Presidential Instruction No. 3/2006 in Package of Investment Climate Improvement Policies;
THE REGULATION OF THE MINISTER OF FINANCE ON THE EXEMPTION FROM EXCISE
Referred too in this regulation as:
(1) The exemption from excise can be granted to ethyl alcohol coming from factories, depositories, special mixing depositories or the import, which is used as raw material or auxiliary materials in the production of end-products.
(2) The definition of production of end product as described in paragraph (1) shall include the integrated production.
(1) In order to secure the exemption from excise as described in Article 2 paragraph (1), manufacturers, depository organizers, special mixing depository organizers or importers shall submit application to the Minister of Finance in this case the Director General through Heads of Service Offices by using from as contained in specimen of format of PMCK-2 as stipulated in Attachment I to this regulation.
(2) The application as described in paragraph (1) shall be submitted on the basis of order from producers of end-product and the applicants shall mention details of the quality of ethyl alcohol requested for exemption for excise as well as details of quantity and kinds of end-products, which will be produced.
(3) In the case of the application as described in paragraph (1) being submitted by importing port of ethyl alcohol shall be mentioned.
(4) In the case of the application being received completely and truthfully, the Director General of Customs and Excise or the appointed officials and behalf of the Minister of Finance shall stipulate decision on the submitted application as described in paragraph (1) in not letter than 10(ten) days as from the date of receipt of complete and true application and NPP shall be issued to producers of end-products.
(5) In the case of received application being not complete or true, the Director General of Customs and Excise or the appointed official shall notify the applicant in writing to complete the shortcomings or requirements or improve data about the application in not later than 10 (ten) days.
(6) In the case of the application not fulfilling the shortcoming of requirement or improving data about the application in the period as described in paragraph (5), the Director General of Customs and Excise or the appointed officials shall issue latter of notification of rejection containing reason for rejection.
(7) The decision as described in paragraph (4) shall be conveyed to applicants and copy is made available to users of facilities, heads of regional offices and service offices.
(8) Before releasing ethyl alcohol from factories or depositories or special mixing depositories or customs zone, the ethyl alcohol shall be mixed first by certain mixing substances thus being unfit for consumption but still suitable to use for manufacturing end-products.
(9) Excluding from the provision on the mixing of ethyl alcohol with the certain mixing substance as described in paragraph (8) shall be ethyl alcohol used as raw materials or auxiliary materials in the production of end-products in the from of food, medicines or other end-products, which based on technical specifications, may not be mixed by certain mixing substance.
(10) Manufacturers, depository organizers, special mixing depository organizers or importers before realizing ethyl alcohol to the excise exemption facility as described in paragraph (8) and (9) from factories, depositories and special mixing depositories shall notify heads of service office by using from as contained in specimen of format of CK-10 as stipulated in Attachment II to this regulation or specimen of format of CK-11 as stipulated in at Attachment III to this regulation.
(11) Procedure explaining to exemption from excise from ethyl alcohol and to be used as raw material or auxiliary material in the production of end-product as described in Article 2 paragraph (1) shall be obliged:
(12) Producers securing the exemption from excise on ethyl alcohol used as raw material in the production of end-products as described in Article 2 paragraph (1) shall be obliged too convey monthly report to the Director General through Heads of Service Offices in not letter than the 10th of the ensuing month on the basis of records of the bookkeeping as described in letter b, which contains:
(13) Further provisions on procedures for mixing as described in paragraph (9) shall be regulated by a regulation of the Director General.
(1) In order to obtain the exemption from excise on ethyl alcohol used in the integrated production as described in Article 2 paragraph (1), manufacturers undertaking integrated production shall submit application to the Minister of Finance in this case the Director General through Heads of Service Offices by using form of PMCK-1 as stipulate in Attachment VI this regulation.
(2) The application as described in paragraph (1) shall be submitted by mentioning detail of the quantity of ethyl alcohol requested for exemption from excise as well as details of quantity and kinds of end-products, which will be produced.
(3) In the case of the application being received completely and truthfully, the Director General of Customs and Excise or the appointed officials on behalf of Minister of Finance shall stipulate decision on the submitted application as described in paragraph (1) in not letter than 10 (ten) days as from the date or receipt of complete and true application on NPP shall be issued to manufacturers of end-products.
(4) In the case of the received application being not complete or true, the Director General o Customs and Excise or the appointed official shall notify the applicant in writing to complete the shortcomings or requirements or improve data about application in not letter than 10 (ten) days.
(5) In the case of the applicant not fulfilling the shortcoming of requirements or improving data about the application in the period as described in paragraph (5), the Director General of Customs and Excise or the appointed officials shall issue letter or notification of rejection containing reason for rejection.
(6) The decision as described in paragraph (4) shall be conveyed to applicants and the copy is made available to heads of regional offices and service offices.
(7) Manufacturers undertaking the integrated production that secure exemption from excise as described in paragraph (3) shall be obliged:
(8) Manufacturers undertaking the integrated production that secure exemption from excise as described in paragraph (3) shall be obliged to convey monthly report on the quantity of ethyl alcohol used for producing end-products as well as kind and quantity of end-products produced in one month to Director General through Heads of Service Offices in not later than the 10th of the ensuing month on the basis of the records of the bookkeeping as described in paragraph (5) letter b by using form of LCK-3 as stipulated in Attachment IX to this regulation.
(1) The exemption from excise can be granted to ethyl alcohol with the lowest content of 85% (eighty five percent), which is used for the need of scientific research and development.
(2) To obtain the exemption from excise as described in paragraph (1), manufacturers, depository organizers, special mixing depository organizers or importers shall submit application to the Minister of Finance in this case the Director General through Heads of Service Offices by using form as contained in specimen of format of PMCK-3 as stipulated in Attachment X to this regulation.
(3) This application as described in paragraph (2) shall be submitted on the basis of orders of government official institutions/agencies operating in the scientific research and development by mentioning detail of ethyl alcohol requested for exemption from excise and the goal of the use.
(4) In the case of the application being received completely and truthfully, the Director General of Customs and Excise or the appointed officials on behalf of the Minister of Finance shall stipulate decision on the submitted application as described in paragraph (1) in not later than 10 (ten) days as from the date of receipt of complete and true application and NPP shall be issued to the institutions/agencies.
(5) In the case of the received application being not complete or true, the Director General of Customs and Excise or the appointed official shall notify the applicant in writing to complete the shortcomings of requirements or improve data about the application in not later than 10 (ten) days.
(6) In the case of applicant not fulfilling the shortcoming of requirements or improving data about the application in the period as described in paragraph (5), the Director General of Customs and Excise or the appointed officials shall issue letter of notification of rejection containing reason for rejection.
(7) The decision as described in paragraph (4) shall be conveyed to applicants and the copy is made available to the government official institutions/agencies operating in the scientific research and development, heads of regional offices and service offices.
(8) Manufacturers, depository organizers, special mixing depository organizers or importers before releasing ethyl alcohol securing the exemption from excise from factories, depositories, special mixing depositories or customs zones shall notify Heads of Service Offices by using form of CK-19 as stipulated in Attachment XI to this regulation.
(9) The heads of the institutions/agencies as described in paragraph (3) shall convey monthly report to the Director General through the Heads of Service Offices overseeing, in not later the 10th of the ensuing month, which contains:
(1) The exemption from excise can be granted to ethyl alcohol beverages and tobacco products for the need of foreign representatives along with their officials assigned in Indonesia on the basis of reciprocal principles.
(2) To obtain the exemption from excise as described in paragraph (1), the relevant parties shall submit application to the Minister of Finance in this case the Director General with the consent of the Ministry of Foreign Affairs.
(3) The excisable goods exempt from the excise as described in paragraph (1) can be obtained from duty free shops or imported directly in accordance with the provisions of the customs legislation.
(1) The exemption from excise can be granted to ethyl alcoholic beverages and tobacco products for the need of foreign specialists assigned in international agencies and organizations in Indonesia.
(2) To obtain the exemption from excise as described in paragraph (1), the specialists shall submit application to the Minister of Finance in this case the Director General with the consent of the State Secretariat.
(3) The quantity of excisable goods, which can be exempt from excise as described in paragraph (1) shall be maximally:
(4) The excisable goods exempt from excise as described in paragraph (1) only can be obtained from duty free shops in accordance with the provisions regulated in the customs legislation.
(1) The exemption from excise can be granted to ethyl alcoholic beverage or tobacco products carried by passengers, crew members of carriers of gift from other countries.
(2) The quantity of excisable goods exempt from excise as described in paragraph (1) for passengers, crew members of carriers shall be maximally:
(3) The quantity of excisable goods, exempt from excise as described in paragraph (1) for gift from other countries shall be maximally:
(4) In the case of the quantity of excisable goods carried by passengers, crew members of carriers of gift from other countries exceeding the quantity stipulated in paragraph (2) or paragraph, the excess shall be destroyed by the Directorate General of Customs and Excise.
