REGULATION OF THE MINISTER OF TRADE
No. 39/M-DAG/PER/12/2005

ON
PROVISIONS ON THE IMPORT OF NON-NEW MACHINES AND MACHINERY APPARATUSES

THE MINISTER OF TRADE,

Considering:

• a. that since the Indonesian economic condition has not been conducive in general thus causing the purchasing power of industries in several sectors to remain weak, particularly in the procurement of capitaI goods in the form of machines and machinery apparatuses, it is deemed necessary to provide capitaI goods affordable to the said industries through the continuation of policies on the import of non-new goods;
• b. that in relation to the consideration in letter a, and given that the provisions on the import of non-new capital goods in the form of machines and machinery apparatuses as regulated in Decree of the Minister of Industry and Trade No. 756/MPP/Kep/12/2003 as already amended several times and the latest by Regulation of the Minister of Trade No. 04/M-DAG/PER/4/2005 (would expire on December 31, 2005, it is necessary to continue the policy on the import of non-new capital goods in the form of machines and machinery apparatuses;
• c. that based on the considerations as meant in letters a and b, a regulation of the Minister of Trade needs to be issued;

In view of :

• 1. Law No. 3/1982 on corporate registry (Statute Book of 1982 No. 7, Supplement to Statute Book No. 3214);
• 2. Law No. 5/1984 on Industry (Statute Book of 1984 No. 22, Supplement to Statute Book No. 3274);
• 3. Law No. 10/1995 on Customs Affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• 4. Government Regulation No. 17/1986 on Authority to Regulate, Foster and Develop Industry (Statute Book of 1986 No. 23, Supplement to Statute Book No. 3330);
• 5. Government Regulation No. 13/1995) on Industrial Business License (Statute Book of 1995 No. 25, Supplement to Statute Book No. 3596);
• 6. Presidential Decree No. 260/1967 on Affirmation of Task and Responsibility of the Minister of Trade in the Foreign Trade Sector;
• 7. Presidential Decree No. 187/M/2004 on the Establishment of the United Indonesia Cabinet as already amended by Presidential Decree No. 8/M/2005;
• 8. Presidential Regulation No. 9/2005 on the Status, Tasks, Functions, Organizational Structures and Working Arrangements of State Ministries;
• 9. Presidential Regulation No. 10/2005 on First-Echelon Organizational Units and Tasks of State Ministries as already amended by Presidential Regulation No. 15/2005;
• 10. Decree of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 on Import General Provisions;
• 11. Decree of the Minister of Industry and Trade No. 40/MPP/Kep/1/2003 on Importer Identity Number (API);
• 12. Regulation of the Minister of Trade No. 01/M/DAG/PER/3/2005 on Organization and Working Arrangement of the Ministry of Trade;

DECIDES :

To stipulate :

THE REGULATION OF THE MINISTER OF TRADE ON PROVISIONS ON THE IMPORT OF NON-NEW MACHINES AND MACHINERY APPARATUSES

Article 1

Referred to in this regulation as:

• 1. Industrial Business License or Other Business License shall be a license granted to industry/company to undertake business activities, which is issued by the authorized institution in accordance with the provisions of legislation in force.
• 2. Direct User Company shall be an industry or other company already having Industrial Business License or Other Business License.
• 3. Reconditioning Company shall be a company already having Industrial Business License or Other Business License in the business line of service for reconditioning and repairing non-new machines and machinery apparatuses.
• 4. Non-new Machines and Machinery Apparatuses shall be machines and machinery apparatuses which remains feasible to use or recondition for re-functioning and not scrap.
• 5. Surveyor shall be surveyor owned by the Indonesian government and/or other surveyors becoming members of the International Federation of Inspection Agency (IFIA) appointed by the Minister.
• 6. Minister is the Minister of Trade.

Article 2

(1) Non-new machines and machinery apparatuses only can be imported by:

• a. direct user companies for the need of production of their industries or used directly by companies for other need not in the production;
• b. reconditioning companies for restoration and repairing on new machines and machinery apparatuses.

(2) Non-new machines and machinery apparatuses, which can be imported by the companies as meant in paragraph (1) shall cover Headings 84, 85, 86, 88, 89, 9002, 9006, 9007, 9008, 9009, 9010, 9011, 9012, 9013 and 9014 as contained in the attachment to this regulation.

(3) The companies as meant in Article 2 paragraph (1) which can import non-new machines or machinery apparatuses shall have:

• a. Industrial Business License or Other Business License as meant in Article 1 number 1;
• b. Importer Identity Number (API);
• c. Taxpayer Code Number (NPWP).

(4) Direct user companies and reconditioning companies not fulfilling the provision in Article 1 points 2 and 3 but already having principal approval only can import non-new machines and machinery apparatuses in accordance with the need in the framework of building their industries.

Article 3

(1) The realization of the import of non-new machines and machinery apparatuses as meant in Article 2 paragraph (2) shall secure import approval first from the Director of Import, Ministry of Trade, by enclosing the requirements as meant in Article 2 paragraph (3).

(2) The Director of Import, Ministry of Trade as meant in paragraph (1) shall issue import approval or rejection of import approval in 10 (ten) working days as from the date of receipt of application for the import of non-new machines and machinery apparatuses from the companies as meant in Article 2 paragraph (1).

Article 4

(1) The import of non-new machines and machinery apparatuses already securing the import approval as meant in Article 3 paragraph (1) shall be subjected to technical inspection first by surveyors with regard to the feasibility to use and technical specifications of the non-new machines and machinery apparatuses.

(2) Results of technical inspection by the surveyors as meant in paragraph (1) shall be mentioned in Certificate of Origin certifying that the non-new machines and machinery apparatuses remain feasible to use or recondition for re-functioning, not scrap and certificate of technical specifications and shall be attached to customs document upon importing the non-new machines and machinery apparatuses to the Indonesian Customs Area.

(3) The realization of technical inspection by surveyors in the framework of the issuance of Certificate of Inspection shall be done in countries where the goods are loaded.

Article 5

(1) Non new machines and machinery apparatuses subsumed into Heading 88, contained in the attachment to this regulation as meant in Article 2 paragraph (2) shall be excluded from the provision on technical inspection as meant in Article 4.

(2) Provisions and procedures for stipulating the feasibility to use and information on technical specifications of non-new machines and machinery apparatuses subsumed into Heading 88 as well as procedures for inspection as meant in paragraph (1) shall be stipulated by the Minister of Communications on the basis of provisions of legislation and procedures in force for civil aircraft.

Article 6

In the framework of driving up the export and developing investments, including relocation of industries, the import of non-new capITA1 goods excluding the attachment to this regulation can be granted by the Minister or appointed official.

Article 7

The companies as meant in Article 2 paragraph (1) violating the provision in this regulation shall be subjected to sanction of:

• a. revocation of Importer Identity Number (API);
• b. criminal penalty in accordance with the provisions of legislation in force.

Article 8

Without reducing the importance of the provision in Article 1 point 5, in order to implement the provision in Article 4, surveyors appointed by the Minister shall be as stipulated in Decree of the Minister of Industry and Trade No. 492/MPP/Kep/8/2004 on the appointment of surveyors as the executors of survey of the import of non-new capital goods.

Article 9

The Director General of Foreign Trade, Ministry of Trade can stipulate further technical provisions deemed necessary to implement this regulation.

Article 10

Only minister can stipulate exception from the provisions regulated in this regulation.

Article 11

The regulation shall come into force as from January 1, 2006 to December 31, 2007.

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

Stipulated in Jakarta
On December 29, 2005
THE MINISTER OF TRADE,
sgd
MARI ELKA PANGESTU