a. that based on provision of Article 25 paragraph (1) h. and i. of Law No. 10/1995 concerning Customs that is amended by Law No. 17/2006, the import of military and police armament, ammunition and appliance, including spare parts as well as goods and materials used for producing goods which are used for the need of state defense and security is exempt from import duty;
b. that based on consideration as described in a., and in the framework of executing the provision of Article 25 paragraph (3), it is necessary to stipulate regulation of the Minister of Finance concerning the Exemption from Import Duty on the Import of Military and Police Armament, Ammunition and Appliance, including spare parts as well as goods and materials used for producing goods which are used for the need of state defense and security;
1. Law No. 10/1995 concerning Customs (Statute Book of the Republic of Indonesia No. 75/1995, Supplement to Statute Book of the Republic of Indonesia No. 3612) that is amended by Law No. 17/2006 (Statute Book of the Republic of Indonesia No. 93/2006, Supplement to Statute Book of the Republic of Indonesia No. 4661);
2. Law No. 2/2002 concerning Indonesian Police (Statute Book of the Republic of Indonesia No. 2/2002, Supplement to Statute Book of the Republic of Indonesia No. 4168);
3. Law No. 3/2002 concerning State Defense (Statute Book of the Republic of Indonesia No. 3/2002, Supplement to Statute Book of the Republic of Indonesia No. 4169);
4. Law No. 34/2004 concerning Indonesian Army (Statute Book of the Republic of Indonesia No. 127/2004, Supplement to Statute Book of the Republic of Indonesia No. 4439);
5. Presidential Decision No. 103/2001 concerning Position, Task, Function, Rights, Organization Structure and Working Arrangement of Non Ministrial Government Agencies;
6. Presidential Decision No. 20/P/2005;
REGULATION OF THE MINISTER OF FINANCE CONCERNING THE EXEMPTION FROM IMPORT DUTY ON MILITARY AND POLICE ARMAMENT, AMMUNITION AND APPLIANCE, INCLUDING SPARE PARTS, AS WELL AS GOODS AND MATERIALS USED FOR PRODUCING GOODS WHICH ARE USED FOR THE NEED OF STATE DEFENSE AND SECURITY
In this regulation:
1. "Minister" refers to the Minister of Finance of the Republic of Indonesia.
2. "Director General" refers to the Director General of Customs and Excise.
3. "Customs Office" refers to office within the Directorate General of Customs and Excise where customs obligations are fulfilled in accordance with the provisions of Law No. 10/1995 concerning Customs that is amended by Law No. 17/2006.
The exemption from import duty shall be granted to imported goods in the form of:
a. Military and police armament, ammunition, appliance, including spare parts and goods designated to the need of state defense and security;
b. Goods and materials used for producing goods which are designated to the need of state defense and security.
(1) The imported goods as described in Article 2 paragraph a. shall constitute goods used by the presidential institution, the Ministry of Defense, Headquarter of the Indonesian Military, Haadquarter of the Indonesian Police, State Intelligence Board or State Encryption Institution.
(2) The imported goods as described in paragraph (1) shall be as stipulated in Attachments I, II, III, IV, IV to this regulation;
(1) The goods and materials as described in Article 2 paragraph b. shall be goods and materials used for producing goods for the need of state defense and security industry, including spare parts.
(2) The goods and materials as described in paragraph (1) shall be used by certain industries stipulated by the government as producers of goods for the need of state defense and security.
(1) The goods as described in Article 2 paragraph a. shall be imported by:
(2) The import of the goods as described in Article 2 paragraph a can be realized by the third party on the basis of cooperation agreement with the presidential institution, the Ministry of Defense, Headquarter of the lndonesian Military, Headquarter of the Indonesian Police, State Intelligence Board or State Encryption Institution.
(3) The goods as described in Article 2 paragraph b. shall be imported by certain industries stipulated by the government as producers of goods for the need of state defense and security on the basis of cooperation agreement with the Ministry of Defense, Headquarter of the Indonesian Military and/or Headquarter of the Indonesian Police.
(4) The import as described in paragraph (3) can be realized by the third party on the basis of cooperation agreement with certain industries stipulated by the government as producers of goods for the need of the state defense and security.
(1) In order to obtain the exemption from import duty on the imported goods as described in Article 2 paragraph a., the party as described in Article 5 paragraph (1) and paragraph (2) shall submit application to head of customs office overseeing the point of entry of goods in accordance with the formats as set forth in Attachments VI, VII, VIII, IX, X to this regulation by enclosing:
(2) The application as described in paragraph (1) shall be signed by:
(3) The application shall mention description of goods and no. of list of goods as stipulated in Attachments I, II, III, IV and V to this regulation.
(4) Based on the application already fulfilling the requirements as described in paragraph (1), paragraph (2) and paragraph (3), the Head of Customs Office on behalf of the Minister shall make decision on the exemption from import duty.
In case of the import of goods as described in Article 2 paragraph a. excluding from the attachments as described in Article 3 paragraph (2), the party as described in Article 5 paragraph (1) and paragraph (2) shall submit application for the exemption from import duty to the Minister through the Director General.
(1) In order to obtain the exemption from import duty on the import of goods as described in Article 2 paragraph b., the certain industries as described in Article 5 paragraph (3) shall submit application for the exemption from import duty to the Minister through the Director General by enclosing:
(2) In order to obtain the exemption from import duty on the import of goods as described in Article 2 paragraph b., the third party as described in Article 5 paragraph (4) shall submit application for the exemption from import duty to the Minister through the Director General by enclosing:
(1) Based on the application for the exemption from import duty as described in Article 7 and Article 8, the Minister shall approve or deny.
(2) In the case of the application being approved, the Director General or the appointed official on behalf of the Minister shall issue a decision on the exemption from import duty.
(3) The decision on the exemption from import duty as described in paragraph (2) shall contain detail of quantity, kind and customs value of the goods exempt from import duty as well as the appointment of seaport where the goods are unloaded.
(4) In the case of the application being denied, the Director Generpl or the appointed official on behalf of the Minister shall make decision on rejection by mentioning reasons for rejection.
With the enforcement of this regulation, Decision of the Minister of Finance No. 139/KMK.05/1997 concerning Exemption from Import Duty on the Import of Military Armament, Ammunition, including Spare Parts and Appliance as well as Goods and Materials Used for Producing Goods Designated to the need of State Defense and Security shall be declared null and void, except for the applications submitted before the date of stipulation of this regulation with the provision as follows:
This Regulation of The Minister of Finance shall come into force as from the date of stipulation.
For public cognizance, this Regulation of The Minister of Finance shall be announced by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on February 11, 2008
MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI