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REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. PER-15/BC/2012

CONCERNING
PROCEDURE OF RETURNING OF PAID IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO BE PROCESSED, MANUFACTURED, OR COMBINED ON OTHER GOODS TO BE EXPORTED

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Attachment

Considering:

That in the framework to implement provision in Article 27 of Regulation of the Minister of Finance No. 253/PMK.04/2011 concerning Returning of Paid Import Duty on the Import of Goods and Materials to be Processed, Manufactured, or Combined on other goods to be Exported, it is necessary to stipulate Regulation of the Director General of Customs and Excise concerning Procedure of Returning of Paid Import Duty on the Import of Goods and Materials to be Processed, Manufactured, or Combined on other goods to be Exported;

In view of:

1. Law No. 10/1995 concerning Customs (Statute Book of the Republic Indonesia No. 75/1995, Supplement to Statute Book No. 3612), as amended by Law No. 17/2006 (Statute Book of the Republic Indonesia No. 93/2006, Supplement to Statute Book No. 4661);

2. Regulation of the Minister of Finance No. 253/PMK.04/2011 concerning Returning of Paid Import Duty on the Import of Goods and Materials to be Processed, Manufactured, or Combined on other goods to be Exported;

DECIDES:

To stipulate:

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE CONCERNING PROCEDURE OF RETURNING OF PAID IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO BE PROCESSED, MANUFACTURED, OR COMBINED ON OTHER GOODS TO BE EXPORTED.

CHAPTER I
GENERAL PROVISIONS

Article 1

In this Regulations the Director General:

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

2. Import is activities to enter goods into the customs area.

3. Export is activities to release goods from the customs area.

4. Returning is returning of settled Import duty on the Import of goods and materials to be processed, manufactured, or combined on other goods to be exported.

5. Company gets Returning hereinafter called as Company is business entity that gets Returning.

6. Returning Company Number hereinafter abbreviated as Returning NIPER is identity number that is given to the Company that get Returning.

7. Raw Materials are goods and/or materials that are imported to be processed, manufactured, or combined on other goods that can get Returning.

8. Conversion is a written statement of the Company on the composition to use Raw Materials for each unit of Production Result.

9. Production Result is the result of processing, assembling, or installation of Raw Materials Import origin that can be given Returning.

10. Export Realization is Export of Production Results of processing Raw Materials.

11. Use of Raw Materials Report is data of import customs notification of Raw Materials that will be used to make Production Results.

12. Export Inspection Report hereinafter abbreviated as LPE is report of customs inspection result on the exported goods with Returning facility, issued by the Customs Office where the loading after the reconciliation.

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

14. Regional Office or KPU is the Regional Office or the Main Service Office within the Directorate General of Customs and Excise environment.

15. Customs Office is the office within the Directorate General of Customs and Excise where the fulfillment of customs obligation in accordance with provisions of Customs Law.

16. Customs and Excise Officials is employee of the Directorate General of Customs and Excise in certain positions appointed to perform certain tasks based on the Customs Law.

Article 2

(1) Import Raw Materials to be processed, manufactured, or combined on other goods to be exported that import duty already paid can be given Returning.

(2) The meaning of processed as intended in paragraph (1) is a group of activities consist of one phase of activities to change characteristic and function of Raw Materials, become good of Production Result that has value added.

(3) The meaning of manufactured as intended in paragraph (1) is activities to install several materials and/or goods components to make Production Result or equipment/goods that has different function with beginning Raw Materials and/or components.

(4) The meaning of combined as intended in paragraph (1) activities to make unity of several components of materials and/or goods at main part of finished goods where without make unity of those materials and/or goods component, Production Result cannot be functioned.

(5) Exclude in the meaning of processed as intended in paragraph (2) is activities just to cut, sort, pack, labeling, and/or such kind of activities.

(6) Returning as intended in paragraph (1) is not provided on the Raw Materials in the form of:

• a. goods are used up in production processes, such as fuel, and/or
• b. auxiliary materials are used in the production process that are not an integral part of the production results of such a catalyst, sandpaper, antibiotics and other similar materials.

CHAPTER II
REQUIREMENTS FOR APPLICATION, DETERMINATION, AND DATA CHANGING OF RETURNING NIPER

Part One
Requirements To Apply Returning NIPER

Article 3

(1) Returning as intended in Article 2 paragraph (1) can be given to business entity that has obtained Returning NIPER.

(2) To obtain Returning NIPER as intended in paragraph (1), business entity must meet the following requirements:

• a. has a good reputation;
• b. has no outstanding debt/debt has not paid until the maturity date, on the duty and tax in the framework of import and/or administrative sanction in the form of fine;
• c. does the processing, assembly, and/or installation at other items as intended in Article 2 that its products for export purposes;
• d. owns or controls of the location for production activities, the piling and/or unloading place of Raw Materials, and piling place of Products that is still valid at least 3 (three) years from receipt date of the application;
• e. keeps bookkeeping under general accounting principles that is accepted in Indonesia;
• f. has the latest 1 (one) year financial statements, audited by a public accounting office with audit result state that the business entity does not have a disclaimer or adverse opinion, and
• g. uses computer based information system for using of Raw Materials in its production process that can be accessed for inspection by the Directorate General of Customs and Excise.

