REGULATION OF THE MINISTER OF FINANCE
No. 102/PMK.04/2007

CONCERNING
EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF MEDICINES ARE PAID BY GOVERNMENT BUDGET FOR PUBLIC INTEREST

MINISTER OF FINANCE

Considering:

That in the framework of implementation provision in Article 25 paragraph (1) sub-paragraph n of Law No. 10/1995 concerning Customs Affair as amended by Law No. 17/2006, it is necessary to stipulate Regulation of the Minister of Finance concerning Exemption from import duty on the import of medicines are paid by Government budget for public interest;

In view of:

• 1. Law No. 10/1995 concerning Customs Affair (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612) as had already been amended by Law No. 17/2006 (Statute Book of 2006 No. 93, Supplement to Statute Book No. 4661);
• 2. Presidential Decision No. 20/P/2005;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF FINANCE CONCERNING EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF MEDICINES ARE PAID BY GOVERNMENT BUDGET FOR PUBLIC INTEREST

Article 1

In this Regulation of the Minister of Finance, the meaning of:

• 1. Medicine referred to compound or material are used to decide diagnose, prevent, reduce, stop, cure illness or symptoms of illness, injury or physical defect of human or animal.
• 2. Minister referred to Minister of Finance of the Republic of Indonesia.
• 3. Director General referred to Director General of Customs and Excise.

Article 2

(1) Importing of medicines which is paid by government budget is exemption of import duty.

(2) Government budget as meant in paragraph (1) is State Revenue and Expenditure Budget (APBN) or Regional Revenue and Expenditure Budget (APBD).

Article 3

(1) Importing of goods as described in Article 2 is done by:

• a. ministries/government agencies non ministry which are related with handling health program;
• b. departments which handle health field.
• c. hospitals; or
• d. third parties based on working agreement/contract between ministry/government agency non ministry/department with third party.

(2) If importing is done by third party, working agreement/contract as intended in paragraph (1) sub-paragraph d should state that contract value is exclude import duty payment.

Article 4

(1) To get exemption of import duty of importing medicine as described in Article 2, importer as intended in Article 3 paragraph (1) should propose proposal of exemption of import duty to Minister by Director General.

(2) Proposal of exemption of import duty as intended in paragraph (1) should be attached with:

• a. List of Budget Implementation Form (DIPA) or similar with DIPA;
• b. Recommendation from related technical agency;
• c. working agreement/contract with third party which are decided as implementation of import, in case importing of goods is done by third party; and
• d. description of sum, kind and prediction of Customs value of medicine will be imported and discharging port.

Article 5

(1) For proposal of exemption of import duty as described in Article 4 paragraph (1), Director General on behalf of Minister give approval or rejection.

(2) In case proposal of exemption of import duty as intended in Article 4 paragraph (1) is approved, Director General on behalf of Minister issues decision of exemption of import duty.

(3) Decision of exemption of import duty as meant in paragraph (2) describe sum, kind and prediction of Customs value of medicine which will be given exemption of import duty, and decide discharging port.

(4) In case proposal of exemption of import duty as intended in paragraph (1) is rejected, Director General on behalf of Minister makes rejection letter of exemption of import duty and reasons of rejection.

Article 6

For approval of exemption of import duty as intended Article 5 paragraph (2), if importing goods are imported not match with sum, kind and/or specification of goods as stated in decision of exemption of import duty, the different is subject of import duty.

Article 7

Importing medicine as described in Article 2 which is not match with objective of exemption of import duty, its import duty should be paid and pay administrative fine as stated in effective regulations.

Article 8

This Regulation of the Minister of Finance shall come into force since 30 (thirty) days since date of stipulation.

For Public cognizance, it is ordered that this Ministerial Decree shall be published in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On September 5, 2007
THE MINISTER OF FINANCE
Signed
SRI MULYANI INDRAWATI