REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-03/BC/2009

CONCERNING
PROCEDURES FOR GRANTING EXEMPTION OF IMPORT DUTY FACILITIES FOR IMPORTED GOODS AND MATERIALS TO BE ASSEMBLED INTO MOTOR VEHICLE FOR EXPORT

DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

a. that with the issue of Regulation of the Minister of Finance of the Republic of Indonesia No. 16/PMK.011/2008 dated February 4, 2008 concerning Exemption of Import Duty for Imported Goods and Material to be assembled into motor vehicle for export, that is amended by Regulation of the Minister of Finance No. 171/PMK.04/2008 dated November 10, 2008, it is deemed necessary to govern a procedure for its implementation system;
b. that based on the consideration as described in paragraph a and for the purpose to optimize service and legal certainty it is necessary to stipulate Regulation of the Director General of Customs and Excise concerning Procedures for Granting Exemption of Import Duty Facilities for Imported Goods and Materials to be Assembled into Motor Vehicle for Export;

In view of:

1. Law No. 10 of 1995 concerning Customs (Statute Book No. 75 of 1995, Supplement to Statute Book No. 3612) that is amended by Law No. 17 of 2006 (Statute Book No. 93 of 2006, Supplement to Statute Book No. 4661);
2. Presidential Decision No. 20/P of 2005;
3. Regulation of the Minister of Finance of the Republic of Indonesia No. 16/PMK.011/2008 dated February 4, 2008 concerning Exemption of Import Duty for imported Goods and Materials to be assembled for export that is amended by Regulation of the Minister of Finance No. 171/PMK.04/2008 dated November 10, 2008.

HAS DECIDED:

To stipulate:

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE CONCERNING PROCEDURES FOR GRANTING EXEMPTION OF IMPORT DUTY FACILITIES FOR IMPORTED GOODS AND MATERIALS TO BE ASSEMBLED INTO MOTOR VEHICLES FOR EXPORT.

Article 1

In this Regulation:

1. "Goods and Material" refers to part of and accessories for motor vehicle to be assembled become motorized vehicle;
2. "Completely Built Up" hereinafter abbreviated as CBU refers to motor vehicle in complete condition;
3. "Completely Knocked Down" hereinafter abbreviated as CKD refers to motor vehicle in wholly dismantled motor vehicle as stipulated by the Ministry of Industry;
4. Customs Office shall be office within the Directorate General of Customs and Excise where customs obligations are complied with, such as:
a. Customs and Excise Service Head Office;
b. Medium Customs and Excise Supervisory and Service Office;
c. Customs and Excise Supervisory and Service Office.

Article 2

The imported goods and materials for assembling motor vehicle for export only may be granted exemption of import duty.

Article 3

Exemption of import duty as described in Article 2 shall be granted to importer that complies with the requirements below:

a. has very good reputation as seen in the company's profile;
b. owns transparent and specific nature of business;
c. never misuse any facilities in the customs sector for the last one (1) year;
d. never make mistake report in volume of goods, type of goods, and/or the value of customs for the last one (1) year; and
e. has been audited by Public Accountant stating that the company has not obtained any disclaimer opinion or adverse.

Article 4

(1) The exemption of import duty as described in Article 2 shall be granted to company that imports goods and materials to be assembled into motor vehicle in Completely Built Up (CBU) form and/or Completely Knocked Down (CKD) and solely for export by the importing company concerned.

(2) The motor vehicle to be exported in CKD condition as described in paragraph (1) must be exported together as motor vehicle unit.

(3) The need for goods and materials to produce motor vehicle unit in the form of CBU and CKD (conversion) shall be produced by the company and verified and approved by independent surveyor.

Article 5

(1) To obtain exemption facilities of import duty as described in Article 2, the company shall submit application to the Director General of Customs and Excise. Attn.: Director of Customs Facilities using the format as specified in Attachment I to this Regulation of the Director General.

(2) The application as described in paragraph (1) must be attached by:

a. Goods Import Plan (RIB) for 12 (twelve) months at the latest in the form of estimated volume and value of the need for goods and materials required during the exemption period which exemption of import duty is to be requested using the format specified in Attachment II to this Regulation of the Director General;
b. The conversion as described in Article 4 paragraph (3), that has been verified and approved by Independent Surveyor;
c. Motor Vehicle Export Plan for a period of 12 (twelve) months at the latest containing data on the volume, type, mark, and technical specification of motor vehicle and the country of export destination, using the format as specified in Attachment III to the Regulation of this Director General;
d. The contract between the importing company of motor vehicle and the manufacturing company/motor vehicle assembling;
e. data concerning installed capacity of the manufacturing company/assembling of motor vehicle, supported by photocopy of Permanent Business License and/or Expansion License owned by the manufacturing/assembling company;
f. written guarantee from the top level management of the applicant company, using the format specified in Attachment IV to this Regulation of the Director General;
g. Customs Identification Number (NIK);
h. photocopy of Last Year Financial Statement that has been audited by Public Accountant Office;
i. valid decision letter as Importer with Priority Channel and/or duty stamped Statement Letter from the top level management of the applicant company:
1) never misuse any customs facility for the last one (1) year; and
2) never make mistake report in volume of goods, type of goods, and/or customs value for the last one (1) year;
j. photocopy of Permanent Business License and/or Expansion License of the applicant company issued by the relevant Ministry/Agency that has been legalized or showing the original document thereof to the Official of the Directorate of Customs Facilities to be legalized; and
k. Company Profile.

Article 6

(1) At the request of and based on the document as described in Article 5, the Director of Customs Facilities shall conduct investigation.

(2) Based on the result of investigation as described in paragraph (1) the Director of Customs Facilities shall grant approval or rejection.

