DECREE OF THE MINISTER OF FINANCE
No.441/KMK.05/1999

CONCERNING
USE OF A WRITTEN BOND TO GUARANTEE 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 the n se of a written bond as a collateral for the payment of state levies on the import of goods in a decree of the Minister of Finance.

In view of:

• 1. East Indies Accountancy Law (Statute Book No.448/1925) as already amended and supplemented the latest by Law No.9/1968 (Statute Book No.53/1968);
• 2. Law No.6/1983 on general provisions and procedure for taxation (Statute Book No.49/1983, Supplement to Statute Book No.3262) as already amended by Law No.9/1994 (Statute Book No.59/1994, Supplement to Statute Book No.3566);
• 3. Law No.7/1983 on the income tax (Statute Book No.50/1983, Supplement to Statute Book No.3263) as already amended the latest by Law No.10/1994 (Statute Book No.60/1994, Supplement to Statute Book No.3567);
• 4. Law No.8/1983 on the value added tax on goods and services and the sales tax on luxury goods (Statute Book No.51/1983, Supplement to Statute Book No.3264) as already amended by Law No.11/1994 (Statute Book No.61/1994, Supplement to Statute Book No.3568);
• 5. Law No.10/1995 on customs affairs (Statute Book No.75/1995, Supplement to Statute Book No.3612);
• 6. Law No.11/1995 on excise (Stature Book No.76/1995, Supplement to Statute Book No.3613);
• 7. Law No.19/1997 on tax collection by distress warrants (Statute Book No.42/1997, Supplement to Statute Book No.3686);
• 8. Presidential Decree No.122/M/1998;
• 9. Decree of the Minister of Finance No.232/KMK.05/1996 on the procedure for the payment and deposit of import duties, excise, administrative fines, interests and taxes in the framework of import;
• 10. Decree of the Minister of Finance No.234/KMK.05/1996 on the procedure for the collection of outstanding import duties, excise, administrative fines, interests and taxes in the framework of import as already amended by Decree of the Minister of Finance No.22/KMK.01/1999;
• 11. Decree of the Minister of Finance No.147/KMK.05/1999 on the appointment of officials for the collection of the central governments taxes, the procedure and schedule for the implementation of tax collection as already amended by Decree of the Minister of Finance No.21/KMK.01/1999.

DECIDES

To stipulate:

THE DECREE OF THE MINISTER OF FINANCE CONCERNING THE USE OF A WRITTEN BOND TO GUARANTEE THE PAYMENT OF IMPORT DUTIES, EXCISE, ADMINISTRATIVE FINES AND TAXES IN THE FRAMEWORK OF IMPORT

Article 1

(1) Referred to in this decree as a written bond shall be a written statement made by an importer containing the promise to pay at the same time the entire import duty, excise, administrative fine and taxes in the framework of import within a particular period of time;

(2) The specimen of a written bond shall be as stipulated in Attachment I.

Article 2

A written bond as meant in article 1 may be used as a collateral for:

• a. state levies in the framework of import or temporary import; or
• b. underpaid state levies as a result of the stipulation of a customs and excise official being subjected to an objection.

Article 3

The amount of the guarantee placed in the written bond shall be at least:

• 1. the amount of outstanding import duty, excise and taxes in the framework of import; or
• 2. the administrative fine to be paid.

Article 4

(1) The period of time of the written bond shall be as follows:

• a. for a written bond as meant in Article 2 letter a, it shall be the period of postponement plus 30 (thirty) days;
• b. for a written bond as meant in Article 2 letter b, it shall be 90 (ninety) days;
• c. as for a collateral for the payment of the BOP import levies of Category II in the form of the central bond from the President Director of PERTAMINA, it shall be valid continuously.

(2) In the event that the postponement/facility is extended, on the basis of the approval of the Director General of Customs and Excise or an official he appoints, the period of time of the written bond shall be adjusted.

Article 5

(1) Importers already granted a license to pledge a written bond shall be:

• a. government agencies;
• b. importers importing goods for the implementation of government projects;
• c. producer importers.

(2) The importers as meant in sub-article (1) letters b and c must fulfill the following requirements:

• a. they must he able to show evidence of ownership of assets of the company;
• b. they do not sustain tax debts in the last 2 (two) years in excess of the amounts of corporate assets;
• c. they have a good reputation.

Article 6

(1) A license to be able to use a written bond shall be granted on behalf of the Minister of Finance by the head of a customs and excise office where customs obligations are fulfilled, with the exception of a written bond with a continuous period of time, of which the license shall be granted by the Director General of Customs and Excise on behalf of the Minister of Finance.

(2) The granting of a license as meant in sub article (1) shall be granted at the latest within 14 (fourteen) working days after the application has been received in complete and correct order.

(3) The decree on the granting of a license for the use of a written bond shall be as stipulated in Attachment II.

Article 7

(1) A written bond shall be signed by:

• a. an official of the lowest position of echelon I in the case of an importer as meant in Article 5 sub-article (1) letter a.
• b. the importer concerned, in the knowledge of the project manager and the relevant government agency, in the case of an importer as meant in Article. 5 sub-article (1 ) letter b.
• c. the president director in the case of an importer as meant in Article 5 sub-article (1) letter c.

Article 8

(1) In the event that an importer fails to fulfill his customs obligations within a maximum period of 30 (Thirty) days as from the date of the expiration of the written bond. The head of a customs and excise office shall convey a letter of request for payment of the written bond as in the specimen stipulated in Attachment III to this decree to the importer in order that the obligation may be immediately settled.

(2) If after 30 (thirty) days plus 7 (seven) days the importer as meant in Article 5 sub-article (1) letters b and c fails to settle his payment obligations, a letter of warning as in the specimen stipulated in Attachment IV shall be issued.

(3) If within a period of 21 (twenty-one) days as from the issuance of a letter of warning as meant in sub-article (2) the party in debt is yet to settle his obligations, the head of the customs and excise office shall immediately:

• a. issue a distress warrant as in the specimen form in Attachment V to this decree for the collection of outstanding import duty, excise and/or administrative fine and/or interests from the importer.
• b. convey a letter of notification of outstanding taxes in the framework of import in the form of the value added tax, the sales tax on luxury goods and the income tax Article 22 as in the specimen form stipulated in Attachment VI to rills decree to tine head of the tax service in the area where the importer is domiciled.

(4) If within 30 (thirty) days the importer as meant in Article 5 sub-article (1) letter a has not settled his payment obligations, the head of the customs and excise office shall issue once again a letter of request for payment to the government agency concerned.

(5) If after 30 (thirty) days the government agency to which the letter of request for payment as meant in sub-article 4 is given still has not settled his obligations, the head of the customs and excise office shall convey a notification to the Director General of Customs and Excise to be reported to the Minister of Finance in order to obtain a guideline for further settlement.

Article 9

Technical provisions needed for the implementation of the provisions in this decree shall be regulated further by the Director General of Customs and Excise.

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 7, 1999

THE MINISTER OF FINANCE,
sgd.
BAMBANG SUBIANTO

Attachment
Decree of The Minister of Finance No.441/KMK.05/1999