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REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. PER-41/BC/2012

CONCERNING
PROCEDURE TO GIVE EXEMPTION OF IMPORT DUTY ON THE IMPORT OF GOODS FOR UPSTREAM PETROLEUM AND NATURAL GAS AS WELL AS GEOTHERMAL BUSINESS ACTIVITIES AND NOT SUBJECT TO VALUE ADDED TAX OR VALUE ADDED TAX AND SALES TAX ON LUXURY GOODS ON THE IMPORT OF GOODS FOR UPSTREAM PETROLEUM AND NATURAL GAS AS WELL AS GEOTHERMAL BUSINESS ACTIVITIES

DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Attachment

Considering:

a. that for optimize service in the framework of giving exemption of import duty on the import of goods for the need of upstream petroleum and natural gas as well as geothermal business activities, and not subject to value added tax or value added tax and sales tax on luxury goods on the import for upstream petroleum and natural gas as well as geothermal business activities;

b. that based on Regulation of the Minister of Finance No. 177/PMK.011/2007 concerning The Exemption of Import Duty of Goods for the Need of Upstream Oil and Natural Gas as well as Geothermal Business Activities, on the import of goods for the need of upstream oil and natural gas as well as geothermal business activities get exemption of import duty;

c. that based on provision of Article 6 of Decree of the Minister of Finance No. 231/KMK.03/2001 concerning Treatment of Value Added Tax and Sales Tax on Luxury Goods on the Import of Taxable Goods get Exemption of Import Duty as amended several times, the latest by Regulation of the Minister of Finance No. 27/PMK.011/2012, on the import of goods for upstream petroleum and natural gas as well as geothermal business activities get exemption of value added tax or value added tax and sales tax on the luxury goods;

d. that in the framework to implement giving facilitation as intended in paragraphs a, b and c, it is necessary to stipulated Regulation of the Director General of Customs and Excise concerning Procedure to Give Exemption of Import Duty on the Import of Goods for Upstream Petroleum and Natural Gas as well as Geothermal Business Activities, and Not Subject to Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods on the Import of Goods for Upstream Petroleum and Natural Gas as well as Geothermal Business Activities;

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. Law No. 17/2003 concerning State Finance (Statute Book of the Republic of Indonesia No. 47/2003, Supplement to Statute Book of the Republic of Indonesia No. 4286);

3. Law No. 1/2004 concerning State Treasury (Statute Book of the Republic of Indonesia No. 5/2004, Supplement to Statute Book of the Republic of Indonesia No. 4355);

4. Government Regulation No. 1/2012 concerning Implementation of Law No. 8/1983 concerning Value Added Tax on the Goods and Services and Sales Tax on the Luxury Goods as amended several times, the latest by Law No. 42/2009 concerning the Third Amendment on the Law No. 8/1983 concerning Value Added Tax on the Goods and Services and Sales Tax on the Luxury Goods (Statute Book of the Republic of Indonesia No. 4/2012, Supplement to Statute Book No. 5271);

5. Regulation of the Minister of Finance No. 177/PMK.011/2007 concerning the Exemption of Import Duty on the Import of Goods for the Need of Upstream Petroleum and Natural Gas as well as Geothermal Business Activities;

6. Decree of the Minister of Finance No. 231/KMK.03/2001 concerning Treatment of Value Added Tax and Sales Tax on Luxury Goods on the Import of Taxable Goods get Exemption of Import Duty as amended several times, the latest by Regulation of the Minister of Finance No. 27/PMK.011/2012.

DECIDES:

To stipulate:

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE CONCERNING PROCEDURE TO GIVE EXEMPTION OF IMPORT DUTY ON THE IMPORT OF GOODS FOR UPSTREAM PETROLEUM AND NATURAL GAS AS WELL AS GEOTHERMAL BUSINESS ACTIVITIES AND NOT SUBJECT TO VALUE ADDED TAX OR VALUE ADDED TAX AND SALES TAX ON LUXURY GOODS ON THE IMPORT OF GOODS FOR UPSTREAM PETROLEUM AND NATURAL GAS AS WELL AS GEOTHERMAL BUSINESS ACTIVITIES

Article 1

In this Regulation of the Director General of Customs and Excise:

1. Upstream business activities are business activities mainly or depend on exploration and exploitation business activities.

2. Exploration is activities aimed to obtaining information on the geological conditions to find and obtain the estimated Oil and Gas reserves and Geothermal potential specified in the Working Area.

3. Plan for Import of Goods hereinafter abbreviated as RIB is a list of items proposed by the entrepreneurs to get exemption of import duty and not subject to value added tax or value added tax and sales tax on luxury goods.

4. Sector Fostering Agency is the Ministry of Energy and Mineral Resources, which is in this case:

• a. Director General of Oil and Natural Gas, Ministry of Energy and Mineral Resources, for the field of upstream oil and natural gas;
• b. Director General of New Energy, Renewable Energy and Conservation, Ministry of Energy and Mineral Resources, for the field of geothermal business.

5. Actual Import List is a list of the type and quantity of goods imported were used as controls on the importation of goods that get exemption of import duty and not subject to value added tax or value added tax and sales tax on luxury goods.

6. Director General is Director General of Customs and Excise.

7. Customs Office is office within Directorate General of Customs and Excise environment where fulfill customs obligations in according to Customs Law, they are:

• a. Customs and Excise Primary Service Office (KPU);
• b. Customs and Excise Medium Control and Service Office (KPPBC Madya); or
• c. Customs and Excise Control and Service Office (KPPBC).

Article 2

(1) The import of goods for the upstream oil and gas and geothermal can be given duty exemption.

(2) Exemption of import duty as referred to in paragraph (1) shall:

• a. for the upstream oil and natural gas, to:
• 1) business entities or permanent business form which binding cooperation contracts with the upstream oil and natural gas business activities board, and
• 2) PT Pertamina (Persero),
• b. for geothermal business activities, to:
• 1) business entities that get Mining Work Area (WKP) or get a preliminary survey assignment or Geothermal Mining Business Permit;
• 2) PT Pertamina (Persero), and
• 3) PT Geo Dipa Energi.

(3) The import of goods used for Upstream oil and natural gas as well as geothermal exploration business activities as intended in paragraph (1) may be granted not subject to value added tax or value added tax and sales tax on goods luxury.

Article 3

(1) To obtain facility as intended in Article 2, the entrepreneur shall file a written application to the Director of Customs Facilitation.

(2) The application as intended in paragraph (1), shall be accompanied by:

• a. photocopy of Customs Identity Number (VIN);
• b. photocopy of Taxpayer Identification Number (NPWP);
• c. photocopy of cooperation contracts for oil and natural gas sector, for the first time filling;
• d. photocopy of the business license or survey assignment for geothermal, for the first time filling;
• e. original RIB which has been signed by the company's leader who is authorized or appointed officials and given the company seal, that is approved and validated by the Sector Fostering Agency and softcopy of RIB in Microsoft Office Excel, format; and
• f sample or specimen signature of company’s leaders/managers or officials authorized to sign the RIB, for the first time filling.

(3) In case of any change of leader/manager or authorized official as intended in paragraph (2) f entrepreneur shall submit a sample or specimen signature of company’s leaders/managers or officials authorized to sign the RIB to the Director of Customs Facilitation.

(4) RIB as intended in paragraph (2) e is determined in Attachment of this Regulation of the Director General.

Article 4

(1) The Director of Customs Facilitation checks the application as intended in Article 3 paragraph (1).

(2) Based on checking as intended in paragraph (1), the Director of Customs Facilitation give approval or rejection within a maximum period of 14 (fourteen) days from receipt of the complete application.

(3) In case of the application is approved, the Director of Customs Facilitation issues Decision of the Minister of Finance on granting exemption of import duty on goods for the upstream oil and gas as well as geothermal business activities, and not subject to value added tax or value added tax and sales tax on luxury goods on the import of goods for the upstream oil and gas as well as geothermal business activities, accompanied by the Actual Import List.

(4) In case of the application is not approved, the Director of Customs Facilitation submits a rejection letter by stating the reasons.

(5) The Decision as intended in paragraph (3) applies maximum of 12 (twelve) months after the date of stipulation.

Article 5

(1) Decision as intended in Article 4 paragraph (3) can be changed before imported.

(2) Changing as intended in paragraph (1) only can be given on the:

• a. port of entry; and/or
• b. quantity and/or kind of goods.

(3) To change decision as intended in paragraph (1), company shall file written application to the Director of Customs Facilitation and state the reason of changing.

(4) In case of changing application on the port of entry as intended in paragraph (2) a, application as intended in paragraph (3) shall be equipped with documents that state changing of port of entry, for example Bill of Lading (B/L) or Airway Bill (AWB).

(5) In case of changing application on the quantity and kind of goods as intended in paragraph (2) b, application as intended in paragraph (3) should be equipped with RIB already signed by authorized leader of company or appointed official and be given with company seal and signed by Sector Fostering Agency.

(6) The Director of Customs Facilitation shall check the application as intended in paragraphs (5) and (6), give approval or rejection within 14 (fourteen) days after the application have been received in a complete manner.

(7) In case of the application is approved, Director of Customs Facilitation shall issue Decision of the Minister of Finance concerning amendment on the decision as intended in Article 4 paragraph (3).

(8) In case the application is rejected, Director of Customs Facilitation shall submit rejection letter and state the reason of rejection.

Article 6

This Regulation of the Director General shall come into force on the date of stipulation.

Stipulated in Jakarta
on July 31, 2012
THE DIRECTOR GENERAL
signed,
AGUNG KUSWANDONO
NIP 19670329 199103 1 001