DECREE OF THE MINISTER OF FINANCE
No. 129/KMK.04/2003

CONCERNING
THE EXEMPTION AND/OR RESTITUTION OF THE UNCOLLECTED IMPORT DUTY AND/OR EXCISE AS WELL AS VALUE ADDED TAX AND SALES TAX ON LUXURY GOODS ON THE IMPORT OF GOODS AND/OR COMPONENTS TO BE PROCESSED, ASSEMBLED OR INSTALLED AT OTHER GOODS FOR EXPORT PURPOSE AND THE SUPERVISION OVER THE GOODS

THE MINISTER OF FINANCE,

Considering:

a. that pursuant to Law No. 10/1995 on customs affairs, the import of goods and/or components to be processed, assembled or installed at, other goods for export purpose can be given the exemption from and/or restitution of import duty;
b. that Law No. 11/1995 on excise affairs stipulates that excise is not collected from exported excisable goods;
c. that based on Article 3 of Government Regulation No. 143/2000 as already amended by Government Regulation No. 24/2002, the uncollected tax on the import of taxable goods which is exempted from import duty on the basis of the customs legislation can be stipulated by a decree of the Minister of Finance;
d. that in order to drive up the export of non-oil and gas commodities, it is deemed necessary to simplify the procedures for granting the exemption and/or restitution of the uncollected import duty and/or excise as well as value added tax and sales tax on luxury goods previously handled by BINTEK Keuangan through the settlement of facilities by the Directorate General of Customs and Excise;
e. that the use of goods processed by companies securing the facilities of exemption and/or restitution of the uncollected import duty and/or excise as well as value added tax and sales tax on luxury goods for supporting domestic economy needs further encouragement;
f. that the granting of the exemption and/or restitution of uncollected import duty and/or excise as well as value added tax and sales tax on luxury goods by the Directorate General of Customs and Excise needs to be supervised;
g. that based on the considerations as meant in letters a, b, c, d, e and f, it is necessary to stipulate a decree of the Minister of Finance on the exemption and/or restitution of import duty and/or excise as well as value added tax and sales tax on luxury goods on the import of goods and/or components to be processed, assembled or installed at other goods for export purpose and the supervision over the goods;

In view of:

1. Law No. 6/1983 on taxation general provisions and procedures (Statute Book of 1983 No. 49, Supplement to Statute Book No. 3262) as already amended the latest by Law No. 16/2000 (Statute Book of 2000 No. 125, Supplement to Statute Book No. 3984);
2. Law No. 8/1983 on value added tax on goods and services and sales tax on luxury goods (Statute Book of 1983 No. 51, Supplement to Statute Book No. 3264) as already amended the latest by Law No. 18/2000 (Statute Book of 2000 No. 128, Supplement to Statute Book No. 3986);
3. Law No. 10/1995 on customs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
4. Law No. 11/1995 on excise affairs (Statute Book of 1995 No. 76, Supplement to Statute Book No. 3613);
5. Government Regulation No. 33/1996 on bonded collection places (Statute Book of 1996 No. 50, Supplement to Statute Book No. 3638) as already amended by Government Regulation No. 43/1997 (Statute Book of 1997 No. 90, Supplement to Statute Book No. 3717);
6. Government Regulation No. 143/2000 on the implementation of Law No. 8/1983 on value added tax on goods and services and sales tax on luxury goods as already amended several times and the latest by Law No. 18/ 2000, as already amended by Government Regulation No. 24/2002 (Statute Book of 2002 No. 49, Supplement to Statute Book No. 4199);
7. Presidential Decree No. 177/2000 on organizational structures and tasks of ministries;
8. Presidential Decree No. 84/2001 on the status, tasks, functions, organizational structures and working arrangements of vertical institutions within the Ministry of Finance;
9. Presidential Decree No. 228/M/2001;
10. Decree of the Minister of Finance No.291/KMK.05/1997 on bonded zones as already amended several times and the latest by Decree of the Minister of Finance No. 37/ KMK.04/2002;
11. Decree of the Minister of Finance No. 2/KMK.01/2001 on the organization and working arrangement of the Ministry of Finance;
12. Decree of the Minister of Finance No. 453/KMK.04/2002 on customs procedures in the import field as already amended several times and the latest by Decree of the Minister of Finance No. 112/KMK.04/2003;
13. Decree of the Minister of Finance No. 557/KMK.04/2002 on customs procedures in the export field;