(3) Requirements to has a good reputation as intended in paragraph (2) a, is a business entity has at least medium risk importer profile.

(4) To obtain Returning NIPER as intended in paragraph (1), business entity applies to the Head of the Regional Office or Head of KPU that has working area which is overseeing the location of the business entity’s factory, by filling complete application letter for Returning NIPER and attaches:

• a. copy of customs identification numbers;
• b. copy of ownership or control of the location for production activities, the piling and/or unloading place of Raw Materials, and piling place of Products that is still valid at least 3 (three) years from receipt date of the application;
• c. copy of industrial license and changing thereto;
• d. list of business entities receiving subcontracts, and letters of agreements/contracts with business entities receiving subcontracts, in case of business entity does subcontracting activities;
• e. list of Products will be produced and the details of Raw Materials;
• f. a statement on the production period and flowchart of production process;
• g. sealed statement that states has no outstanding debt/debt has not paid until the maturity date on the duty and tax in the framework of the import and/or administrative sanction in the form of fine;
• h. print screen of manual of computer based information system for managing the use of Raw Materials in the production process of the relevant business entity that is accessible for inspection by the Directorate General of Customs and Excise, which contains data elements such as:
• 1. flow of Raw Materials entry;
• 2. flow of using Imported Raw Materials and other place in customs area origin Raw Materials, in the production process;
• 3. flow of Products releasing;
• 4. identification/coding of Raw Materials from Import origin (facility/non facility) and from other place in the customs area;
• 5. identification/coding of products, and
• 6. relationship between entry of Raw Materials, used Raw Materials and releasing of products in the form of conversion, and
• i. last one year financial statements that are audited by public accounting office with audit result state the business entity is not a disclaimer or adverse opinion.

(5) In case business entity has more than 1 (one) factory locations, application to obtain Returning NIPER is to Head of Regional Office or KPU yang supervises factory location that has the highest import activities.

(6) Application for Returning NIPER as intended in paragraph (4) is in according to the sample form as stated in Attachment I that is an integral part of this Regulation of the Director General.

Part Two
Determination of Returning NIPER

Article 4

(1) On the application from business entity as intended in Article 3 paragraph (4), the Head of the Regional Office or Head of KPU or appointed Customs and Excise official:

• a. receives and examines the application documents and their attachments to the application of business entity’s data as intended in Article 3 paragraph (4);
• b. gives receipt of Returning NIPER application in case of it is complete in administrative checking as intended in paragraph a, or gives rejection letter of the returning NIPER application documents in case in administration checking it is incomplete;
• c. conduct administration checking related with:
• 1. periods of control for production activities location, piling place and/or unloading place of Raw Materials. Production results piling place, and unloading place of Raw Materials are still valid at least 3 (three) years since received the application;
• 2. match between the industrial business permit with lists of Production result and Raw Materials used;
• 3. match between the print screen or the manuals for the management of the use of Raw Materials in the production process with a computer based information system as intended in Article 3 paragraph (4) h;
• 4. public accounting firm opinion on the financial statements as intended in Article 3 paragraph (4) i;
• 5. match between production period with the production process flow chart;
• 6. match between subcontract receiving business entities with subcontract agreement in case of a business entity subcontracting activities;
• 7. subcontracting agreements relating to subcontracted production process activities that are not a major activities in terms of a business entity subcontracting activities; and
• 8. match between the subcontracted production processes with business entities field of receiving subcontracts business entity in term of a business entity subcontracting activities.
• d. issue a field checking assignment to the Customs and Excise Official appointed to conduct a field checking;
• e. able to coordinate with the Regional Office or other KPU in conducting field checking in terms of location of production activities, the places of piling and/or unloading of Raw Materials, Production Results piling place, and/or subcontracted receiving business entity is in outside of the supervision of the Regional Office or the KPU;
• f. receive and examine the results of the field checking in the form of a field checking report of the officials as intended in the paragraph d; and
• g. to confirm to the Directorate of Enforcement and Investigation related to:
• 1. importer profile status, and
• 2. Blocking status of the said business entity.

(2) Head of Regional Office or Head of KPU issued a decision of Returning NIPER in case of the application is approved no later than 45 (forty five) working days from receipt of the application, or make rejection letter accompanied by the reasons in case of the application is rejected.

(3) Customs and Excise Official who is appointed to conduct field checking as intended in paragraph (1) d:

• a. receive an assignment letter from the Head of the Regional Office or Head of KPU to conduct a field checking of:
• 1. location of production activities, piling place of Raw Materials, piling place of Production Results;
• 2. location where the unloading and/or piling of Raw Materials is different from the location of production activities, unloading and/or piling of Raw Materials, and/or the Production Results piling place;
• 3. location of business entity receiving subcontract, in terms of business entity subcontracting activities;
• 4. activities of processing, assembling, and/or installation of Raw Materials on other goods, and
• 5. match between the print screen or the manual for the management of the use of Raw Materials in the production process with a computer-based information system as intended in Article 3 paragraph (4) h,
• b. write the results on the minutes of field checking, and
• c. submit an official report to the Head of the Regional Office or the Head of the KPU or a appointed official.

(4) Receipt/rejection of the application file Returning NIPER as intended in paragraph (1) b, is in according to the sample form as stated in Attachment II that is an integral part of this Regulation of the Director General.

