DECREE OF MINISTER OF FINANCE
NO. 136/KMK.05/1997

ON
EXEMPTION OR RELIEF OF IMPORT DUTY AND EXCISE FOR IMPORT OF EQUIPMENT AND SUBSTANCES USED TO PREVENT ENVIRONMENTAL POLLUTION

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 equipment and materials used for the prevention of environmental pollution.

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, Supplemen 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. Government Regulation No. 19/1994 jo. Government Regulation No. 12/1995 on waste;
• 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 EXEMPTION ORRELIEF OFIMPORT DUTY AND EXCISE FOR IMPORT OF EQUIPMENT AND SUBSTANCES USED TO PREVENT ENVIRONMENTAL POLLUTION

CHAPTER 1
PUBLIC STIPULATION

Article 1

Hereinafter referred to as equipment and materials used for the prevention of environmental pollution shall be equipment for waste processing to control environmental pollution and materials for preventing environmental contamination.

Article 2

The equipment and materials as meant in Article t which are imported by industrial companies or waste processing companies can be granted import duty and excise exemption or relief.

Article 3

(1) In order to obtain import duty and excise exemption or relief for equipment and materials the relevant importer as meant in Article 2 shall submit an application to the Minister of Finance through the Director General of Customs and Excise;

(2) The application as meant in paragraph (1) shall have the following attachments:

• a. the certificate of incorporation and the industrial license from the Ministry of Industry and Trade;
• b. the taxpayer code number (NPWP) and the taxable company code number (NPPKP);
• c. the recommendation from the State Minister for Environment Affairs/Chairman of the Environment Impacts Control Agency;
• d. quantitative details and types of equipment and materials imported and their customs value.

Article 4

In the case of the application for exemption or relief as meant in Article 3 being approved, the Director General of Customs and Excise shall on behalf of the Minister of Finance issue a decree on the import duty and excise exemption or relief with an attachment of quantitative details, types and the customs value of equipment and materials granted import duty and excise exemption or relief as well as the part of unloading.

Article 5

The industrial company or waste processing company obtaining the import duty and excise exemption or relief as meant in Article 4 shall:

• a. maintain account books according to the Indonesian Accountancy Standard;
• b. keep and maintain for at least 10 (ten) years at the place of business all documents, records and account books connected with the granting of import duty exemption or relief to equipment and materials;
• c. making a report and addressing it to the Head of the customs office where goods are released, on equipment and materials import realization, installation of equipment and use of materials at the end of every year for 2 (two) consecutive years.

Article 7

(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 relevant industrial company or waste processing company connected with the import and use of goods.

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

Article 8

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

Article 9

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