REGULATION OF THE MINISTER OF TRADE
No. 58/M-DAG/PER/12/2010

CONCERNING
PROVISION FOR IMPORT OF USED CAPITAL GOODS

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

Attachment

Considering:

a. that the condition of the Indonesian economy is not entirety favourable that causes the weak capacity in the buying power in several industrial sectors, especially in the procurement of capital goods, so that it is necessary to endeavour providing capital goods that is accessible to the industrial sector concerned;

b. that based on the consideration as intended in paragraph a, it is necessary to stipulate policy on the import of Used Capital Goods;

c. that based on the consideration as intended in paragraphs a and b, it is necessary to stipulate Regulation of the Minister of Trade;

In view of:

1. Trade Law 1934 (Statute Book No. 86/1938);

2. Law No. 3/1982 concerning Company Obligatory Registration (Statute Book of the Republic of Indonesia No. 7/1982, Supplement to Statute Book of the Republic of Indonesia No. 3214);

3. Law No. 5/1984 concerning Industry (Statute Book of the Republic of Indonesia No. 22/1984, Supplement to Statute Book of the Republic of Indonesia No. 3274);

4. 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) as 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);

5. Law No. 36/2000 concerning Stipulation of Government Regulation in Lieu of Law No. 1/2000, concerning Free Trade Zone and Free Port to become Law (Statute Book of the Republic of Indonesia No. 251/2000, Supplement to Statute Book of the Republic of Indonesia No. 4053) as amended by Law No. 44/2007 (Statute Book of the Republic of Indonesia No. 130/2007, Supplement to Statute Book of the Republic of Indonesia No. 4775);

6. Law No. 25/2007 concerning Capital Investment (Statute Book of the Republic of Indonesia No. 67/2007, Supplement to Statute Book of the Republic of Indonesia No. 4724);

7. Law No. 39/2008 concerning State Ministry (Statute Book of the Republic of Indonesia No. 166/2008, Supplement to Statute Book of the Republic of Indonesia No. 4916);

8. Law No. 25/2009 concerning Public Services (Statute Book of the Republic of Indonesia No. 112/2009, Supplement to Statute Book of the Republic of Indonesia No. 5038);

9. Law No. 32/2009 concerning Protection and Management of Living Environment (Statute Book of the Republic of Indonesia No. 140/2009, Supplement to Statute Book of the Republic of Indonesia No. 5059);

10. Government Regulation No. 17/1986 concerning Authority to Govern, Manage and Develop Industry (Statute Book of the Republic of Indonesia No. 23/1986, Supplement to Statute Book of the Republic of Indonesia No. 3330);

11. Government Regulation No. 13/1995 concerning Industrial Business License (Statute Book No. 25/1995, Supplement to Statute Book of the Republic of Indonesia No. 3596);

12. Government Regulation No. 33/2007 concerning Safety from Pengion Radiation and Security from Radioactive Resource (Statute Book of the Republic of Indonesia No. 74/2007, Supplement to Statute Book of the Republic of Indonesia No. 4730);

13. Government Regulation No. 29/2008 concerning Permits for Utilization of Pengion Radiation and Nuclear Substance (Statute Book of the Republic of Indonesia No. 54/2008, Supplement to Statute Book of the Republic of Indonesia No. 4839);

14. Presidential Decree No. 260/1967 concerning Confirmation of Duty and Responsibility of the Minister of Trade in the Foreign Trade;

15. Presidential Regulation No. 47/2009 concerning Establishment and Organization of the State Ministry;

16. Presidential Decree No. 84/P/2009 concerning Establishment of United Indonesia Cabinet II;

17. Presidential Regulation No. 24/2010 concerning Position, Duty and Function of the State Ministry and Organizational Structure, Duty and Function of Echelon I of the State Ministry;

18. Decree of the Minister of Finance No. 291/KMK.05/1997 concerning Bonded Zone as amended several times, the latest by Regulation of the Minister of Finance No. 101/PMK.04/2005;

