REGULATION OF THE MINISTER OF FINANCE
No. 147/PMK.04/2007

CONCERNING
EXEMPTION OR DISPENSATION OF IMPORT DUTY AND/OR EXCISE ON IMPORTED GOODS UNDERGOING DAMAGES, QUALITY DETERIORATION, DESTRUCTION OR SHRINKAGE OF VOLUME OR WEIGHT

THE MINISTER OF FINANCE,

Considering:

• a. that based on provisions of Article 26 paragraph (1) g of Law No. 10/1995 concerning Customs as amended by Law No. 17/2006, import of goods undergoing damages, quality deterioration,. destruction or shrinkage of volume or weight, may be granted with exemption or dispensation of import duty;
• b. that based on the consideration as intended in a, and in the framework of exercising the provisions of Article 26 paragraph (3) of Law No. 10/1995 concerning Customs as amended by Law No. 17/2006, it is necessary to stipulate a Regulation of the Minister of Finance concerning the Exemption or Dispensation of Import Duty and/or Excise on Imported Goods Undergoing Damages, Quality Deterioration, Destruction or Shrinkage of Volume or Weight;

In view of:

• 1. Law No. 10/1995 concerning Customs (Statute Book No. 75/1995, Supplement to Statute Book No. 3612) which was amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);
• 2. Law No. 11/1995 concerning Excise (Statute Book of RI No. 76/1995, Supplement to Statute Book No. 3613) as amended by Law No. 39/2007 (Statute Book No. 105/2007, Supplement to Statute Book No. 4755);
• 3. Presidential Decree No. 20/P/2005;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF FINANCE CONCERNING THE EXEMPTION OR DISPENSATION OF IMPORT DUTY AND/OR EXCISE ON IMPORTED GOODS UNDERGOING DAMAGES, QUALITY DETERIORATION, DESTRUCTION OR SHRINKAGE OF VOLUME OR WEIGHT

Article 1

In this Regulation of the Minister of Finance:

1. Minister is the Minister of Finance of the Republic of Indonesia.

2. Director General is the Director General of Customs and Excise.

Article 2

(1) Goods undergoing damages, quality deterioration, destruction or shrinkage of volume or weight may be granted with exemption or dispensation for import duty and/or excise.

(2)The condition of the goods as intended in paragraph (1) occurred due to natural causes between the time it was transported into customs area and the time the import approval was issued for use.

Article 3

(1) In order to obtain the exemption or dispensation of import duty and/or excise as intended in Article 2 paragraph (1), the importer had to submit a request for the exemption or dispensation of import duty and/or excise to the Director General.

(2)The request as intended in paragraph (1) should be attached with:

• a. Proofs of goods condition.
• b. Reasons of the request for the exemption or dispensation of import duty and/or excise.

Article 4

(1) On the request for the exemption or dispensation of import duty and/or excise as intended in Article 3 paragraph (1), Customs official conduct physical checks to determine the condition of the goods.

(2) For the determination of the condition of the goods as intended in paragraph (1) and the value of goods, Customs official may request for assistance from the institute having the authority to perform assessments.

(3) AII costs arising for the assessment purpose as intended in paragraph (2) shall be borne by the importer.

Article 5

(1) On the request for the exemption or dispensation of import duty and/or excise as intended in Article 3 paragraph (1), based on results of physical checks on the goods as intended in Article 4, the Director General or an appointed official, on behalf of the Minister, gives an approval or rejection.

(2) In the event that the request for the exemption or dispensation of import duty and/or excise as intended in paragraph (1) is approved, the Director General on behalf of the Minister, issues a decision for the exemption or dispensation of import duty and/or excise.

(3) The decision for the exemption of import duty as intended in paragraph (2) contains/includes a list of the amount, type, and estimated customs value the imported goods granted with import duty and/or excise exemption or dispensation.

(4) In the event that the request for the exemption or dispensation of import duty and/or excise as intended in paragraph (1) is rejected, the Director General or an appointed official issues a notification letter on the rejection of the request for the exemption or dispensation of import duty and/or excise by stating reasons for the rejection.

Article 6

With this Regulation of the Minister of Finance becoming effective, Decision of the Minister of Finance No. 132/KMK.05/1997 concerning the Exemption or Dispensation of Import Duty and/or Excise on Imported Goods Undergoing Damages, Quality Deterioration, Destruction or Shrinkage of Volume or Weight is revoked and declared null.

Article 7

This Regulation of the Minister of Finance comes to effect from December 15, 2007.

For public cognizance, this Regulation of the Minister of Finance shall be announced in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On November 22, 2007
MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI