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REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. PER-16/BC/2012

CONCERNING
PROCEDURE FOR EXEMPTION OF IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO BE PROCESSED, MANUFACTURED, OR INSTALLED AT OTHER GOODS TO BE EXPORTED

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Attachment

Considering:

That in the framework to implement the provisions in Article 28 of Regulation of the Minister of Finance No. 254/PMK.04/2011 concerning Exemption of Import Duty on the Import of Goods and Materials to be Processed, Manufactured, or Combined at Other Goods to be Exported, it is necessary to stipulate Regulation of the Director General of Customs and Excise concerning Procedure For Exemption of Import Duty on the Import of Goods and Materials to be Processed, Manufactured, or Combined at Other Goods to be Exported;

In view of:

1. 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);

2. Government Regulation No. 28/2008 concerning Imposition of Administrative Sanctions in the Form of Fines in the Field of Customs (Statute Book of the Republic of Indonesia No. 53/2008, Supplement to Statute Book No. 4838);

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

4. Regulation of the Minister of Finance No. 259/PMK.04/2010 concerning Guarantee In the Framework of Customs;

5. Regulation of the Minister of Finance No. 254/PMK.04/2011 concerning Exemption of Import Duty on the Import of Goods and Materials to be Processed, Manufactured, or Combined at Other Goods to be exported;

DECIDES:

To stipulate:

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE CONCERNING PROCEDURE FOR EXEMPTION OF IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO BE PROCESSED, MANUFACTURED, OR INSTALLED AT OTHER GOODS TO E EXPORTED

CHAPTER I
GENERAL PROVISIONS

Article 1

In Regulation of 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 remove goods from the customs area.

4. Exemption is exemption of Import Duty on the Import of Goods and Materials to be Processed, Manufactured, or Combined at Other Goods to be exported.

5. Company that get the Exemption hereinafter called the Company is a business entity that get Exemption facility.

6. Exemptions Company Number hereinafter abbreviated as Exemption NIPER is the identity given to the Company that get Exemption.

7. Raw Materials are the goods and/or materials to processed, manufactured, or combined at other goods by obtaining Exemption.

8. Conversion is a written statement of the Company on the use of the composition of Raw Materials for each unit of production result.

9. Production Result is the result of processing, assembly, or installation of Import origin Raw Materials to obtain Exemption.

10. Export realization is the Export of Production Results as settlement of Raw Materials.

11. Export Inspection Report hereinafter abbreviated as LPE is customs examination result report to export goods with Exemption facility, issued by the Customs Office where the loading after the reconciliation.

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

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

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

15. Customs and Excise official is employee of Directorate General of Customs and Excise in certain positions designated to perform certain tasks based on the Customs Law.

Article 2

(1) On the Imported Raw Materials to processed, manufactured, or combined at other goods in order to be exported can be granted exemption.

(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) exemption as intended in paragraph (1) is not given 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 EXEMPTION NIPER

Part One
Requirements To Apply Exemption NIPER

Article 3

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

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

• a. has an excellent reputation;
• b. never been abused in the field of customs facilities for the last 1 (one) year;
• c. never made a mistake in telling the number and/or types of goods for the last 1 (one) year in the import and export activities;
• d. has no outstanding debt/debt has not paid until the maturity date, on the customs duties and taxes in the framework of import and/or administrative sanctions such as fines;
• e. do the processing, assembly, and/or installation at other goods as intended in Article 2 of its production for export purposes;
• f. 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;
• g. keeps bookkeeping under general accounting principles that is accepted in Indonesia;
• h. 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
• i. 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) Requirement to has an excellent reputation as intended in paragraph (2)a is business entity has at least low risk importer profile.

(4) To obtain Exemption 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 Exemption 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 Production Result 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 Production Result, and
• 6. relationship between entry of raw materials, using 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 Exemption NIPER is to Head of Regional Office or KPU that supervises factory location that has the highest import activities.

(6) Application for Exemption 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 Exemption 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 Exemption NIPER application in case of it is complete in administrative checking as intended in paragraph a, or gives rejection letter of the exemption 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. abuse facilities in the field of customs for the last 1 (one) year;
• 3. mistake in telling the number and/or types of goods for the last 1 (one) year in the import and export customs notification documents; and
• 4. Blocking status of the said business entity.

(2) Head of Regional Office or Head of KPU on behalf of Minister issued a decision of Exemption 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 checking results on the Minutes of Field Checking, and
• c. submit Minutes to the Head of the Regional Office or the Head of the KPU or a appointed official.

(4) Receipt/rejection of the application file Exemption 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 of Field Checking 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 Exemption 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 Exemption 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 Exemption NIPER data

Article 5

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

(2) Change the data of Exemption 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 Exemption NIPER data as intended in paragraph (1) shall be accompanied by a document data changed as intended in paragraph (2).

(4) On the Exemption 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 Exemption NIPER publisher on behalf of the Minister issued a decree Exemption NIPER data changes in the application data changes Exemption NIPER approved, or issuing a notice of rejection and the reasons, in case the application is rejected Exemption NIPER data changes.

(6) Decision of Exemption 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
EXEMPTION

Part One
Application for exemption and Conversion

Article 6

(1) To obtain the exemption, the Company must apply to the Head of Regional Office or Head of KPU of Exemption NIPER issuer by attaching:

• a. Plant to import goods by stated the estimated number and the needs of Raw Materials required in the period of Exemption and a list of the port of discharge as well as a list of uses of goods and materials are requested Exemption;
• b. Export plan, which lists the estimated number and value of Production Results generated and comparison of the number of products with production capacity of the Exemption period;
• c. written description of the production period, the time required by the Company to complete the production;
• d. Import permit from the relevant agencies in case of Raw Materials are subject to provisions of the restrictions;
• e. Conversion to each Production Result that uses the Raw Materials which asked Exemption; and
• f. export contract or the export realization of the previous year in case of the company has no export contract.

(2) In case of Raw Materials subject to restrictions, validity period of exemption decision by considering the restrictions on imports applicable permits from the relevant authorities as intended in paragraph (1) d.

(3) Conversion as intended in paragraph (1) e shall be submitted in hardcopy and softcopy (electronic data storage media), and must include at least the data elements:

• a. identity of Company in the form of company's name and Exemption 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).

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

• a. receive and examine the Exemption application and its attachments, and
• b. issues a receipt in case file a complete application for Exemption or otherwise issues a rejection in case of the application file is incomplete;

(5) On the Exemption application file that has been issued a receipt as intended in paragraph (4) b, Customs and Excise Official:

• a. examine the suitability of data completeness and fairness of the conversion as a reference for approving Exemptions and make an opinion, and
• b. prepare and submit the concept of Exemption decision is accompanied by an opinion as intended in paragraph c to the Head of Regional Office or the Head of KPU of NIPER Exemption issuer in case of the application can be approved.

(6) Results of the study Conversion as intended in paragraph (5) a Conversion is considered fair if it is the basis for the use of Raw Materials on computer-based information system as intended in Article 3 paragraph (2) i and authorized by the leadership of the Company.

(7) In case studies to the Conversion submitted by the Company is considered unreasonable, Customs and Excise Official may request approval of Conversion to the relevant technical agencies or to professional institutions recognized by the relevant technical agencies, and any costs incurred due to legalization of Conversion is charged to the Company.

(8) On the results of the study the suitability of data completeness and fairness of Conversion as intended in paragraph (4) c, 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.

(9) 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 Exemption facility.

(10) On the application for exemption as intended in paragraph (1), Head of Regional Office or the Head of KPU of Exemption NIPER issuer give approval or rejection within a period of 14 (fourteen) working days after received Conversion as intended in paragraph (8) a.

(11) If the request as intended in paragraph (1) is approved, the Head of Regional Office or the Head of KPU of Exemption NIPER issuer on behalf of the Minister issued a decision of Exemption that determines the details of types and amounts of Raw Materials provided Exemption, Exemption period, the port of unloading, and validity period of the Exemption decision.

(12) If the application as intended in paragraph (1) is rejected, the Head of Regional Office or the Head of KPU of Exemption NIPER issuer submit a letter of rejection stating the reason for rejection.

(13) Application for Exemption as intended in paragraph (1), is in according with the sample format as stated in Attachment VII that is an integral part of this Regulation of the Director General.

(14) Decision of the Exemption as intended in paragraph (11), is in according with the sample format as stated in Attachment VIII that is an integral part of this Regulation of the Director General.

(15) Letter of rejection of application for Exemption as intended in paragraph (11), is in according with the sample format as stated in Attachment IX that is an integral part of this Regulation of the Director General.

(16) Conversion as intended in paragraph (1)e, is in according with the sample format as stated in Attachment X that is an integral part of this Regulation of the Director General.

Part Two
Period of exemption

Article 7

(1) The period of exemption as intended in Article 6 paragraph (11) are listed in the Exemption decision, the period granted to the Company to carry out the Export Realization.

(2) The period of Exemption as intended in paragraph (1) granted for a period of:

• a. maximum 12 (twelve) months from the date of registration of import customs notification; or
• b. over period as intended in paragraph a. in case of the company has more than 12 (twelve) months production period of the Raw Materials are imported after obtaining permission from the Head of Regional Office or the Head of KPU of Exemption NIPER issuer.

CHAPTER IV
IMPORTS OF RAW MATERIALS, GUARANTEE, CUSTOMS EXAMINATION, PROCESSING, ASSEMBLING, AND/OR INSTALLATION OF RAW MATERIALS, SUBCONTRACTING, AND CONVERSION

Part One
Import of Raw Materials

Article 8

(1) The import of Raw Materials which have been granted Exemption based on Exemption decision as intended in Article 6 paragraph (11) applied the general provisions in the field of import, including provisions governing the prohibition of the prohibition and/or restriction on imports.

(2) Companies which have obtained Exemption decisions can make the importation of the following conditions:

• a. implementation of the import Raw Materials in accordance with the applicable date of Exemption decisions;
• b. Import implementation of Raw Materials at the determined ports;
• c. number and type of Raw Materials must be in accordance with the number and types listed in the Exemption decision, and
• d. give a guarantee for import duty on Raw Materials, as notified in the import customs notification to the Regional Office or KPU issuer exemption NIPER.

