REGULATION OF THE MINISTER OF FINANCE
No. 38/PMK.04/2005

ON
PROCEDURES FOR RESTITUTION OF IMPORT DUTY, ADMINISTRATIVE FINE AND/OR INTEREST

THE MINISTER OF FINANCE,

Considering :

• a. that in connection with the stipulation of Law No. 17/2003 on state finance and Law No. 1/2004 on state treasury, the procedures for restitution of import duty, administrative fine and/ or interest as regulated in Decree of the Minister of Finance No. 233/KMK.05/1996 as already amended by Decree of the Minister of Finance No. 300/KMK.01/1999 in the framework of implementing Law No. 10/1995 on customs affairs need to be improved;
• b. that based on the consideration as meant in letter a, it is necessary to stipulate a regulation of the Minister of Finance on procedures for restitution of import duty, administrative fine and/or interest;

In view of :

• 1. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• 2. Law No. 17/2003 on state finance (Statute Book of 2003 No. 47, Supplement to Statute Book No. 4286);
• 3. Law No. 1/2004 on state treasury (Statute Book of 2004 No. 5, Supplement to Statute Book No. 4355);
• 4. Presidential Decree No. 42/2002 on technical guidelines on the realization of the State Budget of Revenue and Expenditure (Statute Book of 2002 No. 73, Supplement to Statute Book No. 4212) as already amended by Presidential Decree No. 72/2004 (Statute Book of 2004 No. 92, Supplement to Statute Book No. 4418);
• 5. Presidential Decree No. 187/M/2004;
• 6. Decree of the Minister of Finance No. 5/KMK.01/1993 on the appointment of banks as perception banks in the framework of the management of remittance of state revenue as already amended several times and the latest by Decree of the Minister of Finance No. 296/KMK.03/2003;
• 7. Decree of the Minister of Finance No. 444/KMK.01/2001 on the organization and working arrangement of Regional Offices of the Directorate General of Customs and Excise and Customs and Excise Service Offices;
• 8. Decree of the Minister of Finance No. 302/KMK.01/2004 on the organization and working arrangement of the Ministry of Finance as already amended by Decree of the Minister of Finance No. 426/KMK.01/2004;
• 9. Decree of the Minister of Finance No. 606/KMK.06/2004 on guidelines on the payment in the realization of the State Budget of Revenue and Expenditures in 2005;

DECIDES:

To stipulate :

THE REGULATION OF THE MINISTER OF FINANCE ON PROCEDURES FOR RESTITUTION OF IMPORT DUTY, ADMINISTRATIVE FINE AND/OR INTEREST

Article 1

Referred to in this regulation as:

• 1. Parties entitled to restitution of import duty, administrative fine and/or interest, hereinafter called the entitled parties are importers, carriers, operators of provisional collection places, operators of bonded collection places or providers of customs settlement services on the basis of authority from importers.
• 2. Decision on Restitution of Import Duty (SKPBM) is a decision issued by Heads of Customs and Excise Service Offices on behalf of the Minister of Finance on restitution of import duty, administrative fine and/or interest.
• 3. State Treasury Service Office (KPPN) is a vertical institution of the Directorate General of Treasury in province, regency and city.
• 4. Customs and Excise Service Office (KPBC) is office within the Directorate General of Customs and Excise where customs liabilities are fulfilled in accordance with the provisions of legislation in force.
• 5. Order to Disburse Fund (SP2D) is a document issued by KPPN to Operational Bank I to transfer the restitution fund to account of the entitled parties.
• 6. Order to Repay Import Duty (SPMKBM) is a document issued by Heads of Customs and Excise Service Offices for the Minister of Finance on restitution of import duty, administrative fine and/or interest as the basis for the issuance of SP2D.

Article 2

(1) Restitution of import duty can be given to the entitled parties for all or part of import duty already paid for:

• a. overpaid import duty because of re-stipulation of tariffs of import duty and/or customs value by customs and excise officials;
• b. overpaid import duty because of re-stipulation of tariffs of import duty and/or customs value by the Director General of Customs and Excise;
• c. overpaid import duty because of administrative mistake;
• d. the import of goods securing the exemption or relief of import duty;
• e. the import of goods, which must be re-exported or destroyed under supervision of customs and excise officials because of certain causes;
• f. the import of goods previously given the approval of import for use having the actual quantity lower than the paid import duty, reject, not ordered goods, or lower quality;
• g. the import of goods in bulk condition, given import approval without physical inspection (green lane) having the actual quantity lower than the paid import duty, with the provision that it must be supported by account of inspection certifying that the quantity is different because goods damaged, as well as recommendation about audit results; or
• h. overpaid import duty as a result of decision of Appeal Institution.

