THE DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE CONCERNING PROCEDURE FOR THE GRANTING RELIEF OF IMPORT DUTY ON IMPORT OF RAW MATERIALS AND CERTAIN PARTS FOR THE MANUFACTURE OF PARTS OF HEAVY DUTY EQUIPMENT AS WELL AS CERTAIN PARTS FOR THE ASSEMBLY OF HEAVY DUTY EQUIPMENT BASED ON THE DECREE OF THE MINISTER OF FINANCE NO. 99/KMK.05/2000 DATED MARCH 31, 2000.
The import of basic materials and certain parts for the manufacture of parts of heavy duty equipment as well as certain parts for the assembly of heavy duty equipment by heavy duty equipment industrial companies shall be granted the facility of import duty reduction with the following provisions:
(1) Basic materials and certain parts for the manufacture of parts of heavy duty equipment as well as certain parts for the assembly of heavy duty equipment 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 goods obtaining the import duty reduction facility shall be based on the list of basic materials and certain parts for the manufacture of parts of heavy duty equipment as well as certain parts for the assembly of heavy duty equipment as meant in the Decree of the Minister of Finance No. 99/KMK.05/2000 dated March 31, 2000.
(1) In order to obtain the facility as meant in Article 1 , heavy duty equipment industrial companies shall submit applications to the Director General of Customs and Excise for the attention of the Director of Customs Facilities according to the model in Attachment I to this decision, by attaching:
(2) 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 III to this decision with lists of basic materials and certain parts as well as appointed unloading ports attached.
Heavy duty equipment industrial companies obtaining the import duty reduction facility shall be obliged:
(1) to maintain account books of imports of basic materials and certain parts for the manufacture of parts of heavy duty equipment as well as certain parts for the assembly of heavy duty equipment 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 and certain parts for the manufacture of parts of heavy duty equipment as well as certain parts for the assembly of heavy duty equipment as meant in the First dictum to the Director General of Customs and Excise for the attention of the Director of Verification and Auditing.
(1) The basic materials and certain parts for the manufacture of parts of heavy duty equipment as well as certain parts for the assembly of heavy duty equipment already granted the import duty reduction facility as meant in Article 3 paragraph (2), 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 basic materials and certain parts for the manufacture of parts of heavy duty equipment as well as certain parts for the assembly of heavy duty equipment, shall be subjected to import duty and other import levies without fines.
(2) The basic materials and certain parts for the manufacture of parts of heavy duty equipment as well as certain parts for the assembly of heavy duty equipment already granted the said import duty reduction facility shall only be used to meet the needs of relevant industrial companies.
(3) Any abuse of the basic materials and certain parts for the manufacture of parts of heavy duty equipment as well as certain parts for the assembly of heavy duty equipment as meant in paragraph (2! shall lead to cancellation of the import duty facility granted to the goods 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 hooks, records, and documents relating to the entry and use of basic materials and certain par's for the manufacture, of parts of heavy duty equipment as well as certain parts of the assembly of heavy duty equipment.
(2) Based on results of the audit as meant in paragraph (1), heavy duty equipment 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.
Heavy duty equipment industrial companies which have already obtained the facility of exemption from import duty on basic materials and certain parts for the manufacture of parts of heavy duty equipment as well as certain parts for the assembly of heavy duty equipment 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 CUSTOMS AND EXCISE
NO. KEP-47/BC/2000