Article 9

On the import of Raw Materials which have been granted Exemption by Exemption decision as intended in Article 6 paragraph (11), the Company must submit import customs notification documents by listed the number of Exemptions decision in the import facility fulfillment requirement column.

Part Two
Guarantee

Article 10

(1) The Company shall give guarantee to the Regional Office or the KPU of exemption NIPER issuer for exemption period as intended in Article 7 added with 3 (three) months.

(2) Guarantee delivered as intended in paragraph (1) is as much as amount of import duty on Raw Materials, as notified in the import customs notification.

(3) The amount of import duties as intended in paragraph (2) including anti dumping import duties, compulsory import duties, trade safeguard measure import duties, and/or counter strike import duties.

(4) The form, timing, and procedures for submission of a guarantee as intended in paragraph (1) made according to the regulation in the fields of customs governing guarantee in the framework of customs.

(5) To guarantee submitted by the Company, Customs and Excise Official do:

• a. conduct research on the amount and the guarantee period;
• b. can confirm the issuance of a guarantee to the guarantor or surety by considering the risk level of company and the guarantor;

(6) In case of that guarantee checking results as intended in paragraph (5) there is a mismatch assurance, Customs and Excise Official reject the guarantee by issue a guarantee rejection.

(7) In case of that guarantee checking results as intended in paragraph (5) there is matching guarantee, issues Guarantee Receipt (STTJ).

(8) Guarantee Receipt (STTJ) as intended in paragraph (7), is in according with the sample format as stated in Attachment XI that is an integral part of this Regulation of the Director General.

Part Three
Customs Checking

Article 11

(1) Customs and Excise Official conducts customs checking on import customs notification filed by the Company.

(2) Customs checking as intended in paragraph (1) is selectively based on risk management.

(3) In case of customs checking as intended in paragraph (1) find the existence of:

• a. discrepancy between the rates notified in the import customs notification with the customs checking result, the Company shall make adjustments to the value of guarantee and/or
• b. discrepancy between the customs value notified in import customs notification with customs checking result, the Company shall make adjustments to the value of guarantee and subject to administrative sanctions such as fines according to the regulation in the fields of customs, as long as it is believed that the type of imported goods are in accordance with items listed in the Exemption decision as intended in Article 6 paragraph (11).

(4) In case of a guarantee adjustment as intended in paragraph (3), Head of Customs Office or appointed official submit notification to the Company, and the Head of Regional Office or the Head of KPU of Exemption NIPER issuer.

(5) In case of based on the customs checking result as intended in paragraph (1) found a discrepancy number and/or type of goods notified between import customs notification with the customs checking result, following provision shall be applied:

• a. of the entire importation is notified in same import customs notification cannot get Exemption, and
• b. carried out further checking or investigation in compliance with the regulation in the field of customs.

Article 12

(1) The Company shall unload and/or the hoard of Raw Materials from the customs area to the location specified in the exemption NIPER by using import customs notification documents as intended in Article 9.

(2) The Company may conduct unloading and/or hoarding in another location than as intended in paragraph (1) after get approval from the Head of Regional Office or the Head of KPU of Exemption NIPER issuer.

(3) To obtain approval of unloading and/or hoarding in a location other than as intended in paragraph (2), the Company file an application to the Head of Regional Office or the Head of KPU of Exemption NIPER issuer.

(4) If the application as intended in paragraph (3) is approved, the Head of Regional Office or the Head of KPU of Exemption NIPER issuer will issue a letter of approval for unloading and/or hoarding in a location other than the listed in the Exemption NIPER.

(5) If the application as intended in paragraph (3) is not approved, the Head of Regional Office or the Head of KPU of Exemption NIPER issuer will issue a notice of rejection with the reasons.

(6) Approval of unloading and/or hoarding at the location as intended in paragraph (4) is only valid for 1 (one) time of unloading and/or hoarding.

(7) In case of loading and/or hoarding performed in the location as intended in paragraph (2) will be used in fixed and/or repeated, the Company shall submit the data changes in the exemption NIPER.

(8) Letter of approval for the unloading and/or hoarding in a location other than that listed in the exemption NIPER as intended in paragraph (4), is in according with the sample format as stated in Attachment XII that is an integral part of this Regulation of the Director General.

Part Four
Processing, assembly, and/or Installation of Raw Materials and Subcontracts

Article 13

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

(2) In case of all activities of processing, assembly, and/or installation of Raw Materials on other goods that change the nature of the primary and/or form of Raw Materials as intended in paragraph (1) is not done by the Company, the Company is subject to administrative sanctions such as fines in accordance the regulation in the fields of customs regulations.

(3) The Company may provide subcontracted some of the activities of processing, assembly, and/or installation of Raw Materials as intended in paragraph (1) the industrial business entity contained in the exemption 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.

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

(5) 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 Exemption NIPER.

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

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

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

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

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

(10) In case of the Company does not fulfill the subcontracting provisions as intended in paragraph (3) and paragraph (4), the Company is subject to administrative sanctions such as fines according to the regi;atopm in the fields of customs.

(11) Letter of application for subcontract as intended in paragraph (4), is in according with the sample format as stated in Attachment XIII that is an integral part of this Regulation of the Director General.

