DECREE OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA
NO.358/KMK.04/2001

ON
THE EXEMPTION FROM IMPORT DUTY, TAX IN THE FRAMEWORK OF IMPORT AND EXCISE ON ENTRANCE OF PASSENGERS GOODS FROM SABANG FREE TRADE AND FREE PORT ZONE INTO OTHER INDONESIAN CUSTOMS AREAS

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

Considering :

• a. that with the enforcement of Governmenr Regulation In Lieu of Law No.2/2000 on Sabang Free Trade and Free Port Zone, the entrance of goods from Sabang Zone to the Customs Area shall be subjected to procedures of customs affairs in the field of import and export and provisions on excise;
• b. that, on the passengers goods that are entered into the Customs Area, exemption of import duty, taxes in the framework of import, and excise is granted;
• c. this in viewing of special status of Sabang Zone, it is considered necessary to stipulate a Decree of the Minister of Finance on the Exemption from Import Duty, Tax in the Framework of Import and Excise on Entrance of Passengers goods from Sabang Free Trade and Free Port Zone into Other Indonesian Customs Areas;

In view of :

• 1. Law No.6/1983 on Taxation General Provisions and Procedures (Statute Book of the Republic of Indonesia of 1983 No.49, Supplement to Statute Book of the Republic of Indonesia No.3262) as amended several times the latest by Law No.16/2000 (Statute Book of the Republic of Indonesia of 2000 No.126, Supplement to Statute Book of the Republic of Indonesia No.3984);
• 2. Law No.7/1983 on Income tax (Statute Book of the Republic of Indonesia of 1983 No.50, Supplement to Statute Book of the Republic of Indonesia No.3263) as amended several times the latest by Law No.17/2000 (Statute Book of the Republic of Indonesia of 2000 No.127, Supplement to Statute Book of the Republic of Indonesia No.3985);
• 3. Law No.8/1983 on Value Added Tax on Goods and Services and Sales Tax of Luxurious Goods (Statute Book of the Republic of Indonesia of 1983 No.51, Supplement to Statute Book of the Republic of Indonesia No.3264) as amended several times the latest by Law No.18/2000 (Statute Book of the Republic of Indonesia of 2000 No.128, Supplement to Statute Book of the Republic of Indonesia No.3986);
• 4. Law Number 10 of 1995 on Customs Affairs (Statute Book of the Republic of Indonesia of 1995 Number 75, Supplement to Statute Book of the Republic of Indonesia Number 3612);
• 5. Law Number 11 of 1995 on Excise (Statute Book of the Republic of Indonesia of 1995 Number 76, Supplement to Statute Book of the Republic of Indonesia Number 3613);
• 6. Law Number 37 of 2000 on Stipulation of Government Regulation In Lieu of Law Number 2 of 2000 On Sabang Free Trade and Free Port Zone Into Law (Statute Book of the Republic of Indonesia of 2000 Number 252, Supplement to Statute Book of the Republic of Indonesia Number 4054);
• 7. Presidential Decree Number 234/M of 2000;
• 8. Decree of the Minister of Finance Number 232/KMK.05/1996 on Procedure of Payment and Remittance of Import Duty, Excise, Administrative Penalty, Interest and Taxes in the framework of import;
• 9. Decree of the Minister of Finance Number 243/KMK.05/1996 On Excise Exemption;
• 10. Decree of the Minister of Finance Number 490/KMK.05/1996 On the Procedure for Importing Passengers goods, Crew Members and Border Crossers, Goods Sent by Post and Goods Sent by Forwarding Agents;
• 11. Decree of the Minister of Finance Number 25/KMK.05/1997 On Procedures of Customs Affairs In the Field of Import;

DECIDES:

To stipulate :

DECREE OF THE MINISTER OF FINANCE ON THE EXEMPTION FROM IMPORT DUTY, TAX IN THE FRAMEWORK OF IMPORT AND EXCISE ON ENTRANCE OF PASSENGERS GOODS FROM SABANG FREE TRADE AND FREE PORT ZONE INTO OTHER INDONESIAN CUSTOMS AREAS.

Article 1

In this Decree of the Minister of Finance, hereinafter referred to as:

• 1. Sabang Free Trade and Free Port Zone hereinafter referred to as Sabang Zone shall be a Zone within the legal territory of the Unitary State of the Republic of Indonesia that is separated from the customs area so that free from imposition of Import Duty, Value Added Tax, Sales Tax of Luxurious Goods and Excise.
• 2. Sabang Zone shall be the zone covering Sabang City (Weh Island, Klah Island, Rubiah Island, Seulako Island, Rondo Island), Breuh Island, Nasi Island and Teunom Island and isles around it.
• 3. Passengers goods shall be the imported goods belonging to the passenger that arrive together with the passenger, that can be.
• a. Goods for Personal Purposes and Rest Accommodation of Passenger namely goods, both in new and used condition, that are reasonable required during traveling.
• b. Passengers goods namely those that are not for personal purposes and rest accommodation of passenger.

Article 2

Any passenger who arrives from Sabang Zone into other Indonesian Customs Areas is obliged to notify the Customs and Excise Official of goods carried by him/her (passengers goods) by using Passengers Goods Import Notice (Customs Declaration).

Article 3

(1) Passengers goods as meant in Article 2 whose value not exceeding FOB USD 750,00 (seven hundred fifty US dollars) per person or FOB USD 1.500,00 (one thousand five hundred US dollars) per family for every travel is given with exemption of Import Duty and Tax in the framework of import.

(2) For excess of FOB value as meant in paragraph (1), the passenger is obliged to pay for Import Duty and Tax in the framework of import.

Article 4

(1) In addition to being granted the exemption facility as meant in Article 3, exemption of Import Duty, Tax in the framework of import, and Excise is also granted to any passenger carrying Excisable Goods in the form of:

• a. 200 pieces of cigarette, 50 pieces of cigar or 200 grams of chipped tobacco; and
• b. 1 (one) liter of drinks containing ethyl alcohol.

(2) If excisable goods carried by any passenger exceeds the amount as meant in paragraph (1), the excess of Excisable Goods shall be declared as goods controlled by and belonging to the state and be further destroyed.

Article 5

(1) The customs inspection to the passengers goods as meant in Article 2 shall be done selectively.

(2) Classification and amount of tariffs on passengers goods as meant in Article 3 paragraph (2) shall be based on the Decree of the Minister of Finance on the Stipulation of Classification And Rate Of Import Duty.

Article 6

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.

Article 7

This Decree of the Minister of Finance will be reviewed after its enforcement for one year as from the stipulation date.

Article 8

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 June 6, 2001

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA
Sgd.
PRIJADI PRAPTOSUHARDJO