DECREE OF MINISTER OF FINANCE
No.140/KMK.05/1997

ON
EXEMPTION OF IMPORT DUTY AND EXCISE FOR IMPORT OF SAMPLES

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 to samples, in a decree of the Minister of Finance.

In view of :

• 1. Law No.6/1933 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.25/KMK.05/1997 on customs procedures in the import sector.

DECIDES:

To stipulate :

THE DECREE OF THE MINISTER OF FINANCE ON EXEMPTION OF IMPORT DUTY AND EXCISE FOR IMPORT OF SAMPLES

Article 1

(1) Hereinafter referred to as samples shall be all goods imported especially to serve as samples for the manufacture of products with the aim of export or domestic marketing.

(2) The samples as meant in paragraph (1) shall meet the following requirements:

• a. being solely meant for identification of products or new products;
• b. being imported to the maximum of 3 (three) units for 1 (one) trade mark/model/type;
• c. being not meant for further processing except for research and quality development;
• d. being not meant for transfer, sale or domestic consumption.

(3) The samples as meant in paragraph (1) shall exclude motor vehicles and heavy duty equipment of any type and/or condition.

Article 2

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

Article 3

1. Samples shall be stored for a maximum period of 2 (two) years starting from the sate of import realization.

2. Samples already used according to their designation and already exceeding the period as meant in paragraph 1, shall be exempted from their liabilities to the state.

Article 4

In order to obtain import duty and excise exemption 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:

• a. specifications of the quantities and types of goods whose import duty and excise exemption is requested and their customs value;
• b. recommendations from relevant technical ministries.

Article 5

The Director General of Customs and Excise or the official authorized by him shall issue a decision on the import duty and excise exemption on behalf of the Minister of Finance.

Article 6

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

Article 7

With the enforcement of this decree, the Decree of the Minister of Finance No.220/KMK.01/1995 shall be declared null and void.

Article 8

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