(5) Minutes as intended in paragraph (3) b, is in according to the sample form as stated in Attachment III that is an integral part of this Regulation of the Director General.

(6) Decision of Returning NIPER as intended in paragraph (2), is in according to the sample form as stated in Attachment IV that is an integral part of this Regulation of the Director General.

(7) Letter of rejection of application for Returning NIPER as intended in paragraph (2), is in according to the sample form as stated in Attachment V that is an integral part of this Regulation of the Director General.

Part Three
Changing of Returning NIPER data

Article 5

(1) In case of any change to data in the Returning NIPER, the Company must apply to the Head of Regional Office or Head of KPU the publisher Returning NIPER to make change of Returning NIPER data.

(2) Change the data of Returning NIPER as intended in paragraph (1) should be filed for application on the changed related with:

• a. corporate entities;
• b. the Company's existence such as change of location, and/or size;
• c. location of unloading and/or piling of Raw Materials;
• d. subcontracting activities; and/or
• e. industrial permit.

(3) Application for changing of Returning NIPER data as intended in paragraph (1) shall be accompanied by a document data changed as intended in paragraph (2).

(4) On the Returning NIPER data change application as intended in paragraph (1), Customs and Excise Official:

• a. received the application and the attachments;
• b. check the completeness and match of the application and attachments; and
• c. conduct field checking in terms of the change as intended in paragraphs (2) b and c;

(5) The Head of Regional Office or Head of KPU of Returning NIPER publisher on behalf of the Minister issued a decree Returning NIPER data changes in the application data changes Returning NIPER approved, or issuing a notice of rejection and the reasons, in case the application is rejected Returning NIPER data changes.

(6) Decision of Returning NIPER data changes as intended in paragraph (5) According to the sample form is as Stated in Attachment VI that is an integral part of this Regulation of the Director General.

CHAPTER III
IMPORT, CUSTOMS EXAMINATION, PROCESSING, ASSEMBLING, AND/OR INSTALLATION OF RAW MATERIALS, SUBCONTRACTING, AND EXPORT OF PRODUCTION RESULTS

Part One
Import Raw Materials

Article 6

On the Import Raw Materials will be filed the application for Returning apply the general provisions in the field of import, including provisions governing the Import prohibition and/or restrictions.

Article 7

On the Import Raw Materials will be filed the application for Returning as intended in Article 6, the Company must submit customs notification document with the following conditions:

• a. put Returning NIPER at the Import facility compliance column; and
• b. pay Import Duty with Import Duty Revenue Account in the framework of Returning Facility.

Article 8

(1) The Company shall unload and/or the pile Raw Materials from customs zone to the location listed in Returning NIPER by use import customs notification documents as intended in Article 7.

(2) The Company may conduct unloading and/or piling in other location than as intended in paragraph (1) after get approval by the Head of Regional Office or Head of KPU of Returning NIPER publisher.

(3) To obtain approval of unloading and/or piling in other location than as intended in paragraph (2), the Company files an application to the Head of Regional Office or Head of KPU of Returning NIPER publisher.

(4) If the application as intended in paragraph (3) is approved, the Head of Regional Office or Head of KPU of Returning NIPER publisher issues approval for unloading and/or pile in a location other than listed in the Returning NIPER.

(5) If the application as intended in paragraph (3) is not approved, the Head of Regional Office or Head of KPU of Returning NIPER publisher issues a rejection notification with the reasons.

(6) Approval for unloading and/or piling at the place as intended in paragraph (4) is only valid for 1 (one) unloading and/or piling.

(7) In case of unloading and/or piling is in the location as intended in paragraph (2) will be used permanently and/or repeatedly, the Company shall submit the data changes in the Returning NIPER.

(8) Letter of approval for the unloading and/or piling in the location other than that listed in Returning NIPER as intended in paragraph (4), is in according to the sample form as stated in Attachment VII that is an integral part of this Regulation of the Director General.

Part Two
Processing, Assembly, and/or Installation of Raw Materials and Subcontracts

Article 9

(1) The processing, assembly, and/or installation of Raw Materials on other goods as intended in Article 3 paragraph (2) c, shall be conducted by the Company.

(2) The Company may provide subcontract a part of the activities of processing, assembly, and/or installation of Raw Materials as intended in paragraph (1) to industrial business entity located in Returning NIPER with the following requirements:

• a. subcontracted work is not a major activity in the production process, and
• b. subcontracted work is not an initial inspection, sorting, packing, and/or final inspection.

(3) In case of subcontracts made by industrial business entity that is not listed in the Returning NIPER, the Company shall file application to the Head of Regional Office or Head of KPU of Returning NIPER publisher for approval.

(4) In case of subcontracting as intended in paragraph (3) will be performed permanently and/or repeatedly, the Company shall file subcontracting data changes in the Returning NIPER.

(5) In giving approval of subcontracting as intended in paragraph (3), the Head of Regional Office or Head of KPU of Returning NIPER publisher consider:

• a. subcontract agreement period, and
• b. type of work will be subcontracted,

(6) On the application as intended in paragraph (3), the Head or Regional Office or Head of KPU of Returning NIPER publisher give approval or rejection within 15 (fifteen) working days period since receives of the complete application.

(7) If the application as intended in paragraph (3) is approved, the Head of Regional Office or Head of KPU of Returning NIPER publisher issued a letter of approval.

