REGULATION THE MINISTER OF TRADE
No. 06/M-DAG/PER/4/2005

CONCERNING
PROVISIONS ON AND PROCEDURES OF IMPORTING SPARE PARTS, CHASSIS ENGINE BUSES FOR THE MANUFACTURE OF PUBLIC TRANSPORT BUSES, COMPLETELY KNOCKED DOWN (CKD) BUSES FOR THE MANUFACTURE OF COMMERCIAL VEHICLES, AND COMPLETELY BUILT UP (CBU) BUSES FOR PUBLIC TRANSPORT MODES

THE MINISTER OF TRADE,

Considering:

a. that to meet urgent need for public transport modes and spare parts to repair public transport modes, the government has issued a policy on granting relief and abolishing import duties as meant in Regulations of the Minister of Finance No. 22/PMK.010/2005 on the Abolishment of Duties on the Import of Several Types of Spare Parts for Public Transport Modes, No. 23/PMK.010/2005 on the Reduction of Duties on the Import of Chassis Engine Buses for the Manufacture of Public Transport Buses, Completely Knocked Down (CKD) Buses for the Manufacture of Commercial Transport Modes, and No. 24/PMK.010/2005 on the Reduction of Duties on the Import of Completely Built Up (CBU) Buses for Public Transport Modes;
b. that to ensure that the policy as meant in clause a can be implemented well, it is necessary to revise the procedure of importing spare parts, chassis engine buses for the manufacture of public transport buses, completely knocked down (CDK) buses for the manufacture of commercial vehicles and completely built up (CBU) buses for public transport modes;
c. that based on the considerations as meant in clause a and clause b, it is necessary to stipulate a Regulation of the Minister of Trade;

In view of :

1. Trade Ordinance of 1934 (Statute Book of 1938 No.96);
2. Law No. 5/1984 on Industry (Statute Book of 1984 No. 22, Supplement to Statute Book No. 3274);
3. Law No. 14/1992 on Traffic and Highway Transportation (Statute Book of 1992 No.49, Supplement to Statute Book No. 3480);
4. Law No. 7/1994 on the 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 (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
6. Government Regulation No.44/1993 on Vehicles and Drivers (Statute Book of 1993 No. 64, Supplement to Statute Book No. 3530);
7. Presidential Decree No. 260/1967 on the Affirmation of the Tasks and Responsibilities of the Minister of Trade in the Foreign Trade Sector;
8. Presidential Decree No. 187/M/2004 on the Formation of United Indonesia Cabinet as has been amended by Presidential Decree No.8/M/2005;
9. Presidential Regulation No. 9/2005 on the Position, Task, Function, Organizational Structure and Work Mechanism of Ministries;
10. Presidential Regulation No. 10/2005 on the Organizational Units and Tasks of First Echelon Officials of Minister as has been amended by Presidential Regulation No. 15/2005;
11. Decree of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 on General Provisions in the Import Sector;
12. Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 on Goods Subject to Import Regulation, as has been several times amended the latest by Decree of the Minister of Industry and Trade No. 406/ MPP/Kep/6/2004;
13. Decree of the Minister of Industry and Trade No. 275/MPP/Kep/6/1999 on Motor Vehicle Industry;
14. Decree of the Minister of Industry and Trade No. 276/MPP/Kep/6/1999 on the Registration of Types and Variants of Motor Vehicles;
15. Decree of the Minister of Industry and Trade No. 40/MPP/Kep/1/2003 on Importer's Identification Number (API);
16. Decree of the Minister of Industry and Trade No. 756/MPP/Kep/12/2003 on the Import of Secondhand Capital Goods as has been amended by Decree of the Minister of Industry and Trade No.610/MPP/Kep/10/2004;
17. Regulation of the Minister of Finance No. 22/PMK.010/2005 on the Abolishment of Duties on the Import of Several Types of Spare Parts for Public Transport Modes;
18. Regulation of the Minister of Finance No. 23/PMK.010/2005 on the Reduction of Duties on the Import of Chassis Engine Buses for the Manufacture of Public Transport Buses and Completely Knocked Down (CKD) Buses for the Manufacture of Commercial Transport Vehicles;
19. Regulation of the Minister of Finance No. 24/PMK.010/2005 on the Reduction of Duties on the Import of Completely Built Up (CBU) Buses for Public Transport Modes;
20. Regulation of the Minister of Transportation No. KM.19/2005 on the Mechanism of Granting Recommendations To Obtain the Abolishment and/or Reduction of Duties on the Import of Several Types of Spare Parts, Chassis Engine Buses for Public Transport Modes, Completely Knocked Down (CDK) Buses for Commercial Transport Modes and Completely Built Up (CBU) Buses for Public Transport Modes;
21. Regulation of the Minister of Trade No. 01/M-DAG/PER/3/2005 on the Organizational Structure and Work Mechanism of the Ministry of Trade;

DECIDES:

To stipulate :

REGULATION OF THE MINISTER OF TRADE ON PROVISIONS ON AND PROCEDURES OF IMPORTING SPARE PARTS, CHASSIS ENGINE BUSES FOR THE MANUFACTURE OF PUBLIC TRANSPORT BUSES, COMPLETELY KNOCKED DOWN (CDK) BUSES FOR THE MANUFACTURE OF COMMERCIAL TRANSPORT VEHICLES, AND COMPLETELY BUILT UP (CBU) BUSES FOR PUBLIC TRANSPORT MODES.

Article 1

(1) The provisions and procedures in this regulation shall apply to the import of:

a. Spare parts for motor vehicles as meant in Regulation of the Minister of Finance No. 22/PMK.010/2005, consisting of :
1) Clutch Assy : 705,000 units
2) Timing Belt : 1,411,000 units
3) Wheel Bearing : 817,000 units
4) Transmission Assy : 104,000 units
5) Engine Block : 104,000 units.
b. Chassis engine buses used for carrying 16 passengers or more with compression spark combustion piston engines (diesel or semi diesel) for the manufacture of public transport buses as meant in Regulation of the Minister of Finance No. 23/PMK.010/2005, belonging to HS. Ex.8706.00.21.00, with a volume of 6,000 (six thousand) units;
c. Completely Knocked Down (CKD) vehicles for carrying 16 passengers or more for the manufacture of commercial transport vehicles as meant in Regulation of the Minister of Finance No. 23/PMK.010/2005, belonging to HS. Ex.8702.10 and HS.8702.90.
d. Completely Knocked Down (CKD) vehicles for carrying goods for the manufacture of commercial transport vehicles as meant in Regulation of the Minister of Finance No. 23/PMK.010/2005, belonging to HS. Ex.8704.10, Ex.8704.21, Ex.8704.22, Ex.8704.32 and Ex.8704.90.
e. Completely Built Up (CBU) buses for public transport modes as meant in Regulation of the Minister of Finance No. 24/PMK.010/2005, belonging to HS.8702.10.26.00, 8702.10.27.00, 8702.10.28.00, 8702.10.31.00, 8702.10.32.00, 8702.10.56.00, 8702.10.57.00, 8702.10.58.00, 8702.10.59.00 and 8702.10.60.00, with a volume of 1,150 (one thousand, one hundred and fifty) units.

(2) The goods as meant in paragraph (1) shall be imported in new condition.

Article 2

The goods as meant in Article 1 can only be imported by the following companies/importers:

a. General importers appointed by the operators of public transport modes, for the import of spare parts for motor vehicles as meant in Article 1 paragraph (1) clase a;
b. General importers appointed by the operators of public transport buses, for the import of chassis engine buses for carrying 16 passengers or more with compression spark combustion piston engine (diesel or semi diesel) for the manufacture of public transport buses as meant in Article 1 paragraph (1) clause b;
c. General importers appointed by the operators of public transport buses, for the import of Completely Knocked Down (CKD) vehicles for carrying 16 passengers or more for the manufacture of commercial transport vehicles as meant in Article 1 paragraph (1) clause c;
d. General importers appointed by cargo transport companies, for the import of Completely Knocked Down (CKD) vehicles for carrying goods for the manufacture of commercial transport vehicles as meant in Article 1 paragraph (1) clause d;
e. General importers appointed by the operators of public transport buses, for the import of Completely Built Up (CBU) buses for public transport modes as meant in Article 1 paragraph (1) clause e.

