REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-16/BC/2007

CONCERNING
TECHNICAL DIRECTIVES FOR THE MINISTER OF FINANCE REGULATION
No. 41/PMK.010/2007 DATED APRIL 19, 2007
CONCERNING
THE EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF CERTAIN COMPONENTS AND PARTS
FOR THE MANUFACTURING AND ASSEMBLE OF HEAVY EQUIPMENT BY HEAVY EQUIPMENT INDUSTRY

DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

a. that following the issuance of Regulation of the Minister of Finance No. 41/PMK.010/2007 dated April 19, 2007 regarding the Exemption from Import Duty on the Import of Certain Components and Parts for the Manufacturing and Assemble of Heavy Equipment by Heavy Equipment Industry, it is necessary to rule technical directives for the exemption from import duty;
b. that having regards paragraph a, it is necessary to stipulate a Regulation of the Director General of Customs and Excise on Technical Directives for Regulation of the Minister of Finance No. 41/PMK.010/2007 dated April 19, 2007 regarding the Exemption from Import Duty on the Import of Certain Components and Parts for the Manufacturing and Assemble of Heavy Equipment by Heavy Equipment Industry;

In view of:

1. Law No. 10/1995 on Customs (Statute Book of Republic of Indonesia Year 1995 No. 75, Supplement to Statute Book Numper 3612) as amended by Law No. 17/2006 (Statute Book of Republic of Indonesia Year 2006 No. 93, Supplement to Statute Book No. 4661);
2. Presidential Decree No. 20/P/2005;
3. Regulation of the Minister of Finance No. 110/PMK.010/2006 dated November 15, 2006 regarding the Stipulation of Classification System of Goods and the Imposition of Tariff of Import Duty on Imported Goods;
4. Regulation of the Minister of Finance No. 41/PMK.010/2007 dated April 19 2007 regarding the Exemption from Import Duty on the Import of Certain Components and Parts for the Manufacturing and Assemble of Heavy Equipment by Heavy Equipment Industry;

HAS DECIDED:

To stipulate:

DIRECTOR GENERAL OF CUSTOMS AND EXCISE REGULATION CONCERNING TECHNICAL DIRECTIVES FOR THE MINISTER OF FINANCE REGULATION No. 41/PMK.010/2007 DATED APRIL 19, 2007 CONCERNING THE EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF CERTAIN COMPONENTS AND PARTS FOR THE MANUFACTURING AND ASSEMBLE OF HEAVY EQUIPMENT BY HEAVY EQUIPMENT INDUSTRY

Article 1

The import of Certain Components and Parts for the Manufacturing and Assemble of Heavy Equipment by Heavy Equipment Industry as stipulated in the attachment to Regulation of the Minister of Finance No. 41/PMK.010/2007 dated April 19, 2007 is exempted from import duty.

Article 2

(1) To obtain the facility as referred to in Article 1, heavy equipment manufacturers shall submit application to the Director General of Customs and Excise,attentioned to the Director of Customs Facility according to specimen in Attachment I to this this decision, by enclosing:

a. Copy of Taxpayer Code Number (NPWP) which has been legalized by related institution or by showing the original document to the Functionary of Directorate of Customs Facility;
b. Copy of Business License to Assemble and/or Manufacture Heavy Equipment which has been legalized by related institution or by showing the original document to the Functionary of Directorate General of Customs and Facility;
c. Conversion of the needs for certain components and parts, especially for the manufacturing of components/parts of heavy equipment with specimen contained in Attachment II to this decision;
d. List of goods which covers type of goods, country of origin, unloading port and value of the goods with specimen as contained in Attachment III to this Decision;
e. Copy of Importer Identity Number (API) or Approved Importer Identity Number (APIT).

(2) The Director of Customs Facility checks the application for exempting from import duty proposed by theapplicant.

(3) In the case that the application does not fulfill the requirement, the Director of Customs Facility shall publish cancellation letter to the related applicant.

(4) In the case that the application fulfills the requirement, the Director General of Customs and Duty c.q. Director of Customs Facility, on behalf of the Minister of Finance, shall publish Decision of Minister of Finance regarding the Exemption of Import Duty on the Import of Entrance Customs on Import of Certain Components and Parts for the Manufacturing and Assemble of Heavy Equipment by Heavy Equipment Industry.

Article 3

The Exemption from the import duty shall be given until the validity period of Regulation of the Minister of Finance No. 41/PMK.011/2007 dated April 19, 2007 ends October 29, 2007.

Article 4

Heavy equipment manufacturers obtaining the facility of the exemption from import duty are obliged to:

1. perform the bookkeeping of certain imported components and parts for the manufacturing and assemble of heavy equipment for the need of customs audit.
2. keep and maintain bookkeeping, document and other notes in related to the exemption from import duty for a minimum of ten years starting from the realization of the import in their respective places.
3. submit the report on the realization of the import of components and parts for the manufacturing and assemble of heavy equipment to the Director General of Customs and Excise, in this case tothe Director of Audit.

Article 5

(1) The imported components and parts for the manufacturing and assemble of heavy equipment which has already been obtained the exemption from import duty only shall be used for the necessity of related industry.

(2) Anyone whoi does not abide to the provision ofthe exemption from import duty as intended in paragraph (1) is obliged to pay import duty payable and subject to administrative sanction in the accordance with the provisions of legislation in force.

Article 6

(1) In the interest of security for the right of state finance and to ensure the fulfillment of the provisions of customs and excise legislation in force; the Directorate General of Customs and Excise audits bookkeeping, notes, and related documents with the import and use of components and parts for the manufacturing and assemble of heavy equipment.

(2) Based on result of the audit as referred to in paragraph (1), heavy equipment manufacturers are responsible for the payment of import duty payable and administrative sanction in the form of fine.

Article 7

This Regulation of Director General shall come into force on the stipulated date and be retroactive to October 30, 2006 until date October 29, 2007.

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

Stipulated in Jakarta
On June 4, 2007
THE DIRECTOR GENERAL
Signed.
ANWAR SUPRIJADI

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE No. P-16/BC/2007

CONCERNING TECHNICAL DIRECTIVES FOR THE MINISTER OF FINANCE REGULATION No. 41/PMK.010/2007 DATED APRIL 19, 2007 CONCERNING THE EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF CERTAIN COMPONENTS AND PARTS FOR THE MANUFACTURING AND ASSEMBLE OF HEAVY EQUIPMENT BY HEAVY EQUIPMENT INDUSTRY