that in the framework of enforcing Law No.10/1995 on customs affairs jo. Government Regulation No.33/1996 on bonded stockpiling sites, it is deemed necessary to regulate provisions on bonded stockpiling sites in the form of bonded zones in a decree of the Minister of Finance.
THE DECREE OF THE MINISTER OF FINANCE ON BONDED ZONES
Referred to in this decree as:
A zone or a site shall be determined as a KB and a PKB approval shallb e given by virtue of a presidential decree.
(1) Companies which may approved as PKBs shall be:
(2) To obtain a PKB approval, the companies as meant in sub-article (1) must already own zones located in industrial zones;
(3) In the event that the zones owned by the companies as meant in sub-article (1) are situated in areas without industrial zones, the said zones must be included in industrial designated zones stipulated by second-level regional administrations;
(4) In the event that a company as meant in sub-article (1) already owns an industrial undertaking prior to the stipulation of this decree, the industrial company concerned may be stipulated as a PKB acting as a PDKB.
(1) Applications for a PKB approval as meant in Article 2 shall be filed by the companies to the President of the Republic of Indonesia through the Minister after the building has physically been put up, using the specimen in Attachment I to this decree, with the following being attached:
(2) A company wishing to operate a KB may file an application for a PKB approval as meant in sub-article (1) prior to the physical establishment of the building, using the specimen in Attachment I to this decree with the following being attached:
(3) A KB operated by a PKN can be designated for o company or more undertaking processing industrial activities.
(1) A company already obtaining a PKDB approval or an approval to do business in a KB from a PKB shall be obligated to notify the Director General through the PKB within 14 (fourteen) days prior to the commencement of its activities and shall use Attachment II to this decree with the following being attached:
(2) he Director General shall notify the head of the office about the PDKB as meant in sub-article (1), using the specimen in Attachment III to this decree.
(1) PKB shall be obligated to implement the following provisions:
(2) A PKB is prohibited to transfer imported capital goods or equipment used for construction and as office equipment without the approval of the Director General of Customs and Excise.
(1) A PDK.B is obligated to implement the following provisions:
(2) A PDKB shall be prohibited to transfer imported capital goods or factory equipment directly connected with the production activities of the PDKB without the approval of the Directorate General of Customs and Excise.
(1) A PKB and a PDKB shall assume responsibility for outstanding import duties (BM), excise, value added tax (PPN), sales tax on luxury goods (PPNBM) and income tax pursuant to Article 22 on import (PPh Pasal 21 Import) on the goods taken into or out of a KB.
(2) A PKB and a PDKB shall be exempted from the responsibility as meant in sub-article (1) in the event that the goods kept in a KB are:
(1) The entry of imported goods in the form of capital goods or equipment used for the construction of a KB, its expansion and the operation of a KB office shall be subject to the customs management in the import area.
(2) The entry into a KB of capital goods or factory equipment used directly in a production process may be conducted from:
(3) Imported goods as meant in sub-article (2) and subjected to the import ban regulation shall not be allowed to be taken into a KB.
(4) The entry of imported goods as meant in sub-article (2) letters a, b, c, d and f shall not be physically inspected unless there is an intelligence report on violations being committed against customs provisions as stated in a written instruction from the Director General.
(5) The entry of imported goods as meant in sub-article (2) shall not be subject to the provisions on the trading system in the import area.
(6) The entry of imported goods as meant in sub-article (2) letters a, b, c and d and using a BC 2.3 document shall have the B/L or AWB, invoice, packing list and other supporting documents as attachments.
(1) The release of goods obtained as the processing output of a PDKB may be conducted in order to be:
(2) The release of goods as meant in sub-article (t) letter a shall be conducted by means of an export declaration (PEB) /a specific export declaration (PEBT) (BC 3.0/BC 3.1) and a BC 2.3. form and shall be subject to the customs provisions in the export area.
(3) The release of imported goods which are not processed in a KB and which shall be re-exported shall be conducted by means of using a PEBT and a BC 2.3 form.
(4) The release of processing output from a KB to be taken into another KB for further processing shall be conducted by means of using a BC 2.3. form to which the purchase contract shall be attached.
