DECREE OF THE MINISTER OF INDUSTRY AND TRADE
No. 458/MPP/Kep/7/2003

CONCERNING
PROVISIONS AND PROCEDURES FOR THE IMPORT OF CITY AND RURAL BUSES IN NON NEW CONDITION

THE MINISTER OF INDUSTRY AND TRADE,

Considering:

• a. that in the framework of implementing the provision in Article 5 of Decree of the Minister of Industry and Trade No. 756/MPP/Kep/11/2002 on the import of used machines and equipment as already amended by Decree of the Minister of Industry and Trade No. 411/MPP/Kep/6/2003, it is necessary to regulate provisions and procedures for importing vehicles carrying 20 public passengers or more in non new condition;
• b. that in relation thereto, it is necessary to issue a decree of the Minister of Industry and Trade;

In view of:

• 1. Law No. 5/1984 on industry (Statute Book of 1984 No. 22, Supplement to Statute Book No. 3274);
• 2. Law No. 14/1992 on traffic and land transport (Statute Book of 1992 No. 49, Supplement to Statute Book No. 3480);
• 3. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• 4. Government Regulation No. 44/1993 on vehicle and driver (Statute Book of 1993 No. 64, Supplement to Statute Book No. 3530);

DECIDES:

To stipulate:

THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON PROVISIONS AND PROCEDURES FOR THE IMPORT OF CITY AND RURAL BUSES IN NON NEW CONDITION.

Article 1

(1) Motor vehicle carrying 20 (twenty) public passengers or more or city buses which can be imported in non new condition shall be those subsumed into Tariff Headings HS 8702.10.910, 8702.10.990, 8702.90.910 and 8702.90.990.

(2) The import of the used city-buses as meant in paragraph (1) shall only be designated for city buses and rural buses of the economic class in the framework of renewing public transport for plying the existing routes.

Article 2

(1) The non-new city buses as meant in Article 1 only can be imported by companies experiencing in the trade of imported vehicles and the import of goods securing recognition as importers of non-new buses from the Director General of Foreign Trade.

(2) The companies as meant in paragraph (1) shall provide guarantee of after-sales service by workshops owned by the relevant companies or in cooperation with other workshops.

(3) In order to secure the recognition as importers of non new buses, the companies as meant in paragraph (1) shall meet the following requirements:

• a. having Importer Identity Number (API);
• b. having Corporate Registry Number (TDP);
• c. having Taxpayer Code Number (NPWP);
• d. having agreement on cooperation in the purchase of non-new buses with operators of city buses/rural buses or other parties appointed by operators of city/rural buses.

(4) The cooperation agreement as meant in paragraph (3) letter d shall contain at least information on:

• a. the quantity of non-new city buses to be imported in accordance with the need;
• b. the designation of non-new city/rural buses for only renew of public transport of the existing routes;
• c. the obligation that operators of city/rural buses will buy new buses produced domestically at a ratio of one to one non-new city bus received from importers of non-new city buses;
• d. non-new city buses only can be traded or handed over 5 (five) years after being operated by the relevant operators;
• e. the cooperation agreement constitutes part inseparable from the letter of recognition as importers of non-new city buses issued by the Director General of Foreign Trade.

(5) The importers of non-new city buses as meant in paragraph (3) shall:

• a. have maintenance workshops and provide guarantee of after-sales service for the imported buses;. or
• b. provide guarantee of after-sales service for the imported buses through cooperation with experienced maintenance workshops in providing after-sales service for brands of the imported buses,

(6) The Director General of Foreign Trade, Ministry of In., and Trade shall issue recognition as importers of non-new buses as meant in paragraph (1) or issue rejection of application for securing recognition as importers of non-new buses in a period of 10 (ten) days, starting from the date of receipt of applications for recognition as importers of non-new buses.

Article 3

(1) The quantity of non-new city buses which can be imported shall be stipulated on the basis of a ratio of one to one new bus produced in the country, which must be bought by operators of city/rural buses.

(2) The import of non-new city buses stipulated on the; basis of ratio of one to one new bus produced domestically as meant in paragraph (1) shall be done in phases.

(3) The quantity of non-new buses which can be imported in the first phase shall be maximally 25% (twenty five percent) of the total non-new city buses which will be imported.

(4) Import approval of the next phase can be granted after operators of city/rural buses have realized the purchase of new buses produced domestically at a proportional quantity, proven by evidence of purchase of new buses of the same category.

(5) The implementation of the provision as meant in paragraph (2) shall be stipulated by the Director General of Foreign Trade.

