DECREE OF THE MINISTER OF FINANCE
NO.569/KMK.05/2001

CONCERNING
PROCEDURES FOR GRANTING EXEMPTION FROM IMPORT DUTY AND EXCISE ON THE IMPORT OF GOODS FOR THE NEED OF INTERNATIONAL AGENCIES AND THEIR OFFICIALS ASSIGNED IN INDONESIA

THE MINISTER OF FINANCE,

Considering :

a. that in the framework of implementation of Law No.10/1995 on Customs Affairs, provisions on procedures for granting exemption from import duty and excise on the goods for the need of international agencies and their officials assigned in Indonesia have been provided for by the Decree of the Minister of Finance No.569/KMK.05/1998 dated 22nd December 1998;
that in connection with changes in government policies in the automotive sector, it is deemed necessary to amend the Decree of the Minister of Finance No.569/KMK.05/1998 dated 22 December 1998;

In view of :

1. Law No.10/1995 on Customs Affairs (Statute Book of 1995 No.75, Supplement to Statute Book of 1995 No.3612);
2. Law No.11/1995 on Excise Affairs (Statute Book of 1995 No.76, Supplement to Statute Book of 1995 No.3613);
3. Government Regulation No.19/1955 on Regulation Concerning Exemption From Import Duty And General Output Excise for the Purpose of Certain Categories of Foreign Officials And Experts;
4. Decree of the Minister of Finance No.243/KMK.05/1996 on Customs Procedures in the Excise Field;
5. Decree of the Minister of Finance No.25/KMK.05/1997 on Customs Procedures in the Import Field;
6. Decree of the Minister of Industry and Trade No.192/MPP/Kep/2/2000 on Amendment to the Decree of the Minister of Industry and Trade No.230/MPP/Kep/7/1997 on Goods Subjected to the Import Trade System As Already Several Times Amended, the Latest By Decree of Minister of Industry And Trade No.50/MPP/Kep/2/2000.

DECIDES :

To stipulate :

DECREE OF THE MINISTER OF FINANCE CONCERNING PROCEDURES FOR GRANTING EXEMPTION FROM IMPORT DUTY AND EXCISE ON THE IMPORT OF GOODS FOR THE NEED OF INTERNATIONAL AGENCIES AND THEIR OFFICIALS ASSIGNED IN INDONESIA.

Article 1

(1) Referred to in this decree as:

a. International agencies are representatives of foreign countries, representatives of international organizations subordinate to the United Nations and other international organizations/institutions domiciled in Indonesia on the basis of appointment of principals of the relevant international agencies, which provide technical assistance for Indonesia in economic, social and cultural fields.
b. Officials and expert personnel are foreigners appointed directly by principals of the related international agencies and already obtaining approval from the Indonesian government to execute their tasks or positions in Indonesia as well as being not locally appointed personnel.
c. Technical cooperation is cooperation between international agencies and the Indonesian government partly or wholly financed by overseas grants.
d. Goods are goods sent for the need of offices of international agencies, including goods for the need of officials and goods for the need of projects and non-projects in the framework of technical cooperation.
e. Project goods in the framework of technical cooperation are goods, including motor vehicles needed for supporting the implementation of project activities with the allocation of fund or detail of the goods being contained in technical cooperation agreements between international agencies and the Indonesian government.
f. Non-project goods in the framework of technical cooperation are goods, including motor vehicles sent by international agencies in the framework of boosting enhancement of economy, social and culture, which cover emergency aid for Indonesia with the allocation of fund/details of the goods being not contained in technical cooperation agreements between international agencies and the Indonesian government.
g. Motor vehicles are four-wheel motor vehicles of other motor vehicles required for purpose of the project.
h. Reasonable number is number of motor vehicles according to the need in the framework of performing tasks in Indonesia.
i. Type reasonableness is type and kind of motor vehicles according to the need in the framework of performing tasks in Indonesia.

(2) The international agencies as meant in paragraph (1) letter a are the agencies as stipulated in Attachment I to this decree.

(3) Stipulation and any change in the international agencies as meant in paragraph (2) are set forth by a decree of the Minister of Finance on basis of recommendations of the State Secretariat of the Republic of Indonesia.