(12) Letter of approval as intended in paragraph (8), is in according with the sample format as stated in Attachment XIV that is an integral part of this Regulation of the Director General.

Part Five
Conversion

Article 14

(1) Conversion as intended in Article 6 paragraph (1) e is one of the Raw Materials test equipment usage.

(2) In case of Conversion which has been submitted as intended in Article 6 paragraph (1) will be changed caused by:

• a. Company produces new Products; and/or
• b. Company change Conversion of previous Production Results, the Company must submit a new Conversion before starting to produce, in hardcopy and softcopy (electronic data storage media).

(3) Against the New Conversion as intended in paragraph (2), Customs and Excise Official:

• a. receive the Conversion; and
• b. carried out activities in accordance stages as intended in Article 6 paragraphs (5), (6), (7), (8), and (9).

(4) New Conversion as intended in paragraph (2) in case of a mistake can be changed one time before starting to produce.

CHAPTER V
EXPORT OF PRODUCTION

Article 15

(1) All results of production shall be exported by the Company within the period of Exemption as intended in Article 7 according to the regulation governing the customs procedures in export field.

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

CHAPTER VI
RESPONSIBILITY

Part One
Responsibility Report

Article 16

(1) The Company give responsibility for the implementation of the Export Production Result as intended in Article 15 provided that:

• a. submit responsibility report for the use of import origin goods and/or materials which get exemption from import duties to the Head of Regional Office or the Head of KPU issuing exemption NIPER periodically minimum once in 6 (six) months;
• b. responsibility report as intended in paragraph a must be submitted within the period of exemption;
• c. responsibility report as intended in paragraph a is submitted in the form of responsibility report of Raw Materials (BCL.KT 01) and responsibility report of production process waste/scrap, and
• d. counting period of 6 (six) months from the date of Exemption decision.

(2) In case of that the Company has not carried out Realization of Export Production in the 6 (six) months from the date of the Exemption, the Company shall submit reports on the use of imported goods and/or materials that get nil import duty exemption.

(3) Responsibility report as intended in paragraph (1) shall be accompanied by:

• a. import customs notification has been approved for clearance by Customs and Excise Official;
• b. export customs notification that already get Export approval;
• c. copy of the export transaction receipt in the form of accounts receivable ledger, letters of credit, bank accounts, telegraphic transfers and/or documents proving the existence of Export transactions;
• d. evidence of the sale of the remaining production (waste/scrap) when there are sales of the rest of the production process (waste/scrap);
• e. Export Inspection Report (LPE), and
• f. Conversion list of usage Raw Materials that asked for Exemption as intended in Article 6 paragraph (1) e and Article 14 paragraph (2).

(4) The Company is not submitting Conversion as intended in Article 14 paragraph (2), the Raw Materials reported in BCL.KT 01 of Conversion not been submitted, no exemption is given.

(5) The provisions as intended in paragraph (3) a and b 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).

(6) In case of the Company do 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 (3) a is submitted at the time of the first responsibility report of the import customs notification.

(7) On the responsibility report as intended in paragraph (1), Customs and Excise Official:

• a. accept responsibility report, and
• b. check the completeness of the document as intended in paragraph (3).

(8) In case of responsibility report documents are received completely, Customs and Excise Official give a receipt.

(9) In case of responsibility report is received not complete, Customs and Excise Official return the responsibility report documents to the Company by stating the reasons.

(10) Report of the use of imported goods and/or materials that get zero import duty Exemption as intended in paragraph (2), is in according with the sample format as stated in Attachment XV that is an integral part of this Regulation of the Director General.

(11) Responsibility report of Raw Materials (BCL.KT 01) and responsibility report of production process residual (waste/scrap) as intended in paragraph (1) c, is in according with the sample format as stated in Attachment XVI that is an integral part of this Regulation of the Director General.

Part Two
Checking Responsibility Report

Article 17

(1) On the responsibility report as intended in Article 16 paragraph (1), Customs and Excise Official:

• a. examine the suitability and completeness of the documents as intended in Article 16 paragraph (3);
• b. examine compliance Exemption period by comparing the period of the date of registration of import customs notification documents with the date of export customs notification documents;
• c. check Export Realization based on the evidence of export transactions based on risk management, and
• d. check accuracy of responsibility report by:
• 1. compare types of Raw Materials are imported with the type of Raw Materials used in production;
• 2. compare the amount of usage Raw Materials with the number of Production based on Conversion;
• 3. compare the number and type of Production Results in responsibility report with the number and types of Production Results in the export customs notification documents; and
• 4. count the number of remaining production (waste/scrap) based on Conversion.

(2) In case of result of checking responsibility report (BCL.KT 01) as intended in paragraph (1) is accepted wholly, Customs and Excise Official adjust the balance of Raw Materials reported in the responsibility report by issuing Notice of Guarantee Adjustment (SPPJ).

(3) In case of result of checking responsibility report (BCL.KT 01) as intended in paragraph (1) is accepted in part, Customs and Excise Official:

• a. adjusting the balance of Raw Materials reported in the responsibility report by issuing Notice of Guarantee Adjustment (SPPJ); and
• b. issues a Customs Determination (SPP) and Determination of Administrative Sanctions (SPSA) for Raw Materials that can not be accounted for.

