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 engine and engine equipment, it is deemed necessary to make the effort of supplying capital goods which can be reached by such industrial by continue policy to import used engine and engine equipment;
b. that in relation with paragraph a above and the implementation period of provisions on import of used engine and engine equipment as regulated in Regulation of the Minister of Trade No. 39/M-DAG/PER/12/2005 which will be ended on December 31, 2007, it is necessary to continue policies on import of used capital goods;
c. that base on considerations as intended in a and b, it is necessary the issuance of a Regulation of the Minister of Trade.
1. Law No. 3/1982 concerning Compulsory Registration for Companies (Statute Book No. 7/1982, Supplement to Statute Book No. 3214);
2. Law No. 5/1984 concerning Industry (Statute Book No. 22/1984, Supplement to Statute Book No. 3274);
3. 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);
4. Law No. 25/2007 concerning Investment (Statute Book No. 67/2007, Supplement to Statute Book No. 4724);
5. Government Regulation No. 17/1986 concerning Authority of Regulating, Management and Developing Industry (Statute Book No. 23/1986, Supplement to Statute Book No. 3330);
6. Government Regulation No. 13/1995 concerning Industrial Business License (Statute Book No. 25/1995, Supplement to Statute Book No. 3596);
7. Presidential Decree No. 260/1967 concerning Confirmation of Tasks and Responsibilities of the Minister of Trade in the Foreign Trade Sector;
8. Presidential Decree No. 187/M/2004 concerning the Formation of the United Indonesia Cabinet, as amended by Presidential Decree No. 171/M/2005;
9. 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. 94/2006;
10. 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. 17/2007;
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. 15/2005;
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;
REGULATION OF THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA CONCERNING PROVISIONS ON IMPORT OF USED CAPITAL GOODS.
In this Ministerial Regulation:
1. 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.
2. Direct user company is an industry or a company which has possessed a Industrial Business License or other Business License.
3. Remanufacturing company is a company which has possessed Industrial Business License or other Business License.
4. Used capital goods are capital goods still feasible to be used or reconditioned to be re-functioned and non scrap.
5. Recommendation is Letter issued by technical Agency that give technical explanation and not import license.
6. Surveyors are surveyors owned by Government of Indonesia and or other surveyors member of IFIA (International Federation of Inspection Agency) that are appointed by the Minister.
7. PDKB is Company In Bonded Warehouses.
8. DPIL is Other Indonesian Customs Areas.
9. KB is Bonded Warehouse.
10. Minister is the Minister of Trade.
(1) Used Capital Goods may be imported only by:
(2) Used Capital Goods which may be imported by the company as intended in paragraph (1) shall include Tariff Items/HS stated in Attachment Regulation.
(3) Company as intended in paragraph (1) that can import used capital goods, should has:
(4) Recondition company as intended in paragraph (1) b beside should has requirement as intended in paragraph (3) also should fulfil technical consideration of recondition, repair and recondition ability for 12 months from Ministry of Industry after get input from related Agency, Association and Surveyor.
(5) Direct user company and recondition company that has principle approval only can import used capital goods in accordance with requirements in the framework of their industrial development.
(1) Used capital goods imported from PDKB only can be transferred to the company as intended in Article 2 paragraph (1) in DPIL.
(2) Transfer as intended in paragraph (1) only can be done if PDKB has used them more than 2 (two) years.
(1) Every implementation of imported used goods as intended in Article 2 paragraph (2) and Article 3 shall secure a prior import approval from the Director of Import, Ministry of Trade, by enclosing the requirements as intended in Article 2 paragraph (3).
(2) Every implementation of imported used goods by PDKB as intended in Article 2 paragraph (2) also shall enclose proof of imported goods to KB by PDKB in the form of copy of Declaration of Imported Goods (BC. 2.3) that is legalized by the local Directorate General of Customs and Excise Official.
