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REGULATION OF THE MINISTER OF FINANCE
No. 44/PMK.04/2012

CONCERNING
SECOND AMENDMENT TO THE REGULATION OF THE MINISTER OF FINANCE No. 147/PMK.04/2011 CONCERNING BONDED ZONE AS AMENDED BY REGULATION OF THE MINISTER OF FINANCE No. 255/PMK.04/2011

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

Considering:

a. that to anticipate global economic development impacts and to give enough transition period for Bonded Zone entrepreneurs to match business process and follow provisions in Bonded Zone regulation, it is necessary to improve Regulation of the Minister of Finance No. 147/PMK.04/2011 concerning Bonded Zone as amended by Regulation of the Minister of Finance No. 255/PMK.04/2011;

b. that based on consideration as intended in paragraph a, it is necessary to stipulate Regulation of the Minister of Finance concerning Second Amendment to the Regulation of the Minister of Finance No. 147/PMK.04/2011 concerning Bonded Zone as amended by Regulation of the Minister of Finance No. 255/PMK.04/2011;

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 as amended by Regulation of the Minister of Finance No. 255/PMK.04/2011;

DECIDES:

To stipulate:

REGULATION OF THE MINISTER OF FINANCE CONCERNING SECOND AMENDMENT TO THE REGULATION OF THE MINISTER OF FINANCE No. 147/PMK.04/2011 CONCERNING BONDED ZONE AS AMENDED BY REGULATION OF THE MINISTER OF FINANCE No. 255/PMK.04/2011

Article I

Several provisions in Regulation of the Minister of Finance No. 147/PMK.04/2011 concerning Bonded Zone as amended by Regulation of the Minister of Finance No. 255/PMK.04/2011 shall be amended as follows:

1. Provision in Article 1 paragraph 10 shall be amended, so Article 1 is read as follows:

"Article 1

In this Regulation of the Minister of Finance:

1. Customs Law is Law No. 10/1995 concerning Customs as amended by Law No. 17/2006.

2. Excise Law is the Law No. 11/1995 concerning Excise as amended by Law No. 39/2007.

3. Bonded Piling Place is a building, place, or zone that meets specified requirements that is used to pile goods for specific purposes by obtaining suspension of Import Duty.

4. Bonded Zone is Bonded Piling Place to pile imported goods and/or goods originating from other place in the customs area to be processed or combined, the result is mainly for export.

5. Bonded Zone Operator is legal entity that performs activities to prepare and manage area for Bonded Zone management activities.

6. Bonded Zone Entrepreneur is a legal entity conducting Bonded Zone management.

7. Entrepreneur in Bonded Zone also acts as Operator at Bonded Zone hereinafter abbreviated as PDKB, is a legal entity conducting Bonded Zone operation activities in the Bonded Zone of Bonded Zone Operator that has different legal status.

8. Processing activities are activities of:

• a. processing goods and materials with or without auxiliary materials become ending products with higher added value, including change of characteristics and functions; and/or
• b. cultivation of flora and fauna.

9. Combining activity is combining product results of the Bonded Zone production as main product with other finished goods from import, from other Bonded Zone, and/or from other places in customs area.

10. Capital goods are goods that are used by the Bonded Zone Operator, Bonded Zone Entrepreneur or PDKB in the form of:

• a. equipment for construction, expansion, or construction of Bonded Zone;
• b. machine;
• c. factory equipment; and
• d. molding:
• include spare parts, exclude raw materials and tools for construction, expansion, or construction of Bonded Zone.

11. Raw materials are goods and materials that will be processed become finished products that have a higher using value.

12. Auxiliary materials are materials other than raw materials that are used in Production Activities or Combining Activities that help production process.

13. Rest of Raw Materials are Raw Materials remaining that are no longer used in the production process

14. Bonded Zone Production Result is result of Production Activities or Combining Activities according to the decision on the granting license as Bonded Zone.

15. Free Trade Zone and Free Port, hereinafter called Free Zone, is a zone located in the jurisdiction of the Republic of Indonesia that is separate from customs area, so free from imposition of import duty, Value Added Tax (PPN), Sales Tax on Luxury Goods (PPnBM), and Excise.

16. Tax in Import hereinafter abbreviated as PDRI is a Value Added Tax (PPN), Sales Tax on Luxury Goods (PPnBM), and/or Income Tax (PPh) of Article 22 Import.

17. Person is an individual or legal entity.

18. Minister is the Minister of Finance of the Republic of Indonesia.

19. Director General is the Director General of Customs and Excise.

20. Regional Office or Main Service Office is Regional Office or Main Service Office within Directorate General of Customs and Excise environment where customs obligations are fulfilled in accordance with the Customs Law and Excise Law.

21. Customs Office is an office within the Directorate General of Customs and Excise environment where customs obligations are fulfilled in accordance with the Customs Law and Excise Law.

22. Customs and Excise official is employee of the Directorate General of Customs and Excise who is appointed in certain positions to carry out certain tasks.

23. Customs and Excise officer is employee of the Directorate General of Customs and Excise who has duties in the Bonded Zone.

24. Free Zone Management Board is Free Trade and Free Port Zone Management Board."

2. Between Article 24 and Article 25 is inserted 1 (one) article, it is called Article 24A, read as follows:

"Article 24A

(1) Approval to enter capital goods in the form of factory equipment and/or spare parts of capital goods is given by Head of Regional Office or Head of Main Service Office on the request of Bonded Zone Entrepreneur or PDKB.

(2) Approval to enter capital goods in the form of factory equipment and/or spare parts of capital goods as intended in paragraph (1) is given by consider respect level of company, relation of entry goods with production activities, and reasonableness of the quantity of capital goods are entered."