DECIDES:

To stipulate :

THE DECREE OF THE MINISTER OF FINANCE ON THE EXEMPTION AND/OR RESTITUTION OF THE UNCOLLECTED IMPORT DUTY AND/OR EXCISE AS WELL AS VALUE ADDED TAX AND SALES TAX ON LUXURY GOODS ON THE IMPORT OF GOODS AND/OR COMPONENTS TO BE PROCESSED, ASSEMBLED OR INSTALLED AT OTHER GOODS FOR EXPORT PURPOSE AND THE SUPERVISION OVER THE GOODS.

CHAPTER I
GENERAL PROVISION

Article 1

Referred to in this decree as:

1. Import shall be an activity of supply of goods into a custom area.
2. Export shall be an activity of release of goods from a customs area.
3. Exemption shall be the exemption from import duty and/or excise on the import of goods and/or components processed, assembled or installed at other goods for export purpose.
4. Uncollected Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM) shall be a facility of exemption from PPN and PPnBM on the import of goods and/or components to be processed, assembled or installed at other goods for export purpose, as long as the import of the said goods and/or component is exempted from import duty.
5. Restitution shall be restitution of import duty and/or excise already paid for the import of goods and/or components processed, assembled or installed at other goods already exported.
6. Official shall be an employee of the Directorate General of Customs and Excise appointed to assume certain position for executing certain tasks.
7. Bonded Zone shall be a building, place or area with certain limits wherein business activities of goods and component processing industries, design, engineering, sorting, initial inspection, final inspection and packing of goods and components originating from import or other Indonesian customs area are executed with the output mainly destined for export.

Article 2

(1) Imported goods and/or components processed, assembled or installed at other goods for export purpose can be given the exemption from uncollected PPN and PPnBM.

(2) Restitution can be granted to import duty and/or excise on imported goods processed, assembled or installed at other goods already paid and exported.

(3) The exemption and/or restitution as well as uncollected PPN and PPnBM can be granted to processed goods made of imported components which are delivered to a bonded zone for further processing.

(4) By products, remainder of production, spoiled products and components made of imported components can be sold in the country by paying import duty and/or excise as well as PPN and PPnBM.

Article 3

The exemption and/or restitution as well as the uncollected PPN and PPnBM as meant in Article 2 paragraphs (1), (2) and (3) shall be granted by the Director General of Customs and Excise or the appointed official on behalf of the Minister of Finance.

Article 4

(1) In order to obtain the exemption and/or restitution as well as the uncollected PPN and PPnBM as meant in Article 2, companies shall have Corporate Registry Number (NIPER) issued by the Directorate General of Customs and Excise.

(2) In order to obtain NIPER, companies shall submit corporate principal data (DIPER) to the Directorate General of Customs and Excise by using the form of DIPER as contained in specimen in Attachment I to this decree.

(3) Based on the submitted DIPER, the Directorate General of Customs and Excise shall apply administrative and field examination to the truth of the data as meant in paragraph (2).

(4) Results of the administrative and field examination as meant in paragraph (3) shall be contained in an account.

(5) The approval or rejection of the application, for NIPER shall be given not later than 3 (three) days as from the date of the account.

(6) NIPER shall be revoked in the case of companies not undertaking activities related to the exemption and/or restitution as well as uncollected PPN and PPnBM for 12 (twelve) months consecutively as from the date of issuance of NIPER.

(7) In the case of application for NIPER being already approved, companies shall install billboard with the writing:

NAME OF COMPANY : PT..........
NO. OF NIPER : ...........

(8) NIPER already issued by Bapeksta Keuangan/BINTEK Keuangan shall be declared to remain effective as NIPER usable for securing the exemption and/or restitution as well as uncollected PPN and PPnBM on the basis of this decree.