(4) In case of all Raw Materials has completed accounted for, guarantee is returned.

(5) The rest of the production process (waste/scrap) is sold, be notified by using the customs notification document BC 2.4 and pay import duty amounting to:

• a. 5% (five percent) multiplied by the price, if the general import duty tariffs (Most Favoured Nation) of Raw Materials is 5% (five percent) or more; or
• b. applicable rate multiplied by the price, if the general import duty tariffs (Most Favoured Nation) of Raw Materials less than 5% (five percent).

(6) Notice of Guarantee Adjustment (SPPJ), Customs Determination (SPP), and the Determination of Administrative Sanctions (SPSA) as intended in paragraph (3) signed by the Head of Regional Office or the Head of KPU of Exemption NIPER issuer.

(7) The results of the checking responsibility report as intended in paragraph (2) and paragraph (3) be completed within a maximum period of 45 (forty five) days since the received responsibility report.

(8) On the Production results, including the damage or rejected Production Results, which are not exported or not reported until the Exemption period is ended, applied following provisions:

• a. guarantee is liquefied as much as import duty of Raw Materials contained in those Production Results, and
• b. Company subject to administrative sanctions such as fines according to the regulation in the fields of customs.

(9) On the Raw Materials, including the damage or rejected Raw Materials, which until ending of Exemption period:

• a. not be processed into production results;
• b. not be manufactured become production results;
• c. not be combined at the other finished goods become production results;
• d. not be exported as an integral part of the production results; or
• e. not be reported in the responsibility report, following provision shall be applied:
• 1. guarantee is liquefied as much as import duty of those Raw Materials; and
• 2. Companies subject to administrative sanctions such as fines according to the regulation in the fields of customs.

(10) In case of up to the limit of Exemption period the Responsibility report as intended in paragraph (1) is not delivered or is rejected, following provisions hall be applied:

• a. guarantee is liquefied as much as import duty of Raw Materials which have not been accounted for or the responsibility was rejected, and
• b. Companies subject to administrative sanctions such as fines according to the regulation in the fields of customs.

Part Three
Re-Apply (Re-Loading)

Article 18

(1) In case of in checking as intended in Article 17 paragraph (1) a there is:

• a. error in filling date and/or number of application of import customs notification documents, date and/or number of registration of import customs notification documents, number and date of export customs notification documents, HS classification, unit, code of Raw Materials, Production code, number of Raw Materials, the amount of Production and number and/or date of LPE, and/or
• b. Conversion number that is attached is not in accordance with the responsibility report, Customs and Excise Official confirms to the Company by sending the 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 mistake or the like, the Company can re-apply (re-loading).

(3) Re-apply (re-loading) responsibility report as intended in paragraph (2) must be applied no later than 7 (seven) working days from the date of notification.

(4) In case of re-apply (re-loading) responsibility report as intended in paragraph (2) exceed a period as intended in paragraph (3), but not yet passed the period of Exemption, responsibility report checking is based on data that are not requested confirmation.

Part Four
Liquefied of Guarantee

Article 19

(1) Liquefied of Guarantee is made in case of:

• a. The Company does not submit responsibility report after end of the Exemption period as intended in Article 17 paragraph (10);
• b. responsibility report in partly or wholly is rejected, and/or
• c. Exemption NIPER is revoked and there are Raw Materials that have not been accounted for.

(2) In case of guarantee is liquefied, Customs and Excise Official issued a Customs Determination (SPP) and submitted to:

• a. Company (first sheet);
• b. Service and Supervision Office of Raw Materials entry (second sheet), and
• c. Guarantor/surety (third sheet) enclosed guarantee claims.

CHAPTER VII
MONITORING AND EVALUATION

Article 20

(1) Head of Regional Office or the Head of KPU issuer Exemption NIPER or appointed Customs and Excise Official does periodical monitoring and evaluation of the Exemption NIPER at least 1 (once) in 1 (one) year from the decision date of the Exemption NIPER.

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

(3) In implementing the monitoring and evaluation as intended in paragraph (1), the Company shall submit the data and/or documents related with Exemption facility requested by the Head of Regional Office or the Head of KPU of Exemption NIPER issuer.

(4) In the framework of implementation monitoring and evaluation as intended in paragraph (1), Head of Regional Office, or the Head of KPU issuer Exemption NIPER, or appointed Customs and Excise Official conduct a field inspection of the Raw Materials inventory, work in process, Products, and the rest of the production process (waste/scrap).

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

(6) The results of the field inspection as intended in paragraph (4), made the Minutes.

Article 21

(1) The results of field inspection as intended in Article 20 paragraph (4) can be used as a basis to evaluate the Exemption facility that have been granted.

(2) In case of the results of field inspection as intended in Article 20 paragraph (4) found physical differences in Raw Materials less than the balance of the raw materials that have not been accounted for, the Company is obligated to pay import duty and administrative sanctions such as fines according to the regulation in the fields of customs.

(3) Report the results of customs audit can be used as:

• a. basis to evaluate the Exemption facility that has been granted, and
• b. responsibility for Raw Materials settlement.

