DECREE OF THE MINISTER OF FINANCE
No.461/KMK.05/1997

CONCERNING
THE USE OF CUSTOMS BOND AS A GUARANTEE FOR THE PAYMENT OF IMPORT DUTIES, EXCISE, ADMINISTRATIVE FINES AND TAXES IN THE FRAMEWORK OF IMPORT

THE MINISTER OF FINANCE,

Considering :

that with the enforcement of Law No.10/1995 on customs affairs, it is deemed necessary to regulate provisions on the use of customs bonds as a guarantee for the payment of state levies on the import of goods in a decree of the Minister of Finance;

In view of :

DECIDES :

To stipulate :

THE DECREE OF THE MINISTER OF FINANCE CONCERNING THE USE OF CUSTOMS BOND AS A GUARANTEE FOR THE PAYMENT OF IMPORT DUTIES, EXCISE, ADMINISTRATIVE FINES AND TAXES IN THE FRAMEWORK OF IMPORTS.

Article 1

Referred to in this decree as:

Article 2

A customs bond can be used as a guarantee for the payment of:

Article 3

The amount of the guarantee placed with a customs bond shall be at least as follows:

Article 4

(1) A customs bond which can be accepted as a guarantee for the payment of state's levies shall be a customs bond issued by the following sureties:

(2) The sureties as mean: in sub-article (1) may be changed/reviewed on the basis of a ceiling assessment, a solvability rate and technical management capability in the issuance of customs bonds.

(3) he Directorate General of Financial Institutions shall conduct surety assessment as meant in sub-article (2) and shall later, for and on behalf of the Minister of Finance, issue a decision on the said change.

(4) A customs bond/surety bond issued by a Surety, which, owing to the change as meant in sub--article (2), is no longer permitted to issue customs bonds, shall remain valid until its date of maturity and shall remain the responsibility of the surety concerned.

Article 5

(1) The periods in which a customs bond shall be valid shall be as follows:

(2) The period of validity of a customs bond can be extended only after an approval has been obtained from:

Article 6

(1) The surety as meant in Article 4 shall complete a customs bond form the model and composition of which shall be as given in thespecimen in Attachment I to this decree.

(2) A customs bond the model and composition of which does not agree with the smecimen as meant in sub-article (1) cannot be accepted as a guarantee.

Article 7

(1) In the event that the insured party has not fulfilled or does not fulfil their obligations until the maturity date of the custom bond, the custom bond shall be cashed.

(2) Customs bond cashing as meant in sub-article (1) shall be conducted by means of a letter of request for cashing from the Director General of Customs and Excise or an official he appoints, using the form as in the specimen in Attachment !I to this decree or from the head of Bapeksta Keuangan, using a decision on cashing as meant in Attachment II to Decree of the Minister of Finance No.488/KMK.01 /1996.

(3) A surety must book-transfer the amount as requested in the letter of request for cashing:

Article 8

In the event that a surety fails to fulfil the obligations pursuant to the provision as meant in Article 7 sub-article (3):

Article 9

With the enforcement of this decree, Decree of the Minister of Finance No.108/KMK.01 /1995 dated March 13, 1995 and No.341 /KM.17/1995 dated October 27, 1995 shall be declared null and void.

Article 10

This decree shall take effect as from the date of stipulation.

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

Stipulated in Jakarta
On September 8, 1997

THE MINISTER OF FINANCE
sgd.
MAR'IE MUHAMMAD