19. Regulation of the Minister of Trade No. 12/M-DAG/PER/3/2009 concerning Delegation of Authority for Issuing Permits in Foreign Trade Sector to Batam Free Trade Zone and Free Port Exploitation Agency, Bintan Free Trade Zone and Free Port Exploitation Agency, and Karimun Free Trade Zone and Free Port Exploitation Agencies;

20. Regulation of the Minister of Trade No. 20/M-DAG/PER/5/2009 concerning Provision and Procedure for Supervision of Goods and/or Services;

21. Regulation of the Minister of Trade No. 45/M-DAG/PER/5/2009 concerning Importer's Identification Number (API) as amended several times, the latest by Regulation of the Minister of Trade No. 17/M-DAG/PER/3/2010;

22. Regulation of the Minister of Trade No. 54/M-DAG/PER/10/2009 concerning General Provision in Import;

23. Regulation of the Minister of Trade No. 31/M-DG/PER/7/2010 concerning Organization and Work Procedure of the Ministry of Trade;

HAS DECIDED:

To stipulate:

REGULATION OFTHE MINISTER OF TRADE CONCERNING PROVISIONS FOR IMPORT OF USED CAPITAL GOODS.

Article 1

In this Ministerial Regulation:

1. Used Capital Goods are goods for business capital or to produce something, still useable, or to be reconditioned, remanufactured, multi functioned and not for scrap.

2. Direct User Company is any company that holds business license for importing Used Capital Goods for production process or to be used for other purposes not in production process.

3. Reconditioning company is any company that hold business license for reconditioning industry to process Used Capital Goods to become end products for the purpose of export or to fulfil orders from domestic Direct User Company.

4. Remanufacturing company is be company that holds business license for remanufacturing industry to process Use Capital Goods to become end product for the purpose of export or to fulfil orders from domestic Direct User company.

5. Hospital Appliances Provider Company is company that holds business license to import Used Capital Goods containing source of pengion radiation for the purpose of medical service.

6. Business License is license granted to industry/company to carry out business activities, issued by the competent authority according to the statutory regulation.

7. Surveyor is survey company that has obtained authorization to conduct technical examination on Used Capital Goods.

8. Minister is minister in charge of governmental affairs in the trade sector.

9. Director General is Director General of Foreign Trade, Ministry of Trade.

10. Director is Director of Import, Directorate General of Foreign Trade, Ministry of Trade.

Article 2

(1) Used Capital Goods that may be imported shall cover the goods in Heading/HS as set forth in the Attachment that constitutes as integral part of this Regulation of the Minister.

(2) Used Capital Goods as intended in paragraph (1) may only be imported by:

Article 3

(1) Any import of Used Capital Goods as intended in Article 2 paragraph (1) must obtain approval to import from the Director.

(2) Direct User Company as intended in Article 2 paragraph (2)a may apply for approval to import Used Capital Goods in writing to the Director supported by the requirements below:

(3) Reconditioning Company or Remanufacturing Company as intended in Article 2 paragraph (2) b and c may submit written application for approval to import Used Capital Goods to the Director supported by the requirements as follows:

(4) Hospital Appliances Provider Company as intended in Article 2 paragraph (2) d may submit written application for approval to import Used Capital Goods to the Director supported by the requirements as follows:

Article 4

The Director shall issue approval for import within 5 (five) working days effective as of the date of receipt of complete and correct application as intended in Article 3.

Article 5

(1) Import of Used Capital Goods that has obtained approval for import as intended in Article 4 must be technically examined by the Surveyor in the country of loading the goods.

(2) The technical examination of Used Capital Goods as intended in paragraph (1) shall cover:

(3) The result of technical examination conducted by the Surveyor on the Used Capital Goods as intended in paragraph (2) shall be set forth in the Certificate of Inspection containing:

(4) Certificate of Inspection as intended in paragraph (3) shall be used as supporting document for customs in customs clearance of import.

(5) All fees for technical examination conducted by the Surveyor as intended in paragraph (1) shall be borne by the Importer.

Article 6

(1) The technical examination on imported Use Capital Goods as intended in Article 5 shall be conducted by a Surveyor assigned by the Minister.

