REGULATION OF THE MINISTER OF FINANCE
NO. 16/PMK.011/2008

CONCERNING
THE EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO BE ASSEMBLED TO BECOME MOTORIZED VEHICLE DESTINED TO THE EXPORT

THE MINISTER OF FINANCE,

Considering:

• a. that pursuant to the provision of Article 26 paragraph (1) k of Law No. 10/1995 concerning Customs as amended by Law No. 17/2006, the import of goods or materials to be processed, assembled or installed at other goods destined to the export can be exempt from import duty;
• b. that in the framework of increasing investments to boost the export of motorized vehicle, it is necessary to provide incentive in the form of the exemption from import duty on the import of goods and materials for manufacturing motorized vehicle whose production will be exported;
• c. that the goods and materials needed for manufacturing motorized vehicle whose products will be exported come into the category of goods or materials whose import can be given the facility of exemption from import duly in accordance with the provision as intended in a;
• d. that based on considerations in a, b and c as well as in the framework of implementing the provision 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 from Import Duty on the Import of Goods and Materials to be Assembled to Become Motorized Vehicle Destined to the Export;

In view of:

• 1. 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);
• 2. Presidential Decree No. 20/P/2005;

HAS DECIDED:

To stipulate:

THE REGULATION OF THE MINISTER OF FINANCE CONCERNING THE EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO BE ASSEMBLED TO BECOME MOTORIZED VEHICLE DESTINED TO THE EXPORT

Article 1

General Provisions

In the Minister of Finance has the following meanings:

• 1. Goods and Materials are parts and appliances of motorized vehicle to be assembled to become motorized vehicle.
• 2. Completely Built Up, hereinafter abbreviated as CBU is motorized vehicle in the complete condition.
• 3. Completely Knocked Down, hereinafter abbreviated as CKD is motorized vehicle in the completely knocked down condition in accordance with what is stipulated by the Ministry of Industry.
• 4. Minister is the Minister of Finance of the Republic of Indonesia.
• 5. Director General is the Director General of Customs and Excise.

Article 2

(1) The exemption from import duty can be granted to imported goods and materials assembled to become motorized vehicle destined to the export.

(2) The exemption from the import duty as intended in paragraph (1) shall be granted to importers fulfilling the following requirements:

• a. being Brand Authorized Sole Agent (ATPM);
• b. having very good reputation reflected from the corporate profile;
• c. having clear and specific nature of business;
• d. never misusing customs facilities in the last one year;
• e. never wrong in declaring the quantity of goods, kinds of goods and/or customs value in the last one year; and
• f. already audited by Public Accountant Office certifying that the company does not obtain disclaimer or adverse opinion.

Article 3

(1) The exemption from import duty as intended in Article 2 shall be granted to companies importing goods and materials to be assembled to become motorized vehicle in CBU and/or CKD condition and decidedly destined to the export by the importing companies.

(2) The motorized vehicle to be exported in CKD condition as intended in paragraph (1) shall be exported as units of motorized vehicle collectively as a totality.

(3) The need for goods and materials to manufacture one unit of motorized vehicle in CBU or CKD condition (conversion) shall be made by companies and have been verified as well as approved by independent surveyor.

Article 4

(1) In order to obtain the exemption from import duty as intended in Article 2, companies shall submit application to the Director General.

(2) The application as intended in paragraph (1) shall be enclosed with:

• a. The Import Plan of Goods (RIB) for a period of 12 (twelve) months in the form of the estimated quantity and value of goods and materials needed in the exemption period when the exemption from import duty thereof will be requested;
• b. The conversion as intended in Article 3 paragraph (3);
• c. The export Plan of Motorized vehicle for a period of 12 (twelve) months, which contains elements of data about the quantity, kinds, brand and technical specifications of motorized vehicle as well as countries becoming the export destination;
• d. Contract between company importing goods and materials of motorized vehicle and company manufacturing/assembling motorized vehicle, except for exporter producers;
• e. Data about installed capacity of company manufacturing/assembling motorized vehicle;
• f. Written guarantee from company's top management
• g. Customs Identity Number (NIK);
• h. Letter of stipulation as ATPM by Related Technical Agency; and
• i. Copy of financial statement of the latest year, already audited by Public Accountant Office.