(8) If the application as intended in paragraph (3) is not approved, the Head of Regional Office or Head of KPU of Returning NIPER publisher issued a letter of rejection with the reasons.

(9) Letter of application for subcontract as intended in paragraph (3), is in according to the sample form as stated in Attachment VIII that is an integral part of this Regulation of the Director General.

(10) Letter of approval as intended in paragraph (7), is in according to the sample form as stated in Attachment IX that is an integral part of this Regulation of the Director General.

Part Three
Export Production Results

Article 10

(1) Export Production Results will be filed for Returning as intended in Article 2 paragraph (1) applies the provisions of the customs procedures in export and carried out customs checking based on risk management.

(2) Production Results of the Company other than for export purposes as intended in paragraph (1) can not be used as responsibility for export settlement.

CHAPTER IV
REPORTING AND RETURNING

Part One
Reporting

Article 11

(1) The company must submit:

• a. Use of Raw Materials Report which includes data of import customs notification as intended in Article 7 on the Raw Materials that will be used to produce Production Results; and
• b. The conversion per unit of Production Result, before producing Production Results that will be asked for Returning.

(2) Conversion as intended in paragraph (1) b shall be submitted in hard copy and soft copy (electronic data storage media) and shall include the data elements at least:

• a. identity of Company in the form of company's name and Returning NIPER number;
• b. importation period;
• c. original plan of production and the production period;
• d. Conversion number;
• e. The details of Production Results, Raw Materials and consumption coefficient of Raw Materials per unit of Production Result, and
• f. details of the percentage using Raw Materials in Production Result and the remaining percentage of the production process (waste/scrap).

(3) On the submission of Using Raw Materials Reports and Conversion as intended in paragraph (1) Customs and Excise official:

• a. receives the file; and
• b. issues receipt of documents in case documents is stated complete or issues rejection letter in case application documents are not complete.

(4) Customs and Excise official examined the reasonableness of Conversion on the conversion that has been received.

(5) Conversion as intended in paragraph (4), considered reasonable in case of the conversion is the basis for the use of Raw Materials on computer based information system as intended in Article 3 paragraph (2) g which is authorized by the manager of the Company.

(6) In case of the results of examination of conversion that is submitted by the Company is considered unreasonable, Customs and Excise Official may request approval of conversion to the related technical agency or professional agency recognized by the relevant technical agency and any fee incurred due to request for legalization of Conversion is charged to the Company.

(7) On the result of examination of reasonableness Conversion as intended in paragraph (4), Customs and Excise official issues:

• a. receipt of Conversion in case the result of Conversion examination is reasonable or Conversion has been legalized by related technical agency or from professional agency authorized by related technical agency; or
• b. letter of rejection in case of Conversion examination result is considered unreasonable.

(8) In case of conversion has been getting a receipt as intended in paragraph (7) a, Customs and Excise official enters (loading) the Conversion on service computer system of Returning facility.

(9) Using of Raw Materials report as intended in paragraph (1) is in according to the sample form as stated in Attachment X that is an integral part of this Regulation of the Director General.

(10) Conversion as intended in paragraph (1) b is in according to the sample form as stated in Attachment XI that is an integral part of this Regulation of the Director General.

Part Two
Terms of Returning

Article 12

(1) Returning may be given to all or part of pain import duties on imported Raw Materials that their products have been exported.

(2) Returning as intended in paragraph (1) is given for the import duty of Raw Materials contained in the Production Results that have been exported.

(3) Returning may be given while fulfilling the following criteria:

• a. The results of the using of Raw Materials that is applied for Returning obviously been exported by submitted export customs notification;
• b. Exports as intended in paragraph a shall be in period of:
• 1. within 12 (twelve) months from the date of registration of import customs notification documents; or
• 2. after the period as intended in paragraph 1 in case of the company has more than 12 (twelve) months production period on the Raw Materials were imported after obtaining permit from the Head of Regional Office of Head of KPU of Returning NIPER publisher,
• c. import duty on the imported Raw Materials of Production Results were exported as intended in paragraph a already settled with proof of payment by using Import Duty Revenue Account in the framework of Returning Facility;
• d. has submitted Reports of Raw Material Usage and Conversion of each unit Production Result as intended in Article 11;
• e. application for return import duty is filed within a period of 6 (six) months from the date of LPE;
• f. the date of import customs notification as intended in Article 7 is not in Returning NIPER freezing period, and
• g. has no payable outstanding import duty.

Part Three
Application for Returning

Article 13

(1) To get Returning as intended in Article 2 paragraph (1), the Company files application for Returning to Head of Regional Office or Head of KPU of Returning NIPER publisher, accompanied with reports on the using of Raw Materials which are asked for Returning (BCL.KT 02) by attaching:

• a. Using of Raw Materials Report list are applied for Returning;
• b. import customs notification that has been approved by the Customs and Excise Official;
• c. proof of payment of import duties which use Import Duty Revenue Account in the framework of Returning Facility;
• d. Export documents in the form of:
• 1. export customs notification that has received approval of export;
• 2. Export approval from Customs and Excise Official, and
• 3. LPE from the Customs Office of export goods loading;
• e. a copy of the receipt of export transaction in the form of accounts receivable ledger, letters of credit, bank accounts, telegraphic transfers, and/or documents proving the existence of export transactions, and
• f. a list of the Converting for uses of Raw Materials that are asked Returning as intended in Article 11.

