Verification and Audit 3. Head of Regional Office
THE MINISTER OF FINANCE sgd
BAMBANG SUBIANTO
ATTACHMENT IV :
EXPORT REPORT ON THE USE OF IMPORTED GOODS AND MATERIALS SECURING THE FACILITIES OF EXEMPTION FROM IMPORT DUTY
NAME OF COMPANY : TAXPAYER CODE NUMBER :
REPORT TO :
REALISATION OF EXPORT THE USE OF GOODS AND/OR MATERIALS AND IMPORT VALUE
Serial Number
HS Number of goods
P E B Number of PIB Datae of PIB Total/Units Import Duty (Rp) No./Date Total/Unit
1 2 3 4 7 8 9 10
Total value of Import duty
Rp.
CUSTOME AND EXCISE OFFICIAL THE EXECEUTIVE COMPANY ……… ...…………. (official Seal) (Seal of company)
THE MINISTER OF FINANCE sgd
ATTACHMENT V :
LETTER HEAD OF COMPANY
================================================================================== No. : Date ...
Attachment :
Subject : Report an domestic delivery of use of imported goods and/or materials
To Head of Customs and Excise Service of Type
in
we, the undersigned, as the executive of the following company Name of company :
Taxpayer Code Number (NPWP) : Address of office :
Telephone Number : Facsimile :
Address of factory :
herewith submit the ... (first etc.) report on the domestic delivery as our accountability for the use of imported goods and materials already securing the exemption facilities.
If the results of audits of the Directorate General of Customs and Excise of our .account books prove that the export report that we have already made is not true, we are ready to accept sanctions in accordance with the provisions in force.
THE EXECUTIVE OF THE COMPANY a duty stamp
( ... ) CC :
1. Director of Customs Facilities 2. Director of Verification and Audit 3. Read of Regional Office
ATTACHMENT VI :
REPORT ON THE DOMESTIC DELIVERY OF THE USE OF IMPORTED GOODS AND MATERIALS SECURING THE FACILITIES OF EXEMPTION FROM IMPORT DUTY
NAME OF COMPANY : TAXPAYER CODE NUMBER : REPORT TO :
REALISATION OF DOMESTIC DELIVERY THE USE OF GOODS AND/OR MATERIALS AND IMPORT VALUE
Serial Number
HS Number of goods
P E B Number of PIB Datae of PIB Total/Units Import Duty (Rp) No./Date Total/Unit
1 2 3 4 7 8 9 10
Total value of Import duty
Rp.
CUSTOME AND EXCISE OFFICIAL THE EXECEUTIVE COMPANY ……… ...…………. (official Seal) (Seal of company)
THE MINISTER OF FINANCE sgd
BAMBANG SUBIANTO
ATTACHMENT VII ....
THE DECREE OF THE MINISTER OF FINANCE NO. :
CONCERNING
THE EXEMPTION HOUSES TO BE PRF:ROM IMPORT DUTY ONO HE IMPORT OF GOODS AND/OR MATERIALS FROM BONDED WARE HOUSSED, TO BE PROCESSED ASSEMBLED OR INSTALLED IN OTHER GOODS FOR MANUFACTURING MOTOR VEHICLES DESTINED FOR EXPORT TO PT ...
THE MINISTER OF FINANCE,
Considering :
a. that following an examination of the application of PT ..., it is concluded that the relevant company fulfills requirements for the granting of exemption from import duty;
b. that on the basis of the matter as meant in point a, it is deemed necessary to exempt from import duty on the import of goods and/or materials from bonded warehouses to be processed, assembled or installed in other goods for manufacturing motor vehicles destined for export to PT...
In view of :
1. Decree of the Minister of Finance No. 399/KMK.01/1 996 on bonded warehouses;
2. Decree of the Minister of Finance No on the exemption from import duty on the import of goods and/or materials from bonded warehouses to be processed, assembled or installed in other goods for manufacturing motor vehicles destined for export;
D E C I D E S : To stipulate :
FIRSTLY :
The import of goods and/or materials from, banded warehouses of PT ... in the period of ... up to ... with the estimated value of goods totalling ……….. (……..) as contained in Attachment to this decree shall be exempted from import duty.
SECONDLY :
The goods as meant in FIRST Dictum shall only be used for processing, assemble or installing in other qoods to manufacture motor vehicles destined. for export and shall not be handed over and/or transferred from a location to other locations without approval from the Directorate General of Customs and Excise.
THIRDLY :
In the case of the provision as meant in SECOND Dictum failing to be fulfilled and/or being misused, the granting of the exemption as meant in FIRST Dictum shall be declared null and void and the relevant company is obliged to pay import duty which is owed as well as a fine as high as 100% (one hundred percent) of the amount of import duty owed.
FOURTHLY :
The Directorate General of Customs and Excise can at any time conduct a customs audit of the granting of approval of the exemption.
FIFTHLY :
The recipient of the exemption facilities as meant in FIRST Dictum shall be obliged to fulfil the requirements as meant in the Decree of the Minister of Finance No ……… dated ………
SIXTHLY :
This decree shall come into force as from the date of stipulation with the provision that this decree shall be amended/rectified properly in the case of mistakes/shortcomings being found out.
Copies of this decree are submitted to :
1. Minister of Finance (without attachment):
2. Minister of industry and Trade (without attachmer.c):
3. State Minister for investments/Head of the Investment Coordinating Board (without attachment) 4. Director General of Taxation (without attachment);
5. Director of Verification and Audit; 6. Head of Regional Office;
7. Head of Customs and Excise Service Office of ………..
The text of this decree is conveyed to the Executive of PT ………..
Stipulated in Jakarta On
For THE MINISTER OF FINANCE
THE DIRECTOR GENERAL OF CUSTOMS AND EXCISIE
ATTACHMENT VIII :
LETTER READ OF COMPANY ===================================================================================
No. : Date ...
Actachment :
Subject : Report on destrution/sales/ waste/rejects/remainder of goods/materials
To : Head of Customs and Excise Service of Type ... in ...
we, the undersigned, as the executive of the following company : Name of commpany :
Taxpayer code namber (NPWP) : Address of office :
Telaphone namber : Facsimile :
Address of factory :
herewith submit the ... (first etc.) report an the destruction/sales/waste/ejects/remaiader of goods/materials which are not exported as our accountablity for the use of imported goods and materials already securing the exempation facilities. We also herewith convey documents required for the complete report :
1. List of the remaining imported goods/waste which are destroyed/sold; 2. SSBC and SSP;
3. A pohotocopy of import Declaration (PIB); 4. Photocopies of sale invoices; or
5. Accounts of destruction.
in the case of the audit conducted by the Directorate General of Customs and Excise of our account books in the future aroving tbat the report already conveyed by us is not true, we are ready to accept sanctions in accordance with the provisions in force.
THE TXECUTMVE OF THE COMPANY a duty stamp
( ... )
THE MINISTER OF FINANCE sgd
