In connection with the stipulation of the Decree of the Minister of Finance No. 347/KMK.01/1999 dated June 24, 1999 on the exemption from import duty on the import of goods and/or materials from bonded warehouses to be processed, assembled or installed in other goods for manufacturing motor vehicles destined for export, it is deemed necessary to provide technical directives for the exemption from import duty on the import of goods and/or materials from bonded warehouses to be processed, assembled or installed in other goods for manufacturing motor vehicles destined for export by issuing a decision of the Director General of Customs and Excise.
THE DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON THE PROCEDURE FOR GRANTING THE EXEMPTION OF IMPORT DUTY ON THE IMPORT OF GOODS AND/OR MATERIALS FROM BONDED WAREHOUSES TO BE PROCESSED, ASSEMBLED OR INSTALLED IN OTHER GOODS FOR MANUFACTURING MOTOR VEHICLES DESTINED FOR EXPORT.
Referred to in this decree as:
Goods and/or materials originating in bonded warehouses to be processed, assembled or installed in other goods for manufacturing motor vehicles, which are imported by automotive assembly manufacturers, shall be given exemption facilities.
The granting of the exemption facilities as meant in Article 2 shall be stipulated by a decree of the Minister of Finance which is signed by the Director General attn. the Director of Customs Facilities on behalf of the Minister of Finance as meant in specimen in Attachment I to this decision.
The exemption facilities as meant in paragraph (2) shall be given to companies fulfilling the following requirements:
(1) Applications for the exemption facilities as meant in Article 2 shall be submitted to the Director General attn. the Director of Customs Facilities by using the form as meant in specimen in Attachment II to this decision and enclosing the following documents:
(2) The approval of the exemption as meant in paragraph (1) shall be given by the Director General attn. the Director of Customs Facilities on behalf of the Minister of Finance not later than 14 (fourteen) working days as from the date of receipt of the complete and correct applications.
(3) The procedure for submitting applications for the exemption as meant m paragraph (1) shall be further stipulated in Attachment V to this decision.
The supply of goods and/or materials for the manufacturing of motor vehicles from unloading ports of provisional collection places to bonded warehouses shall be done by using document BC.2.3. in accordance with the Decree of the Minister of Finance No. 399/KMK.01/1996 dated June 6, 1996.
The goods and/materials as meant in Article 6 which are released from bonded warehouses to companies shall be in the form of CKD units and/or IKD units.
(1) The release of the goods as meant in Article 7 shall be done by using Import Declarations (PIB) in accordance with customs procedures in force in the field of import.
(2) PIB shall be submitted by companies to offices by enclosing the following documents:
(3) The release of the goods as meant in paragraph (1) shall be subjected to customs inspection.
(1) Export shall be realized in the period of 6 (six) months as from the date of import.
(2) In the case of the provision as meant in paragraph (1) being fulfilled, the guarantees shall be returned not later than 14 (fourteen) working days after the approval of export reports.
(3) In the case of the provision as meant in paragraph (1) failing to be fulfilled, the relevant companies shall pay the owed import duty on the import and be subjected to interest as high as 2% (two percents) of the amount of import duty due per month, starting from the maturity of the six-month period up to the realization of export with a maximum period of 12 (twelve) months as from the date of import.
(4) If the export is realized after the expiration of the six-month period and import duty has already been paid not later than 12 (twelve) months as from the date of import, import duty restitution can be given.
(5) If the export is realized after the twelve-month period as from the date of import, import duty restitution can not be given.
(1) Companies which will realize export, shall submit export declarations to Heads of Offices for having conducted customs inspection not later than one day (1 x 24 hours) before the realization of export.
(2) The inspection as meant in paragraph (1) shall be translated into reports on results of export inspection which constitute inseparable part of Export Declarations (PEB) as meant in specimen in Attachment V to this decision.
(3) The export shall be realized by using PEB in accordance with customs procedures in the field of export and accompanied by reports on results of export inspection.
(1) In the case of the domestic delivery of production in the form of motor vehicles being realized before the six-month period as from the date of import elapses, import duty shall be paid and added by a fine a high as 100% (one hundred percents) of the amount of import duty which must be paid.
