REGULATION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. 04/BC/2005

ON
TECHNICAL DIRECTIVES FOR REGULATION OF THE MINISTER OF FINANCE
NO. 20/PMK.010/2005
ON
THE EXEMPTION FROM IMPORT DUTY AND UNCOLLECTED IMPORT TAXES ON THE IMPORT
OF GOODS ON THE BASIS OF PRODUCTION SHARING CONTRACTS OF PETROLEUM AND NATURAL GAS

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

• a. that following the issuance of Regulation of the Minister of Finance No. 20/PMK.010/2005 on the exemption from import duty and uncollected import taxes on the import of goods on the basis of production sharing contracts of petroleum and natural gases, it is necessary to regulate technical directives for the said regulation;
• b. that based on the description in letter a, it is necessary to stipulate a regulation of the Director General of Customs and Excise on technical directives for Regulation of the Minister of Finance No. 20/PMK.010/2005 on the exemption from import duty and uncollected import taxes on the import of goods on the basis of production sharing contracts of petroleum and natural gases.

In view of:

• a. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• b. Law No. 22/2001 on petroleum and natural gas;
• c. Regulation of the Minister of Finance No. 20/PMK.010/2005 on the exemption from import duty and uncollected import taxes on the import of goods on the basis of production sharing contracts of petroleum and natural gases.

DECIDES:

To stipulate:

THE REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON TECHNICAL DIRECTIVES FOR REGULATION OF THE MINISTER OF FINANCE NO. 20/PMK.010/2005 ON THE EXEMPTION FROM IMPORT DUTY AND UNCOLLECTED IMPORT TAXES ON THE IMPORT OF GOODS ON THE BASIS OF PRODUCTION SHARING CONTRACTS OF PETROLEUM AND NATURAL GAS.

Article 1

Applications for the exemption from import duty and uncollected import taxes shall be submitted by the production-sharing contractors as meant in Article 2 of Regulation of the Minister of Finance No. 20/PMK.010/2005 to the Director General of Customs and Excise attn. The Director of Customs Facilities.

Article 2

The applications as meant in Article 1 shall be accompanied by:

• 1. Copy of production-sharing contracts between applicants and the Executive Board of Upstream Petroleum and Natural Gas Business Activities (BPMIGAS);
• 2. Goods Import Plan (RIB) minimally containing elements of the data as meant in Article 4 paragraph (4) of Regulation of the Minister of Finance No. 20/PMK.010/2005.

Article 3

(1) The legitimacy of applicants and feasibility of the quantity and/or kinds of goods mentioned in RIB shall be examined by the Directorate of Customs Facilities.

(2) Based on results of the examination as meant in paragraph (1), the Directorate of Customs Facilities on behalf of the Minister of Finance shall issue a decree of the Minister of Finance on the exemption from import duty and uncollected import taxes.

(3) The decree of the Minister of Finance as meant in paragraph (2) shall be effective for 12 (twelve) months at the maximum.

Article 4

(1) The import of goods securing the exemption from import duty and uncollected import taxes shall be realized through the customs and excise service offices mentioned in the Decree of the Minister of Finance on the exemption as meant in Article 3 paragraph (2).

(2) The change/addition to importing seaports submitted by applicants can be approved as long as the quantity and kinds of goods to be imported through the said seaports can be ascertained.

(3) The approval of the change/addition of importing seaports as meant in paragraph (2) shall be granted in the form of a decree on the exemption from import duty and uncollected import taxes as meant in Article 3 paragraph (2).

Article 5

(1) The goods securing the exemption from import duty and uncollected import taxes shall be in accordance with the provisions on customs procedures in the import field.

(2) The requirements for the provisions on prohibited goods, import restriction and control shall be fulfilled upon submitting Import Declaration (PIB) in Customs and Excise Service overseeing the places where the goods are imported.

Article 6

Production-sharing contractors shall report the realization of the import of goods securing the facility of the exemption from import duty and uncollected import taxes to the Director General of Customs and Excise attn. The Director of Verification and Audit with a copy made available to the Director General of Petroleum and Natural Gas and Head of the Executive Board of Upstream Petroleum and Natural Gas Business Activities not later than 30 (thirty) days after the expiration of the Decree as meant in Article 3 paragraph (2).

Article 7

In the transitional period, the following matters shall be regulated:

• a. RIB/ML already securing validation from DJMGB not later than May 31, 2005 can be used as the basis for the issuance of the Decree of the Minister of Finance as meant in Article 3 paragraph (2).
• b. RIB/ML already securing the customs facility from the Director General attn the Director of Customs Facilities before April 1,2005 remains effective until expiring.
• c. BOP of Category II still effective can be settled by submitting RIB to obtain the exemption from import duty and uncollected import taxes on the basis of Regulation of the Minister of Finance No. 20/PMK.010/2005.

Article 8

The regulation shall come into force as from April 1, 2005.

For public cognizance, the regulation shall be announced by placing it in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On March 31, 2005
THE DIRECTOR GENERAL,
sgd
EDDY ABDURRACHMAN