CHAPTER II
EXEMPTION AND UNCOLLECTED PPN AND PPnBM

Article 5

In order to obtain the exemption and the uncollected PPN and PPnBM as meant in Article 2 paragraphs (1) and (3), applicants shall fulfill the following requirements:

a. submitting application to the Director General of Customs and Excise or the appointed official;
b. being submitted by producers importing goods and/or components and exporting their production or producers delivering their production to bonded zone for processing, assembling or installing at other goods;
c. goods and/or components imported for processing, assembling or installing at other goods must be exported.

Article 6

The application shall be submitted with the provision as follows:

a. submitting application by using Form A1 as contained in Specimen in Attachment II to this decree;
b. attaching a list of linkage between the imported goods and/or components and production exported or delivered to bonded zone or sold in the country by using Form A2 as contained in specimen in Attachment III to this decree.

Article 7

The application as meant in Article 6 shall be processed for approving or rejecting by the Director General of Customs and Excise or the appointed official in a period of 14 (fourteen) working days as from the date of receipt of complete and true application.

Article 8

In the case of the application being approved, applicants shall:

a. give up bank guarantee, customs bond or promissory note to the Directorate General of Customs and Excise amounting to import duty and/or excise as well as PPN and PPnBM before the goods are taken out;
b. keep and maintain documents, books and reports related to import and export for 10 (ten) years at the minimum in business place located in Indonesia;
c. convey reports to the Directorate General of Customs and Excise, in the form of:
1. Export Report (LE), in the case of producers directly exporting their production, every 6 (six) months at the minimum, by using Forms A3 and A4 as contained in the attached specimen and Attachments IV and V to this decree, accompanied by import documents:
a) photocopy of Import Declaration (PIB)/Certain Import Declaration (PIBT) already given outgoing approval by official;
b) photocopy of guarantee receipt (SSTJ) in the Directorate General of Customs and Excise.export documents:
c) Original customs and excise inspection report (LPBC)/original report on result of the inspection (LHT);
d) Photocopy of export declaration (PEB) already securing loading approval from official;
e) photocopy of Bill of Lading (B/L) or Airway Bill (AWB) or other transport documents treated such that.
2. In the case of producers delivering their production to a bonded zone for further processing, the report on delivery to bonded zone, every 6 (six) months at the minimum, by using Forms A7 and A8 as contained in Specimens in Attachments VI and VII to this decree, accompanied by:
a) photocopy of Import Declaration (PIB)/Certain Import Declaration (PIBT) already given outgoing approval by official;
b) photocopy of guarantee receipt (SSTJ) in the Directorate General of Customs and Excise. delivery documents:
c) evidence of delivery of goods to bonded zone already ratified by official;
d) evidence of contract of sales to manufacturing companies in bonded zone.
3. report on domestic sales, in the case of producers selling their production in the country, by using Forms, A9 and A10 as contained in Specimens in Attachments VIII and IX to this decree, accompanied by:
1) Import documents:
a) photocopy of Import Declaration (PIB)/Certain Import Declaration (PIBT) already given outgoing approval by official;
b) photocopy of guarantee receipt (SSTJ) in the Directorate General of Customs and Excise.
2) delivery document in the form of domestic selling invoice.

Article 9

The guarantee as meant in Article 8 shall be returned not later than 14 (fourteen) working days as from the date of approval of the reports as meant in Article 8 letter c.

Article 10

(1) The export shall be realized in 12 (twelve) months as from the date of import and the Director General of Customs and Excise on behalf of the Minister of Finance can grant exception to companies having a production period of more 12 (twelve) months.

(2) The delivery to a bonded zone shall be realized in 12 (twelve) months as from the date of import to the date of supply of goods into the bonded zone.

(3) Unless the provisions as meant in paragraphs (1) and (2) are fulfilled, import duty and/or excise as well as PPN and PPnBM on the import shall be paid.

(4) The obligation as meant in paragraph (3) as long as it i > related to import duty and !or excise shall be supplemented by interest as high as 2% of the levies which must be paid every month for 2,4 (twenty four) months at the maximum:

a. starting from the date of maturity of the 12 (twelve) month period as meant in paragraphs (1) and (2) as long as the said goods and/or components still exist in stocks of companies securing the exemption as well as uncollected PPN and PPnBM;
b. starting from the date of maturity of the period stipulated by the Director General of Customs and Excise in connection with the exception as meant in paragraph (1).