(3) If the application is approved, the Director General of Customs and Excise in charge of the Director of Customs Facilities on behalf of the Minister of Finance shall issue Decision Letter of the Minister of Finance concerning exemption of import duty of imported goods and materials within a period of 14 (fourteen) days as of the complete application and document containing the details below are received:

a. Imported Goods Plan;
b. Type of motor vehicle to be exported;
c. Brand and type;
d. Category/kind;
e. Cylinder capacity;
f. Passenger capacity;
g. Post tariff number according to Indonesian Import Duty Tariff Book;
h. Country of destination;
i. Estimated export value per unit;
j. Total export value;
k. Customs Office the place for loading of export;
l. Expiry date of decision letter.

(4) If the application is incomplete, the Director of Customs Facilities within seven (7) days at the latest as of the application is received, shall notify in writing the applicant to complete the required data.

(5) If within 14 (fourteen) days as of the date of the notification letter as described in paragraph (4) the applicant fails to fully comply with the requirements, the application shall not be further processed:

(6) If the application is rejected, the Director of Customs Facilities on behalf of the Director General shall issue Rejection Letter stating the reason thereof within seven (7) days as of the complete application letter and document are received.

(7) Decision Letter of the Minister of Finance as described in paragraph (3) shall be valid for 12 (twelve) months as of the date it is stipulated.

Article 7

(1) The company shall be obliged to be accountable on the imported goods and materials that obtained exemption facilities of import duty, by exporting the goods and materials that have been assembled into motor vehicle prior to the expiry date of the decision for exemption of import duty as described in Article 6 paragraph (3).

(2) If the company fails to export the goods and materials that have been assembled into motor vehicle as described in paragraph (1), the company shall be obliged to pay owed import duty and/or excise based on the customs tariff and value at import, and is subject to administrative penalty in the form of 100% (one hundred percent) up to 500% (five hundred percent) penalty of the import duty that should have been paid in accordance with the applicable provision.

(3) Compliance with the obligation arising as described in Article 7 paragraph (2), shall be settled at the Customs Office, the place of goods import.

Article 8

(1) Other than exporting goods and materials that have been assembled into motor vehicle as described in Article 7 paragraph (1), the company may settle its obligation by:

a. selling any damaged goods and materials to other Indonesian Customs Regions by paying the owed import duty and customs value according to the customs tariff and value during import, and shall charge administrative 100% (one hundred percent) up. to 500% (five hundred percent) of the import duty that should have been paid based on the applicable provision; and/or
b. export the goods and materials.

(2) The obligations as described in paragraph (1) shall be settled after obtaining approval of the Head of Customs Office the place of import on behalf of the Director General of Customs and Excise according to the procedure specified in Attachment V to this Regulation of the Director General.

Article 9

(1) The company obtaining exemption of import duty as described in Article 2 shall be obliged to submit report to the Director of Audit with copy to the Director of Customs Facilities in the form of:

a. report on the result of realization of imported goods and materials obtaining exemption of import duty periodically every 3 (three) months as of the date of the decision of exemption of import duty as described in Article 6 paragraph (3), based on the format as specified in Attachment VI to this Regulation of the Director General.
b. report on realization of exported motor vehicle which import of goods and materials obtained exemption of import duty periodically every 3 (three) months as of the date of decision on exemption of import duty as described in Article 6 paragraph (3), based on the format as specified in Attachment VII to this Regulation of the Director General.
c. report on imported goods and materials obtaining exemption of import duty that has been settled by selling or exporting as described in Article 8 paragraph (1) periodically every 3 (three) months as of the date of the decision on exemption of import duty, as described in Article 6 paragraph (3), based on the format as specified in Attachment VIII to this Regulation of the Director General.
d. final report on realization of import and export of motor vehicle which imported goods and materials obtain exemption of import duty within 14 (fourteen) days as of the expiry of validity of the decision on exemption of import duty as described in Article 6 paragraph (3), based on the format as specified in Attachment IX to this Regulation of the Director General.

(2) The report as described in paragraph (1) shall be used as materials for consideration in the implementation of audit by Director of Audit.

(3) The Director of Customs Facilities shall supervise on the compliance with the report as described in paragraph (1).

Article 10

Exemption of import duty as described in Article 6 paragraph (5) shall be revoked if:

a. the applicant fails to import the goods and materials concerned within six (6) months consecutively as of the date of the decision on stipulated exemption of import duty; or
b. the company that fails to submit report as described in Article 9.

Article 11

(1) Imported goods and materials for assembling into motor vehicle only for export made since August 26, 2007 up to the date this Regulation of the Minister of Finance RI No. 16/PMK.011/2008 in conjunction with No. 171/PMK.011/2008, may be granted exemption of import duty based on the provision:

a. Import still in process (vooruitslag), may be settled using notification on import customs;
b. Import using vooruitslag facility which collection is in process, the collection thereof must be discontinued;
c. Import duty that has been paid may be refunded.

(2) The provision as described in paragraph (1), may be implemented after obtaining Decision Letter of the Minister of Finance concerning Exemption of Import Duty on Goods and Material to be assembled into motor vehicle for export.

(3) Procedure of settlement as described in paragraph (1), shall be implemented in accordance with the applicable provision on customs.

Article 12

This Regulation of the Director General shall take effect on the date it is stipulated.

For public cognizance, this Regulation of the Director General shall be announced by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On February 11, 2009
Director General,
signed,
Anwar Suprijadi
NIP 120050332

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE No. P-03/BC/2009

CONCERNING PROCEDURES FOR GRANTING EXEMPTION OF IMPORT DUTY FACILITIES FOR IMPORTED GOODS AND MATERIALS TO BE ASSEMBLED INTO MOTOR VEHICLE FOR EXPORT