(5) The release of the processing output from a PDKB to another PDKB within one KB for further processing or production output packing shall be conducted by means of using a B 2.3 form to which the purchase contract shall be attached.
(6) The release of processing output from a PDKB to an ETP shall be conducted by means of using BC 2.3.
(7) The release of goods already processed by a PDKB with the DPIL as the destination may be conducted by means of using an import declaration (PIB/BC 2.0) in conformity with the customs management in the import area after export is realized arid/or release to another PDKB has been implemented in a maximum amount of 25% (twenty-five) per cent of the value of the export realization and/or release to another PDKB.
(8) The release of goods as meant in sub-articles (2), (3), (4), (5) and (6) shall not be subject to a physical inspection unless there is an intelligence report to the effect that violations have been committed against customs provisions as stated in a written instruction from the Director General.
(1) A PDKB may conduct the release of goods and/or materials from a KB, which is linked with processing activities, with the exception of jobs related to initial inspection, final inspection, sorting and packing, which are subcontracted to industrial companies located in another KB or DPIL.
(2) The release as meant in sub-article (1) shall be implemented by means of using a BC 2.3 form with the subcontract agreement concerned being attached.
(3) As for a sub-contract linked with a company in a DPIL, the release of goods as meant in sub-article (1) shall be physically inspected and can be implemented after a guarantee has been placed in the form of a cash guarantee, a bank guarantee, a custom bond and a promissory note for a company belonging to the White List category as meant in Article 18.
(4) The jobs which are sub-contracted as meant in sub-article (1) must be completed at the latest 60 (sixty) days as from the release of the goods and/or materials from a KB.
(1) Machinery and/or factory equipment to be used in undertaking the sub-contracted jobs as meant in Article 11 may be given on loan by a PDKB to another PDKB or a subcontractor in a DPIL for a maximum period 12 (twelve) months and may be extended twice at a maximum, each time being for 12 (twelve) months.
(2) With respect to the release of machinery and/or factory equipment as meant in sub-article (1) given on loan to a sub-contractor in a DPIL, the machinery and the factory equipment shall be physically examined and in this regard a PDKB shall be obliged to place a guarantee as meant in Article 11 sub-article (3).
(1) The release of machinery and/or factory equipment from a KB with e view to being repaired abroad may be implemented by means of using a PEBT and a BC 2.3. form.
(2) In the event that the repair as meant in sub-article (1) is conducted at a DPIL, his can be implemented by means of using a BC 2.3. form and placing a guarantee as meant in Article 11 sub-article (3) and in this respect a phisycal inspection shall be conducted.
(3) The machinery and/or equipment under repair as meant in sub-article (1) must be taken into a KB at the latest 12 (twelve) months as from the month of the release of the machinery and/or equipment from a KB.
The following facilities shall be granted with respect to the import of goods, entry of taxable goods (BKP), consignment of production output, release of goods, re-delivery of BKP, loan of machinery, entry of excisable goods (BKC) into and/or out of a KB:
The machinery and/or factory equipment used in production activities at a PDKB may be replaced under the provision that the machinery and/or equipment so replaced shall be:
With respect to goods originating from an import in the form of foods and/or drinks meant for consumption inside a KB or imported goods other than those referred to in Article 14, it is mandatory that BM, excise, PPN, PPnBM and PPh Article 22/imports should be paid fully in accordance with the customs management in the import area and excise at the customs office prior being taken into a KB.
(1) Goods already processed by a PDKB and released to a DPIL shall be subject to the imposition of BM, Excise, PPnBM and PPh Article 22/imports as far as the said release is not intended for a party obtaining the facilities of exemption or postponement of import duties, excise and taxes in the context of import.
(2) The basis of the calculation for state levies as meant in sub-article (1) shall be as follows:
(3) Customs inspection at a KB shall be undertaken by the Directorate General of Customs and Excise.
(1) A PDKB may be put into a White List as meant in Article 1 1 sub-article (3) if the following, requirements harr* been fulfilled:
(2) Newly established companies May be included in a White List on the basis of the PDKB concerned.
