DECREE OF THE MINISTER OF FINANCE
No. 499/KMK.01/2004

ON
EXEMPTION FROM IMPORT DUTY AND UNCOLLECTED VALUE ADDED TAX ON THE IMPORT OF RAW MATERIALS OF ANTI-RETROVIRAL MEDICINES

THE MINISTER OF FINANCE,

Considering :

• a. that in the framework of supporting the program for eradicating HIV/AIDS, it is deemed necessary to support efforts to supply raw materials of anti-retroviral medicines;
• b. that in order to meet the need for HIV/AIDS medicines in the country at an affordable price, it is necessary to exempt import duty and uncollected Value Added Tax on the import of raw materials of anti-retroviral medicines;
• c. that based on the considerations as meant in letters a and b, it is necessary to stipulate a decree of the Minister of Finance on the exemption from import duty and uncollected value added tax on the import of raw materials of anti-retroviral medicines;

In view of :

• 1. Law No. 10/1995 on customs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• 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 several times and the latest by Law No. 18/2000 (Statute Book of 2000 No. 128, Supplement to Statute Book No. 3986);
• 3. Government Regulation No. 43/2000 on the implementation of Law No. 8/1983 concerning value added tax on goods and services and sales tax or) luxury goods as already amended several times and the latest by Law No. 18/2000 (Statute Book of 2000 No. 259, Supplement to Statute Book No. 4061) as already amended by Government Regulation No. 24/2002 (Statute Book of 2002 No.49, Supplement to Statute Book No. 4199);
• 4. Presidential Decree No. 228/M/2001;
• 5. Decree of the Minister of Finance No. 547/KMK.01/2003 on stipulation of tariffs of import duty on imported goods;

Observing :

• 1. Letter of the Coordinating Minister for People's Welfare No. B.26/MENKO/KESRA/II/2004 dated February 12, 2004;
• 2. Letters of the Minister of Health No. 69/MENKES/I/2004 dated January 9, 2004 and No. 560/Menkes/V/2004 dated May 7, 2004;

DECIDES :

To stipulate :

THE DECREE OF THE MINISTER OF FINANCE ON THE EXEMPTION FROM IMPORT DUTY AND UNCOLLECTED VALUE ADDED TAX ON THE IMPORT OF RAW MATERIALS OF ANTI-RETROVIRAL MEDICINES.

Article 1

The import of raw materials of anti-retroviral medicines as stipulated in the attachment to this decree shall be granted:

• a. the exemption from import duty so that the final tariff of import duty is 0% (nil percent); and
• b. uncollected value added tax.

Article 2

The raw materials of medicines as meant in Article I shall be used for producing medicines of HIV/AIDS sufferers in the country.

Article 3

Supervision and control over the import of raw materials medicines as meant in Article 1 shall be done by the Ministry of Health.

Article 4

In the case of the import of raw materials of medicines as meant in Article 1 being misused, the import duty as well as value added tax becoming due upon the import shall be paid and be subjected sanction in accordance with the provisions of the law in force.

Article 5

The Director General of Customs and Excise shall be instructed to implement the provisions in this decree.

Article 6

The decree shall come into force as from the date of stipulation.

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

Stipulated, in Jakarta
On October 19, 2004

THE MINISTER OF FINANCE,
sgd
BOEDIONO