(2) The provisions as intended in paragraphs (1) b and d 1 do not apply to companies that conduct import and export goods through the Customs Office has implemented the provisions of the Electronic Data Exchange (PDE).

(3) In case of the Company Import and Export through the Customs Office has not applied the provisions of the Electronic Data Exchange (PDE), import customs notification as intended in paragraph (1) b is submitted when the application was submitted on the first Returning for the import customs notification.

(4) On the application for Returning as intended in paragraph (1), Customs and Excise Official:

• a. receives application for Returning documents; and
• b. check the completeness of the document as intended in paragraph (1).

(5) In case of application documents of Returning are received completely, Customs and Excise Officers gives a receipt.

(6) In case of application documents of Returning are not received completely, Customs and Excise Official return application documents o the Company by stating the reasons.

(7) Application for Returning as intended in paragraph (1) is in according to the sample form is as stated in Attachment XII that is an integral part of this Regulation of the Director General.

(8) Report of the using Raw Materials are asked for Returning (BCL.KT 02) as intended in paragraph (1) is in according to the sample form is as stated in Attachment XIII that is an integral part of this Regulation of the Director General.

Part Four
Examination for Application for Returning

Article 14

(1) On the application for Returning that is applied by the Company as intended in Article 13, Customs and Excise Official:

• a. examines the suitability and completeness of the document as intended in Article 13 paragraph (1);
• b. examines the suitability of the application for Returning and report of the using of Raw Materials are asked for Returning (BCL.KT 02) with the Using of Raw Materials Report and Conversion as intended in Article 11 paragraph (1) with:
• 1. compare types of Raw Materials are imported to the type of Raw Materials used in production;
• 2. comparing the amount of using Raw Materials with number of Production Results and the rest of the production process (waste/scrap) based on the conversion; and
• 3. comparing the number and type of production results in the application for returning with the number and type of production results in export customs documents,
• c. examines requirements for Returning as intended in Article 12 related with:
• 1. fulfillment of Export period requirement;
• 2. reasonable period between the registration number date of import customs notification document, production period and registration number of export customs notification documents, and
• 3. reasonable period between the delivery date of the Using Raw Materials Report with the date of export customs notification;
• 4. registration date of import customs notification that is asked for Returning is no in freezing period.
• d. examines the suitability of the completion of Raw Materials at the application for Returning and reports of the use of Raw Materials that is asked for Returning (BC.LKT 02) with the export customs notification, and
• e. checks Realization of Export based on the evidence of export transactions based on risk management.

(2) Application for Returning as intended in Article 13 paragraph (1) will be processed within a maximum period of 30 (thirty) working days from the date of receipt of application for Returning.

(3) If the request as intended in Article 13 paragraph (1) is approved, the Head of the Regional Office or the KPU issuing Returning NIPER issues Determination on the Payment Returning Import Duty Facility (SKP.FPBM) as the basis for issuance of Order for Payment Back Returning Import Duty Facility.

(4) If the application as intended in Article 13 paragraph (1) is rejected, the Head of the Regional Office or the KPU issuing Returning NIPER submits rejection letter by mention the reasons for rejection.

(5) Determination on the Payment Returning Import Duty Facility (SKP.FPBM) as intended in paragraph (3) is in according to the sample form is as stated in Attachment XIV that is an integral part of this Regulation of the Director General.

Part Five
Re-submission (Re-Loading)

Article 15

(1) In case result of checking as intended in Article 14 paragraph (1) there is:

• a. error to fill date and/or the number of application documents for import customs notification, the date and/or registration number of the customs import notification document, number and date of export customs notification, HS classification, unit, code of Raw Material, Production Result code, number of Raw Materials, the amount Production Results and the number and/or date of LPE, and/or
• b. Conversion number that is attached not in accordance with the application for Returning, Customs and Excise Official confirms to the Company by sending a notification through electronic media or electronic mail.

(2) In case of the confirmation as intended in paragraph (1) prove the existence of errors are not significant, such as typing error or the like, the Company can re-submit (re-loading);

(3) Re-submission (re-loading) application for Returning as intended in paragraph (2) shall be re-filed within a period of 7 (seven) working days from the date of notification.

(4) In case of in re-submission (re-loading) application for Returning as intended in paragraph (2) exceed a period as intended in paragraph (3), checking application for Returning based on data that are not requested confirmation.

Article 16

(1) The original Determination on the Payment Returning Import Duty Facility (SKP.FPBM) as intended in Article 14 paragraph (3) is submitted to the company concerned, and made a copies Determination on the Payment Returning Import Duty Facility (SKP.FPBM) to:

• a. local State Treasury Services Office (KPPN);
• b. Directorate of Customs and Excise Revenue and Regulations, Directorate General of Customs and Excise;
• c. Customs Office or KPU, where fulfillment import customs obligations, and
• d. Regional Office or KPU the publisher Returning NIPER.

(2) Submission of copy of Determination on the Payment Returning Import Duty Facility (SKP.FPBM) to local State Treasury Service Office (KPPN) as intended in paragraph (1) a is delivered through the Customs Office or KPU where fulfillment import customs obligations to be filed together with application for Order for Payment Back Returning Import Duty Facility.

