DECREE OF MINSTER OF FINANCE
NO.132/KMK.05/1997

ON
EXEMPTION OR RELIEF OF IMPORT DUTY AND EXCISE FOR IMPORT OF GOODS WHICH ARE NATURALLY DAMAGED, DECREASED IN QUALITY, DESTROYED, OR DECREASED IN VOLUME OR WEIGHT

THE MINISTER OF FINANCE,

Considering:

that within the framework of implementing Law No. 10/1995 on customs affairs, it is deemed necessary to regulate the granting of import duty and excise exemption or relief to goods undergoing decomposition, quality degradation, destruction or volume or weight reduction, in a decree of the Minister of Finance.

In view of :

• 1. Law No.6/1983 on general tax provisions and procedures (Statute Book of 1983 No-49, Supplement to Statute Book No.3262) as already amended by Law No.9/1994 (Statute Book of 1994 No.59, Supplement to Statute Book No.3567);
• 2. Law No.7/1983 on income tax (Statute Book of 1983 No.50, Supplement to Statute Book No.3263) as already amended the latest by Law No. 10/1994 (Statute Book of 1994 No.60, Supplement to Statute Book No.3568);
• 3. Law No.8/1983 on value added tax on goods and services and sales tax on luxury goods (Statute Book of 1983 No.51, Supplement to Statute Book No.3264) as already amended by Law No. 11/1994 (Statute Book of 1994 No.61, Supplement to Statute Book No.3569);
• 4. Law No. 10/1995 on customs affairs (Statute Book of 1995 No.75, Supplement to Statute Book No.3612);
• 5. Law No.11 /1995 on excise affairs (Statute Book of 1995 No.76, Supplement to Statute Book No.3613);
• 6. The Decree of the Minister of Finance No.243/KMK.05/1996 on the imposition of excise;
• 7. The Decree of the Minister of Finance No.25/KMK.05/1997 on customs procedures in the import sector.

DECIDES:

To stipulate :

THE DECREE OF THE MINISTER OF FINANCE ON EXEMPTION OR RELIEF OF IMPORT DUTY AND EXCISE FOR IMPORT OF GOODS WHICH ARE NATURALLY DAMAGED, DECREASED IN QUALITY, DESTROYED, OR DECREASED IN VOLUME OR WEIGHT

Article 1

(1) Import goods which are not yet released from customs-zones and undergo decomposition, quality degradation, destruction or volume or weight reduction can be granted import duty and excise exemption or relief by the Director General of Customs and Excise.

(2) The import duty and excise exemption or relief as meant in paragraph (1) shall be granted if:

• a. the decomposition, quality degradation, destruction or volume or weight reduction are due to natural causes;
• b. the decomposition, quality degradation, destruction or volume or weight reduction as meant in point a. take place between the time of shipment and the granting of approval of import for own use.

Article 2.

The import goods as meant in Article 1 shall be granted import duty and excise exemption or relief.

Article 3

(1) In order to obtain import duty and excise exemption or relief for the goods as meant in Article 2, the relevant importer shall submit an application to the Director General of Customs and Excise or the official authorized by him, along with documents and specifications of the quantities and types of goods whose import duty and excise exemption or relief is requested and their customs value.

(2) For the release of the goods as meant in Article 2, the importer shall deliver the customs declaration with an attachment of the decision as meant in paragraph (1) and other supporting papers.

Article 4

(1) In order to safeguard the state finance and guarantee*the observance of customs and excise provisions, the Directorate General of Customs and Excise shall conduct audits on the account books, records and documents of the importer connected with the import, use, release and stocks of goods.

(2) The importer failing to observe the provisions on import duty exemption or relief as meant In Article 2 and causing losses to the state revenue shall be subject to an administrative sanction in the form of a fine which amounts to a hundred percent of the import duty to be paid.

(3) Based on audit results as meant in paragraph (1), the importer shall be responsible for the settlement of import duty and excise due arid the fine as meant in paragraph (2).

Article 5

The Director General of Customs and Excise shall further stipulate technical provisions required for the implementation of this decree.

Article 6

This decree shall come into force as from April 1, 1997.

For public cognizance, this decree shall be announced by publishing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta.
On March 31, 1997.

THE MINISTER OF FINANCE,
Sgd.
MAR'IE MUHAMMAD