(2) In the case of the domestic delivery as meant in paragraph (1) being realized as after the six-month period elapses, the guarantees shall be cleared and the relevant companies are subjected to interest a high as 12% (twelve percents) of the amount of import duty which must be paid.
(1) The domestic delivery as meant in Article 11 paragraph (1) shall be realized by using PIB in accordance with customs procedures in the field of import.
(2) PIB shall be submitted by companies to offices by enclosing PIB upon the release from bonded warehouses and other supporting customs documents.
The domestic delivery as meant in paragraph (1) shall be subjected to customs inspection.
(1) Applications for the import duty restitution as meant in Article 9 paragraph (4) shall be submitted to companies to Heads of Offices by enclosing the following documents:
(2) The approval of the import duty restitution shall be given by Heads of Offices not later than 14 (fourteen) days as from the date of receipt of the complete and correct applications.
(3) The import duty restitution in the framework of import already paid shall be done in accordance with taxation provisions and be realized by the Directorate General of Taxation.
The companies as meant in Article 4 shall be obliged:
Companies shall be prohibited from transferring goods and/or materials securing the exemption facilities from the locations. of companies without approval of the Director General or Customs and Excise officials appointed.
Companies shall be responsible for goods and/or materials securing the exemption facilities in accordance with their allocation.
Supervision over the granting of the exemption facilities as meant in this decision shall be done by the Directorate General of Customs and Excise.
(1) In order to safeguard the rights of state the Directorate General of Customs and facilities which are given.
(2) In the case of the customs audits as meant in paragraph (1) showing the excess of the exemption over estimates of values of import duty of which the exemption is requested, the excess must be returned to the state plus interest as high as 2% (two percents) per month for 12 (twelve) months, starting from the date of import.
(3) in the case of the excess of the exemption as meant in paragraph (1) fulfilling criteria for criminal offenses, companies shall be subjected to criminal sanctions in accordance with the provisions stipulated Law No. 10/1995.
In the case of companies failing to execute the obligations as meant in Article 14 and violating the prohibitions as meant in Article 15 and/or misusing the allocation of goods and/or materials which secure the exemption facilities, the facilities shall be declared null and void and the relevant compares are obliged to pay import duty along with an administrative sanction in the form of a tine as high as 100% (one hundred percents) of the amount of import duty which should be paid.
(1) The remainder of goods and/or materials resulting from the production and damaged goods and/or materials imported from bonded warehouses can be sold in the country with the tariff of import duty as high as 5% of the selling price.
(2) The sale of the goods as meant in paragraph (1) shall be done by using PIB in accordance with customs procedures in the field of import.
(3) PIB as meant in paragraph (2) shall be submitted to Heads of Offices.
(4) Customs inspection of the goods as meant in paragraph (1) shall be conducted before being sold in the country.
(1) The remainder of goods and/materials resulting from the production and damaged goods and/or materials can be destroyed.
(2) The remainder of goods and/materials resulting from the production and spoiled goods and/or materials which are destroyed shall be exempted from the collection of import duty.
(3) Applications for the destruction shall be submitted to Heads of Offices.
(4) The results of destruction shall be contained in accounts of destruction.
(1) The payment as meant in Article 20 paragraph (1) and the destruction as meant in Article 21 shall be accounted for by Heads of Offices by using the form of reports as meant in specimen in Attachment XI to this decision.
(2) The remainders of goods and/or materials resulting from the production and damaged goods and/or materials which must be available at companies and can not be accounted for, in addition to import duty, shall also be subjected to a fine as high as 100% (one hundred percents) of the amount of import duty which must be paid.
(1) In the case of bonded warehouses and companies being supervised by different offices:
(2) The procedure for the return of guarantees and/or restitution of export and/or domestic delivery as meant in paragraph (1) shall be in accordance with the procedure stipulated in Attachment XII to this decision.
This decision shall come into force as from July 1, 1999.
Stipulated in Jakarta
On July 1, 1999
THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
sgd
DR. R.B. PERMANA AGUNG D. MSC.
NIP 060044475
Attachment to REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. KEP-43/BC/1999