DECISION OF DIRECTOR GENERAL CUSTOMS AND EXCISE
No. KEP-46/BC/2000

ON
PROCEDURE FOR THE GRANTING RELIEF OF IMPORT DUTY ON
IMPORT OF GOODS AND MATERIALS FOR MANUFACTURING SPECIAL PURPOSE
AUTOMOTIVE COMPONENTS, ACCESSORIES AND BODIES
BASED ON THE DECREE OF THE MINISTER OF FINANCE
No. 100/KMK.05/2000

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Attachment

Considering:

• a. that with a view to enhancing public service in building/developing the domestic industry, it is necessary to grant reduction of import duty on goods and materials;
• b. that the granting of import duty reduction shall take account of the rights and interests of the state; that based on the considerations as meant in letters a. and b. above, it is necessary to stipulate a decision of the Director General of Customs and Excise on the procedure for the granting of reduction of import duty on goods and materials for manufacturing special purpose automotive components, accessories and bodies.

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. 355/M/1999;
• c. The Decree of the Minister of Finance No. 440/KMK.05/1996 dated June 21, 1996 on the system of classifications of goods and taridds on import goods as already amended and supplemented the latest by the Decree of the Minister of Finance No. 569/KMK.0111999;
• d. The Decree of the Minister of Finance No. 100/KMK.05/2000 dated March 31, 2000 on the reduction of import duty on goods and materials for manufacturing special purpose automotive components, accessories and bodies.
• e. The Decree of the Minister of Industry and Trade No. 275/MPP/Kep/6/1999 dated June 24, 1999 on the automotive industry.

DECIDES:

To stipulate:

THE DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE CONCERNING PROCEDURE FOR THE GRANTING RELIEF OF IMPORT DUTY ON IMPORT OF GOODS AND MATERIALS FOR MANUFACTURING SPECIAL PURPOSE AUTOMOTIVE COMPONENTS, ACCESSORIES AND BODIES BASED ON THE DECREE OF THE MINISTER OF FINANCE No. 100/KMK.05/2000 DATED MARCH 31, 2000.

Article 1

Hereinafter referred to as:

• a. Motor vehicles with four wheels or more shall be those as meant in HS tariff headings 8701.20, 8702, 8703, 8704 and 8705.
• b. Automotive components shall be constituents of motor vehicles required for the functioning of motor vehicles.
• c. Automotive components in incompletely knocked down condition shall be automotive components knocked down into several sub-components and not having the basic nature of the relevant components.
• d. Special purpose automotive industries shall be those manufacturing and/or installing special purpose accessories on motor vehicles so as to become motor vehicles as meant in HS tariff heading 8705.
• e. 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, accessories and bodies shall be granted the facility of import duty reduction with the following provisions:

• 1. Goods and materials for manufacturing special purpose automotive components, accessories and bodies 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.

Article 3

The types of goods and materials eligible for the import duty reduction facility shall be based on the list of goods and materials as meant in the attachment to the Decree of the Minister of Finance No. 100/KMK.05/2000 dated March 31, 2000.

Article 4

(1) The reduction 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 licenses;
• 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 5

(1) In order to obtain the facility as meant in Article 2, special purpose automotive industries 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:

• a. photocopies of taxpayer code numbers (NPWP) already legalized by the relevant agency or showing original documents to officials of the Directorate of Customs Facilities;
• b. photocopies of industrial business licenses already legalized by the relevant Ministry/agency or showing original documents to officials of the Directorate of Customs Facilities;
• c. conversions of goods and material needs for manufacturing special purpose automotive components, accessories and bodies as shown in specimen A attached to this decision;
• d. lists of goods covering types of goods, originating countries, ports of unloading, technical specifications, quantities and values of goods according to specimen B attached to this decision.

(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 (decrees) 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 goods and materials and appointed unloading ports attached.

Article 6

Special purpose automotive industries obtaining the import duty reduction facility shall be obliged:

(1) to maintain account books of imports of goods and 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 goods and 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. KEP-50/BC/1999 dated August 16, 1999.

Article 7

(1) The goods and 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 goods as stipulated on the list of goods, shall be subjected to import duty and other import levies without fines.

(2) The goods and materials already granted the said import duty reduction facility shall only be used to meet the needs of relevant industries.

(3) Any abuse of the goods and 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 100.46 (a hundred percent) of the shortage of import duty.

Article 8

(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 goods.

(2) Based on results of the audit as meant in paragraph (1), the relevant industries shall be responsible for the settlement of any import duty and excise due as well as any administrative sanction in the form of fines.

Article 9

Companies which have already obtained the facility of exemption from import duty on goods and materials for manufacturing special purpose automotive components, accessories and bodies 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.

Article 10

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

Attachment to DECISION OF DIRECTOR GENERAL CUSTOMS AND EXCISE
No. KEP-46/BC/2000