a. that in the framework of promoting economic cooperation between the Government of the Republic of Indonesia and the Government of Japan, the framework agreement already ratified by the Government of the Republic of Indonesia on the basis of Presidential Regulation No. 36/2006 concerning Ratification of Agreement between the Republic of Indonesia and Japan for an Economic Partnership;
b. that pursuant to specialty of Section 3 Notes for the Schedule of Indonesia Note 2 in Section 1 of Part 3 of Annex 1 referred to in Chapter 2 in Basic Agreement, User Specific Duty Free Scheme (USDFS) has been regulated;
c. that in order to implement the cooperation as described in a, it isnecessary to stipulate rates of import duty in the framework of User Specific Duty Free Scheme (USDFS);
d. that that pursuant to the provision of Article 13 paragraph (2) of Law No. 10/1995 concerning Customs that is amended by Law No. 17 of '2006, the Minister of Finance stipulates procedures for imposing and rates of import duty on the basis of international treaties or agreements;
e. that having regards to a, b, c and d, it is necessary to stipulate a regulation of the Minister of Finance concerning Stipulation of Rates ofImport Duty by USerSpecific Duty Free Scheme (USDFS) in the framework of regarding Agreement between the Republic of Indonesia and Japan for an Economic Partnership;
1. Law No. 10/1995 concerning Customs (Statute Book of the Republic of Indonesia No. 75/1995, Supplement to Statute Book of the Republic of Indonesia No. 3612) that is amended by Law No. 17/2006 (Statute Book of the Republic of Indonesia No. 93/2006, Supplement to Statute Book of the Republic of Indonesia No. 4661);
2. Presidential Regulation No. 36/2008 concerning Ratification of Agreement between the Republic of Indonesia and Japan for an Economic Partnership;
3. Presidential Decision No. 20/P/2005;
THE REGULATION OF THE MINISTER OF FINANCE CONCERNING STIPULATION OF IMPORT DUTY RATES IN THE FRAMEWORK OF AGREEMENT BETWEEN THE REPUBLIC OF INDONESIA AND JAPAN FOR AN ECONOMIC PARTNERSHIP
In this regulation:
1. "User Specific Duty Free Scheme" hereinafter abbreviated to USDFS refers to a scheme of stipulation of import duty rates granted specifically to users in the framework of Indonesia Japan Economic Partnership Agreement (IJ-EPA);
2. "Users" refers to business entities having statutory body in Indonesia, which are eligible to obtain facility of USDFS in accordance with Industrial Verification Certificate of USDFS (SKVI-USDFS) issued by the surveyors appointed by the Ministry of Industry.
3. "Surveyors" refers to companies appointed by the Ministry of Industry to verify applicants of USDFS facility.
4. "Industrial Verification Certificate of USDFS" hereinafter abbreviated as SKVI-USDF refers to a result of industrial verification applied by surveyors to business entities having statutory body in Indonesia, which submit application for securing stipulation as users and containing import plan of goods for one year.
5. "Customs Office" refers to Primary Service Office of Customs and Excise, Customs and Excise Service Office where customs and excise liabilities are fulfilled.
(1) The rate of import duty on the goods as stipulated in Attachment I and Attachment II to this regulation, which come and are imported from Japan by users shall be set at 0% (zero percent).
(2) The attachments as described in paragraph (1) shall be integral part of this regulation.
(1) In order to secure the rates of import duty as described in Article 2, users shall submit application to the Director General of Customs and Excise.
(2) Application as described in paragraph (1) shall be accompanied by SKVI-USDFS already legalized and approved by the Minister of Industry.
(1) Based on application as described in Article 3 paragraph (1), the Director General of Customs and Excise on behalf of the Minister of Finance shall make a decision in not later than 5 (five) working days as from the date of receipt of complete application.
(2) In case the application as described in paragraph (1) is accepted, the Director General of Customs and Excise on behalf of the Minister of Finance shall issue a Decision of the Minister of Finance concerning the Application of Rates of Import Duty in the Framework of USDFS to the Users.
(3) In case the application as described in paragraph (1) is rejected, the Director General of Customs and Excise on behalf of the Minister of Finance shall issue a rejection letter along with the reason.
(1) The import of goods in the framework of USDFS shall be executed in accordance with the customs procedures in import and shall be accompanied by the following documents:
(2) User shall mention code fo preference facility tariff and reference number of JIEPA form in import customs notification.
(1) In case of the quantity, kind and/or specification of the imported goods not matching with the data mentioned in the decision as described in Article 4 paragraph (2), import duty shall be imposed on the excess of the quantity and/or difference of kind of goods on the basis of the general effective tariff (MFN).
(2) In case of the quantity, kind and/or specification of the imported goods not matching with the data mentioned in the decision as described in paragraph (1) but the imported goods come into IJ-EPA scheme, import duty shall be imposed on the excess of quantity and/or difference in kind of goods on the basis of IJ-EPA tariff.
(1) The goods as described in Article 5 paragraph (1) shall be used by the users for its production activities.
(2) In case of the users not utilizing the goods as described in paragraph (1), the users shall pay import duty on goods on the basis of the general effective tariff (MFN).
In case of violation of customs provision being found, users shall be responsible for import duty payable on the basis of general effective rates of import duty (MFN) and sanction in accordance with the provisions of effective legislations.
Provisions in the Regulation of the Minister of Finance shall be evaluated periodically on the basis of input from the Minister of Industry.
Further provision on procedures for serving and supervising the application of rates of import duty in the framework of USDFS shall be governed by a regulation of the Director General of Customs and Excise.
Following the enforcement of this regulation:
This Regulation of the Minister of Finance shall take effect from July 1, 2008.
For public cognizance, this Regulation of the Minister of Finance shall be announced by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on June 30, 2008
MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI