ProdukHukum Perdagangan 3440699.

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AMENDMENT TO THE DECREE OF THE MINISTER OF FINANCE

NO. 440/KMK.05/1996 ON STIPULATION OF CLASSIFICATION SYSTEMS

OF GOODS AND TARIFFS OF IMPORT DUTY

ON IMPORTED GOODS

(Decree of the Minister of Finance No. 344/KMK.01/1999 dated June 24, 1999)

Considering :

That in the framework if increasing the smooth flow of goods as well as the competitiveness of

domestic production, it is deemed necessary to improve general rules for the interpretation of the

harmonized system as well as to amend classification and tariffs of import duty on certain imported

goods, as meant in the Decree of the Minister of Finance No. 440/KMK.05/1996;

In vew of :

1.

Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book

No. 3612);

2.

Presidential Decree No. 122/M/1998;

3.

Decree of the Minister of Finance No. 440/KMK.05/1996 on stipulation of classification

systems of goods and tariffs of import duty on imported goods as already amended and

supplemented the latest by the Decree of the Minister of Finance No. 203//KMK.01/1999;

DECIDES :

To stipulate :

THE DECREE OF THE MINISTER OF FINANCE CONCERNING AMENDMENT TO THE

DECREE OF THE MINISTER OF FINANCE NO. 440/KMK.05/1996 ON STIPULATION OF

CLASSIFICATION SYSTEMS OF GOODS AND TARIFFS OF IMPORT DUTY ON

IMPORTED GOODS

Article I

To amend the Decree of the Minister of Finance No. 440/KMK.05/1996, in following matters :

1.

General rules for the interpretation of the harmonized system shall be amended to become those

as meant in "General Rules" in Attachment 1 to this decree.

2.

Classification and tariffs of import duty on certain imported goods shall be amended to become

those as meant in the "New" column in Attachment II to this decree

3.

Attachments to the Decree of the Minister of Finance No. 440/KMK.05/1996 shall be amended

by supplementing new chapter to become Chapter 98 with classification of goods as contained

in Attachment III to this decree.

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5.

With the enforcement of this decree :

a.

General rules for the interpretation of the harmonized system already existing before the

stipulation of this decree;

b.

Provisions on classification and tariffs of import duty already existing before the stipulation

of this decree, as far as they deal with the goods as contained in Attachment II to this

decree;

shall be declared null and void.

6.

The Director General of Customs and Excise shall be instructed to implement the provisions in

this decree.

Article II

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

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ATTACHMENT I :

PREVIOUSLY NEW RULES

GENERAL RULES FOR THE INTERPRETATION OF THE HARMONIZED SYSTEM

Classification of goods in the nomenclatur shall be governed by the following principles :

1. The titles of Sections, Chapters and sub-Chapters are provided for facilitating the reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section of Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions :

2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete of finished article. It shall also be taken to include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled.

2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete of finished article. It shall also be taken to include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled

(b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principle of Rule 3.

3. When by application of Rule 2 (b) for any aother reason, goods are, prima pacie, classifiable under two or more headings, classification shall be effected as follows :

(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

(b) Mixtures and composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale which can not be classified by reference to 3 (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

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(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

4. Goods which can not be classified in accordance with the above Rules shall be classified under the heading appropriate to the goods to which they are most akin.

5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein :

(a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for longterm use and presented with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This Rule does not, however, apply to containers which give the whole its essential character.

(b) Subject to the provisions of Rule 5 (a) above, packing materials and packing containers presented with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provisions is not binding when such packing materials or packing containers are clearly suitable for repetitive use.

6. For legal purposes, the classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related Subheading Notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule the relative Section and Chapter Notes also apply, unless the context otherwise requires.

7. Throuhgout the Nomenclature the expression "packed for sale by retail" shall mean that the goods concerned are put up for sale in containers in quantities of 1,200 grams or less; and the expression of "table form" shall mean that goods are made in the shape of tablets, pills, discs, sticks, rods, balls or other forms and that the weight of each article (of if the shapes are composed of smaller shapes, the weight of each of the smaller shapes) does not exceed 200 grams, n.e.s.