Part Six
Terms of Returning Payment

Article 17

(1) Based on Determination on the Payment Returning Import Duty Facility (SKP.FPBM) as intended in Article 14 paragraph (3), the Company files application for payment Returning Import Duty to Customs Office or KPU where fulfillment import customs obligations.

(2) Based on the Company's application as intended in paragraph (1), Head of Customs Office or KPU or appointed officer checks Determination on the Payment Returning Import Duty Facility (SKP.FPBM) that is submitted by Company with copy of Determination on the Payment Returning Import Duty Facility (SKP.FPBM) that is submitted by the Head of Regional Office or Head of KPU of Returning NIPER publisher.

(3) In case checking result as intended in paragraph (2) is match, the Head of Customs Office or the KPU or a appointed official issues Order for Payment (SPP).

(4) In case checking results as intended in paragraph (2) there is a mismatch, the Head of Customs Office or KPU to confirm to the Head of Regional Office or Head of KPU of Returning NIPER publisher.

(5) In case of the confirmation as intended in paragraph (4), the Head of the Regional Office or Head of KPU of Returning NIPER publisher states Determination on the Payment Returning Import Duty Facility (SKP.FPBM) is a mismatch; Head of Customs Office of KPU submits a letter of notification of rejection.

(6) Based on the Letter of Order for Payment (SPP) as intended in paragraph (3), Head of Customs Office or KPU or a appointed official issues Order for Payment Back Returning Import Duty Facility in 5 (five) copies for:

• a. first sheet and second sheet for State Treasury Services Office (KPPN);
• b. third sheet for the Company;
• c. fourth sheet for the Regional Office of the publisher of Determination on the Payment Returning Import Duty Facility (SKP.FPBM); and
• d. fifth sheet for file on the Customs Office or KPU issuing Order for Payment Back Returning Import Duty Facility.

(7) Order for Payment Back Returning Import Duty Facility as intended in paragraph (6) published within a period of 15 (fifteen) working days from the date of the application is received from the Company.

(8) First sheet of Order for Payment Back Returning Import Duty Facility as intended in paragraph (6) a is submitted to State Treasury Services Office (KPPN) directly by a appointed officer within a period of 2 (two) working days from the date of issuance of Order for Payment Back Returning Import Duty Facility.

(9) Based on Order for Payment Back Returning Import Duty Facility, State Treasury Services Office (KPPN) issues Order for Fund Liquefied (SP2D) based on regulation.

Article 18

(1) The signing of Determination on the Payment Returning Import Duty Facility (SKP.FPBM) and Order for Payment Back Returning Import Duty Facility may not be doubled by 1 (one) official.

(2) Specimen signatures of the officials signing of Determination on the Payment Returning Import Duty Facility (SKP.FPBM) and Order for Payment Back Returning Import Duty Facility are submitted to State Treasury Services Office (KPPN) every year or whenever there is change in the official signing of Determination on the Payment Returning Import Duty Facility (SKP.FPBM) and/or Order for Payment Back Returning Import Duty Facility.

Part Seven
Excess Payment of Returning

Article 19

In case of any overpayment of Returning, the Company shall return the overpayment returning.

CHAPTER V
MONITORING AND EVALUATION

Article 20

(1) Head of Regional Office or Head of KPU of Returning NIPER publisher or appointed Customs Officers monitoring and evaluation of the periodic issuance of Returning NIPER at least once in 1 (one) year from the date of decision Returning NIPER.

(2) Implementation of monitoring and evaluation as intended in paragraph (1) is done by using existing data in the Regional Office or KPU Returning NIPER publisher and/or data from other sources.

(3) In the implementation of monitoring and evaluation as intended in paragraph (1), The Company shall submit the data and/or documents related with Returning facility that are requested by the Head of Regional Office of Head of KPU or Returning NIPER publisher.

(4) In the framework of implementation of monitoring and evaluation as intended in paragraph (1), the Head of Regional Office or Head of KPU of Returning NIPER publisher or Customs Official appointed to conduct a field checking of the Raw Materials inventory, Goods in Process, Production Results, and the rest of the production process (waste/scrap).

(5) In case of field checking, Customs and Excise Officer shall issue a field checking assignment in the framework of monitoring and evaluation of the Company.

(6) The results of the field checking as intended in paragraph (4), shall be made an official warrant.

Article 21

Results of the field checking as intended in Article 20 paragraph (4) and report the results of customs audits, can be used as a basis for evaluating the Returning facility that has been given.

CHAPTER VI
SANCTIONS

Part One
Returning NIPER Freezing

Article 22

(1) Returning NIPER is frozen in case of the Company:

• a. does not apply for Returning NIPER data changes as intended in Article 5;
• b. does not settle customs duties and taxes in the framework of import, and/or administrative sanctions in the form of fines up to the maturity date;
• c. does not return the excess payment of Returning as intended in Article 19 until the maturity date;
• d. does not submit Report of Using Raw Materials as intended in Article 11 paragraph (1) a;
• e. does not submit the necessary documents in the framework of the implementation of monitoring and evaluation as intended in Article 20; and/or
• f. is suspected of committing criminal offenses in the customs with sufficient preliminary evidence.

(2) In case of Returning NIPER is frozen, the Head of Regional Office of Head of KPU or Returning NIPER publisher issued a freeze Returning NIPER to the Company.

