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REGULATION OF THE MINISTER OF FINANCE
No. 255/PMK.04/2011

CONCERNING
AMENDMENT TO THE REGULATION OF THE MINISTER OF FINANCE No. 147/PMK.04/2011 CONCERNING BONDED ZONE

BY GRACE OF THE ALMIGHTY GOD,
THE MINISTER OF FINANCE,

Considering:

a. that in the framework to give legal certainty for entrepreneurs in Bonded Zone, it is necessary to improve Regulation of the Minister of Finance No. 147/PMK.04/2011 concerning Bonded Zone;

b. that based on consideration as intended in paragraph a, it is necessary to stipulate Regulation of the Minister of Finance concerning Amendment to the Regulation of the Minister of Finance No. 147/PMK.04/2011 concerning Bonded Zone;

In view of:

1. Presidential Decree No. 56/P/2010;

2. Regulation of the Minister of Finance No. 147/PMK.04/2011 concerning Bonded Zone;

DECIDES:

To stipulate:

REGULATION OF THE MINISTER OF FINANCE CONCERNING AMENDMENT TO THE REGULATION OF THE MINISTER OF FINANCE No. 147/PMK.04/2011 CONCERNING BONDED ZONE.

Article I

Several provision in Regulation of the Minister of Finance No. 147/PMK.04/2011 concerning Bonded Zone shall be amended as follows:

1. Between paragraph (2) and paragraph (3) of Article 14 is inserted 3 (three) paragraphs, called paragraph (2a), paragraph (2b) and paragraph (2c), so Article 14 is read as follows:

"Article 14

(1) Suspension of Import Duty, Excise exemption, and free of PDRI are given to goods entered into Bonded Area in the form of:

• a. Raw Materials and Auxiliary Materials from outside the customs area for further processing;
• b. Capital goods from outside of the customs area and Capital Goods from Other Bonded Zone that are used in Bonded Zone;
• c. office equipments from outside of the customs area that are used by Bonded Zone Entrepreneur and/or PDKB;
• d. Production goods of other Bonded Zone for further processing or used as Capital Goods for the production process;
• e. Production goods of Bonded Zone returned back from outside of the customs area into the Bonded Zone;
• f. Production goods of Bonded Zone returned back from Bonded Exhibition Operation Place (TPPB) into the Bonded Zone;
• g. finished goods from outside of the customs area that are entered into Bonded Zone to be combined with Production Results of Bonded Zone solely for export; and/or
• h. packaging and packaging aids from outside of the customs area and/or other Bonded Zone are entered into Bonded Zone to become a single unit with Production Result of Bonded Zone.

(2) Value Added Tax (PPN) or Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM) are not imposed on:

• a. entry of goods from other place in the customs area into Bonded Zone for further processing;
• b. re-entry of goods and Production Result of Bonded Zone in the framework of subcontracting from other Bonded Zone or industrial companies in other place of customs area into Bonded Zone;
• c. re-entry machine and/or molding in the framework lending from other Bonded Zone or Companies in other place in customs area into Bonded Zone;
• d. entry of Production Result of other Bonded Zone, or Company in other place in customs area that Raw Materials to produce are from other place in customs area, to be further processed by Bonded Zone;
• e. entry of production result from other Bonded Zone, or Company in other place in customs area that Raw Materials to produce are from other place in customs area, to be combined with Production Result of Bonded Zone solely for export; or
• f. entry of packaging and packaging aids from other places in the customs area into Bonded Zone to become a single unit with Production Result of Bonded Zone.

(2a) Provision on the treatment of Value Added Tax (PPN) or Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM) are not imposed on the entry of goods as intended in paragraph (2) should be fulfilled by every Bonded Zone Entrepreneur and/or PDKB.

(2b) Value Added Tax (PPN) or Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM) are not imposed on the entry of goods as intended in paragraph (2) should be conducted by Bonded Zone Entrepreneur and/or PDKB by used tax invoice as be governed by regulation in the taxation.

(2c) In case provision as intended in paragraphs (2a) and (2b) is not fulfilled by Bonded Zone Entrepreneur and/or PDKB, on the paid of Value Added Tax (PPN) or Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM) that are not imposed, cannot be credited;

(3) Excise exemption shall be granted on Goods Subject to Excise (BKC) that are entered from other place in customs area into Bonded Zone for further processed by Bonded Zone Entrepreneur or PDKB.

(4) Suspension of Import Duty, Excise exemption, free of Value Added Tax (PPN) or Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM), free of Income Tax (PPh) of Article 22 Import, are given on the entry of goods from Free Zone to be further processed and/or combined with production result in Customs Zone.

(5) To get the facilities as intended in paragraph (4) entrepreneur in Bonded Zone shall obtain permission from Free Zone Management Board.

(6) Goods as intended in paragraph (1), paragraph (2), paragraph (3), and paragraph (4), are not items to be consumed in the Bonded Zone, such as food, beverages, fuel, and lubricants."

