DECREE OF THE MINISTER OF FINANCE AND
MINISTER OF INDUSTRY AND TRADE
No.527/KMK.04/2002
No.819/MPP/KEP/12/2002

CONCERNING
ADMINISTRATIVE DISCIPLINE OF IMPORTERS

THE MINISTER OF INDUSTRY AND TRADE,

Considering :

• a. that the use of fictitious addresses, unclear identities of executives and personnel responsible for companies, unclear and untrue business line as well as violations against provisions on the bookkeeping as required In Article 49 of Law No.10/1995 on customs affairs are deemed already hampering efforts to safeguard state revenue from tax and import duty as well as efforts to encourage the smooth flow of import goods and documents;
• b. that in order to enhance the security for the state revenue as well as to encourage the flow of the import goods and documents as meant in preceding clause a, it is deemed necessary to discipline administration of importers so as to be better, more effective and efficient;
• c. that based on the considerations as meant in preceding clause a and b, it is necessary to stipulate a joint decree of the Minister of Finance and Minister of Industry and Trade;

In view of :

• 1. Law No.3/1982 on corporate registry (Statute Book of 1982 No.7, Supplement to Statute Book No.3214);
• 2. Law No.7/1953 on income tax as already amended the latest by Law No.17/2000 (Statute Book of 7000 No.127 Supplement to Statute Book No.3985);
• 3. Law No.8/19B3 on value added tax on goods and services and sales tax on luxury goods as already amended the latest by Law No.18/2000 (Statute Book of 2000 No.128, Supplement to Statute Book No.3986);
• 4. Law No.7/1994 on ratification of agreement establishing the World Trade Organization (Statute Book of 1994 No.57, Supplement to Statute Book No.3564);
• 5. Law No.10/1995 on customs affairs (Statute Book of 1995 No.75, Supplement to' Statute Book No.3612);
• 6. Law No.11/1995 on excise affairs (Statute Book of 1995 No.76, Supplement to Statute Book No.3613);
• 7. Government Regulation No.1/1982 on export, import and flow of foreign exchange (Statute Book of 1982 No.1, Supplement to Statute Book No.3210) as already amended by Government Regulation No.24/1985 (Statute Book Of 1985 No.33, Supplement to Statute Book No.3291);
• 8. Presidential Decree No.260/1967 on affirmation of tasks and responsibility of the Minister of Trade in the foreign trade sector;
• 9. Presidential Decree No.228/M/2001 on Mutual Assistance Cabinet formation;
• 10. Presidential Decree No.102/2001 on status, tasks, functions, authority, organizational structures and working arrangements of ministries;
• 11. Presidential Decree No.109/2001 on first-echelon organizational units and tasks of ministries;
• 12. Decree of the Minister of Industry and Trade No.229/MPP/Kep/7/97 on import general provision;
• 13. Decree of the Minister of Industry and Trade No.550/MPP/Kep/10/1999 on importer registry number (API) as already amended by Decree of the Minister of Industry and Trade No.253/MPP/Kep/7/2000;
• 14. Decree of the Minister of Finance No.453/KMK.04/2002 on customs procedures in the import sector.

DECIDES :

To stipulate :

THE JOINT DECREE OF THE MINISTER OF FINANCE AND THE MINISTER OF INDUSTRY AND TRADE ON ADMINISTRATIVE DISCIPLINE OF IMPORTERS

Article 1

(1) Administrative discipline shall be applied to companies/ entrepreneurs owning importer registry number (API) that undertake activities in the import field.

(2) The administration of the importers as meant in paragraph (1) shall be disciplined by the Ministry of Finance and the Ministry of Industry and Trade.

Article 2

(1) The administrative discipline of importers carried out by the Ministry of Finance as meant in Article 1 shall be done through activities of registration of companies/entrepreneurs owning API in the framework of fulfillment of requirements in the import and customs Fields, which cover:

• a. clarity and truth of addresses, identities of executives and personnel in responsible, according to API and Taxpayer Code Numbers (NPWP) owned by companies/entrepreneurs;
• b. clarity and truth of business lines;
• c. certainty of importers to perform auditable bookkeeping.

(2) Importer registry results related to violations against administrative discipline of the relevant importers within the scope of authority of the Ministry of Industry and Trade shall be conveyed by the Ministry of FinancE to the Ministry of Industry and Trade for verification and evaluation.

Article 3

(1) The administrative discipline of importers carried out by the Ministry of Industry and Trade as meant in Article 1 shall be done through verification and evaluation of the importer registry results as meant in Article 2 paragraph (2).

(2) Based on results of the verification and evaluation as meant in paragraph (1), the Ministry of Industry and Trade shall follow up in accordance with its scope of authority.

(3) Results of the follow up taken by the Ministry of Industry and Trade as meant in paragraph (2) shall be conveyed to the Ministry of Finance to be followed up.

Article 4

Provisions and procedures for the technical implementation of administrative discipline of importers as meant in Articles 2 and 3 shall be further regulated by the Director General of Customs and Excise or the Director General of Taxation, Ministry of Finance and the Director General of Foreign Trade, Ministry of Industry and Trade.

Article 5

With the enforcement of this joint decree, all provisions stipulated in decrees of the Minister of Finance and Minister of Industry and Trade that contravene this decree shall be declared null and void.

Article 6

This decree shall come into force as from April 1, 2003

Stipulated in Jakarta
On December 30, 2002

THE MINISTER OFINDUSTRY AND TRADE
sgd
RINI M.S. SOEWANDI

THE MINISTER OFFINANCE
sgd
BOEDIONO