REGULATION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-25/BC/2005

ON
THE SECOND AMENDMENT TO DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE NO. KEP-205/BC/2003 ON TECHNICAL DIRECTIVES FOR MECHANISM OF IMPORT RELIEF FOR EXPORT PURPOSE AND SUPERVISION

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

• a. that in order to avoid confusion and misconstruction, it is deemed necessary to improve inconsistent provisions on import relief for export purpose;
• b. that based on the consideration as meant in letter a, it is necessary to stipulate a regulation of the Director General of Customs and Excise on the Second Amendment to Decision of the Director General of Customs and Excise No. KEP-205/BC/2003 on Technical Directives for Mechanism of Import Relief for Export Purpose and Supervision.

In view of :

• a. Law No. 6/1983 on Taxation General Provisions and Procedures (Statute Book of 1983 No. 49, Supplement to Statute Book No. 3262) as already amended the latest by Law 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 the 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 Affairs (Statute Book of 1995 No. 76, Supplement to Statute Book No. 3613);
• e. Government Regulation No. 33/1996 on Bonded Collection Places (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. 101/KMK.01/1997 on Customs Declaration as already amended several times and the latest by Decree of the Minister of Finance No. 48/KMK.04/2005;
• g. Decree of the Minister of Finance No. 453/KMK.04/2002 on Customs Procedures in the Import Sector as already amended several times and the 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 Procedures in the Export Sector;
• i. Decree of the Minister of Finance No. 580/KMK.04/2003 on mechanism of import relief for export purpose and supervision;
• j. Decision of the Director General of Customs and Excise No. KEP-205/BC/2003 on Technical Directives for Mechanism of Import Relief for Export Purpose and Supervision as already amended by Regulation of the Director General of Customs and Excise No. 14/BC/2005;

DECIDES :

To stipulate :

THE REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON THE SECOND AMENDMENT TO DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE NO. KEP-205/BC/2003 ON TECHNICAL DIRECTIVES FOR MECHANISM OF IMPORT RELIEF FOR EXPORT PURPOSE AND SUPERVISION.

Article 1

Several provisions in Decision of the Director General of Customs and Excise No. KEP-205/BC/2003 on Technical Directives for Mechanism of Import Relief for Export Purpose and Supervision are amended as follows :

1. The provision in Article 8 paragraph (2) is amended so that the article entirely reads as follows:

"Article 8

(1) Companies obtaining the exemption, uncollected Valued Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM) are obliged to give up Import Declaration (PIB) and guarantee amounting to the value of Import Duty and/or Excise as well as PPN and PPnBM in PIB, before the goods and/or materials imported to be processed, assembled or installed at other goods destined to the export are taken out from Customs Area.

(2) The guarantee as meant in paragraph (1) is given up to Regional Office along with PIB, which will be used for taking out goods from Customs Area.

(3) Head of Regional Office or the appointed official issues Guarantee Receipt Form (STTJ) used as a complimentary document of PIB.

(4) STTJ as meant in paragraph (3) is sent electronically to Customs Office overseeing the place where the imported goods/raw materials are taken out."

2. The provision in Article 13 paragraph (1) is amended so as to entirely read as follows :

"Article 13

(1) The export of goods resulting from the production of imported goods and/or raw materials securing the exemption as well as uncollected PPN and PPnBM is realized by using Export Declaration (PIB).

(2) PEB as meant in paragraph (1) is submitted by:

a. companies holding NIPER that export directly their production; or

b. other companies holding NIPER or not, whose goods are combined with production of the companies as meant in letter a.

(3) The export of goods resulting from the production must be realized in a period of 12 months, starting from the date of registration of PIB, unless otherwise companies have a production period of more than 12 months, the exception can be granted by the Head of Regional Office on behalf of the Minister of Finance.

(4) To PEB securing KITE whose goods have been exported, Customs Office issues LPBC/LHP.

(5) Procedures for submitting PEB securing KITE are realized in accordance with Decision of the Director General on Technical Directive for Customs Mechanism in the Export Field for Exported Goods Securing Import Relief for Export Purpose."

3. The provision in Article 16 paragraph (1) is amended so as to entirely read as follows:

"Article 16

(1) Production whose raw materials come from the import can be sold to DPIL after the export and/or delivery to Bonded Zone is realized by companies holding NIPER with the provision that :

• a. the companies submit BC 2.4 to Customs Offices overseeing the area of the applicants;
• b. the quantity of goods to be sold to DPIL is maximally 25% (twenty percent) of the total realization of the export and/or delivery to Bonded Zone;
• c. Official undertakes customs inspection;
• d. The companies pay BM and/or Excise on the basis of tariffs of goods with the imposition and customs value of raw materials upon the import, plus interest as high as 2% (two percent) every month as from the date of registration of PIB; and
• e. The companies pay PPN and PPnBM with basis for imposition of tax amounting to the import value, plus sanction in the form of interest as high as 2% every month as from the import, for 24 (twenty) months at the maximum.

(2) The sale to DPIL must be realized in a period of 12 (twelve) months as from the date of the import up to the date of sale of goods to DPIL.

(3) The realization of the export and/or delivery to Bonded Zone as meant in paragraph (1) letter b starts from August 1,2003.

(4) Mechanism of the sale of production to DPIL is regulated in Attachment V to this decision."

4. The provision in Article 18 is amended so as to read as follows:

"Article 18

The sale of by products, remainder of production, spoiled production and spoiled raw materials whose raw materials come from the import to DPIL can be realized by companies with the provision that :

• a. the companies submit BP 2.4 to Customs Office overseeing the area of applicant;
• b. official undertake Customs inspection;
• c. the companies pay BM as high as 5% of the selling price;
• d. the companies pay excise in accordance with the tariff in force;
• e. the companies pay PPN and PPnBM as much as the import value; and
• f. the payment of BM and/or Excise as well as PPN and PPnBM is realized upon the delivery of goods to DPIL."

5. The provision in Article 19 paragraph (1) is amended so as to read as follows:

"Article 19

(1) Destruction of by products, remainder of production, spoiled production and spoiled raw materials, whose raw materials come from the import can be realized by companies with the provision that:

• a. the companies submit BP 2.4 to Customs Office overseeing the area of applicant;
• b. official undertake Customs inspection;
• c. official supervises the destruction;
• d. BM and/or excise as well as uncollected PPN and PPnBM are not collected.

(2) Mechanism of the sale to DPIL and destruction of by products, remainder of production, spoiled production and spoiled raw materials, whose raw materials come from the import is regulated in Attachment VI to this decision. "

Article 2

The regulation of the Director General comes into force as from the date of stipulation.

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

Stipulated in Jakarta
On December 16, 2005
THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,
sgd
EDDY ABDURRACHMAN