(4) In case based on the audit result found the excess of the physical balance with a balance of responsibility report on Raw Materials which have not been accounted for, the Company is obligated to pay import duty and administrative sanctions such as fines according to the regulation in the fields of customs.

(5) Audit report as intended in paragraph (3) contain details of Raw Materials that still need to be accounted for based on import Customs notification document.

(6) Implementation of the audit in a certain period does not eliminate:

• a. Company's obligation to submit responsibility report for that audit period; and
• b. liquefied guarantee process on the import customs notification that is not in that audit period.

(7) In case of the guarantee is liquefied on the Raw Materials of its import customs notification is in audit period, the Customs and Excise Official make notification on the liquefied guarantee to the audit section of Regional Office/KPU and the company concerned.

CHAPTER VIII
SANCTIONS

Part One
Freezing Exemption NIPER

Article 22

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

• a. does not apply for Exemption NIPER data changes as intended in Article 5;
• b. does not settle import duties, taxes in the framework import, and/or administrative sanctions such as fines up to maturity;
• c. does not submit responsibility report as intended in Article 17;
• d. does not submit the necessary documents in the implementation of monitoring and evaluation as intended in Article 20; and/or
• e. suspected of committing criminal offenses in the customs field with sufficient preliminary evidence.

(2) In case of exemption NIPER is frozen, Head of Regional Office or the Head of KPU issuer exemption NIPER issues a letter of frozen Exemption NIPER to the Company.

(3) In case of frozen Exemption NIPER, the Company can not obtain Exemption facility on Imported Raw Materials as intended in Article 2 paragraph (1).

(4) In case of frozen Exemption NIPER, the provisions on the liability of the Company to do Export Realization and submit responsibility report remain valid.

(5) Letter of frozen Exemption NIPER as intended in paragraph (2), is in according with the sample format as stated in Attachment XVII that is an integral part of this Regulation of the Director General.

Article 23

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

• a. get approval for Exemption NIPER data changes;
• b. has paid all outstanding import duties, taxes in the framework of import, and/or administrative sanctions such as fines;
• c. has submitted a responsibility report as intended in Article 17;
• d. has submitted the documents required in the implementation of monitoring and evaluation, and/or
• e. not convicted of a crime of customs.

(2) To re-active the frozen Exemption NIPER, the Company file an application for reactivation of Exemption NIPER to the Head of Regional Office or the Head of KPU of Exemption NIPER issuer.

(3) In case of the application for reactivation of Exemption NIPER as intended in paragraph (2) already fulfill requirements as intended in paragraph (1), Head of Regional Office or the Head of KPU of Exemption NIPER issuer will issue a letter of reactivation Exemption NIPER.

(4) Letter of reactivation Exemption NIPER as intended in paragraph (3), is in according with the sample format as stated in Attachment XVIII that is an integral part of this Regulation of the Director General.

Part Two
Revocation of exemption NIPER

Article 24

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

• a. does not apply for Exemption NIPER data changes as intended in Article 5 within 30 (thirty) days since the date of frozen Exemption NIPER as intended in Article 22 paragraph (1) a;
• b. does not settle all debts in import duties, taxes in the framework of import, and/or administrative sanctions such as fines as intended in Article 22 paragraph (1) b until the issuance of force letter;
• c. does not Import or Export with the Exemption facility respectively in the period as intended in Article 7 paragraph (2) a and Article 7 paragraph (2) b;
• d. unload and/or pile Raw Materials outside the locations listed in Exemption NIPER as intended in Article 12 paragraph (1) and does not given approval by the Head of Regional Office or the Head of KPU as intended in Article 12 paragraph (2);
• e. does not do itself the processing, assembly, and/or installation activities as intended in Article 13 paragraph (2);
• f. subcontracted without fulfill the criteria as intended in Article 13 paragraph (3);
• g. subcontracted without fulfill the requirements as intended in Article 13 paragraph (4);
• h. acts dishonestly in business, among others, making incorrect conversion and resulted in state losses.
• i. is proven to have committed criminal offenses in the customs based on court decisions;
• j. is changed status to become bonded zone entrepreneur or Entrepreneur in bonded zone;
• k. is declared bankrupt by a court decision;
• l. does not keep books under general accounting principles accepted in Indonesia;
• m. has the financial statements are stated by the Public Accountant with a disclaimer or adverse opinion within 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, notes, 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 DJBC Head Office or Regional Office or the KPU which is based on Audit Report in the Customs and/or Excise;
• p. does not meet the requirements to have an excellent reputation as intended in Article 3 paragraph (2) a;
• q. does not meet the requirements to get Exemption NIPER as intended in Article 3 paragraph (2) based on the evaluation and monitoring as intended in Article 20 paragraph (1), and/or
• r. apply for revocation of Exemption NIPER.

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

(3) In case of Exemption NIPER is revoked, guarantee is liquefied as much as import duties on Raw Materials which have not been accounted for and subject to administrative sanctions such as fines.

(4) To the guarantee liquefied as intended in paragraph (3), Head of Regional Office or Head of KPU issuer Exemption NIPER will issued Customs Determination Letter (SPP).

(5) On the imposition of administrative sanctions such as fines as intended in paragraph (3), Head of Regional Office or the Head of KPU of Exemption NIPER issuer will issue Administrative Sanction Determination (SPSA).