(5) The obligation as meant in paragraph (3) as long as it is related to PPN and PPnBPV1 shall be supplemented by a fine in accordance with the taxation provisions in force.

CHAPTER III
RESTITUTION

Article 11

Restitution can be granted to:

a. producers exporting their production directly (producing exporters);
b. producers giving up their production to a bonded zone.

Article 12

In order to obtain the restitution as meant in Article 2 paragraphs (2) and (3), the following requirements shall be fulfilled:

a. in the case of goods being already exported:
1. already examined by official;
2. the date of LPBC/LHP does not exceed 12 (twelve) months as from the date of B/L or AWB or other transport documents treated such that, up to the date of receipt of applications by the Directorate General of Customs and Excise;
3. the import has been realized not later than 24 (twelve) months before the shipment of exported goods.
b. in the case of goods being supplied to a bonded zone:
1. already examined by official;
2. the date of inspection note of the official does not exceed 12 (twelve) months as from the date of examination, up to the date of receipt of applications by the Directorate General of Customs and Excise.

Article 13

(1) Applications for restitution shall be submitted to the Director General of Customs and Excise or the appointed official.

(2) The applications shall be submitted by using Form B as contained in Specimen in Attachment X to this decree by enclosing:

a. the list of linkage between imported goods and/or components and goods exported or delivered to a bonded zone by using Form B3 as contained in Specimen in Attachment XI to this decree;
b. import documents in the form of:
1. photocopy of PIB/PIBT already given outgoing approval by official;
2. the third sheet of Customs and Excise Payment Forms (SSBC) or Customs, Excise and Tax Payment Forms (SSPCP)/Customs, Excise and Tax Payment Evidences (BPPCP).
c. export documents in the form of:
1. photocopy of PEB already securing loading approval from official;
2. LPBC/LHP;
3. photocopy of B/L or AWB or other transport documents treated such that.
d. documents of delivery of goods to a bonded zone:
1. evidence of delivery to the bonded zone;
2. photocopy of tax invoice;
3. photocopy of contract of sales to the bonded zone.

Article 14

The applications shall be processed for approving or rejecting in a period of 14 (fourteen) working days as from the date of receipt of complete and true applications.

Article 15

In the case of the applications being approved, applicants shall keep and maintain documents, books and records related to the restitution received in detailed manner for 10 (ten) years in their business places located in Indonesia.

CHAPTER IV
DOMESTIC SALES

Article 16

(1) Goods resulting from the production of imported raw materials can be sold in the country after their export or delivery to a bonded zone is realized with the provision that:

a. applications are submitted to the Director General of Customs and Excise or the appointed official and the official undertakes physical inspection;
b. goods to be sold in the country maximally make lap 25% (twenty five percent) of the total realized export and/or delivery to the bonded zone;
c. import duty and/or excise are/is paid on the basis of tariff of products with the imposition and the customs value of components upon importing;
d. PPN and PPnBM originally uncollected are paid on the basis of the imposition of tax amounting to the import value plus a sanction in accordance with the provisions in force;
e. PPN and PPnBM are collected upon the delivery of goods in the country.

(2) Domestic sales shall use Forms A9 and A10 as contained in Specimen in Attachments VIII and IX to this decree, accompanied by:

a. photocopy of PIB/PIBT already given outgoing ap.proval by the official;
b. photocopy of STTJ at the Directorate General of Cus.toms and Excise; and
c. domestic sale invoice.

Article 17

Domestic sales exceeding the provision as meant in Article 16 shall be subjected to a fine as high as 100% (one hundred percents) of the import duty and/or excise which must be paid.

Article 18

(1) Domestic sales shall be realized in 12 (twelve) months as from the date of import to the date of supply of goods into the country and the Director General of Customs and Excise on behalf of the Minister of Finance can give exception to companies having a production period of over 12 (twelve) months.

(2) Unless the provision as meant in paragraph (1) is fulfilled, import duty and/or excise as well as PPN and PPnBM on the import shall be paid.