3. Provision of Article 32 paragraph (1) and paragraph (3) shall be amended, so Article 32 is read as follows:

"Article 32

(1) Capital Goods from imported in the Bonded Area of outstanding obligations on the payment of import duty may be released by the purpose of:

• a. re-export, with the approval of the Head of Customs Office;
• b. transferred to another Bonded Zone with following conditions:
• 1) after 2 (two) years since imported and has been used in the concerned Bonded Zone, with approval from Head of Customs Office;
• 2) before 2 (two) years since imported and/or not been used yet in the concerned Bonded Zone by attention to the reason of transfer with approval from Head of Customs Office or Head of Main Service Office.
• c. transferred to other places in the customs area before 4 (four) years since imported or entered for use in the origin Bonded Zone, and has been used in the concerned Bonded Zone for 2 (two) years with the approval of the Head of the Regional Office or Head of the Main Service Office with the following provisions:
• 1) payment of import duty is calculated based on:
• a) the customs value and classification in effect at the time of import goods are entered into the Bonded Zone, and
• b) the rate at the time of import customs notification to be used is registered;
• 2) payment of PDRI is calculated based on import value applicable at the time of import goods are entered into the Bonded Zone;
• 3) on the delivery of goods from Bonded Zone to other places 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.
• d. transferred to other place within customs area after 4 (four) years since imported or since entered to be used in origin Bonded Zone, and already used in Bonded Zone at least for 2 (two) years, after get approval from the Head of Regional Office or the Head of Main Service Office with following provisions:
• 1) get exemption of import duty, by file application to the Head of Regional Office or the Head of Main Service Office; and
• 2) on the delivery of goods from Bonded Zone to other places 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.

(2) The value of imports as intended in paragraph (1) c 2) is sum of the customs value at the entry time to Bonded Zone plus Import Duty.

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

4. Provision of Article 39 paragraph (1) and paragraph (2) shall be amended, so Article 39 is read as follows:

"Article 39

(1) Bonded Zone Entrepreneur or PDKB can:

• a. give subcontract work of a part of Processing Activities to other Bonded Zone Entrepreneur of PDKB and/or to industrial company in other place within customs area and/or
• b. receive subcontract work from other Bonded Zone or PDKB and industrial company in other place within customs area.

(2) Initial inspection or sorting and final inspection or packaging of the subcontract work as intended in paragraph (1) a, should be conducted in the concern Bonded Zone.

(3) Subcontract work as intended in paragraph (1) shall be based on subcontracting agreement.

(4) Subcontract work as intended in paragraph (1) performed after obtaining approval from the Head of Customs Office.

(5) In the framework of subcontract work as intended in paragraph (1) a, Bonded Zone Entrepreneur or PDKB can lend production machinery and molds to subcontractor.

(6) on the releasing of goods and/or materials in the framework of subcontract as intended in paragraph (1) and/or production machinery and molds as intended in paragraph (5), to company/business entity in other place within customs area, Bonded Zone Entrepreneur or PDKB must submit a guarantee.

(7) Value of guarantee should be submitted as intended in paragraph (6), based on a subcontracting Agreement as intended in paragraph (3)."

5. Provision of Article 56A shall be amended, so Article 56A is read as follows:

"Article 56A

(1) On the permit as Bonded Zone that was issued before this Ministerial Regulation is effective that not fulfill location requirements in industrial zone or cultivation zone as intended in Article 4, it can be extended until December 31, 2016, and provisions as intended in Article 4 are not applied if fulfill following criteria:

• a. obedient rate of company;
• b. has low risk rate; and
• c. does not have account payable or obligation in customs.

(2) On the Bonded Zone Entrepreneur or PDKB already obtain permit before effective of Regulation of the Minister of Finance No. 147/PMK.04/2012 concerning Bonded Zone, following provisions shall applied:

• a. On the transfer of capital goods from Bonded Zone to other place within customs zone that were imported before effective of Regulation of the Minister of Finance No. 147/PMK.04/2011 concerning Bonded Zone, is still applied provisions on the transfer in according Decree of the Minister of Finance No. 291/KMK.05/1997 concerning Bonded Zone as already amended several times, the latest by Regulation of the Minister of Finance No. 101/PMK.04/2005.
• b. Limit of releasing Bonded Zone Production Result to other place within customs area for the goods are still need further process, cannot be functioned without other goods as auxiliary goods, and/or cannot be directly used by ending consumers (intermediate goods), applied provisions in according to Decree of the Minister of Finance No. 291/KMK.05/1997 concerning Bonded Zone as already amended several times, the latest by Regulation of the Minister of Finance No. 101/PMK.04/2005 until December 31, 2014.

(3) To get approval for transfer of capital goods as intended in paragraph (2) a and selling production result to other place within customs area as intended in paragraph (1) b, Bonded Zone Entrepreneur of PDKB shall file application to the Director General.

(4) After check application as intended in paragraph (3), Director General may give approval or rejection."

7. Provision of Article 58 shall be amended, so Article 58 is read 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;
• e. simple examination procedure;
• f. procedure for extension of permit and determination of location for Bonded Zone; and
• g. subcontract procedure
• will be governed by Regulation of the Director General of Customs and Excise.

(2) Further provisions on:

• a. procedure to issue tax invoice on the entry of goods into Bonded Zone and releasing of goods from Bonded Zone; and
• b. procedure of reporting and payment of Value Added Tax (PPN) or Value Added Tax and Sales Tax on the Luxury Goods (PPnBM) as well as Income Tax (PPh) Article 22 Import on the releasing of goods from Bonded Zone to other place within customs area,
• will be governed by Regulation of the Director General of Tax."

Article II

This Ministerial Regulation shall come into force on the date of promulgation.

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 March 16, 2012
MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA.
signed,
AGUS D. W. MARTOWARDOJO