REGULATION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. 14/BC/2005

ON
AMENDMENT TO THE DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. 205/BC/2003
ON
GUIDELINES FOR IMPLEMENTATION OF PROCEDURE 0F IMPORT FACILITY
FOR EXPORT PURPOSES AND THE MONITORING THEREOF

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

• a. that, the basis for the imposition of Import Duty, especially the tariff and imposition of import duty on finished products of companies receiving KITE facility sold to DPIL has to be reviewed and adjusted to the provisions of the applicable laws;
• b. that, based on the consideration as meant above, it is necessary to make an amendment to the Decision of the Director General of Customs and Excise No. KEP-205/BC/2003 on Guidelines for Implementation of Procedure of Export Facility for Export Purposes and the Monitoring Thereof.

In view of:

• a. Law No. 6/1983 on General Provisions and Procedure of Taxation (Statute Book of 1983 No. 49, Supplement to Statute Book No. 3262) as already amended several times and latest by Law No. 16/2000 (Statute Book of 2000 No. 126, Supplement to Statute Book No. 3984);
• b. Law No. 8/1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods (Statute Book of 1983 No. 51, Supplement to Statute Book No. 3264) as already amended several times and latest by Law No. 18/2000 (Statute Book of 2000 No. 128, Supplement to Statute Book No. 3986);
• c. Law No. 10/1995 on Customs Affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• d. Law No. 11/1995 on Excise (Statute Book of 1995 No. 76, Supplement to Statute Book No. 3613);
• e. Government Regulation No. 33/1996 on Bonded Storage Zone (Statute Book of 1996 No. 50, Supplement to Statute Book No. 3638) as already amended by Government Regulation No. 43/1997 (Statute Book of 1997 No. 90, Supplement to Statute Book No. 3717);
• f. Decree of the Minister of Finance No. 283/KMK.01/2003 on Guidelines for Legislation within the Department of Finance;
• g. Decree of the Minister of Finance No. 453/KMK.04/2002 on Customs Procedure In The Field of Import as already amended several times and latest by Decree of the Minister of Finance No. 112/KMK.04/2003;
• h. Decree of the Minister of Finance No. 557/KMK.04/2002 on Customs Procedure In The Field of Export;
• i. Decree of the Minister of Finance No. 580/KMK.04/2003 on Procedure of Import Facility for Export Purposes;
• j. Decision of the Director General of Customs and Excise No. KEP-205/BC/2003 on Guidelines for Implementation of Procedure of Import Facility for Export Purposes and the Monitoring Thereof.

DECIDES:

To stipulate:

DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON AMENDMENT TO THE DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE NO. 205/BC/2003 ON GUIDELINES FOR IMPLEMENTATION OF PROCEDURE OF IMPORT FACILITY FOR EXPORT PURPOSES AND THE MONITORING THEREOF.

Article 1

Some provisions in the Decision of the Director General of Customs and Excise No. KEP-205/BC/2003 on Guidelines for Implementation of Procedure of import Facility for Export Purposes and the Monitoring Thereof shall be amended as follows:

1. The provisions of Article 16 paragraph (1) clause d shall be amended to become as follows:

" Article 16

(1) Products, which raw materials are imported, and/ or products of Bonded Zone, can be sold to DPIL after there is already an export realization and/or delivery to the Bonded Zone by companies as holders of NIPER, on conditions:

a. Submitting BC 2.4 to the Customs Office that supervises the applicant's area;

b. The quantity of the goods that will be sold to DPIL shall be maximum 25% (twenty-five percent) of total export realization and/or delivery to the Bonded Zone;

c. Customs scanning is conducted by authorities;

d. Paying import and/or excise duty based on tariff of finished products with imposition and customs value of raw materials valid at the time of import plus interest of 2% per month since date of registration of PIB; and

e. Paying value added tax and sales tax on luxury goods with basis of imposition of tax equal to import value plus sanction in the form of interest of 2% per month for not later than 24 (twenty-four) months since import.

(2) Sale to DPIL must be realized within 12 (twelve) months since date of import until date of sale of commodities to DPIL.

(3) The export realization and/or delivery to the Bonded Zone, as meant in paragraph (1) clause b, shall be counted since August 1, 2003.

(4) The procedure of sale of products to DPIL is as specified in Attachment V to this Decision."

2. The provisions of Article 17 paragraph (2) clause a shall be amended to become as follows;

" Article 17

(1) In case the sale of products to DPIL exceeds the provisions as meant in Article 16 paragraph (1) clause b, the excess:

a. shall be imposed with sanction in the form of monetary charge of 100% (one hundred percent) of the payable import and/or excise duty plus interest of 2% per month since date of registration of PIB;

b. shall pay value added tax and sales tax of luxury goods at the time of import plus sanction in the form of interest of 2% per month for not later than 24 (twenty-four) months since import.

(2) In case that the sale to DPIL did not meet the provisions as meant in Article 16 paragraph (2), as far as the products are still in the stock, the company must:

a. pay import and/or excise duty based on the tariff of the finished products with imposition and customs value of raw materials at the time of import plus interest of 2% (two percent) per month for not later than 24 months since date of registration of PIB;

b. pay value added tax and sales tax on luxury goods according to the value valid at the time of import plus sanction in the form of interest of 2% (two percent) per month for not later than 24 months since import."

Article 2

This Regulation shall be valid retroactively since January 1, 2004.

For public cognizance, this Regulation shall be published by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On July 29, 2005
THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,
sgd
EDDY ABDURRACHMAN