REGULATION OF THE MINISTER OF TRADE
No. 57/M-DAG/PER/12/2008

CONCERNING
PROVISIONS ON IMPORT OF NON NEW CAPITAL GOODS

BY GRACE OF THE ALMIGHTY GOD,
THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA,

Considering:

• a. that the whole Indonesian economic condition, which is not conducive yet, causes purchasing power remain weak in several industrial sectors, especially in the procurement of capital goods, it is deemed necessary to make the effort of supplying capital goods which can be reached by such industrial sectors;
• b. that based on consideration as intended in a and the implementation period of provisions on import of non new capital goods as regulated in Regulation of the Minister of Trade No. 49/M-DAG/PER/12/2007 which will be ended on December 31, 2008, it is necessary to continue policies on import of non new capital goods;
• c. that base on considerations as intended in a and b, it is necessary to stipulate a Regulation of the Minister of Trade.

In view of:

• 1. Trade Law 1934 (State Gazette No. 86/1938);
• 2. Law No. 3/1982 concerning Compulsory Registration for Companies (Statute Book No. 7/1982, Supplement to Statute Book No. 3214);
• 3. Law No. 5/1984 concerning Industry (Statute Book No. 22/1984, Supplement to Statute Book No. 3274);
• 4. Law No. 10/1995 concerning Customs (Statute Book No. 75/1995, Supplement to Statute Book No. 3612) as amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);
• 5. Law No. 25/2007 concerning Investment (Statute Book No. 67/2007, Supplement to Statute Book No. 4724);
• 6. Government Regulation No. 17/1986 concerning Authority of Regulating, Management and Developing Industry (Statute Book No. 23/1986, Supplement to Statute Book No. 3330);
• 7. Government Regulation No. 13/1995 concerning Industrial Business License (Statute Book No. 25/1995, Supplement to Statute Book No. 3596);
• 8. Presidential Decree No. 260/1967 concerning Confirmation of Tasks and Responsibilities of the Minister of Trade in the Foreign Trade Sector;
• 9. Presidential Decree No. 187/M/2004 concerning the Formation of the United Indonesia Cabinet, as amended by Presidential Decree No. 171/M/2005;
• 10. Presidential Regulation No. 9/2005 concerning the Status, Tasks, Functions, Organizational Structures and Working Arrangements of State Ministries as amended several times, the latest by Presidential Regulation No. 20/2008;
• 11. Presidential Regulation No. 10/2005 concerning the Organization Units and Tasks of Echelon I of State Ministries of the Republic of Indonesia as amended several times, the latest by Presidential Regulation No. 21/2008;
• 12. Decree of the Minister of Finance No. 291/KMK.05/1997 concerning Bonded Warehouses as amended several times, the latest by Regulation of the Minister of Finance No. 101/PMK.04/2005 concerning the Seventh Amendment to Decree of the Minister of Finance No. 291/KMK.05/1997 concerning Bonded Warehouses;
• 13. Decree of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 concerning General Provisions in Import;
• 14. Regulation of the Minister of Trade No. 01/M-DAG/PER/3/2005 concerning the Organization and Working Arrangement of the Ministry of Trade as amended by Regulation of the Minister of Trade No. 34/M-DAG/PER/8/2007;
• 15. Regulation of the Minister of Trade No. 31/M-DAG/PER/7/2007 concerning Importer Identification Number (API);
• 16. Regulation of the Minister of Finance No. 124/PMK.04/2007 concerning Importer Registration;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA CONCERNING PROVISIONS ON IMPORT OF NON NEW CAPITAL GOODS.

Article 1

In this Ministerial Regulation:

• 1. Non new capital goods are capital goods still feasible to be used or reconditioned, remanufactured, re-functioned and non scrap.
• 2. Direct user company is a company which has possessed a business license which imports non new capital goods for production process purposes or to use by itself for other purposes not in the production process.
• 3. Remanufacturing or reconditioning company is a company which has possessed recondition industrial business license to process non new capital goods become end products for export purposes or to meet domestic user orders.
• 4. Industrial Business License or other Business Licenses is the license granted to industries/companies to carry out business activities issued by the competent agencies in accordance with the provisions of the prevailing laws and regulations.
• 5. Surveyor is the survey company stipulated by the Minister of Industry and Trade by virtue of Decree of the Minister of Industry and Trade No. 492/MPP/Kep/8/2004 concerning the Appointment of Surveyors As the Executor of the Survey of the Import of Non New Capital Goods.
• 6. PDKB is Company In Bonded Warehouses.
• 7. DPIL is other Indonesian Customs Areas.
• 8. KB is Bonded Warehouse.
• 9. Director General is the Director General of Foreign Trade.
• 10. Minister is the Minister of Trade.

Article 2

(1) Non New Capital Goods may be imported only by:

• a. the direct user company; and/or
• b. the remanufacturing or reconditioning company.

(2) Non New Capital Goods which may be imported by the company as intended in paragraph (1) shall include Tariff Items/HS stated in Attachment I that constituting as integral part of this Ministerial Regulation.

