DECREE OF THE MINISTER OF FINANCE
No.90/KMK.04/2002

CONCERNING
PROCEDURES FOR GRANTING EXEMPTION FROM IMPORT DUTY AND EXCISE ON GOODS OWNED BY FOREIGN EMBASSIES AND OFFICERS OF FOREIGN EMBASSIES

THE MINISTER OF FINANCE,

Considering :

• a. that due to the change in government's policy in automotive field, it is necessary to re-regulate the provisions regarding grant of exemption of import duty and excise on goods owned by foreign embassies and foreign embassies' officers posted in Indonesia, which is set forth under minister of finance's decree No.146/KMK.05/1997 on procedures for the grant of exemption of import duty and excise on import of goods for the purpose of international agencies and their officers posted in Indonesia, so that it will be in line with the said government's policy;
• b. that based on the consideration set forth in paragraph a, it is necessary to stipulate minister of finance's decree on the grant of exemption of import duty and excise on goods owned by foreign embassies and foreign embassies' officers.

In view of :

• 1. Law No.10/1995 on excise (statute book of 1995 No.75, supplement to statute book No.3612);
• 2. Law No.11/1995 on excise (statute book of 1995 No.76, supplement to statute book No.3613);
• 3. Government regulation No.8/1957 on exemption from import duty on the basis of international relations;
• 4. Decree of the Minister of Finance No.243/KMK.05/1996 on exemption from excise;
• 5. Decree of the Minister of Finance No.25/KMK.05/1997 on procedures for the implementation of excise in the field of import.

DECIDES:

To stipulate :

THE DECREE OF THE MINISTER OF FINANCE ON PROCEDURES FOR GRANTING EXEMPTION FROM IMPORT DUTY AND EXCISE ON GOODS OWNED BY FOREIGN EMBASSIES AND OFFICERS OF FOREIGN EMBASSIES.

CHAPTER I
GENERAL PROVISIONS

Article 1

In this decision, what is meant by:

• 1. Foreign embassies are diplomatic representatives, consulates, and international organizations, which are treated as diplomatic representatives/consulates as set forth in Exhibit I of this decree.
• 2. Reciprocal principle is a principle of similar treatment with regard to special rights and immunity for foreign embassies (diplomatic representatives and consulates) and their officers bearing diplomatic status in Indonesia who receive similar treatment with Indonesian representatives (diplomatic representatives and consulates) and their officers bearing foreign diplomatic status.
• 3. Officer is a diplomatic staff posted in a foreign embassy in Indonesia and non-diplomatic staff bearing diplomatic passport and working in Indonesia.
• 4. Senior officer is a staff of a foreign embassy of the same or higher level than a counselor.
• 5. Motor vehicle is a four-wheel-drive motor vehicle, which is used in the implementation of diplomatic duties.
• 6. Removed goods are goods, which, due to the moving of the owners to Indonesia, are put into Indonesian customs territory; which goods comprise of household goods used to support diplomatic duties in Indonesia and will become part of the household; those goods include motor vehicles.
• 7. Fair quantity is the total number of motor vehicles adjusted to the needs of foreign embassies based on the total number of officers of the said foreign embassies and based on the reciprocal relationship.
• 8. Fairness in type is the fairness of type of motor vehicles, which are imported in accordance with the hierarchy of position/diplomatic title and needs of the relevant officers in supporting diplomatic activities and duties in Indonesia.

CHAPTER II
EXEMPTION OF IMPORT DUTY AND EXCISE

Article 2

The exemption of import duty and excise shall be granted on import of goods owned by foreign embassies and their offices in the effort of supporting the diplomatic duties/functions of the foreign embassies in Indonesia based on the reciprocal principle.

Article 3

The goods owned by foreign embassies and the officers as set forth in Article 2 include:

• a. The goods used for official purposes; .
• b. Goods used for the establishment and/or renovation of buildings of such foreign embassies;
• c. Removed goods owned by officers of foreign embassies;
• d. Self-used goods, including those used by family members of the foreign embassies' officers.

Article 4

Import of the goods set forth in Article 3 paragraphs c and d shall be subject to exemption of import duty and excise as specified in Article 2, provided:

• a. The foreign embassies' officers do not perform any duties other than those carried out in Indonesia;
• b. The procedures of appointment of whom are not made in Indonesia;
• c. The officers are foreign citizens.

CHAPTER III
MOTOR VEHICLES FACILITY

Article 5

(1) With regard to diplomatic representative offices, the exemption of import duty on import or purchase of CBU motor vehicles in the amount not exceeding sixteen (16) units shall be granted for diplomatic offices comprising of more than ten (10) senior officers, and ten (10) units for offices comprising of ten (10) or less senior officers.

(2) With regard to consulate offices and international organizations as set forth in Article 1 paragraph 1, an exemption of import duty shall be granted on import or purchase of CBU motor vehicles not exceeding six (6) units for offices comprising of more than five (5) senior officers and five (5) units for offices comprising of five (5) or less senior officers.

