DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. KEP-39/BC/1999
ON
PROCEDURE FOR GRANTING THE EXEMPTION OF IMPORT DUTY
ON THE IMPORT OF GOODS AND MATERIALS FOR MANUFACTURING COMPONENTS, EQUIPMENT AND
BODIES OF SPECIAL MOTOR VEHICLES BASED ON
DECREE OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA
No. 346/KMK.01/1999 DATED 24 JUNE 1999
DIRECTOR GENERAL OF CUSTOMS AND EXCISE,
Attachment
Considering:
- a. that the enhancement of public service in the framework of granting of facility of import duty exemption is the main demand for the effort of boosting industrial development in home country;
- b. that the enhancement of service for granting facility of import duty exemption, must remain pay attention to the rights and interests of the state, therefore it is deemed necessary to regulate further the procedure for the granting of facility of import duty exemption on goods and materials for manufacturing special purpose motor vehicle components, equipment and bodies based on Decree of the Minister of Finance No. 346/KMK.01/1999 dated 24 June 1999 in a Decision of the Director General of Customs and Excise.
In view of:
- a. Law No. 10/1995 on Customs Affairs (Statute Book/1995 No. 75, Supplement to Statute Book No. 3612);
- b. Presidential Decree No. 122/M/1998;
- c. Decree of the Minister of Finance No. 440/KMK.05/1996 on Designation of Systems of Classifications of Goods And Tariffs of Import Duty on Imported Goods, as amended the latest by Decree of the Minister of Finance of the Republic of Indonesia No. 344/KMK.01/1999;
- d. Decree of the Minister of Finance of the Republic of Indonesia No. 346/KMK.01/1999 dated 24 June 1999 on Exemption from Import Duty on the Import of Goods and Materials for Manufacturing Components, Equipments and Bodies of Motor Vehicles.
- e. Decree of the Minister of Industry and Trade of the Republic of Indonesia No. 275/MPR/Kep/6/1999 dated 24 June 1999 on Automotive Industry.
DECIDES:
To Stipulate:
DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON PROCEDURE FOR GRANTING THE EXEMPTION OF IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS FOR MANUFACTURING COMPONENTS, EQUIPMENTS AND BODIES OF SPECIAL MOTOR VEHICLES BASED IN DECREE OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA No. 346/KMK.01/1999 DATED 24 JUNE 1999
Article 1
Hereinafter referred to as:
- 1. Motor vehicles with four wheels or more shall be those as meant in HS tariff headings 8701.20, 8702, 8703, 8704 and 8705.
- 2. Motor vehicle components shall be constituents of motor vehicles required for the functioning of motor vehicles.
- 3. Motor vehicle components in incompletely knocked down condition shall be motor vehicle components knocked down into several sub-components and not having the basic nature of the relevant components.
- 4. Special purpose automotive industries shall be those that manufacture and/or installing special purpose equipment on motor vehicles so as to become motor vehicles as meant in HS tariff heading 8705.
- 5. Special purpose automotive assembly industrial companies shall be those set up and operating in Indonesia as well as possessing industrial business licenses for special purpose automotive production.
Article 2
The import of goods and materials for manufacturing special purpose automotive components, equipment and bodies shall be granted the facility of import duty reduction with the following provisions as specified in the Decree of the Minister of Finance of the Republic of Indonesia No. 346/KMK.01/1999 dated 24 June 1999 by the special purpose automotive industries shall be granted facility of import duty exemption so that the final rate of import dusty becomes 0% (zero percent).
Article 3
(1) Exemption as meant in Article 2 shall only be granted to special purpose automotive industries.
(2) The special purpose automotive industries interested in obtaining the import duty reduction facility as meant in Article 2 shall meet the following requirements:
- a. possessing Industrial Business License;
- b. being at least engaged in welding, spray painting, automotive main component assembly to become whole motor vehicle units as well as quality testing and control.
Article 4
(1) In order to obtain the facility as meant in Article 2, special purpose automotive industries shall submit applications by using the form as specified in the example Attachment I to this decision.
(2) Applications shall be submitted to the Director General of Customs and Excise for the attention to the Director of Customs Facilities by attaching:
- a. Photocopies of Industrial Business License;
- b. Calculation of Production Capacity per Annum;
- c. Conversions of goods and materials needs for manufacturing special purpose automotive components, equipment and bodies;
- d. Photocopy of NPWP.
Article 5
(1) The granting of facility as meant in Article 2 shall be specified in a Decree of the Minister of Finance signed by the Director General of Customs and Excise c.q. the Director of Customs Facilities on behalf of the Minister of Finance for importation period of 1 (one) year.
(2) Exemption of goods and materials as meant in paragraph (1) shall be based on list of goods and materials as specified in Attachment II.
Article 6
The Special purpose automotive industries that obtain facility of import duty exemption shall be obliged:
- a. to maintain account books of importation of goods and materials for customs auditing purpose;
- b. to keep and preserve account books, documents and other records related to the granting of import duty exemption for at least 2 (two) years as from the realization of imports in their places of business;
- c. to submit reports on realization of imports of goods and materials granted the import duty exemption facility to the Director General of Customs and Excise attn. the Director of Verification and Audit.
Article 7
This decree shall come into force as from 1 July 1999.
Stipulated in Jakarta
On 30 June, 1999
DIRECTOR GENERAL,
ttd
DR. PERMANA AGUNG D. MSC.
Attachment to DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. KEP-39/BC/1999