(1) The exemption from excise can be granted to ethyl alcohol with the lowest content of 85% (eighty five percent), which is used for social purpose.
(2) The social purpose as described in paragraph (1) shall be the need of hospital.
(3) To obtain the exemption from excise as described in paragraph (1), manufacturers, depository organizers or importers shall submit application to the Minister of Finance in this case the Director General through Heads of Service Offices by using form as contained in specimen of format of PMKCK-3 as stipulated in Attachment X to this Regulation.
(4) The application as described in paragraph (3) shall be submitted on the basis of orders of hospitals by mentioning of ethyl alcohol requested for exemption from excise and the goal of the use.
(5) In case of the application being received completely and truthfully, the Director General of customs and Excise or the appointed officials on behalf of the Minister of Finance shall stipulate decision on the submitted application as described in paragraph (1) in not later than 10 (ten) days as from the date of receipt of complete and true application and NPP shall be issued to the hospitals.
(6) In the case of the received application being not complete or true, the Director General of Customs and Excise or the appointed official shall notify the applicant in writing to complete the shortcomings of requirements of improve data about the application in not later than 10 (ten) days.
(7) In case of the applicant not fulfilling the shortcoming of requirements or improving data abut the application in the period as described in paragraph (6), the Director of Customs and Excise of the appointed officials shall issue letter of notifications of rejection containing reason for rejection.
(8) The decision as described in paragraph (5) shall be conveyed to applicants and the copy is made available to heads/letters of hospitals, heads of regional offices and service offices.
(9) Manufacturers, depository organizers, special mixing depository organizers or importers before releasing ethyl alcohol securing the exemption from excise from factories, depositories, special mixing depositories or customs zones shall notify Heads of Service Offices by using form of CK-19 as stipulated in Attachment XI to this regulation.
(10) The heads/leaders of hospitals shall convey monthly report to the Director General through the Head of Service Offices overseeing, in not later the 10th of the ensuing month, which contains:
(1) The exemption from excise can be granted to excisable goods coming from the country or other countries, which are imported into Bonded Collection Zone.
(2) Manufactures, depository organizers, special mixing depository organizers or importers before releasing ethyl alcohol securing the exemption from excise from factories, depositories, and special mixing depositories of customs zones shall notify Heads of Service Offices by using form of CK-9 as stipulated in Attachment XIV to this regulation.
(3) In the case of excisable goods to be imported into the bonded collection zone coming from customs zones, the implementation shall follow procedures regulated in the customs legislation.
(4) If the excisable goods securing the exemption from excise as described in paragraph (1) are used as raw materials or auxiliary materials in the production of excisable goods sold or delivered in the country, the excise on the excisable goods shall be settled.
(5) If the excisable goods coming from bonded collection place are imported into duty free shops, the goods shall be sold righteous buyers in accordance with the provisions of the customs legislation.
(1) The exemption from excise can be granted to ethyl alcohol destroyed/denaturized to become spiritus thus being unfit for drinking.
(2) The destruction of ethyl alcohol to become spiritus shall be only permitted to special mixing depository organizers and executed in certain places in factories or depositories under supervision of customs and excise officials
(3) Manufacturers, depository organizers, special mixing depository organizers before destroying ethyl alcohol to become spiritus shall submit application to heads of service offices by using the form of PMCK-4 as stipulated in Attachment XV to this regulation.
(4) Based on the destruction of ethyl alcohol to become spiritus, account of destruction of ethyl alcohol shall be made by using form of BACK-6 as stipulated in Attachment XVI to this regulation.
(5) Manufacturers, depository organizers, special mixing depository organizers destroying ethyl alcohol to become spiritus shall record the activity in the inventory book by using form BCK-11 as stipulated in Attachment XVII to this regulation.
(6) The ethyl alcohol already destroyed to become spiritus shall be taken out of the factory in not later than 8 (eight) days as from the date of the destruction.
(7) The ethyl alcohol already destroyed to become spiritus shall be taken out of the depository or special mixing depository in not later than one day as from the date of the destruction.
(8) Manufacturers, depository organizers or special mixing depository organizers shall convey monthly report on the quantity of ethyl alcohol destroyed to become spiritus and the quantity of the produced spiritus to the Director General through the Head of Service Offices overseeing, in not later than the 10th of the ensuing month by using Form of LACK-7 as stipulated in Attachment XVIII to this regulation.
(9) In the case of ethyl alcohol already destroyed to become spiritus facing re-distillation or having their destructive agent separated, partly or wholly, the ethyl alcohol shall be deemed excisable goods whose excise must be settled.
(10) Further provisions on the destruction of ethyl alcohol to become spiritus as described in paragraph (2) shall be regulated by a regulation of the Director General.
(1) The exemption from excise can be granted to ethyl alcoholic beverage and tobacco products, which come from factories or import for consumption by passengers or crew members of carriers departing directly to outside customs area through mainland, sea and air.
(2) In order to obtain the exemption from excise as described in paragraph (1), manufacturers or importers submit application to the Minister of Finance in this case the Director General through Heads of Service Offices by using form as contained in specimen of format of PMCK-5 as stipulated in Attachment XIX to this regulation.
(3) The application as described in paragraph (2) shall be submitted on the basis of order from transport operators of catering service providers appointed by the transport operators by mentioning details of the quantity and kinds of end-product, which will be produced.
(4) In the case of the application as described in paragraph (2) being submitted by importers, importing port of ethyl alcohol shall be mentioned.
(5) In the case of the application being received completely and truthfully, the Directors General of Customs and Excise or the appointed official of behalf of the Minister of Finance shall stipulate decision on the submitted application as described in paragraph (2) in not letter than 10 (ten) days as from the date of receive of complete and true application and NPP shall be issued to transport operators on catering service providers.
(6) In the case of received application being not complete or true, the Director General of Customs and Excise or the appointed official shall notify the applicant in writing to complete the shortcomings of requirements or improve data about the application in not latter than 10(ten) days.
(7) In the case of applicant not fulfilling the shortcoming of requirement or improving data about the application in the period as described in paragraph (6), the Director General of Customs and Excise and the appointed officials shall issued letter of notification of rejection containing reason for rejection.
(8) The decision as described in paragraph (5) shall be conveyed to applicants and the copy is made available to transport operators or catering service providers, heads of regional offices and service of offices.
(9) Manufacturers or importers before releasing ethyl alcohol or tobacco product from factories or customs zone shall notify Heads of Service offices by using from of CK-19 as stipulated an Attachment XI to this regulation or from of CK-20 as stipulated in Attachment XX to this regulation.
(10)The transport operators or catering services providers as described in paragraph (2) shall convey monthly report on the realization or receive and use of excisable goods to the Director General through the Head of Service Offices overseeing, in not later the 10th of the ensuing month, which contains:
Manufacturers, depository organizers or special mixing depository organizers and importers of excisable goods selling or giving up excisable goods by securing the facility of exemption from excise shall convey monthly report on the kind and quantity of excisable goods, which are sold or delivered under the facility of exemption from excise to Director General through heads of service offices in not later than the 10th of the ensuing month by using from of LACK-9 as stipulated in Attachment XXII to this regulation.
Manufacturers, depository organizers or special mixing depository organizer of bonded collection places, importers of excisable goods, producers of end products as described in Article 3, heads of institutions or agencies as described in Article 5, heads/leader of hospital as described in Article 9 and transport operators or service providers as described in Article 12 shall be subject to sanction in accordance with the provisions regulated in the customs legislation in force in the case of:
Factories, depositories, special mixing depositories and importers as suppliers of ethyl alcohol securing are facility of exemption from excise as well as users of ethyl alcohol on the basis of this regulation can be audited by the customs and excise audit team at any time.
Decree of the Minister of Finance on the granting of facility of exemption from excise already issued before the enforcement of this regulation shall be declared to remain effective until the validity period of decrees expires.
Further provisions on procedures for granting the exemption from excise shall be regulated by a regulation of the Director General.
the applications for exemption from excise on ethyl alcohol used as raw materials or auxiliary materials in the production of end products (PMCK-2) for the need of research and development, or for social purpose (PMCK-3) and ethyl alcoholic beverage and tobacco products coming from the factory or the import for consumption by passengers or crew members of carriers departing directly to outside customs area (PMCK-5) already received by:
With the enforcement of this regulation, Decree of the Minister of Finance No. 243/KMK.5/1996 on the exemption from excise as already amended by Decree of the Minister of Finance No. 36/KMK.06/1998 shall be revoked and declared null and void.
The regulation shall come into force one month as from the date of stipulation.
For Public notice, the regulation shall be published in State Gazette of the Republic of Indonesia.
Stipulate in Jakarta
on May 1, 2007
THE MINISTER OF FINANCE
Signed
SRI MULYANI INDRAWATI