REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-14/BC/2009

CONCERNING
PROCEDURES TO GIVE GOVERNMENT BORNE IMPORT DUTY FACILITY ON THE IMPORT OF GOODS AND MATERIALS TO MAKE CERTAIN PARTS OF HEAVY EQUIPMENT AND/OR TO MANUFACTURE HEAVY EQUIPMENT BY HEAVY EQUIPMENT INDUSTRY IN BUDGET YEAR 2009

DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

• a. that based on Regulation of the Minister of Finance No. 30/PMK.011/2009, on the import of goods and materials to make certain parts of heavy equipment and/or to manufacture heavy equipment by heavy equipment industry in budget year 2009, get government borne import duty facility;
• b. that to optimize and to give services in implementation Government Borne Import Duty as described in paragraph a, it is necessary to decides procedures to implement it.
• c. that based on consideration as described in paragraph a and b, it is necessary to stipulate Regulation of the Director General of Customs and Excise concerning Procedure to Give Government Borne Import Duty Facility on the Import of Goods and Materials to make certain parts of heavy equipment and/or to manufacture heavy equipment by heavy equipment industry in Budget Year 2009;

In View of:

• 1. Law No. 10/1995 concerning Customs (Statute Book No. 75/1995, Supplement to Statute Book No. 3612) that is amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);
• 2. Law No. 17/2003 concerning State Finance (Statute Book No. 47/2003, Supplement to Statute Book No. 4286);
• 3. Law No. 1/2004 concerning State Treasury (Statute Book No. 5/2004, Supplement to Statute Book No. 4355);
• 4. Law No. 41/2008 concerning State Budget of Revenue and Expenses (APBN) of Fiscal Year 2009 (Statute Book No. 171/2008, Supplement to Statute Book No. 4920);
• 5. Presidential Decision No. 20/P/2005;
• 6. Regulation of the Minister of Finance No. 100/PMK.01/2008 concerning Organization and Working Procedure of the Ministry of Finance as amended by Regulation of the Minister of Finance No. 149/PMK.01/2008;
• 7. Regulation of The Minister of Finance No. 241/PMK.011/2008 concerning Government-Borne Duties on the Import of Goods and Materials for the Manufacture of Goods and/or Services to Serve the Public Interests and Improve the Competitive Edge of Industries in Certain Sectors for Budget Year 2009;
• 8. Regulation of the Minister of Finance No. 30/PMK.011/2009 concerning Government Borne Import Duty on the import of goods and materials to make certain parts of heavy equipment and/or to manufacture heavy equipment by heavy equipment industry in Budget Year 2009:

HAS DECIDES:

To stipulate:

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE CONCERNING PROCEDURES TO GIVE GOVERNMENT BORNE IMPORT DUTY FACILITY ON THE IMPORT OF GOODS AND MATERIALS TO MAKE CERTAIN PARTS OF HEAVY EQUIPMENT AND/OR TO MANUFACTURE HEAVY EQUIPMENT BY HEAVY EQUIPMENT INDUSTRY IN BUDGET YEAR 2009

Article 1

In this Regulation of the Director General of Customs and Excise:

• 1. "The Government Borne Import Duty" refers to import duty shall be borne by the Government with a budget ceiling of Rp. 106,000,000,000 (one hundred and six billion rupiahs) based on Article 2 paragraph (2) of Regulation of the Minister of Finance No. 30/PMK.011/2009.
• 2. "Companies" refers to companies engaged to produce certain parts of heavy equipment and/or to manufacture heavy equipment.
• 3. "Goods and materials" refers to goods and materials as described in Attachment to Regulation of the Minister of Finance No. 30/PMK.011/2009.
• 4. "Source Documents" refers to Notification of Imported Goods (PIB) and Payment Slip of Customs, Excise and Tax in Import
• 5. "Customs Office" refers to Offices in Directorate General of Customs and Excise Environment where fulfill customs obligations, they are:
• a. Customs and Excise Primary Service Office;
• b. Customs and Excise Medium Control and Service Office; or
• c. Customs and Excise Control and Service Office.

Article 2

(1) On the import of Goods and Materials to make certain parts of heavy equipment and/or to manufacture heavy equipment by heavy equipment industry can get Government Borne Import Duty.

(2) To obtain the Government Borne Import Duty as described in paragraph (1), companies shall file application to Director General of Customs and Excise with attention to Director of Customs Facility by using format as described in Attachment I to this Regulation of the Director General.

(3) Application as described in paragraph (2), shall contains the following documents:

• a. Copy of Customs Identity Number (NIK);
• b. Copy of Taxpayer Code Number (NPWP);
• c. Copy of Importer's Identity Number (API-P/APIT);
• d. Original of Plan for Import of Goods already approved and validated by The Director General of Metal, Machine, Textile and Multifarious Industries, Ministry of Industry use format as described in Attachment II to this Regulation of the Director General, attached with data in softcopy; and
• e. Copy of Business License that is legalized by authority agency or by show original document to Director of Customs Facility or assignment official.

Article 3

(1) Director of Customs Facility shall check application as described in Article 2 paragraph (2).

(2) In case application is not complete, Director of Customs Facility in no later than 7 (seven) days since receive application give written notification to the applicant to complete required data.

(3) If within 14 (fourteen) days as of the date of notification as described in paragraph (2), applicant fails to fully comply with the requirements, Director of Customs Facility on behalf of Minister of Finance will issue Rejection Letter.

(4) Based on investigation as described in paragraph (1), The Director of Customs Facility shall approve or reject no later than 14 (fourteen) days after the application have been received in a complete manner.