(3) The PDKB as meant in sub-article (1) may be taken out of the White List if it turns out later that it has violated one of the stipulated requirements.
(1) To safeguard the state's financial rights and guarantee the fulfillment of prevailing customs and excise provision, the Directorate General of Customs and Excise shall audit the book-keeping, records and documents of a KB connected with the entry and release of goods to and from a KB and the transfer of gods inside a KB as well as the counting of the supplies of goods.
(2) If the result of an audit as meant in sub-article (1) that there is a deficiency in the quantity and/or types of PKB and/or PDKB shall be goods or that the goods are used not in accordance with their designation, a PDKB shall be responsible for the full payment of outstanding BM, excise, PPN, PPnBM and PPh Article 22/mports and an administrative sanction in the form of a fine amounting to 100% of the outstanding state's levies.
(3) If the result of an inspection as meant in sub-article (1) shows an excess in the autentity and/or types of goods or that the goods are used not in accordance with the designation, a PKB and/or PDKB shall be responsible for the full payment of outstanding BM, excise, PPN, PPnBM and PPh Article 22/imports and an administrative sanction in the form of a fine amounting to 100% of the outstanding state's levies.
(1) In the e vent that the result of a customs audit conducted by the Director General shows a violation against the customs provisions incurring losses to the state's financial right, the Minister may suspend the approval of a PKB at the recommendation of the Director General.
(2) The suspension of a PKB approval as meant in sub-article (1) may also be conducted in the event that the said PKB:
(3) The suspension of an approval as meant in sub-article (1) may be changed into a revocation if a PKB:
(4) The suspended approval of a KB as meant in sub-article (1) shall be re-enforceable if the PKB:
(5) An approval of PKB shall be revoked in the following cases:
(6) The revocation of the approval as meant in sub-article (5) shall be stipulated by the President of the Republic of Indonesia.
(7) Capital goods or equipment and/or office equipment belonging to a PKB as meant in sub-article (5) shall, within 30 days after the date of the revocation of the approval, be:
(8) In the event of the period of time as meant in sub-article (7) not being fulfilled by a PKB, the goods concerned shall be declared as unclaimed goods.
(1) A PDKB approval may be revoked if:
(2) The revocation of an approval as meant in sub-article (1) shall be conducted by a PKB at the instruction of the Director General on behalf of the Minister.
(3) Capital goods or equipment and/or goods and/or materials owned by a PDKB as meant in sub-article (1) shall, within 30 days after the date of revocation of the approval, have to be:
(4) In the event that the period of time as meant in sub-article (3) not being fulfilled by a PDKB, the goods concerned shall be declare as unclaimed goods.
With respect to damaged or rotten goods and/or materials found in a PDKB, the PDKB shall be obligated to:
Left-over goods and/or pieces from a PDKB can be:
Further technical provisions needed for the implementation of the provisions in this decree shall be further regulated by the Director General of Customs and Excise.
(1) With the enforcement of this decree, all ministerial decrees and their enforcement regulations related to KB and Production Entrepots for Export Purposes (EPTE) contradicting this decree shall be declared null and void.
(2) As for the settlement of all customs matters at KB and EPTE which have not yet been settled, the old regulations shall remain valid until April 1, 1997.
(1) Companies undertaking warehousing businesses in a KB prior to the enforcement of this decree may conduct their businesses as bonded warehouses as meant in Decree of the Minister of Finance No.399/KMK.05/1996 within a period which shall be stipulated by the Director General.
(2) Applications to obtain an EPTE approval already filed to the Minister of Finance c.q. Director General of Customs and Excise prior to the enforcement of this decree shall be settled on the basis of the old provisions and the EPTE approval to be stipulated shall be come a stipulation on a PKB which is at the same time a PDKB 8$ stipulated in this decree.
Provisions in this decree shall not apply to Batam Bonded Zone.
This decree shall take effect as from April 1, 1997.
For public cognizance, this decree shall be announced by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
On June 28, 1997
MINISTER OF FINANCE,
sgd.
MAR'IE MUHAMMAD