(2) The assigned Surveyor as intended in paragraph (1) must comply with the requirements as follows:

(3) The Surveyor is obliged to submit written report on the technical examination on imported Used Capital Goods periodically each month to the Director by the 15 of the following month at the latest.

Article 7

(1) The Used Capital Goods as intended in Article 2 paragraph (1) included in Heading/HS 88 and 89 as set forth in the Attachment to this Ministerial Regulation is exempted from the provision for technical examination as intended in Article 5.

(2) Implementation of technical examination on Used Capital Goods that is included in Heading/HS 88 and 89 shall be stipulated by the Minister of Communications based on the provisions in the statutory regulation and procedure prevailing on civil aircraft and ocean ship.

(3) The Used Capital Goods in Heading/HS 8901, 8902, 8903, 8904, and 8905 having the age of more than 20 years must obtain recommendation of the Ministry of Industry.

Article 8

(1) The Importer as intended in Article 2 paragraph (1) that has obtained approval for imported Used Capital Goods shall be obliged to submit written report on realization thereof to the Director each month, by the 15 of the following month at the latest.

(2) The report as intended in paragraph (1) shall be submitted if the import thereof is realized or not realized.

(3) The report as intended in paragraph (1) shall be submitted through http://inatrade.depdag.go.id.

Article 9

(1) In the context of development of export and investment, industrial relocation activities (factory dismantle), construction of infrastructure, and for export, imported Used Capital Goods not included in the Attachment to this Ministerial Regulation, approval may be granted by the Director General on behalf of the Minister.

(2) To obtain approval for import as intended in paragraph (1), the company shall submit application to the Director General after complying with the requirements as intended in Article 3 paragraph (2), paragraph (3) and paragraph (4), and after having obtained recommendation from the competent authority in accordance with the provisions in the statutory regulation.

Article 10

(1) The Used Capital Goods as intended in Article 2 paragraph (1) imported to Bonded Zone does not apply in this Ministerial Regulation.

(2) Imported Used Capital Goods that have been used in Bonded Zone for 2 (two) years may be transferred or sold to other company in Other Places within the Customs Area.

(3) The Used Capital Goods being transferred or sold as intended in paragraph (2):

(4) Minutes of the transfer of goods as intended in paragraph (3) shall be drawn up signed by the local Head of Office of Bonded Zone and Head of Customs and Excise Services Office with copy to the Director General.

(5) If the result of technical examination as intended in paragraph (3) fails to comply with the provision as intended in Article 5 paragraphs (3) a and b, clearance of goods as intended in paragraph (2) must be in accordance with the provisions in the statutory regulation.

Article 11

Imported Used Capital Goods that have been reconditioned or remanufactured and to be transferred or sold must comply with the provisions in the statutory regulation.

Article 12

(1) The company as intended in Article 2 paragraph (2) that violates the provisions in this Ministerial Regulation is subject to penalty in the form of:

(2) Any Surveyor that fails to comply with the obligations as intended in Article 6 paragraph (3) is subject to penalty in the form of revocation of decision as perpetrator of technical examination on imported Used Capital Goods.

Article 13

(1) Approval for import issued based on Regulation of the Minister of Trade No. 63/M-DAG/PER/12/2009 concerning Conditions for Importing Used Capital Goods is declared continues to survive until it is expired.

(2) If the Used Capital Goods imported based on import approval as intended in paragraph (1) does not reach the expiry date of the import approval, then import thereof may be made up to February 28, 2011 provided that:

(3) Provision on issue of approval for importing Used Capital Goods delegated to the Exploitation Agency for Batam Zone, Bintan Zone, and Karimum Zone as governed Regulation of the Minister of Trade No. 12/M-DAG/PER/3/2009, is declared still valid which implementation thereof refers to this Ministerial Regulation.

Article 14

This Ministerial Regulation takes effect on January 1, 2011 and will expire on December 31, 2011.

For public cognizance, this Ministerial Regulation shall be announced by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On December 29, 2010
MINISTER OF TRADE
signed,
MARl ELKA PANGESTU