(3) The application by the company as intended in paragraph (1) a which may import non new capital goods shall possess:

• a. photocopy of Business License granted to the company to carry out business activities issued by the competent agencies in accordance with the provisions of the laws and regulations;
• b. photocopy of Importer's Identification Number (API);
• c. photocopy of Taxpayer Registration Number (NPWP); and
• d. photocopy of Customs Identity Number (NIK).

(4) The application by the remanufacturing or reconditioning company as intended in paragraph (1) b which may import non new capital goods shall possess:

• a. photocopy of Industrial Business License for reconditioning or remanufacturing granted to an industrial company issued by the competent agencies in accordance with the provisions of the laws and regulations;
• b. photocopy of Importer's Identification Number (API);
• c. photocopy of Taxpayer Registration Number (NPWP);
• d. photocopy of Customs Identity Number (NIK);
• e. photocopy of technical feasibility of repair and recovery service business including machinery facilities, equipment and after sales service capacity;
• f. evidence of purchase order from domestic users; and
• g. Recommendation from the Ministry of Industry;

(5) The application by the companies as intended in paragraph (3) and paragraph (4) shall be submitted in writing to the Director of Import.

Article 3

(1) The implementation of import of non new capital goods as intended in Article 2 paragraph (2) must firstly obtain import approval from the Director of Import, Ministry of Trade, by attaching requirements as intended in Article 2 paragraph (3) and paragraph (4).

(2) The Director of Import, Ministry of Trade, as intended in paragraph (1) shall issue import approval within 5 (five) business days from the receiving date of the application for import of non new capital goods from the company as intended in Article 2 paragraph (5).

Article 4

(1) A prior technical inspection by the Surveyor about usability and technical specifications of the non new goods shall be conducted to the import of non new capital goods which has obtained the import approval as intended in Article 3 paragraph (1).

(2) The technical inspection as intended in paragraph (1) shall be conducted by the Surveyor in the origin country of loading goods.

(3) Results of the technical inspection by the Surveyor as intended in paragraph (1) shall be set forth in the Certificate of Inspection stating:

• a. that the non new capital goods are usable or to be re-functioned;
• b. non scrap; and
• c. information of quantity, value and technical specifications.

(4) The Certificate of Inspection as intended in paragraph (3) shall be accompanied by custom documents when importing non new capital goods enter the Indonesian customs area.

Article 5

(1) Non new capital goods as intended in Article 2 paragraph (2) included in Tariff/HS 88 and 89 stated in Attachment I that constituting as integral part of this Ministerial Regulation shall be excluded from provisions on technical inspection as intended in Article 4.

(2) Provisions on and procedures for the stipulation of usability and technical specifications of non new capital goods included in Tariff/HS 88 and 89 and inspection procedures as intended in paragraph (1) shall be stipulated by the Minister of Transportation based on provisions of the prevailing laws and regulations and procedures for civil aircraft and ship.

Article 6

(1) The importer as intended in Article 2 paragraph (1) which has obtained the approval for import of non new capital goods shall submit a realization report in writing to the Director of Import, Directorate General of Foreign Trade, every 3 (three) months, at the latest on the 15th day of the following month of every import realization month.

(2) The form of the realization report as intended in paragraph (1) shall be stated in Attachment II that constituting as integral part of this Ministerial Regulation.

Article 7

(1) In the framework of developing export and investment, including industrial relocation (factory relocation), infrastructure construction and for export purposes activities, the approval for import of non new capital goods not included in Attachment I may be granted by the Director General of Foreign Trade on behalf of the Minister.

(2) The import approval as intended in paragraph (1) may be processed after having obtained a recommendation/technical consideration from the Ministry of Industry.

Article 8

(1) Non new capital goods controlled by the PDKB and already used may be transferred to other companies in the DPIL.

(2) A prior technical inspection by the Surveyor regarding usability and technical specifications of the non new goods in the KB location shall be conducted to the transfer of goods as intended in paragraph (1) and an import approval shall not be required and the issuance shall be in compliance with the provisions of the laws and regulations.

(3) The transfer of goods as intended in paragraph (2) shall be conducted by warrant signed by the Head of the KB Office and the Head of the local Customs and Excise Service Office and its copy shall be sent to the Director General.

Article 9

The company as intended in Article 2 paragraph (1) violating the provisions of this Regulation shall be subject to the following sanctions:

• a. revocation of Importer's Identification Number (API); and/or
• b. punishment in accordance with the provisions of the laws and regulations.

Article 10

The Surveyor appointed by the Minister as intended in Article 4 shall provide a written report regarding the implementation of the survey of non new capital goods to the Director General in this case the Director of Import, Ministry of Trade, every 1 (one) month, at the latest on the 15th day of the following month.

Article 11

(1) The import approval which has been issued based on Regulation of the Minister of Trade No. 49/M-DAG/PER/12/2007 concerning Provisions on Import of Non New Capital Goods shall remain applicable until the expiration of the validity period of the import approval.

(2) In case the imported goods have not arrived when the import approval expires, the import shall be allowed until February 28, 2009, on condition an inspection shall have been conducted by the Surveyor prior to December 31, 2008, proven by a Certificate of Inspection.

Article 12

This Regulation shall come into force as from January 1, 2009 and shall expire on December 31, 2009.

For the public knowledge, this Regulation shall be promulgated in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On December 24, 2008
THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA
signed,
MARI ELKA PANGESTU