(5) In case the application is approved, Director of Customs Facility on behalf of the Minister of Finance shall issue Decision of the Minister of Finance concerning Government Borne Import Duty on the Import of Goods and Material to make certain parts of heavy equipment and/or to manufacture heavy equipment by heavy equipment industry in Budget Year 2009.

(6) In case the application is rejected, Director of Customs Facility on behalf of the Minister of Finance shall issue rejection letter and state the reason of rejection.

(7) Decision of the Minister of Finance as described in paragraph (5) is valid until December 31, 2009.

Article 4

(1) Decision of the Minister of Finance as described in Article 3 paragraph (5) can be changed.

(2) To change Decision of the Minister of Finance as described in paragraph (1), company propose Changing Proposal to Director General of Customs and Excise with attention to Director of Customs Facility and state the reason of changing.

(3) Changing as described in paragraph (1) not valid for goods and materials got PIB registration number.

(4) In case changing as described in paragraph (1) related with RIB data, proposal should be attached with Changing of RIB that is approved and legalized by Director General of Metal, Machine, Textile and Multifarious Industries, Ministry of Industry.

(5) Director of Customs Facility give approval or rejection for the application as described in paragraph (2).

(6) In case proposal of changing is approved, approval to change is given in Decision of the Minister of Finance.

(7) In case proposal of changing is rejected, Director of Customs Facility on behalf of the Minister of Finance issue rejection letter and states the reason of rejection.

Article 5

(1) To process customs procedures of imported goods that get Import Duty Borne by the Government facility as described in Article 2 paragraph (1), Company shall submit Notification of Imported Goods by states:

• a. Number of Decision of the Minister of Finance concerning Government Borne Import Duty on point D 19 in "Import Fulfilled Conditions of Facility" column;
• b. Value of Government Borne Import Duty on Point D 37 of "Government Borne" column.

(2) PIB as described in paragraph (1) shall be completed with:

• a. Customs, Excise and Tax in Import Payment Slip (SSPCP);
• b. 2 (two) copies of Source Documents;
• c. Other customs complementary documents follows effective regulations; and
• d. Decision of the Minister of Finance about Import Duty Borne by the Government as described in Article 3 paragraph (5) and/or in Article 4 paragraph (6).

(3) Import realization of Goods and Materials get Government Borne Import Duty as described in Article 3 paragraph (5) and/or Article 4 paragraph (6) ended on December 31, 2009, with evidence registration date of PIB in Customs Office.

(4) Obligations as described in paragraph (1) and (2) also valid for companies that get Main Partner (MITA) facility.

(5) Customs Office that process customs obligation puts "IMPORT DUTY BORNE BY THE GOVERNMENT BASED ON PMK NO. 30/PMK.011/2009", and fills value of Government Borne Import Duty, name, NIP, date and initial of customs and excise official who is assigned by Head of Customs Office, on all pages of Source Documents, includes their copies as described in paragraph (2) b.

(6) Stamp as described in paragraph (5) uses format as decided in Attachment III of this Regulation of the Director General.

Article 6

(1) Customs Office that process customs obligations should:

• a. Check and reduce quantity of Goods and Materials get Government Borne Import Duty facility at Attachment to the Decision of the Minister of Finance as described in Article 3 paragraph (5) and/or Article 4 paragraph (6);
• b. Make bookkeeping and administration of government borne import duty PIB; and
• c. Make report to Director General with attention to Director of Customs and Excise Receiving and Regulation (attached with copy of source documents) with copy to Director of Customs Facility (attached with copy of source documents), no later than 5 of the following month.

(2) Director of Receiving and Regulations of Customs and Excise files report as described in paragraph (1) c and submits source documents to Secretary for Director General of Customs and Excise to be filed in Agency Accounting System (SAI) of Head Office of Directorate General of Customs and Excise.

(3) Director of Customs Facility files report as described in paragraph (1) c and submits copy of source documents to Director General of Metal, Machine, Textile and Multifarious Industries, Ministry of Industry.

(4) Report as described in paragraph (1) c, use format as decided in Attachment IV of this Regulation of the Director General.

Article 7

(1) The goods and material imported by the companies as described in Article 2 paragraph (1):

• a. shall be used by the relevant companies;
• b. shall not be transferred to other party;

(2) The companies abusing provisions in paragraph (1) shall pay actual import duties plus 2% (two percent) interest per month for a maximum of 24 (twenty four) months since the import as described in Article 5 paragraph (1) is realized.

(3) The goods and material imported by the companies as described in Article 2 paragraph (1), if restricted and/or limited to import procedures, those provisions should be fulfilled at the imported of those Goods and Materials.

Article 8

The company obtaining Government Borne Import Duty facility as described in Article 2 paragraph (1) should:

• 1. Make accounting about imported goods and material for audit in Customs.
• 2. Store and keep on documents, notes, and accounting related with Government Borne Import Duty facility in its business place for 10 years.
• 3. Submit report of import realization of goods and materials to Director General of Customs and Excise with attention to Director of Audit not later than 3 (three) months after ending of Decision of the Minister of Finance as described in Article 3 paragraph (5) and/or Article 4 paragraph (6).

Article 9

(1) The proposal of Government Borne Import Duty as described in Article 2 paragraph (2) cannot be given approval to release imported goods to be used by using guarantee (Vooruitslag).

(2) On imported goods and material that paid import duty, cannot be refunded.

Article 10

This Regulation of the Director General shall come into force as from the date of stipulation and be valid until December 31, 2009.

Stipulated in Jakarta
on April 24, 2009
THE DIRECTOR GENERAL
signed,
ANWAR SUPRIJADI
NIP 120050332