(3) The obligation as meant in paragraph (2) as long as it is related to import duty and/or excise shall be supplemented by interest as high as 2% (two percents) of the levies which must be paid every month for 24 (twenty four) months at the maximum:

a. starting from the date of maturity of the 12 (twelve) month period as meant in paragraph (1) as long as the said goods and/or components still exist in stocks of companies securing the exemption as well as uncollected PPN and PPnBM;
b. starting from the date of maturity of the period stipulated by the Director General of Customs and Excise in connection with the exception as meant in paragraph (1).

(4) The obligation as meant in paragraph (2) as long as it is related to PPN and PPnBM shall be supplemented by a fine in accordance with the taxation provisions in force.

CHAPTER V
SUPERVISION

Article 20

Supervision over the exemption and/or restitution s well as uncollected PPN and PPnBM as stipulated in this decree shall be done by the Directorate General of Customs and Excise and the Directorate General of Taxation collectively or individually by means of auditing companies receiving the exemption and/or restitution as well as the uncollected PPN and PPnBM.

Article 21

Audit in the customs, excise and/or taxation fields can be executed any time in accordance with the effective provisions on audit in customs, excise and/or taxation fields.

CHAPTER VI
MISCELLANEOUS PROVISIONS

Article 22

(1) On production made of raw materials that secure the exemption and/or restitution as well as the uncollected PPN and PPnBM which must be exported or available in companies or which are unaccountable, recipients of the exemption and/or restitution as well as the uncollected PPN and PPnBM shall:

a. pay import duty and/or excise plus a fine as high as 100% (one hundred percents) of the import duty and/ or excise which must be paid;

b. pay PPN and PPnBM originally uncollected plus a sanction in accordance with the taxation provisions in force.

(2) Procedures for payment import duty and/or excise and fine as well as the payment of PPN and PPnBM as stipulated in paragraph (1) shall be stipulated by the Director General of Customs and Excise and the Director General of Taxation collectively or individually.

Article 23

(1) By products, remainder of production, spoiled products and spoiled components made of imported raw materials which are sold in the country shall be subjected to:

a. import duty as high as 5% (five percents) of the selling price;
b. excise in accordance with the tariff provisions in force; and
c. PPN and PPnBM originally uncollected with the basis for imposition of tax amounting to the import value.

(2) Domestic sales of by products, remainder of production, spoiled products and spoiled components shall be subjected to PPN and/or PPnBM.

(3) The official shall examine before the goods meant in paragraph (1) are sold in the country.

(4) By products, remainder of production, spoiled products and spoiled components made of imported raw materials that must exist in companies, excluding those already settled in accordance with the provision as meant in paragraph (1) and unaccountable shall be subjected to not only:

a. import duty and/or excise, but also a fine as high as 100% (one hundred percents) of the import duty and/ or excise which must be paid;
b. PPn and PPnBM, but also a fine in accordance with the provisions in force.

Article 24

(1) If exported goods once securing the exemption and/or restitution as well as the uncollected PPN and PPnBM are re-imported, a guarantee amounting to the import duty and/or excise at the price and tariff of products shall be given up upon the import, accompanied by evidence in the form of PEB and LPBC/LHP to heads of customs and excise service offices in importing places.

(2) If exported goods once securing the exemption and/or restitution as well as the uncollected PPN and PPnBM are re-imported, PPN and PPnBM shall be paid upon importing, in accordance with the provisions in force.

(3) Exported goods which are re-imported as meant in paragraph (1) that cannot be re-exported in 6 (six) months shall be subjected to import duty and/or excise in accordance with the tariff upon importing the goods and/ or components.

Article 25

(1) By products, remainder of production, spoiled products and spoiled components can be destroyed under the supervision of the official.

(2) By products, remainder of production, spoiled products and spoiled components which are destroyed shall be exempted from import duty and/or excise as well as PPN and PPnBM.

(3) Applications for destruction shall be submitted to heads of customs and excise service offices overseeing regions of the applicants.

(4) Results of the destruction shall be mentioned in account of destruction.

Article 26

The payment as meant in Article 23 paragraph (1) and destruction as meant in Article 25 paragraph (4) shall be accounted for the Directorate General of Customs and Excise by using Forms A5 and A6 as contained in Specimens in Attachments XII and XIII to this decree.

