THE DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE CONCERNING PROCEDURE FOR GRANTING RELIEF OF IMPORT DUTY ON IMPORT OF RAW MATERIALS FOR MANUFACTURING AUTOMOTIVE COMPONENTS BASED ON THE DECREE OF THE MINISTER OF FINANCE No. 97/KMK.05/2000 DATED MARCH 31, 2000.
(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 vehicles with two or three wheels shall be those as meant in HS tariff headings 8711 and 8703.
(3) Automotive components shall be constituents of motor vehicles required for the functioning of motor vehicles.
(4) Basic materials shall be materials which can be used and/or are needed for manufacturing various automotive components with technical specifications and/or sizes already adjusted to the components to be manufactured.
(5) Automotive component industrial companies shall be industrial companies set up and operating in Indonesia as well as possessing industrial business licenses for automotive component production.
The import of basic materials for manufacturing automotive components by automotive component industrial companies shall be granted the facility of import duty reduction with the following provisions:
(1) Basic materials for manufacturing automotive components shall have their import duty rates reduced so that the final tariff becomes 5% (five percent).
(2) In the case of the import duty rates contained in the Customs Tariff Book of Indonesia (BTBMI) being 5% (five percent) or lower, the rates in BTBMI shall apply.
The types of basic materials eligible for the import duty reduction facility shall be based on the list of basic materials as meant in the attachment to the Decree of the Minister of Finance No. 97/KMK.05/2000 dated March 31, 2000.
(1) The reduction as meant in Article 2 shall only be granted to automotive component industrial companies.
(2) The automotive component industrial companies interested in obtaining the import duty reduction facility as meant in Article 2 shall meet the following requirements:
(1) In order to obtain the facility as meant in Article 2, automotive component industrial companies shall submit applications by using the form according to the model in Attachment I to this decision.
(2) Applications shall be submitted to the Director General of Customs and Excise for the attention of the Director of Customs Facilities by attaching:
(3) In the case of the applications as meant in paragraph (1) fulfilling the requirements, the Director of Customs Facilities for the Director General of Customs and Excise on behalf of the Minister of Finance shall issue decisions on import duty reduction for 1 (one)-year production with an import period of 1 (one) year as from the dates of decisions on reduction of import duty on basic materials, according to the model in Attachment II to this decision with lists of basic materials and appointed unloading ports attached.
Automotive component industrial companies obtaining the import duty reduction facility shall be obliged:
(1) to maintain account books of imports of basic materials for customs auditing;
(2) to keep and preserve account books, documents and other records connected with the granting of import duty reduction for at least 10 (ten) years as from the realization of imports in their places of business;
(3) to submit reports on realization of imports of basic materials granted the import duty reduction facility to the Director General of Customs and Excise as meant in the Decision of the Director General of Customs and Excise No. KEP50/BC/1999 dated August 16, 1999.
(1) The basic materials already granted the import duty reduction facility as meant in Article 5 paragraph (3), in the case of failure upon their import in meeting the provisions on quantities, types and specifications of basic materials as stipulated on the list of basic materials, shall be subjected to import duty and other import levies without fines.
(2) The basic materials already granted the said impart duty reduction facility shall only be used to meet the needs of relevant industrial companies.
(3) Any abuse of the basic materials as meant in paragraph (1) shall lead to cancellation of the import duty facility granted to the basic materials so that the import duty owed shall be paid and subjected to a fine of 100% (a hundred percent) of the shortage of import duty.
(1) In order to safeguard the financial rights of the state and guarantee compliance with the customs and excise provisions in force, the Directorate General of Customs and Excise shall audit the account books, records, and documents relating to the entry, use and release of supplies of basic materials.
(2) Based on results of the audit as meant in paragraph (1), automotive component industrial companies shall be responsible for the settlement of any import duty and excise due as well as any administrative sanction in the form of fines.
Companies which have already obtained the facility of exemption from import duty on basic materials for manufacturing automotive components based on former provisions and have not yet realized all their imports can continue to apply the decisions on the customs facility based on the former provisions until the expiration of, the relevant decisions, on the condition that they shall not be extended and or amended.
This decision of the Director General of Customs and Excise shall come into force as from the date of stipulation.
For public cognizance, this decision of the Director General of Customs and Excise shall be announced by publishing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
On June 30, 2000
THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
sgd
R.B. PERMANA AGUNG D.
Attachment to DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. KEP-45/BC/2000