8. Throughout the Nomenclature the term "containers" shall be taken to mean any respectable in immediate contact with the goods, whether, such receptable is made of wood, metal, glass, paperboard, plastic or other materials.

9. The term "CKD" shall mean completely knocked down condition according to the decree of the Minister of Industry and Trade.

9. In the case of any doubt about the interpretation of texts contained in this tariff book, as far as they are connected with

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texts of : texts of : - General Rules for the interpretation of the Harmonized

System points 1 up to 6;

- General Rules for the interpretation of the Harmonized System points 1 up to 6;

- Section Notes, Chapter Notes or subheading Notes; - Section Notes, Chapter Notes or subheading Notes; - Description of goods with HS numbers of four digits; - Description of goods with HS numbers of four digits; - Description of goods with HS number of six digits; - Description of goods with HS number of six digits; - Description of goods with HS number of nine digits, whose

last three digits are --000-- (for example : 7608.10.000);

- Description of goods with HS number of nine digits, whose last three digits are --000-- (for example : 7608.10.000);

the texts which are binding are those in the English language (original texts of their HS) as contained in the text of the International Description and Coding System along with its protocol shall apply.

THE MINISTER OF FINANCE

sgd

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ATTACHMENT III :

PART XXII

SPECIAL RULES

CHAPTER 98

SPECIAL PROVISIONS

Note :

1.

In order to serve the interest of this chapter :

(a)

Assembly and component industries shall mean motor vehicle assembly and motor vehicle

component manufacturers as stipulated by the Minister of Industry and Trade

(b)

Motor vehicles shall mean :

-

motor vehicles with four wheels or more of Tariff Headings No. 87.03 and 87.04

-

motor vehicles with two and three wheels of Tariff Heading No. 87.11

2.

Tariff Headings No. 98.01, 98.02 and 98.03 shall only include motor vehicles or components of

motor vehicles imported by motor vehicle assembly and/or motor vehicle component

manufacturers, which are classified under the respective tariff headings according to this

nomenclature.

3.

In order to serve the interest of Tariff Heading No. 98.01 :

(a)

"Motor vehicles in incompletely knocked down (IKD) condition" shall mean motor vehicles

which are broken down into incomplete parts and do not have the main characteristics or the

relevant motor vehicles.

(b)

The level of the knocked down condition of motor vehicles in incompletely knocked down

shall be stipulated by the Minister of Industry and Trade.

4.

In order to serve the interest of Tariff Heading No. 98.02 :

(a)

"Components of motor vehicles in incompletely knocked down condition" shall mean

components of motor vehicles broken down into sub-components and not having the main

characteristics of the relevant motor vehicles components;

(b)

The level of the knocked down condition of motor vehicle components in incompletely

knocked down condition shall be stipulated by the Minister of Industry and Trade.

5.

In order to serve the interest of Tariff Heading No. 98.03 "blank" shall mean goods not prepared

for direct use whose shapes are close finished goods or parts of finished good, and which are

only used for further processing into finished goods or parts of the finished goods.

Headings

Sub-headings

Description of goods

Import

duty

Remark

98.01

Motor vehicles in incompletely knocked down condition

9801.10

- Motor vehicles for tranport of ten persons or more of

Tariff Heading No. 87.03 :

9801.10.100

-- Sedans with a cylinder capacity of less than 1,500

15

9801.10.200

-- Motor vehicles other than sedans of a single propeller

axle system ( 4 x 2 )

15

9801.20

- Motor vehicles for the transport of goods of Tariff

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9801.20.100

-- Total weight of not surpassing 5 tons

15

9801.20.200

-- Total weight of more than 5 tons but not surpassing 24

tons

98.02

Motor vehicle components in incompletely knocked down

condition

9802.10.000

- Spark-ignition internal combustion rotary or

reciprocating piston engines or compression ignition

internal combustion piston engines (diesel/semi diesel)

10

9802.20.000

- Gear box

10

9802.30.000

- Drive axle

10

9802.00.000

Blanks for components of motor vehicles, made of

non-ferrous metal

5

THE MINISTER OF FINANCE

sgd