(3) Director of Import, Ministry of Trade as intended in paragraph (1) shall issue import approval or rejection in 5 (five) working days after receiving date of the application to import used capital goods from the company as intended in Article 2 paragraph (1) and Article 3, and send the copy to Director General of Metal, Engine, Textile and Multifarious Industry, and Director General of Transportation and Telematic Equipment, Ministry of Industry.
(1) Importer that has secured approval to import used capital goods as intended in Article 4 paragraph (1) shall be subject to prior technical inspection by the surveyor regarding the use worthiness and technical specifications of the used capital goods.
(2) The technical inspection conducted by Surveyor in the framework to issue Certificate of Inspection as intended in paragraph (1) shall be done in the origin country of goods.
(3) The result of technical inspection conducted by the Surveyor as intended in paragraph (1) shall be put in the Certificate of Inspection stating:
(3) Surveyor conducts technical inspection Goods from PDKB to issue Certificate of Inspection in KB.
(4) Certificate of Inspection as intended in paragraph (3) shall be attached with customs documents when used capital goods enter Indonesian customs territory.
(1) The used capital goods as intended in Article 2 paragraph (2) belonging to the headings of 88 and 89 contained in Attachment I to this Regulation of the Minister are exception from the technical inspection as intended in Article 5.
(2) Provisions on and procedures of deciding use worthiness and technical specifications of un-new capital goods belonging to the heading 88 and 89 and procedures of conducting the inspection as described in paragraph (1) shall be stipulated by the Minister of Transportation based on the law and regulation and procedures applicable to civil aircraft and ships.
Importer as intended in Article 2 paragraph (1) that has secured approval to import used capital goods shall convey monthly written report of import realization to the Director of Imports, Directorate General of Foreign Trade, with copy to Director General of Metal, Engine, Textile and Multifarious Industry and Director General of Transportation and Telematic Equipment, Ministry of Industry, not later than the 15th of the ensuing month from monthly import realization.
(1) In an effort to develop exports and investment including the relocation of industries, the development of infrastructure, and the purpose of exports, approval to import used capital goods excluding from Attachment to this Regulation may be issued by the Minister or Appointed Official.
(2) The import as intended in paragraph (1) can be processed after it having obtained a recommendation/technical consideration from Ministry of Industry.
Company is subject to penalty cannot import used capital goods for 6 months if:
The company as intended in Article 2 paragraph (1) violating the provisions of this Regulation shall be subject to the following sanctions:
Without reduce provision in Article 1 paragraph 6, to implement provision in Article 5, Surveyors appointed by the Minister are as stipulated in Decree of the Minister of Industry and Trade No. 492/MPP/Kep/8/2004 concerning the Appointment of Surveyors as the Executor of Surveys on the Import of Used Capital Goods.
The Surveyor appointed by the Minister as intended in Article 11 shall provide a written report regarding the implementation of the survey of used capital goods to the Director General of Foreign Trade with attention Director of Import, Ministry of Trade, every 1 (one) month, at the latest on the 15th day of the following month from monthly survey realization with copy to Director General of Metal, Engine, Textile and Multifarious Industry and Director General of Transportation and Telematic Equipment, Ministry of Industry.
Technical provision required for implementation of this Regulation may be stipulated by Director General of Foreign Trade, Ministry of Trade.
Exception of provision in this Regulation only can be stipulated by the Minister.
Import approval is issued based on Regulation of the Minister of Trade No. 39/M-DAG/PER/12/2005 are declared continues to survive until it is expired and if imported goods are not arrived yet on the expired date of import approval, import can be conducted until February 29, 2008 on condition it has been inspection by the Surveyor before December 31, 2007, evident from the Certificate of Inspection (COI);
This Regulation of the Minister shall come into force as from January 1, 2008 and expire on December 31, 2008.
For public cognizance, this Regulation of the Minister shall be published by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on December 28, 2007
THE MINISTER OF TRADE
signed,
MARI ELKA PANGESTU