REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-19/BC/2007

CONCERNING
TECHNICAL DIRECTIVE FOR REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA
No. 34/PMK.011/2007 DATED APRIL 3, 2007
CONCERNING
EXEMPTION OF IMPORT DUTY FOR IMPORT OF RAW MATERIAL TO MAKE MOTORIZED VEHICLE COMPONENTS

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Attachment

Considering:

• a. by Regulation of the Minister of Finance of the Republic of Indonesia No. 34/PMK.011/2007 date April 3, 2007 concerning Exemption of Import Duty for Import of Raw Material to Make Motorized Vehicle Components, it need technical directive to give the facility of exemption of import duty;
• b. based on description in paragraph a above, it is necessary to stipulate Regulation of the Director General of Customs and Excise concerning Technical Directive for Regulation of the Minister of Finance of the Republic of Indonesia No34/PMK.011/2007 dated April 3, 2007.

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;
• 3. Regulation of the Minister of Finance No. 110/PMK.010/2006 concerning Stipulation of System of Classification of Goods and imposition of Export Duty of imported goods;
• 4. Regulation of the Minister of Finance of the Republic of Indonesia No. 34/PMK.011/2007 dated April 3, 2007 concerning Exemption of Import Duty for Import of Raw Material to Make Motorized Vehicles Components;

HAS DECIDED:

To stipulate:

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE No. 19/BC/2007 CONCERNING TECHNICAL DIRECTIVE FOR REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA No. 34/PMK.011/2007 DATED APRIL 3, 2007 CONCERNING EXEMPTION OF IMPORT DUTY FOR IMPORT OF RAW MATERIAL TO MAKE MOTORIZED VEHICLE COMPONENTS

Article 1

In this Regulation the meaning of:

• a. Four or more wheel motorized vehicle referred to vehicle as described in tariff post HS 8701.20, 8702, 8703, 8704 and 8705;
• b. Two or three wheel motorized vehicle referred to vehicle as described in tariff post HS 8711 and 8713;
• c. Motorized vehicle component referred to part of motorized vehicle which needed for function of motorized vehicle;
• d. Raw Material referred to material used and/or required to make many kinds of motorized vehicle components with technical specification and/or size for component will be made;
• e. Motorized Vehicle Components Industrial Company referred to industrial company which build and operated in Indonesia and has industrial business license to produce motorized vehicle components;
• f. Explanation of Surveyor verification covers decided convention, request of sum and kind raw material, and production period of motorized components until ending period of Regulation of Minister of Finance No. 34/PMK.011/2007 dated April 3, 2007.

Article 2

Importing raw material to make motorized vehicle component by Motorized Vehicle Components Industrial Company as stipulated in attachment to Regulation of the Minister of Finance of the Republic of Indonesia No. 34/PMK.011/2007 dated April 3, 2007 get exemption of import duty.

Article 3

(1) Exemption of import duty as intended in Article 2 only can be given to Motorized Vehicle Components Industrial Company.

(2) Exemption of import duty as intended in Article 2 is given to Motorized Vehicle Components Industrial Company which fulfills following conditions:

• a. Has Industrial Business License from authorized agency;
• b. Has enough equipment to make motorized vehicle components, which match with kind of produced components.

Article 4

(1) To get facility as described in Article 2, Motorized Vehicle Components Industrial Company proposes proposal use form as sample in Attachment I of this Regulation.

(2) Proposal is propose to Director General of Customs and Excise, with attention to. Director of Customs Facility, with attachment:

• a. Copy of Tax Payee Number (NPWP) which legalized by related agency and show original document to Official of Directorate of Customs Facility;
• b. Copy of legalized Industrial Business License by show original document to Officer of Directorate of Customs Facility;
• c. Conversion of raw material need to make motorized vehicle components as attached in Attachment II to this Regulation;
• d. List of imported raw material, describes kind of goods, technical Specification, origin country, discharging port, sum and value of goods as attached in Attachment III to this Regulation;
• e. Original verification result of raw material need from Surveyor which appointed by Government;
• f. Copy of Importer Identity Number/Limited Importer Identity Number (API/APIT).

(3) Director of Customs Facility check proposal for exemption of import duty which proposed by applicant.

(4) In case proposal not fulfills conditions, Director of Customs Facility issues rejection letter to the applicant.

(5) In case proposal fulfill conditions, Director General of Customs and Excise c. q. Director of Customs Facility on behalf of Minister of Finance issue Decision of the Minister of Finance concerning Exemption of Import Duty for Importing Raw Material for making Motorized Vehicle Components.

(6) Sum and kind of raw material which get exemption of import duty based on verification result of Surveyor which decided by Government as intended in Article 4 paragraph (2) sub-paragraph e;

Article 5

Importing goods which get exemption of import duty as described in Article 4 paragraph (5) follow customs procedures in import field;

Article 6

(1) Raw material which get exemption of import duty as described in Article 4 paragraph (5) only can be imported by appointed Customs and Excise Service Office;

(2) Change or additional Customs and Excise Service Office as import place of goods should get approval from Director of Customs Facility.

Article 7

Motorized Vehicle Components Industrial Company which get exemption of import duty facility should:

(1) Should make bookkeeping for importing raw material which obtain facility based on Regulation of the Minister of Finance of the Republic of Indonesia No. 34/PMK.011/2007, for audit in customs.

(2) Store and maintain bookkeeping, document and other notes related with exemption or relief of import duty at least 10 (ten) years since realization of import in its business place.

(3) Send report of import realization to Director General of Customs and Excise c.q. Director of Audit.

Article 8

(1) Import of raw material which get exemption of import duty facility only can used for that industrial interest.

(2) Person who does not fulfill the provision for exemption of import duty as intended in paragraph (1) should pay import duty should be pay and fined administration sanction based on effective regulations.

Article 9

(1) Company which get exemption of import duty facility for importing raw material to make Motorized Vehicle Components based on Decree of the Minister of Finance No. 97/KMK.05/2000 and has yet to realized all the import, is still able to use the decree for exemption of import duty until end of the decree period and cannot be extended or changed.

(2) Remain of raw material which get exemption of import duty facility but has not realized the importing, should follow provision as intended in Regulation of the Minister of Finance No. 97/KMK.05/2000.

(3) Remain of raw material as described in paragraph (2), to get exemption of import duty based on Regulation of the Minister of Finance No. 34/PMK.011/2007, company should:

• a. Propose cancellation of exemption of import duty facility which had gotten;
• b. Propose exemption of import duty follow request of raw material in production period until ending period of Regulation of the Minister of Finance No. 34/KMK.11/2007.

Article 10

This Regulation of the Director General shall come into force at the date of stipulation and will be ended on May 31, 2008

For Public notice, this Regulation shall be published in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on June 27, 2007
DIRECTOR GENERAL OF CUSTOMS AND EXCISE
signed
ANWAR SUPRIJADI
NIP 120050332

Attachment to REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-19/BC/2007