(3) In case that the foreign diplomatic representative offices require motor vehicles in a quantity more than the one designated in paragraphs (1) and (2), an exemption of import duty on the purchase of CKD motor vehicles may also be granted.

(4) Based on the reciprocal principle, despite the quantity set forth in paragraphs (1) and (2), exemption of import duty may also be granted on import or purchase of CBU motor vehicles in the same total number as those obtained by Indonesian embassies in the relevant countries.

(5) In case that foreign embassies need motor vehicles of other type than those set forth in Article 1 paragraph 5, an exemption of import duty on the purchase or import of motor vehicles may also be granted based on the reciprocal principle.

Article 6

(1) Exemption of import duty shall be granted on impart or purchase of CBU motor vehicles by foreign embassies' officers, provided:

• a. For ambassadors: maximum one (1) unit during their term of office in Indonesia;
• b. For heads of embassies who are not ambassadors, foreign embassies' officers bearing diplomatic status and international rganizations' officers specified in Exhibit I of this decree: maximum one (1) unit during their term of office in Indonesia.

(2) In case that the said foreign embassies' officers as set forth in paragraph (1) need more than one (1) unit of more vehicle, the said officers may also be granted exemption of import duty on the purchase of maximum one (1) unit of CKD motor vehicles.

Article 7

(1) Administrative and technical staff of foreign embassies holding diplomatic passports during their term of office in Indonesia shall be granted an exemption of import duty on import or purchase of CBU motor vehicles or incoming motor vehicles as removed goods (fair quantity: maximum one (1) unit).

(2) During their term of office in Indonesia, the said administrative and technical staff holding passport, may also be granted an exemption of import duty on the purchase of maximum one (1) unit of CKD motor vehicles.

Article 8

(1) The decision regarding exemption of import duty and excise shall be granted by the directorate general for customs and excise upon request of head of foreign embassy or the authorized officer after obtaining the department of foreign affairs approval.

(2) The request set forth in paragraph (1) shall be prepared in accordance with the format specified in Exhibit II of this decree.

CHAPTER IV
SALE AND ASSIGNMENT OF MOTOR VEHICLES

Article 9

(1) The motor vehicles set forth in Article S can be sold or assigned, provided:

• a. The vehicles have been used for three (3) years from the date of the director general for customs and excise's decision; or
• b. The said motor vehicles are guaranteed as not being able to be used prior to the three (3)-year-period.

(2) Decision regarding the permit to sale or assign the vehicles as set forth in paragraph (1) is granted by the director general for customs and excise after obtaining the department of foreign affairs' approval.

(3) The import or purchase of new motor vehicles by and for foreign embassies to replace the sold or assigned ones as set forth in paragraph (1), may be done after full payment of the import duty and tax on import of the said motor vehicles.

Article 10

The motor vehicles set forth in Articles 6 and 7 may only be sold or assigned to other parties, provided:

• a. The vehicles have been used for at least two (Z) years from the date of the director general for customs and excise's decision; or
• b. The term of office of the relevant officers in Indonesia has expired prior to the said two (2)-year-period; or
• c. The said motor vehicles cannot/are not fit to be used for performing duties prior to the two (2)-year-period.

Article 11

(1) Request for the sale/assignment of motor vehicles, which are filed to the director general for customs and excise by the owners/officers who own the motor vehicles or their proxy based on the department of foreign affairs' approval, shall mention the reasons for the assignment as set forth in Articles 9 and 10.

(2) The request specified in paragraph (1) shall be prepared according to the format specified in Exhibit III of this decree.

Article 12

The sale or assignment of the motor vehicles specified in Articles 9 and 10 is subject to full payment of import duty and tax on import using the tariff and excise value applicable upon sale or assignment of the said motor vehicles.

CHAPTER V
DESTRUCTION OF MOTOR VEHICLES

Article 13

(1) Motor vehicles that are imported by foreign embassies or their officers and have obtained exemption of import duty, which, due to a certain matter, cannot be used anymore, may be destructed after obtaining a permit issued by the director general for customs and excise based on department of foreign affairs' approval.

(2) The report on destruction of motor vehicles as set forth in paragraph (1) shall be furnished to the director general for customs and excise as a basis for writing-off of the said motor vehicles.

(3) The writing-off set forth in paragraph (2) is subject to exemption of import duty and tax on import, and a certificate of payment of import duty will not be issued for that purpose.

CHAPTER VI
CLOSING PROVISIONS

Article 14

Technical provisions, which are required to enforce the provisions of this decree shall be further stipulated under director general for customs and excise's decision.

Article 15

This decree supersedes:

• 1. Minister of finance's decree No.452/KMK.01/1995; and
• 2. Minister of finance's decree No.146/KMK.05/1997.

Article 16

This decree comes into full force and effect from the date of stipulation.

For public cognizance, this decree shall be published by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On March 12, 2002

THE MINISTER OF FINANCE
sgd.
BOEDIONO