(3) In case of Returning NIPER is frozen, on the import customs notification during the period of frozen Returning NIPER can not be given Returning.

(4) During the period of frozen Returning NIPER, the Company can not file application for a Returning on Raw Materials are imported.

(5) Letter of notification of frozen Returning NIPER as intended in paragraph (2), is in according to the sample form as stated in Attachment XV that is an integral part of this Regulation of the Director General.

Article 23

(1) Frozen Returning NIPER as intended in Article 22 can be reactivated, in case of the Company:

• a. gets approval for Returning NIPER data changes;
• b. has paid all debts of duties, taxes in the framework of import, and/or administrative sanctions in the form of fines;
• c. has returned excess payments of Returning as intended in Article 19;
• d. has submitted a report of Using Raw Materials as intended in Article 11 paragraph (1) a;
• e. has submitted the documents required in the implementation of monitoring and evaluation as intended in Article 20; and/or
• f. not convicted of a crime of customs.

(2) To re-activated frozen Returning NIPER, the Company filed an application for reactivation of Returning NIPER to the Head of Regional Office or Head of KPU of Returning NIPER publisher.

(3) If the application for reactivation of Returning NIPER as intended in paragraph (2) has fulfilled requirements as intended in paragraph (1), Head of Regional Office or Head of KPU publisher Returning NIPER shall issue a Returning NIPER reactivation.

(4) Letter of reactivation Returning NIPER as intended in paragraph (2), is in according to the sample form as stated in Attachment XVI that is an integral part of this Regulation of the Director General.

Part Two
Returning NIPER Revocation

Article 24

(1) Returning NIPER is revoked in case of the Company:

• a. does not apply for Returning NIPER data changes as intended in Article 5 within a period of 30 (thirty) days from the date of freezing Returning NIPER as intended in Article 22 paragraph (1) a;
• b. does not settle customs duties, taxes in the framework of import and/or administrative sanctions in the form of fines up to the issuance force letter, as intended in Article 22 paragraph (1) b;
• c. do not return the excess payment of Returning as intended in Article 19 up to the issuance force letter;
• d. does not apply for Returning within the period as intended in Article 12 paragraph (3) b 1 and Article 12 paragraph (3) b 2 consecutively;
• e. convicted of a crime of customs based on court decisions;
• f. does unloading and/or piling of Raw Materials outside the locations listed in Returning NIPER as intended in Article 8 paragraph (1) and does not given approval by the Head Office or Head of KPU of the Returning NIPER publisher as intended in Article 8 paragraph (2);
• g. does not do all the activities of processing, assembly, and/or installation on other goods as intended in Article 9 paragraph (1);
• h. subcontracts without fulfill the provisions as intended in Article 9 paragraphs (2) and (3);
• i. acts dishonestly in business, such as makes the incorrect conversion and resulted in losses to the state;
• j. changed the status become Bonded Zone Entrepreneur or Entrepreneur in Bonded Zone;
• k. declared bankrupt by a court decision;
• l. do not keep books based on general accounting principles accepted in Indonesia;
• m. has the financial statements are stated by the Public Accountant with a disclaimer or adverse opinion in last 1 (one) year;
• n. does not properly keep and maintain at its place of business books and records and documents relating to its business activities during the 10 (ten) years;
• o. does not submit financial reports, books, records, and/or documents to be basic evidence of bookkeeping, letters relating to business activities including electronic data as well as letters relating to customs activities based on the recommendation of the audit unit of Head Office of DJBC or Regional Office or the KPU which is based on Audit Result Report on the Customs and/or Excise;
• p. does not have a good reputation as intended in Article 3 paragraph (2) a;
• q. does not eligible to obtain Returning NIPER as intended in Article 3 paragraph (2) based on the evaluation and monitoring as intended in Article 20 paragraph (1), and/or
• r. applies for revocation Returning NIPER.

(2) In case of Returning NIPER is revoked as intended in paragraph (1), the Head of Regional Office or Head of KPU of Returning NIPER publisher on behalf of the Minister issues a decision on revocation of Returning NIPER.

(3) In case of Returning NIPER is revoked, business entities shall pay all bills payable according to the regulation in the fields of customs.

(4) Decision for Revocation Returning NIPER as intended in paragraph (2) is in according to the sample form is as stated in Attachment XVII that is an integral part of this Regulation of the Director General.

CHAPTER VII
OTHER PROVISIONS

Article 25

In case the Company switched from Returning facility receiver to Bonded Zone facility receiver, to the realization of exports for 1 (one) year prior to the date of issuance of the bonded zone permit, can be taken into account in determining the limits sales of production from the bonded zone to other place in the customs area.

Article 26

(1) Supervision of the Company can be done by the Customs Office that oversees the Company's site.

(2) In the framework of supervision and service of Returning facility, the Director General of Customs and Excise determines the Regional Office or the KPU of supervision and service of Returning facility.

(3) With consideration of the efficiency of supervision and service, companies located in Jakarta, Bogor, Depok, Bekasi, Cikarang, Purwakarta, and Sukabumi can be served issuance of Returning NIPER and service for Returning facilities in the Regional Office of DJBC Jakarta.