Article 2

Exemption from import duty and excise is given to the import of goods for the need of international agencies and their officials and expert personnel as meant in Article 1.

Article 3

Goods imported for the need of international agencies together with their officials and expert personnel that obtain exemption from import duty and excise as meant in Article 2 include:

a. goods for the need of offices of international agencies in Indonesia;
b. goods used for the personal need and goods used for the need of their expertise (professional equipment), including goods for the need of family members of officials working with international agencies in Indonesia;
c. goods for the need of project and non-project in the framework of technical cooperation which are sent through international agencies.

Article 4

(1) The offices of international agencies as meant in Article 3 letter a are exempted from import duty on the purchase of motor vehicles produced locally (CKD) of reasonable type and in a reasonable quantity.

(2) Especially for the need of representative office of international organizations under the auspice of the United Nation, can be exempted from import duty on the import of motor vehicles in built up (CBU) condition with reasonable type until 2 (two) units in maximum.

Article 5

(1) Officials and/or expert personnel of International Agencies, who are assigned in Indonesia, can be exempted from import duty on the purchase of one motor vehicle produced locally (CKD).

(2) Heads of Representatives of International Organizations under auspice of the United Nations and officials of the same level as Deputies can be exempted from import duty on the import of 1 (one) unit motor vehicle in built up (CBU) condition during their term of office in Indonesia.

Article 6

(1) Vehicles for the need of technical cooperation projects can be exempted from import duty on the purchase of one motor vehicle produced locally (CKD).

(2) For the need of technical cooperation projects, exemption from import duty can also be granted to the import of motor vehicles in built up (CBU) condition with technical specifications badly needed in the realization of the projects (such as ambulances, fire extinguishing vehicles).

Article 7

(1) The Director General of Customs and Excise issues a decision on the exemption from import duty and excise on the basis of applications of heads of international agencies or the appointed officials after securing approval from the State Secretariat of the Republic of Indonesia.

(2) The applications as meant in paragraph (1) are made out in accordance with the example as stipulated in Attachment II to this Decree.

Article 8

(1) The motor vehicles as meant in Articles 4, 5, and 6 only can be sold or handed over, provided that:

a. in case of vehicles of International Agencies, after have been used for at least 3 (three) years;
b. in case of vehicles of foreign officials/expert personnel, after have been used for at least 2 (two) years, or after their term of office in Indonesia expires.

(2) On the sale or handing over of motor vehicles as meant in paragrajph (1), any and all outstanding import duty and taxes in the framework of import shall be paid fully at imposition rate and customs value applicable when the related motor vehicle is sold or handed-over.

(3) The purchase of new motor vehicles by offices of International Agencies as substitutes to the motor vehicles already sold or handed over as meant in paragraph (1) can be realized after import duty and tax in the framework of the import of the motor vehicles which are sold or handed over are settled.

Article 9

(1) The Director General of Customs and Excise issues a license to sell or hand over the motor vehicles on the basis of applications of heads of international agencies or the appointed officials and approval of the State Secretary or the appointed official by mentioning reasons for the handing over as meant in Article 8.

(2) The application as meant in paragraph 1 is submitted by using the Example form as in Attachment III to this Decree.

Article 10

Technical provisions needed in the framework of implementation of this Decree are further stipulated by the Director General of Customs and Excise.

Article 11

(1) This Decree shall come into force as from the date of stipulation.

(2) Upon enactment of this Decree, the Decree of the Minister of Finance No.569/KMK.05/1998 dated 22nd December 1998 and Letter of the Minister of Finance No.B-313/M.K/III/6/1976 dated June 4, 1976 are declared null and void.

For public cognizance, this Decree of the Minister of Finance shall be announced by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On August 1, 2001

THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA
sgd.
PRIJADI PRAPTOSUHARJO

DECREE OF THE MINISTER OF FINANCE NO.569/KMK.05/2001

CONCERNING PROCEDURES FOR GRANTING EXEMPTION FROM IMPORT DUTY AND EXCISE ON THE IMPORT OF GOODS FOR THE NEED OF INTERNATIONAL AGENCIES AND THEIR OFFICIALS ASSIGNED IN INDONESIA