(6) Customs audit can be done for Revocation of Exemption NIPER.

(7) Decision for Revocation of exemption NIPER as intended in paragraph (2) is in according with the sample in the format as stated in Attachment XIX that is an integral part of this Regulation of the Director General.

Article 25

(1) In case of Exemption NIPER is revoked caused by change status become bonded zone entrepreneur or business entrepreneur in bonded zone as intended in Article 24 paragraph (1) j, the Raw Materials, goods in the production process (work in process), and the Production Results shall applied following provisions:

• a. the supply of Raw Materials, goods in the production process (work in process) and the Production Results are still in the Company, while still within the period of Exemption, can be used as the beginning balance of bonded zone and be treated as goods imported by get the suspension of import duties; and
• b. Production Results that export have been realized but not reported yet their responsibility report must be completed with responsibility report.

(2) To be determined as beginning balance of bonded zone for Raw Materials inventory, goods in the production process (work in process) and Production Results are still in the Company as intended in paragraph (1) a, the Company shall apply application to the Head of Regional Office or KPU of issuing Exemption NIPER by attaching decision as bonded zone entrepreneur or a PDKB.

(3) To the application as intended in paragraph (2), Customs and Excise Official:

• a. conducts the enumeration of the balance of Raw Materials, goods in the production process (work in process) and Production Results and made the Minutes;
• b. charging in case of under payment of customs duties and administrative sanctions such as fines; and/or
• c. restore guarantee in case of enumeration found appropriate.

(4) In case of Raw Materials, goods in the production process (work in process), and the Production Results as intended in paragraph (1) already determined become beginning balance of bonded zone, the Company during the revocation process should not be doing:

• a. imports of Raw Materials, and
• b. submit application for Exemption decision.

Part Three
Fine

Article 26

(1) An administrative sanction in the form of a fine of minimum 100% (hundred percent) and maximum 500% (five hundred per cent) of the import duty should be paid, in case of the Company:

• a. did not unload and/or pile Raw Materials which get Exemptions in the locations listed in Exemption NIPER or any other location that has been approved by the Head of Regional Office or the Head of KPU of Exemption NIPER issuer, as intended in Article 12 paragraph (1) and Article 12 paragraph ( 2);
• b. does not own the whole processing, assembly, and/or installation as intended in Article 13;
• c. does not export Production Result as intended in Article 15 or does not reported until the period of exemption as intended in Article 17 paragraph (8);
• d. does not process Raw Materials that get Exemption in accordance with the provisions as intended in Article 17 paragraph (9);
• e. until the limit of Exemption period, Export responsibility report is not delivered or is rejected as intended in Article 17 paragraph (10);
• f. does not meet the subcontracting provisions as intended in Article 13; and/or
• g. is found physical difference of Raw Materials exceeding Raw Materials reports that have been accounted for as intended in Article 21 paragraph (4).

(2) The fine as intended in paragraph (1) is a fine set in stages according to the rules governing administrative sanctions such as fines in the field of customs.

(3) Head of Regional Office or the Head of KPU of Exemption NIPER issuer will issues Administrative Sanction Determination (SPSA) on the bill of fine.

(4) The procedure for billing and payment of Determination of Administrative Penalties (SPSA) as intended in paragraph (3) follow the applicable provisions.

(5) The application of penalties in stages, as intended in paragraph (2) according to the sample as set out in Attachment XX that is an integral part of this Regulation of the Director General.

CHAPTER X
OTHER PROVISIONS

Article 27

(1) Tax treatment of Imported Raw Materials by the Company that get Exemption NIPER is in according to regulation in the field of taxation.

(2) Treatment on Excise on the goods subject to excise by the Company that get exemption NIPER is in according to regulation in the fields of excise.

(3) Treatment of Export Levy on the Production Results that their raw materials get Exemption facility is in according to regulation in the field of customs.

Article 28

(1) Companies that have received exemption facility, can not utilize the customs facility for bonded zone.

(2) In case of that the Company will utilize the customs facility for bonded zone, the Company must change from the receiving Exemption facility to the company receiving customs facilities for the bonded zone.

(3) In case of company change to company receiving customs facilities for bonded zones as intended in paragraph (1), to the realization of exports made by the Company may be taken into account in determining the limits sales of production from the bonded zone to other place within the customs area.

Article 29

(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 Exemption facility, the Director General of Customs and Excise may determine the Regional Office or the KPU where supervision and serve Exemption facility.

(3) In consideration of the efficiency of supervision and service, Companies located in Jakarta, Bogor, Depok, Jakarta, Cikarang, Purwakarta and Sukabumi can be served for Exemption NIPER issuance and Exemption facility service in Jakarta Regional Office of DJBC.

(4) In case of a Regional Office or the KPU does not have application of Services Computer System (SKP) of KITE and/or the Service Computer Systems (SKP) of Exemption, Exemption facility services and supervision carried out by the Regional Office issuing NIPER/previous Exemption NIPER.