Article 5

(1) Based on the application as intended in Article 4, the Director General shall give approval or rejection.

(2) In case of the application being approved, the Director General or the appointed official on behalf of the Minister of Finance shall issue a decision on the exemption from import duty on the import of the goods and materials as intended in Article 2 that contains details of:

• a. The import plan of goods;
• b. Kinds and units of motorized vehicles, which will be exported;
• c. Brand and type;
• d. Category/kind;
• e. Cylinder capacity;
• f. Passenger capacity;
• g. Tariff heading in accordance with the Indonesian Customs Tariffs Book;
• h. Destination country;
• i. The estimated value per unit;
• j. The total export value;
• k. Customs and Excise Service Office where the export is loaded;
• I. The expiry date of decision.

(3) In case of the application being rejected, the Director General shall make a letter of rejection by disclosing the reason for rejection.

Article 6

Companies securing the facility of exemption from import duty as intended in Article 2 shall export motorized vehicle resulting from the assembly of goods and materials securing the facility of exemption from import duty in not later than before the expiry date of the decision on the exemption from import duty as intended in Article 5 paragraph (2).

Article 7

(1) Companies shall hold accountability for the import of goods and materials securing the facility of exemption from import duty by exporting goods and materials already assembled to become motorized vehicle in not later than in the exemption period as intended in Article 5 paragraph (2).

(2) In case of companies not exporting the goods and materials already assembled to become motorized vehicle as intended in paragraph (1), the companies shall pay import duty and/or excise in accordance with the tariff and customs value upon importing and be subject to administrative sanction in the form of a fine ranging from 100% (one hundred percent) to 500% (five hundred percent) of the payable import duty in accordance with the provision in force.

Article 8

(1) Besides exporting the goods and materials already assembled to become motorized vehicle as intended in Article 7 paragraph (1), companies can settle their obligations by:

• a. selling spoiled goods and materials to other Indonesian customs area by paying import duty and for excise in accordance with the tariff and customs value upon importing and subject to administrative sanction in the form of a fine ranging from 100% (one hundred percent) to 500% (five hundred percent) of the payable import duty; ,
• b. exporting goods and materials.

(2) The export of goods and materials as intended in paragraph (2) letter b shall be done after securing approval from the Director General or the appointed official.

Article 9

(1) Companies securing the facility of exemption from import duty as intended in Article 2 shall convey report to the Director General of Customs and Excise or the appointed official in the form of:

• a. report on the realization of the import of goods and materials securing the exemption from import duty periodically, every 3 (three) months as from the date of decision on the exemption from import duty as intended in Article 5 paragraph (2);
• b. report on the realization of the export of motorized vehicle having their goods and materials exempt from import duty periodically, every 3 (three) months as from the date of decision on the exemption from import duty as intended in Article 5 paragraph (2);
• c. report on imported goods and materials exempt from import duty, which are settled by means of selling or exporting as intended in Article 8 paragraph (2) periodically, every 3 (three) months as from the date of decision on the exemption from import duty as intended in Article 5 paragraph (2);
• d. final report on the realization of the import and export of motorized vehicle having goods and materials thereof exempt from import duty in not later than 14 (fourteen) days after the validity period of the decision on the exemption from import duty as intended in Article 5 paragraph (2).

Article 10

The exemption from import duty as intended in Article 4 shall be revoked in case of:

• a. applicant not importing the goods and materials in a period of 6 (six) months as from the date of decision on the exemption from import duty;
• b. company not conveying the reports as intended in Article 9.

Article 11

The implementation of this regulation shall be evaluated in not later than 2 (two) years as from the date of stipulation of this regulation.

Article 12

Following the enforcement of this regulation, the import of goods and materials to be assembled to become motorized vehicle decidedly destined to the export, which is realized as from August 26 to the date of stipulation of this regulation can be exempt from import duty based on this regulation with the provision as follows:

• 1. the import in the course of guarantee facility can be settled by using Notification of Imported Goods;
• 2. In case the import using guarantee facility and being in the course of collection, the collection is not continued;
• 3. the import having import duty thereof already paid can be given restitution of import duty.

Article 13

This regulation shall come into force as from the date of stipulation and be retroactive to August 26, 2007.

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

Stipulated in Jakarta
on February 4, 2008
THE MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI