REGULATION OF THE MINISTER OF FINANCE
No. 24/PMK.01/2007

CONCERNING
PROCEDURES FOR IMPORTING GOODS FROM NORTHERN TERRITORY
AUSTRALIA TO INDONESIN CUSTOMS AREAS OTHER THAN JAVA AND SUMATRA

THE MINISTER OF FINANCE,

Considering:

• a. that pursuant to Memorandum of Understanding between the Government of the Republic of Indonesia and the Government of Northern Territory Australia regarding Economic Development Cooperation on December 22, 2006, the Directorate General of Customs and Excise, Ministry of Finance of the Republic of Indonesia dn the Department of the Chief Minister of the Norther Territory Australia signed Memorandum of Cooperation (MoC) concerning Customs Preliminary Inspection Facility in Darwin, Australia for Imported Goods from Northern Territory Australia to Indonesia's customs areas other than Java and Sumatra, which constitutes continuation of the previous memorandum of cooperation signed on June 8, 2001, it is necessary to enhance service in the customs field to support cooperation in the field of mutually beneficial, trade between Northern Territory Australia and the Republic of Indonesia;
• b. that pursuant to provisions in the customs field, in the framework of supervision, customs and excise officials are authorized to inspect physically imported goods before customs declaration is conveyed with the provisions stipulated by a regulation of the Minister of Finance;
• c. that based on the considerations as intended in sub-paragraph a and b, it is necessary to stipulate a regulation of the Minister of Finance on Procedures for Importing Goods from Northern Territory Australia to Indonesia's Customs Areas other than Java and Sumatra;

In view of:

• 1. Law No. 10/1995 (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612) as has already been amended by Law No. 16/2006 on the Amendment to Law No. 10/1995 regarding Customs Affairs (Statute Book of 2006 No. 93, Supplement to Statute Book No. 4661);
• 2. Law No. 11/1995 on Excise (Statute Book of 1995 No. 76, Supplement to Statute Book No. 3613);
• 3. Presidential Decree No. 20/P/2005;
• 4. Decree of the Minister of Finance No. 240/KMK.05/1996 on Settlement of Excise as has already been amended by Decree of the Minister of Finance No. 105/KMK.05/1997;
• 5. Decree of the Minister of Finance No. 01/KMK.01/2007 on Stipulation of Imported-Goods Classification System;
• 6. Decree of the Minister of Finance No. 491/KMK.05/1996 on Basis for Calculation of Import Duty on Imported Goods;
• 7. Regulation of the Minister of Finance No. 615/PMK.04/2004 on Provisional Import Procedures;
• 8. Decree of the Minister of Finance No. 453/KMK.04/2002 on Customs Procedures in the Import Field as already amended by Decree of the Minister of Finance No. 548/KMK.04/2002;
• 9. Regulation of the Minister of Finance No. 131/KMK.01/2006 on Organization and Working Arrangement of the Ministry of Finance;

HAS DECIDED:

To stipulate:

THE REGULATION OF THE MINISTER OF FINANCE ON PROCEDURES FOR IMPORTING GOODS FROM NORTHERN TERRITORY AUSTRALIA TO INDONESIA'S CUSTOMS AREAS OTHER THAN JAVA AND SUMATRA

Article 1

In this Minister of Finance regulation, the meaning of:

• 1. Preliminary Inspection is inspection of goods, which will be imported from Northern Territory, Australia, into Indonesia's customs areas other than Java and Sumatra, by customs and excise officials in Darwin.
• 2. Indonesia's Customs Areas other than Java and Sumatra are customs areas within the working areas of Regional Office XIII of the Directorate General of Customs and Excise Bali, West Nusa Tenggara and East Nusa Tenggara, Regional Office XIV of the Directorate General of Customs and Excise Western Kalimantan, Regional Office XV of the Directorate General of Customs and Excise Eastern Kalimantan, Regional Office XVI of the Directorate General of Customs and Excise Sulawesi and Regional Office XVII of the Directorate General of Customs and Excise Maluku, Papua and West Irian Jaya.
• 3. Darwin is the capital of Northern Territory, Australia.
• 4. Party is individual or statutory body.
• 5. Customs and and Excise Officials are exployees of the Director General of Customs and Excise of the Republic ofIndonesia, assigned in Darwin in the framework of Australia Indonesia Development Area (AIDA) Program.
• 6. Customs Approval is a certificate issued by customs and excise officials certifying that preHminary inspection had been applied to the exported goods.
• 7. Customs approval is explanation letter issued by customs and excise official that state that exporting goods had been inspected.

Article 2

Imported goods coming from Northern Territory, Australia into Indonesia's Customs Areas other than Java and Sumatra are subject to preliminary inspection in Darwin, Australia.

Article 3

(1) Customs and Excise Officials apply preliminary inspection to goods, which will be loaded in Darwin, with the final destination Indonesia's Customs Areas other than Java and Sumatra before the goods are loaded aboard carriers.

(2) In order to obtain the preliminary inspection as intended in paragraph (1) owners of goods or their proxies submit applications to Customs and Excise Officials.

(3) The applications as intended in paragraph (2) are accompanied by the following documents:

• - invoice;
• - packing list; and
• - other required supporting documents which are regulated further by Director General of Customs and Excise regulation.

(4) The documents as intended in paragraph (3) contain:

• a. description of kind, quantity and identity of goods;
• b. classification of goods on the basis of Indonesian Customs Tariff Book (BTMI);
• c. Customs value.

(5) Customs and Excise Officials evaluate fulfillment of requirements for the application as intended in paragraph (3), fulfillment of provision in the excise field, fulfillment of provisions on prohibited and restricted goods.

(6) In case of the description of kind of goods in invoice and/or packing list as intended in paragraph (4) being unclear, physical inspection of goods can be executed

(7) The physical inspection of goods as intended in paragraph (6) is executed in place in accordance with application from owners of goods or their proxies.

Article 4

(1) The application as intended in Article 3 paragraph (2) is made in duplicate with designation as follows:

• a. the first sheet to attachment to customs approval;
• b. the second sheet to file of the customs and excise official.

(2) The application as intended in Article 3 paragraph (2) is submitted in not later than 7 (seven) working days before the date of loading aboard carriers.

(3) In case of the application as intended in Article 3 paragraph (2) being nullified, owners of goods or their proxies are obliged to inform customs and excise officials.

Article 5

(1) Based on result of the preliminary inspection, customs and excise officials issue customs approval in accordance with the format further regulated by Director General of Customs and Excise regulation.

(2) The customs approval as intended in paragraph (1) is made in triplicate with designation as follows:

• a. the first sheet to owners of goods or proxies, as attachment to customs declaration in unloading place;
• b. the second sheet to file of owners of goods or their proxies; and
• c. the third sheet to file of customs and excise officials in Darwin.

Article 6

(1) In order to release the imported goods coming from Northern Territory, Australia in the customs areas other than Java and Sumatra, which are imported for use or imported provisionally, importers or their proxies submit import declaration (PIB) accompanied by customs approval along with customs complementary documents and other required documents:

(2) In the release of goods from the customs area as intended in paragraph (i), documents are examined.

(3) In the event that there is sufficient initial evidence that the imported goods as intended in paragraph (1) violated and/or will violate the customs provision, customs and excise officials in the place of fulfillment of customs liabilities from application can undertake physical inspection:

Article 7

(1) The provisions as regulated in this regulation only apply to goods loaded at seaports and airports in Darwin with the final destination Indonesia's Customs Areas other than Java and Sumatra.

(2) The provisions as regulated in this regulation do not apply to the goods as intended in Article 2, which are transferred by ships oustide Indonesia's customs areas.

Article 8

Customs and Excise officials are obliged to make periodical report on preliminary inspection in accordance with the format regulated further by a Director General of Customs and Excise regulation, which is made quadruple with the designation as follows:

• a. the first sheet to the Director General of Customs and Excise of the Republic of Indonesia;
• b. the second sheet to the Consulate General of the Republic of Indonesia in Darwin;
• c. the third sheet to the Chief Executive of the Department of the Chief Minister of the Northern Territory;
• d. the fourth sheet to file of customs and excise officials.

Article 9

Further provisions needed in the framework of the implementation of this regulation are regulated by a regulation of the Director General of Customs and Excise.

Article 10

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

For public cognizance, it is ordered that this Minister of Finance regulation shall be published by placing it in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On March 1, 2007
THE MINISTER OF FINANCE
Signed
SRI MULYANI INDRAWATI