Article 30

With the enactment of Regulation of the Minister of Finance No. 254/PMK.04/2011 concerning exemption of Import Duty already paid on the Import of Goods and Materials to be Processed, Manufactured, or Combined at other goods to be exported, following provisions shall be applied:

• a. On the business entities that have NIPER based on Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedures Import Facility for Export Purpose and its Supervision as amended several times, the latest by Regulation of the Minister of Finance No. 15/PMK.011/2011, to obtain the Exemption shall apply for Exemption NIPER based on Regulation of the Minister of Finance No. 254/PMK.04/2011 concerning Exemption of Import Duty already Paid on the Import of Goods and Materials to be Processed, Manufactured, or Combined at Other Goods to be exported within the period up to December 31, 2012.
• b. In case of business entities do not apply for exemption NIPER until the time limit as intended in a, NIPER is owned by the business entities will be frozen until the revocation process is complete.
• c. In case of frozen NIPER, the provisions on the obligations of business entity to conduct the realization of the Export and submit responsibility report remain valid.
• d. In case of NIPER revoked, the guarantee of Raw Materials which have not been accounted will be liquefied.
• e. In case of business entity already has NIPER, but do not have the exemption NIPER, following provisions shall be applied:
• 1. on raw materials imported before the effective of Regulation of the Minister of Finance No. 254/PMK.04/2011 concerning Exemption of Import Duty Already Paid on the Import of Goods and Materials to be Processed, Manufactured, or Combined at other Goods to be Exported to:
• a) the use of import customs notification documents;
• b) the tax treatment;
• c) the settlement of the raw materials;
• d) submission of responsibility report;
• processed based on Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedures of Import Facility for Export Purpose and its 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 c) and submission of responsibility report as intended in paragraph 1 d) shall be implemented no later than March 31, 2013.
• 3. settlement of the raw materials as intended in paragraph 1 c) and submission responsibility report as intended in paragraph 1 d) is performed after the date of March 31, 2013, guarantee will be liquified based on the Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedures of Import Facility for Export Purpose and its Supervision as amended several times, the latest by Regulation of the Minister of Finance No. 15/PMK.011/2011.
• 4. on the Raw Materials are imported after the entry into force of Regulation of the Minister of Finance No. 254/PMK.04/2011 concerning Exemption of Import Duty already Paid on the Import of Goods and Materials to be Processed, Manufactured, or Combined at other goods to be Exported to:
• a) the use of import customs notification documents;
• b) the tax treatment;
• c) the settlement of the raw materials;
• d) transfer of responsibility report;
• processed by Regulation of the Minister of Finance No. 254/PMK.04/2011 concerning Exemption of Import Duty already paid on the Import of Goods and Materials to be Processed, Manufactured, or Combined at other Goods to be Exported.
• f. 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 Purpose and its Supervision as amended several times, the latest by Regulation of the Minister of Finance No. 15/PMK.011/2011, must comply with the provisions on the utilization of information technology as intended in Article 3 paragraph (2) i within the period until December 31, 2012.
• g. In case of business entity to switch from receiving facility of Import Facility for Export Purpose becomes customs facilities for the 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 limits sales of production from the bonded zone to other place in the customs area.
• h. Responsibility to report that was submitted by a business entity that has NIPER before the enactment of Regulation of the Minister of Finance No. 254/PMK.04/2011 Concerning Exemption of Import Duty already Paid on the Import of Goods and Materials to be Processed, Manufactured, or Combined at Other Goods to be Exported and still in the checking process, the settlement of the checking was conducted based on the Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedures of Import Facility for Export Purpose and its Supervision as amended several times, the latest by Regulation of the Minister of Finance No. 15/PMK.011/2011 within a period of until April 1, 2014.

Article 31

(1) If the Production Results using the combined production of raw materials imported before 1 April 2012 and after 1 April 2012, following provisions shall be applied:

• a. settlement of the raw materials, and
• b. submission of responsibility report,
• processed based on Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedures of Import Facility for Export Purpose and its Supervision as amended several times, the latest by Regulation of the Minister of Finance No. 15/PMK.011/2011.

(2) The treatment of Value Added Tax (VAT) on imported raw materials after 1 April 2012 as intended in paragraph (1), processed based on regulation in the fields of taxation as intended in Article 27 paragraph (1).

CHAPTER X
CLOSING

Article 32

(1) Application of this Regulation of the Director General is in following stages:

• a. NIPER exemption application can be served from April 1, 2012 at the Regional Office or KPU; and
• b. In case of the Regional Office or KPU does not have the application of Services Computer System (SKP) of KITE/Services Computer System (SKP) of Exemption, the issuance of Exemption NIPER can be carried out at other Regional Office or KPU closest to the plant site that has had applied of Services Computer System (SKP) of KITE/Services Computer Systems (SKP) of Exemption.

(2) Implementation application of Services Computer System (SKP) of Exemption:

• a. Banten Regional Office of DJBC determined as a pilot project implementation of the application of Services Computer System (SKP) of Exemption from the date of June 1, 2012; and
• b. Implementation of the Services Computer System (SKP) of Exemption at other the Regional Offices or other KPUs, will be further regulated by Regulation of the Director General.

Article 33

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

Stipulated in Jakarta
on March 29, 2012
DIRECTOR GENERAL,
signed.
AGUNG KUSWANDONO
NIP 19670329 199103 1001