(2) Restitution for the entitled parties also can be granted to all or part of administrative fine and/or interest already paid as a result of violation of Law No. 10/1995 on customs affairs, if:

• a. the case is related directly to the restituted import duty as meant in paragraph (1); or
• b. the overpayment of administrative fine arises from decision of the Appeal Institution.

Article 3

(1) In order to obtain the restitution as meant in Article 2, the entitled parties submit applications to Heads of KPBC where the imported goods are unloaded and/or settled.

(2) The applications as meant in paragraph (1) are made by using the form as stipulated in Attachment I to this regulation, by enclosing original payment form of impart duty, administrative find and/or interest as well as documents containing evidences becoming the basis for the applications.

Article 4

(1) The applications for restitution as meant in Article 3 can be processed if remittance of import duty, administrative fine and/interests to which the entitled parties submit restitution have been received and recorded in the State General Cash Account.

(2) The applications for restitution are processed for approving or rejecting in 30 (thirty) days, starting from the date of receipt of complete and true applications, excluding the time needed for auditing.

Article 5

(1) In the case of the applications for restitution of import duty, administrative find and/or interest as meant in Article 3 being approved, Heads of KPBC on behalf of the Minister of Finance issue SKPBM by using the form as stipulated in Attachment II to this regulation.

(2) SKPBM as meant in paragraph (1) is made in quadruple with the designation as follows:

• a. the first sheet to the entitled party;
• b. the second sheet to the Director General of Customs and Excise;
• c. the third sheet to KPPN being working part of KPBC; and
• d. the fourth sheet to KPBC.

Article 6

(1) Based on SKPBM as meant in Article 5 paragraph (1), Heads of KPBC on behalf of the Minister of Finance issue SPMBM by using the form as stipulated in Attachment III to this regulation.

(2) SPMKBM as meant in paragraph (1) is issued in quadruple with the designation as follows:

• a. the first and second sheets to KPPN;
• b. the third sheet to the entitled party; and
• c. the fourth sheet to KPBC.

(3) SKPKBM is borne by the budgetary item of restitution for income from remittance of import duty in the current fiscal year, namely the budgetary item, which is the same as or similar to the budgetary item of revenue from remittance of import duty.

(4) SPMKBM is conveyed to KPPN not later than 2 (two) working days before the end of the deadline of restitution for import duty, administrative fine and/or interest.

(5) SPMKBM is conveyed directly by the appointed officer.

(6) KPPN returns the second sheet of SPMKBM accompanied by the second sheet of SP2D after giving label "SP2D has been issued on ......... No. "

Article 7

(1) Based on SPMKBM as meant in Article 6, Heads of KPPN on behalf of the Minister of Finance issue SP2D in triplicate with the designation as follows:

• a. the second sheet to Operational Bank I;
• b. the second sheet to issuer of SPMKBM; and
• c. the third sheet to KPPN.

(2) KPPN is obliged to issue SP2D not later than 2 (two) working days as from the date of receipt of complete SPMKBM.

(3) SP2D is conveyed directly by the appointed officer to Operational Bank I for paying by means of book-transfer of fund to account of the entitled parties and cash payment is not permitted.

Article 8

Heads of KPBC convey specimen of signature of the official authorized to sign SKPBM and SPMKBM as well as specimen of official seal to Heads of KPPN being working partners.

Article 9

Further provisions needed for implementing this regulation are regulated by the Director General of Customs and Excise and Director General of Treasury collectively or individually in accordance with their respective tasks and scopes of authority.

Article 10

With the enforcement of this regulation:

• a. Decree of the Minister of Finance No. 233/KMK.05/1996 on procedures for restitution of import duty, administrative fine and interest as already amended by Decree of the Minister of Finance No. 300/KMK.01/1999 is revoked and declared null and void.
• b. The provisions as regulated in this regulation apply to SPMKBM already issued and not yet disbursed before the enforcement of this regulation.

Article 11

The regulation comes into force as from the date of stipulation.

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

Stipulated in Jakarta
On May 26, 2005

THE MINISTER OF FINANCE,
sgd
JUSUF ANWAR