Article 27

In the case of results of examination indicating an excess of exemption and/or restitution, the excess shall be returned and subjected to a fine of 100 (one hundred percent) plus interest on the excess of exemption and/or restitution as high as 2% (two percents) every month for 24 (twenty four) months at the maximum, starting from:

a. the date of PIB, in the case of exemption;
b. the date of repayment order (SPMK), in the case of restitution.

CHAPTER VII
TRANSITIONAL PROVISION

Article 28

(1) All decisions on the exemption and/or restitution as well as the uncollected PPN and PPnBM issued by heads of Bapeksta Keuangan/Head of BINTEK Keuangan or the appointed official which remain effective shall continue coming into force up to the expiration of the validity period of the said decisions.

(2) The head of BINTEK Keuangan, Director General of Customs and Excise and/or the Director General of Taxation shall further regulate matters that need to be regu lated in the framework of the transfer of authority from the Head of BINTEK Keuangan to the Director General of Customs and Excise.

CHAPTER VIII
CONCLUSION

Article 29

Technical provisions needed for implementing this decree shall be further regulated by the Director General of Customs and Excise and the Director General of Taxation collectively or individually on the basis of the taxation, customs and excise laws.

Article 30

With the enforcement of this decree:

(1) Decree of the Minister of Finance No. 615/KMK.05/1997 on the exemption and restitution of import duty and/or excise as well as the uncollected value added tax and sales tax on luxury goods on the import of goods and/or components to be processed, assembled or installed at other goods for export purpose and their supervision shall be declared null and void.
(2) All technical directives for Decree of the Minister of Finance No. 615/KMK.05/1997 shall be declared to remain effective as long as they do not contravene this decree and have not been replaced by the new ones.

Article 31

This decree shall come into force as from August 1, 2003.

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

Stipulated in Jakarta
On April 9, 2003

THE MINISTER OF FINANCE,
sgd
BOEDIONO

Attachment A :

Attachment I Data Induk Perusahaan

Attachment II Formulir-A1 (Permohonan Pembebasan Bahan Baku)

Attachment IV Formulir-A3 (Laporan Ekspor Atas Barang dan/atau Bahan asal Impor)

Attachment VI Formulir-A7 (Laporan Penyerahan Barang Hasil Produksi ke Kawasan Berikat)

Attachment X Formulir-B (Permohonan Pengembalian Bea Masuk dan/atau Cukai)

Attachment XII Formulir-A5 (Laporan Pemusnahan/Penjualan waste/reject/sisa barang/bahan yang tidak dapat diekspor)

Attachment B :

Attachment III Formulir-A2 (Rencana Impor dan Ekspor dan Kebutuhan Barang dan/atau Bahan Baku Impor selama 12 Bulan)

Attachment V Formulir-A4 (Laporan Ekspor atas Penggunaan Barang dan/atau Bahan asal Impor yang mendapat Pembebasan BM dan/atau Cukai serta PPn dan PPnBM tidak dipungut)

Attachment VII Formulir-A8 (Laporan Penyerahan Barang Hasil Produksi atas Penggunaan Barang dan/atau Bahan Impor Ke Kawasan Berikat yang mendapat Pembebasan BM dan/atau Cukai serta PPn dan PPnBM tidak dipungut)

Attachment XI Formulir-B3 (Keterkaitan antara Barang Ekspor/dimasukkan ke Kawasan Berikat/DPIL dengan Barang dan/atau Bahan asal Impor yang dipakai)

Attachment XIII Formulir-A6 (Daftar Barang Reject/Waste/Sisa Barang dan/atau Bahan Impor yang dijual/dimusnahkan)

DECREE OF THE MINISTER OF FINANCE No. 129/KMK.04/2003

CONCERNING THE EXEMPTION AND/OR RESTITUTION OF THE UNCOLLECTED IMPORT DUTY AND/OR EXCISE AS WELL AS VALUE ADDED TAX AND SALES TAX ON LUXURY GOODS ON THE IMPORT OF GOODS AND/OR COMPONENTS TO BE PROCESSED, ASSEMBLED OR INSTALLED AT OTHER GOODS FOR EXPORT PURPOSE AND THE SUPERVISION OVER THE GOODS