(4) In case of the Regional Office or the KPU does not have Service Computerized System Application (SKP) of KITE and/or the Service Computerized Systems (SKP) of Returning, services and supervision for Returning facilities by the Regional Office of the previous publisher of Returning NIPER.

Article 27

By the enforcement of Regulation of the Minister of Finance No. 253/PMK.04/2011 Concerning Returning Import Duty are paid on the Import of Goods and Materials to be Processed, Manufactured, or Combined on other goods to be exported, following provisions shall be applied:

• a. The business entity that has NIPER based on Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedure of Import Facility for Export Destination and Supervision, as amended several times, the latest by Regulation of the Minister of Finance No. 15/PMK.011/2011, to obtain Returning must file application for Returning NIPER based on Regulation of the Minister of Finance No. 253/PMK.04/2011 Concerning Returning Import Duty already be Paid on the Import of Goods and Materials to be Processed, Manufactured, or Combined on other goods to be exported within the period no later than December 31, 2012.
• b. In case of a business entity fails to apply for Returning NIPER until the time limit as intended in paragraph a, NIPER which has been owned by a business entity be frozen until the revocation process is complete.
• c. In case of a business entity that has NIPER, but do not have a Returning NIPER, following provisions shall be applied:
• 1. Raw Materials are imported before the enforcement of Regulation of the Minister of Finance No. 253/PMK.04/2011 concerning Returning of Paid Import Duty on the Import of Goods and Materials to be Processed, Manufactured, or Combined on other goods to be Exported to:
• a) the use of import customs notification documents;
• b) the settlement of the Raw Materials;
• c) submission application for Returning;
• will be settled based on Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedures of Import Facility for Export Destination and supervision, as amended several times, the latest by Regulation of the Minister of Finance No. 15/PMK.011/2011.
• 2. settlement of the Raw Materials as intended in paragraph 1 b) and submission of application for Returning as intended in paragraph 1 c) shall be implemented no later than March 31, 2013.
• 3. the Raw Materials are imported after the enactment of Regulation of the Minister of Finance No. 253/PMK.04/2011 Concerning Returning of Paid Import Duty on the Import of Goods and Materials to be Processed, Manufactured, or Combined on other goods to be Exported to:
• a) the use of import customs notification documents;
• b) the settlement of the Raw Materials;
• c) submission application for returning;
• will be settled based on Regulation of the Minister of Finance No. 253/PMK.04/2011 Concerning Returning of Paid Import Duty on the Import of Goods and Materials to be Processed, Manufactured, or Combined on other goods to be Exported.
• d. The business entity that has NIPER based on Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedures of Import Facility for Export Destination and supervision, as amended several times, the latest by Regulation of the Minister of Finance No. 15/PMK.011/2011, should fulfill the provisions of the utilization of information technology as intended in Article 3 paragraph (2) g within the period no later than December 31, 2012.
• e. In case of business entity is switching from the receiving of Import Facility for Export Purpose into the receiving customs facility for bonded zone, to the realization of Export and delivery to the bonded zone has been done by the business entity can be taken into account in determining the sales limit of production result from the bonded zone to other places in customs area.
• f. On the application for returning that was submitted by a business entity that has NIPER before enforcement of Regulation of the Minister of Finance No. 253/PMK.04/2011 Concerning Returning of Paid Import Duty on the Import of Goods and Materials to be Processed, Manufactured, or Combined on other goods to be Exported and still in the checking process, the completion of the checking based on Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedures of Import Facility for Export Destination and supervision, as amended several times, the latest by Regulation of the Minister of Finance No. 15/PMK.011/2011 within period no later than April 1, 2014.

Article 28

In case of Production Results using the combined Raw Materials imported before 1 April 2012 and after 1 April 2012, applied following provisions:

• a. settlement of the Raw Materials; and
• b. submission application for Returning;
• will be settled based on Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedures of Import Facility for Export Destination and supervision, as amended several times, the latest by Regulation of the Minister of Finance No. 15/PMK.011/2011.

CHAPTER VIII
CLOSING

Article 29

(1) This Regulation of Director General is applied in several phases as follows:

• a. Returning NIPER application can be served from April 1, 2012 at the Regional Office or the KPU.
• b. In case of the Regional Office or the KPU does not have Computer Services Applicant System (SKP), KITE/Services Computer System (SKP), Returning, Returning NIPER issuance can be made at the other Regional Office or KPU nearest to the site plant that has applications of Services Computer System (SKP) of KITE/Services Computer System (SKP) Returns.

(2) Implementation of Service Computer System application (SKP) for Returning:

• a. Regional Office of DJBC appointed as a pilot project for implementation of the application of Services Computer System (SKP) of Returning from June 1, 2012; and
• b. Implementation of the Computer System Services for (SKP) Returning to another Regional Office or KPU, that will be further stipulated by the Regulations the Director-General.

Article 30

At the time of this Regulation of the Director General is enacted, the Decree of the Director General No. KEP-205/BC/2003 concerning Implementation Guideline of Procedure for Import Facility for Export Purpose as amended several times, the latest by Regulation of the Director General No. PER-9/BC/2011 shall be revoked and declared null and void.

Article 31

This Regulation of the Director General shall come into force on 1 April 2012.

Stipulated in Jakarta
on March 29, 2012
DIRECTOR GENERAL,
signed,
AGUNG KUSWANDONO
NIP 19670329 199103 1 001