2. Between Article 18 and Article 19 is inserted 1 (one) article, called Article 18A that is read as follow:

"Article 18A

Bonded Zone Entrepreneur and/or PDKB cannot use beginning restitution of overpayment tax as intended in:

• a. Article 17C and/or Article 17D of Law No. 6/1983 concerning General Provision and Procedure of Taxation as amended several times, the latest by Law No. 16/2009; and/or
• b. Article 9 paragraph (4c) of Law No. 8/1983 concerning Value Added Tax on the Goods and Service and Sales Tax on Luxury Goods as amended several times, the latest by Law No. 42/2009;

with their implementation regulations."

3. Provision of paragraph (1) and paragraph (2) of Article 28 shall be amended, read as follows:

"Article 28

Releasing Bonded Zone Production Results to other place in customs area shall apply following provision:

• a. For Production Results that all Raw Materials are from outside of customs area to be released to other place in customs area:
• 1. subject to Import Duty and/or Excise; and
• 2. PDRI is collected.
• b. For Production Results that some Raw Materials are from outside of customs area, to be released to other place in customs area:
• 1. subject to Import Duty and/or Excise; and
• 2. PDRI is collected.
• 3. settle Value Added Tax (PPN) and Value Added Tax (PPN) or Sales Tax on Luxury Goods (PPnBM) that are not imposed when entered to Bonded Zone as intended in Article 14 paragraph (2).
• c. for Production Results that Raw Materials are from other place in customs area, to be released to other place in customs area, settle Value Added Tax (PPN) or Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM) that are not imposed when entered to Bonded Zone as intended in Article 14 paragraph (2).

(2) The basis used to calculate the measurement of Import Duty and/or Excise, and PDRI on the releasing of Bonded Zone Production Result as intended in paragraph (1) are as follows:

• a. In case of production result is not in bad condition:
• 1) Import Duty is calculated based on:
• a) the customs value and classification at the time of import goods are entered into the Bonded Zone, and
• b) the rate at the time of customs notification of import goods to be used are registered;
• 2) Excise is calculated based on the provisions of legislation in the field of excise;
• 3) PDRI is calculated based on import value applicable at the time of import goods are entered into Bonded Area.
• b. In case of production results in damaged condition:
• 1) Import Duty is calculated based on:
• a) the customs value based on the transaction price at the releasing of goods from Bonded Zone to other places in the customs area;
• b) classification of production results that is applied when customs notification for import to be used was registered; and
• c. the rate at the time of import goods to be used are registered;
• 2) Excise is calculated based on the provisions of legislation in the field of excise;
• 3) PDRI is calculated based on the selling price.

(3) In case the production results in damaged condition as intended in paragraph (2) b, get damage or less in quality/standard quality that technically can not be repaired to reach the quality/standard quality.

(4) The value of imports as intended in paragraph (2) a number 3) is calculated by sum of the customs value at the time entered Bonded Zone plus Import Duty.

(5) Calculation of Import Duty and/or Excise, and PDRI as intended in paragraph (2), by using the Basic Value of Calculation Import Duty (NDPBM) that is stipulated by Minister at the time of payment.

(6) Delivery of goods from Bonded Area to other place in the customs area, Bonded Zone Entrepreneur or PDKB must collect Value Added Tax (PPN) or Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM), and make a tax invoice in accordance with legislation in the field of taxation.

(7) In case the rate of Import Duty for Raw Materials is higher than rate of Import Duty for production result, the based for calculation of import duty is calculated based on rate of Import Duty of production result at the time of releasing from Bonded Zone."

4. Between paragraph (5) and paragraph (6) of Article 30 is inserted 1 (one) paragraph, called paragraph (5a), so Article 30 is read as follows:

"Article 30

(1) Bonded Zone Entrepreneur or PDKB may release Raw Materials and/or rest of Raw Materials from Bonded Zone to:

• a. outside the customs area;
• b. other Bonded Zone; and/or
• c. other place in the customs area.

(2) Bonded Zone Entrepreneur or PDKB may release Raw Material for the purpose Bonded Warehouses origin of Raw Materials with the approval from the Head of Customs Office at the request of Bonded Zone Entrepreneur or PDKB.

(3) Bonded Zone Entrepreneur or PDKB may release Raw Materials and/or Rest of Raw Materials origin from outside of customs area to outside of customs area as intended in paragraph (1) a, with the approval from the Head of Customs office at the request of Bonded Zone Entrepreneur or PDKB.

(4) Bonded Zone Entrepreneur or PDKB may release Raw Materials and/or rest of Raw Materials origin from outside of customs area to other Bonded Zone and/or other industrial company in other place in customs area as intended in paragraphs (1) b and c, with the approval from the Head of Regional Office or the Head of Main Service Office at the request of Bonded Zone Entrepreneur or PDKB.

(5) Releasing of Raw Materials and/or rest of Raw Materials origin from outside of customs area to be transferred to industrial Company in other place in customs area as intended in paragraph (1) c shall pay Import Duty and/or Excise, and PDRI.

(5a) On the releasing of Raw Materials and/or Rest of Raw Materials origin from other place in customs area to be over handled to industrial company in other place in customs area as intended in paragraph (1) c, should settle Value Added Tax (PPN) or Value Added Tax (PPN) and Sales Tax on the Luxury Goods (PPnBM) when entered to Bonded Zone were not imposed Value Added Tax (PPN) or Value Added Tax (PPN) and Sales Tax on the Luxury Goods (PPnBM).

(6) The basis used to calculate rate of import duty and/or Excise, and PDRI on the releasing of Raw Materials and/or rest of Raw Materials to be transferred to industrial Company in other place in customs area as intended in paragraph (1) c, are as follows:

• a. In case of Raw Materials and/or Rest of Raw Materials not in damage condition:
• 1) Import Duty is calculated by:
• a) the customs value and classification at the time of Raw Materials and/or Rest of Raw Materials are entered into the Bonded Zone, and
• b) the rate at the time of customs notification of import goods to be used are registered;
• 2) Excise is calculated based on the provisions of legislation in the field of excise;
• 3) PDRI is calculated based on import value applicable at the time of import goods are entered into Bonded Area.
• b. In case of Raw Materials and/or rest of Raw Materials in damage condition:
• 1) Import Duty is calculated based on:
• a) the customs value based on transaction price at the time of releasing from Bonded Zone to other place in the customs area;
• b) classification at the time of import goods are entered into the Bonded Zone, and
• c) the rate at the time of customs notification of import goods to be used are registered;
• 2) Excise is calculated based on the provisions of legislation in the field of excise;
• 3) PDRI is calculated based on the selling price.

(7) Raw Materials and/or rest of Raw Materials in damaged condition as intended in paragraph (6) b, in case if they get a significant decline in quality, so it can not be processed or if been processed will produce goods which do not meet the quality/standard quality expected.

(8) The import value as intended in paragraph (6) a number 3) is obtained from the sum of the customs value at the time entered Bonded Zone plus import duty.

(9) Calculation of Import Duty and/or Excise, and PDRI as intended in paragraph (2), by using the Basic Value of Calculation Import Duty (NDPBM) stipulated by Minister in effect at the time of payment.

(10) On the releasing of Raw Materials and/or Rest of Raw Materials from outside the customs area to other place in the customs area, Bonded Zone Entrepreneur or PDKB must collect Value Added Tax (PPN) or Value Added Tax (PPN) and Sales Tax on Goods Luxury (PPnBM), and make a tax invoice in accordance with legislation in the field of taxation.

(11) Payment of payable Excise on releasing of Raw Materials and/or Rest of Raw Materials origin from outside the customs area to other places in the customs area is carried out in accordance with legislation in the field of customs.

(12) Head of Customs Office gives approval or rejection on the application as intended in paragraph (2) and paragraph (3), within 10 (ten) working days after Head of Customs Office received the complete application.

(13) Head of Regional Office or the Head of Main Service Office gives approval or rejection of the application as intended in paragraph (4), within 15 (fifteen) working days after Head of Regional Office or Head Office Main received the complete application."

5. Between Article 56 and Article 57 is inserted 1 (one) article, called Article 56A, read as follows:

"Article 56A

On the permit as Bonded Zone that was issued before Regulation of the Minister of Finance No. 147/PMK.04/2011 concerning Bonded Zone came into force, based on investigation result of Directorate General of Customs and Excise by consider number of employees, performance of the company, and risk management, can be given location and subcontract treatments in according to provisions as been governed in 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, with the following provision:

• a. for subcontract, can be given until ending of subcontract period and the latest is December 31, 2012;
• b. for location, can be given until ending of Bonded Zone permit and the latest is December 31, 2016."

6. Provision of Article 58 shall be amended as follows:

"Article 58

(1) Further provisions on:

• a. implementation of risk management in the framework of customs inspection and application of risk management for the giving facility in customs and excise;
• b. procedures of filing an application for and issuance of Bonded Zone permit;
• c. procedures for supervision and services for entry of goods into the Bonded Zone, releasing of goods from Bonded Zone, accidentally destroyed, and destruction of goods in the Bonded Zone;
• d. procedures for frozen and revocation of Bonded Zone permit, and
• e. simple examination procedure;
• f. procedure for extension of permit and stipulation of location for Bonded Zone; and
• g. procedure to give subcontract approval,
• are regulated by the Regulation of the Director General of Customs and Excise.

(2) Further provisions on:

• c. procedure to issue tax invoice on the entry of goods into Bonded Zone and release of goods from Bonded Zone; and
• d. procedure of reporting and payment of Value Added Tax (PPN) or Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM) as well as Income Tax (PPh) Article 22 Import on the releasing of goods from Bonded Zone to other place in customs area,

are regulated by the Regulation of the Director General of Tax."

Article II

This Regulation of the Minister of Finance shall come into force on February 1, 2012.

For public cognizance, this Regulation of the Minister of Finance shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on December 28, 2011
MINISTER OF FINANCE.
signed,
AGUS D. W. MARTOWARDOJO