Article 3

The general importers as meant in Article 2 shall have experience in importing vehicles and/or experience in importing goods for a minimum of 3 (three) years, evident from import notification (PIB).

Article 4

The companies/importers as meant in Article 2 that will import the goods as meant in Article 1 shall secure a prior recommendation from the Minister of Transportation based on Regulation of the Minister of Transportation No. KM.19/2005.

Article 5

(1) To import the goods as meant in Article 1 the companies/importers shall first secure import approval from the Director General of Foreign Trade, Ministry of Trade.

(2) To obtain the import approval as meant in paragraph (1), the companies/importers shall file an application to the Director General of Foreign Trade, Ministry of Trade, complete with:

a. A copy of importer's identification number (API);
b. A copy of company's registration number (TDP);
c. A copy of taxpayer code number (NPWP);
d. A copy of import notification (PIB);
e. A letter of appointment as an importer by the operator of public transport vehicles or cargo transport vehicles;
f. A recommendation from the Minister of Transportation;

(3) The letter of appointment as meant in paragraph (2) clause e shall at least contain a clause on:

a. The type and quantity of goods to be imported according to the recommendation from the Minister of Transportation;
b. The appropriation of imported goods according to provisions in Article 1.

(4) The Director General of Foreign Trade, Ministry of Trade, shall issue import approval or refuse to issue import approval with regard to the applications from the companies/importers as meant in paragraph (2) within 10 (ten) work days after the applications have been received.

Article 6

(1) The companies/importers that have secured the import approval as meant in Article 5 shall convey a report on the realization of their imports to the Director General of Foreign Trade attn. the Director of Import, Ministry of Trade, with a copy to the Director General of Land Transportation, Ministry of Transportation.

(2) The report as meant in paragraph (1) shall be conveyed every month in no later than the 15th of the ensuing month after the goods are imported.

Article 7

(1) The import approval as meant in Article 1 will be frozen, if the relevant company:

a. fails to fulfill the obligation to convey a report as meant in Article 6; or
b. is being investigated in connection with the alleged abuse of import approval.

(2) The decision to freeze the import approval may be lifted if the relevant company has fulfilled all its obligations pursuant to provisions in Article 6 and/or is not found guilty e. involvement in the abuse of import approval.

(3) The Director General of Foreign Trade, Ministry of Trade, shall freeze the import approval and lift the decision to freeze the import approval.

Article 8

(1) The import approval as meant in Article 1 shall be revoked if:

a. the management of the company alters, adds and/ or replaces the contents of the import approval document;
b. the company imports the goods as meant in Article 1 whose types and/or quantity do not accord with those contained in the import approval document; or
c. there is sufficient evidence of the company's violation of import approval and/or involvement in the abuse of import approval or the company is declared guilty by the court, of committing violation and being involved in the abuse of the imported goods as meant in Article 1.

(2) The Director General of Foreign Trade, Ministry of Trade, shall revoke the import approval as meant in paragraph (1).

Article 9

This Regulation shall begin to take effect on the date of stipulation and be valid until March 10, 2006.

For public cognizance, this Regulation shall be announced by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on April 18, 2005
THE MINISTER OF TRADE,
sgd.
MARI ELKA PANGESTU

REGULATION THE MINISTER OF TRADE No. 06/M-DAG/PER/4/2005

CONCERNING PROVISIONS ON AND PROCEDURES OF IMPORTING SPARE PARTS, CHASSIS ENGINE BUSES FOR THE MANUFACTURE OF PUBLIC TRANSPORT BUSES, COMPLETELY KNOCKED DOWN (CKD) BUSES FOR THE MANUFACTURE OF COMMERCIAL VEHICLES, AND COMPLETELY BUILT UP (CBU) BUSES FOR PUBLIC TRANSPORT MODES