Article 4

The non-new city buses as meant in Article 1 which can be imported shall meet the following requirements:

• a. having seats for 20 (twenty) passengers or more, including driver;
• b. 1.2 axle configuration;
• c. the chassis age 5 (five) years at the minimum and 15 (fifteen) years at the maximum;
• d. right steering system;
• e. roadworthy in accordance with the provision in force;
• f. fulfilling standard gas emission of Euro-1;
• g. marks have existed in Indonesia.

Article 5

(1) The import of non-new city buses shall be accompanied by certificate of inspection from surveyors certifying the fulfillment of the requirements as meant in Article 4 as well as mention mark, type and variant, country of origin of brand holder, frame no., dimension, weight, type/model of propeller, no. of engine, cylinder capacity and maximum power.

(2) The execution of survey in the framework of issuing certificate of inspection shall be done in countries where the goods are loaded.

(3) Costs of survey of import of non-new city buses shall be borne by importers of non-new buses.

Article 6

(1) The importers of non-new buses as meant in Article 2 paragraph (1) shall secure import approval from the Director General of Foreign Trade so that they can import non-new city buses.

(2) In order to secure the import approval as meant in paragraph (1), importers of non-new buses shall submit applications to the Director General of Foreign Trade, Ministry of Industry and Trade, by accompanying:

• a. plan for renewing city and rural buses in new and non-new conditions from bus operators in cooperation with the relevant importers of non-new buses;
• b. recommendation from the Director General of Land Transport, Ministry of Communications, which at least contains the truth of identity of city/rural bus operators in cooperation with the relevant importers of non-new buses as the truth of quantity of procurement of city buses in routes to be served by the said non-new buses;
• c. agreement on the purchase of new buses produced domestically in the form of purchasing order between city/rural bus operators in cooperation with the relevant importers of non-new buses and manufacturers of domestic buses and/or evidence of purchase of new buses.

(3) The Director General of Foreign Trade, Ministry of Industry and Trade shall issue the import approval as meant in paragraph (1) or issue rejection of applications for import approval in (10) ten working days as from the date of receipt of applications for import approval.

(4) In the case of the quantity of procurement of non-new buses and the plied routes being not suitable to the recommendation of the Director General of Land Transport as meant in paragraph (2) letter b and failing to meet the obligation as meant in Article 3 paragraph (1), the Director General of Land Transport shall entitle to impose sanction on operators of non-new buses in accordance with the provisions in laws in force.

Article 7

(1) Surveyors surveying the import of non-new city buses as meant in Article 5 shall be surveyors belonging to the Indonesian government who are appointed by the Minister of Industry and Trade.

(2) In order to secure the appointment as surveyors of import of non-new city buses, surveyors shall meet the following requirements:

• a. having experience as surveyors for 5 (five) years at the minimum; and
• b. having branches or representatives or affiliates abroad.

Article 8

The non-new public transport vehicle or city buses as meant in Article 1 paragraph (1) can only be imported through seaports Belawan, Dumai, Palembang, Tanjung Priok, Tanjung Emas, Tanjung Perak, Pontianak, Banjarmasin and Makasar.

Article 9

Before entering Indonesian customs areas, non new city buses shall have their types registered at the Directorate of Metal, Machine, Electronic and Multifarious Industries, Ministry of Industry and Trade, by completing the form as meant in specimen in the attachment to this decree by accompanying certificate of inspection from surveyors.

Article 10

In the case of the importers of non-new buses as meant in Article 2 paragraph (1) failing to procure non new city buses in the period stipulated in the letter of recognition as importers of non-new buses, whereas the buses are badly needed soon, the Minister of Industry and Trade can appoint other importers outside the provision as meant in Article 2.

Article 11

(1) Importers of non-new buses failing to meet or violating the provisions as meant in Article 2 and Article 3 paragraph (1) shall be subjected to a sanction in the form of revocation of recognition as importers of non -new buses and/or SIUP.

(2) Operators of city/rural buses violating the provision as meant in Article 3 paragraph (1) shall be subjected to a sanction in the form of discontinuation of import facilities through termination of import by the recognized importers of non-new buses.

Article 12

The Director General of Foreign Trade, Ministry of Industry and Trade shall stipulate technical provisions not yet regulated in this decree.

Article 13

This decree shall come into force as from the date of stipulation and come into an end on June 30, 2004.

For public cognizance, this decree shall be published by placing it in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On July 8, 2003
THE MINISTER OF INDUSTRY AND TRADE,
sgd.
RINI M SUMARNO SUWANDI