REGULATION OF THE MINISTER OF FINANCE
No. 110/PMK.010/2005

ON
PROCEDURES FOR GRANTING THE EXEMPTION AND/OR RELIEF OF IMPORT DUTY AND EXEMPTION AND/OR POSTPONEMENT OF VALUE ADDED TAX ON THE IMPORT OF GOODS IN THE FRAMEWORK OF WORKING CONTRACTS AND WORKING AGREEMENTS ON COAL MINING EXPLOITATION

THE MINISTER OF FINANCE,

Considering :

a. that in the framework of enhancing customs and taxation service in the coal and mineral mining sector, it is deemed necessary to regulate procedures for granting the exemption and/or relief of import duty and/or postponement of value added tax on the import of goods used in mineral and coal mining business activities in the framework of working contracts and working agreements on coal mining exploitation;
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 granting the exemption and/or relief of import duty and exemption and/or postponement of value added tax on the import of goods in the framework of working contracts and working agreements on coal mining exploitation;

In view of :

1. Law No. 1/1967 on capital investment (Statute Book of 1967 No. 1, Supplement to Statute Book No. 2818) as already amended by Law No. 11/1970 (Statute Book of 1970 No. 46, Supplement to Statute Book No. 2943);
2. Law No. 11/1967 on mining basic provisions (Statute Book of 1967 No, 22, Supplement to Statute Book No. 2831);
3. Law No. 6/1968 on domestic investment (Statute Book of 1968 No. 3, Supplement to Statute Book No. 2853) as already amended by Law No. 12/1970 (Statute Book of 1970 No. 40, Supplement to Statute Book No. 2944);
4. 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);
5. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3986);
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 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);
7. Presidential Decree No. 187/M/2004;
8. Decree of the Minister of Finance No. 547/KMK.01/2003 on stipulation of tariffs of import duty on imported goods;

DECIDES:

To stipulate :

THE REGULATION OF THE MINISTER OF FINANCE ON IMPORT OF GOODS IN THE FRAMEWORK OF WORKING CONTRACTS AND WORKING AGREEMENTS ON COAL MINING EXPLOITATION

Article 1

(1) The import of goods in the framework of working contracts and working agreements on coal mining exploitation shall be given the exemption and/or relief of import duty.

(2) The exemption or postponement of PPN on the import of goods in the framework of working contracts and working agreements on coal mining exploitation only can be given to contractors whose contracts mention the exemption or postponement of PPN on the import of goods in the framework of working contracts and working agreements on coal mining exploitation.

(3) The exemption from import duty and/or relief or postponement of PPN as meant in paragraphs (1) and (2) shall be given through masterlist stipulated by the Head of the Investment Coordinating Board or the appointed official on behalf of the Minister of Finance.

(4) The masterlist as meant in paragraphs (1) and (2) shall minimally contain data about:

a. no and date of masterlist;
b. name of contractor company;
c. taxpayer code number;
d. address;
e. contract basis;
f. customs and excise service office where the goods are imported;
g. kind, quantity and unit of goods;
h. specifications of goods;
i. estimated price/import value;
j. country of origin;
k. kind of import duty and tax facility in the framework of the import.

(5) In the issuance of the masterlist of goods in the framework of working contracts and working agreements on coal mining exploitation, the Head of the Investment Coordinating Board shall pay attention to working contracts and working agreements on coal mining exploitation, which become the basis for the issuance of masterlist.

(6) The masterlist as meant in paragraph (3) shall be made in four copies at the minimum with the designation as follows:

First Sheet : Contractor of Working Contract and Working Agreement on Coal Mining Exploitation
Second Sheet : The Director General of Taxation
Third Sheet : The Director General of Customs and Excise
Fourth Sheet : The Head of the Investment Coordinating Board

Article 2

The settlement of customs formality of the import of goods as meant in paragraphs (1) and (2) shall be done in Customs and Excise Service Offices at seaports mentioned in the master list.

Article 3

(1) The import of goods not based on the master list as meant in Article 1 shall pay other import duty and taxes.

(2) In the case of force majeur, invoice document already approved by the Head of the Investment Coordinating Board or the appointed official can be used as substitute to the master list as meant in Article 1 paragraph (1).

(3) The payment as meant in paragraph (1) cannot be requested for restitution.

Article 4

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

Article 5

The regulation shall come 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 November 11, 2005

THE MINISTER OF FINANCE
Sgd
JUSUF ANWAR

REGULATION OF THE MINISTER OF FINANCE No. 110/PMK.010/2005

ON PROCEDURES FOR GRANTING THE EXEMPTION AND/OR RELIEF OF IMPORT DUTY AND EXEMPTION AND/OR POSTPONEMENT OF VALUE ADDED TAX ON THE IMPORT OF GOODS IN THE FRAMEWORK OF WORKING CONTRACTS AND WORKING AGREEMENTS ON COAL MINING EXPLOITATION