that in order to enhance the development of machine and rotating motor assembly industries, it is deemed necessary to grant relief of import duty on raw materials/auxiliary materials and parts/components for purpose of manufacturing machines and rotating motors.
THE DECREE OF THE MINISTER OF FINANCE CONCERNING RELIEF OF IMPORT DUTY ON RAW MATERIALS/AUXILIARY MATERIALS AND PARTS/COMPONENTS FOR MANUFACTURING MACHINES AND ROTATING MOTORS
(1) Relief of import duty shall be granted to raw materials/auxiliary materials and parts/components for manufacturing machines and rotating motors as stipulated in Attachment to this Decree of the Minister of Finance, so that it final import duty rate becomes 5% (five percent).
(2) In the case of tariffs of import duty which as contained in the Indonesian Import Duty Tariff Book (BTBMI) is 5% (five percent) or less, then the tariffs in BTBMI shall be applicable.
(3) Relief of import duty as meant in paragraph (1) shall be granted to the annual production with importation period of 1 (one) year as from the dated of decree on import duty relief.
Applications for obtaining relief of import duty as meant in Article 1 shall be accompanied by the following documents:
(1) The applications for obtaining the facilities as meant in Article 1 shall be submitted by Industrial Entrepreneurs to the Director General of Customs and Excise.
(2) In the case of the application as meant in paragraph (1) fulfils the prescribed requirements, the Director General of Customs and Excise or official he/she appoints, on behalf of the Minister of Finance shall make Decision on Relief of Import Duty, accompanied with list of goods enjoying import duty relief as well as appointment of the loading port.
(3) Machine and rotating motor assembly industries that obtain relief of import duty shall be obliged:
The goods granted import duty relief facility as referred to in Article 3 paragraph (2), in the case of the goods at the time of its importation fail to meet the provisions on quantities, kinds and specifications of goods as specified in the list of goods, shall be imposed to import duty and other import levies,
(1) Goods already obtaining facilities of import duty relief can only be used to meet the need of the relevant industries.
(2) Any misuse of the goods as meant in paragraph (1) shall nullify the facilities of import duty given to the goods, so that the import duty owed must be paid and the relevant industries are subjected to administrative sanction of 100% (one hundred percent) of the shortage of import duty.
(1) In order to safeguard the states financial rights and to assure the fulfillment of customs and excise provisions in force, the Directorate General of Customs and Excise shall audit books, records and documents of industries and waste treatment companies connected with the import, use, release and stocks of goods.
(2) Based on results of the audit as meant in paragraph (1), the Industrial Entrepreneur shall be responsible for the settlement of import duty and excise owed as well as administration sanction in the form of fine.
Technical provisions needed in the framework of the implementation of this Decree of the Minister of Finance shall be regulated by the Director General of Customs and Excise.
This Decree of the Minister of Finance shall come into force as from the date of stipulation.
For public cognizance, this Decree of the Minister of Finance shall be announced by placing it in State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
On April 16, 2001
MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA
Sgd.
PRIJADI PRAPTOSUHARDJO