REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-16/BC/2006

ON
TECHNICAL DIRECTIVES FOR REGULATION OF
THE MINISTER OF FINANCE NO. 79/PMK.010/2006 DATED SEPTEMBER 25, 2006
ON EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF PARTS AND ACCESSORIES OF MOTOR VEHICLE FOR MANUFACTURING MOTOR VEHICLE DESTINED TO THE EXPORT

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

• a. That following the issuance of Regulation of the Minister of Finance No. 79/PMK.010/2006 dated September 25, 2006 on Exemption from Import Duty on the Import of Parts and Accessories of Motor Vehicle for Manufacturing Motor Vehicle Destined to the Export, it is deemed necessary to regulate technical directives;
• b. That based on the consideration as meant in letter a, it is necessary to stipulate a regulation of the Director General of Customs and Excise on Technical Directives for Regulation of the Minister of Finance No. 79/PMK.010/2006 dated September 25, 2006 on Exemption from Import Duty on the Import of Parts and Accessories of Motor Vehicle for Manufacturing Motor Vehicle destined to the Export;

In view of:

• 1. Law No. 10/1995 on Customs Affairs (Statute Book 1995 No. 75, Supplement to Statute Book No. 3612);
• 2. Decree of the Minister of the Minister of Finance No. 585/KMK.05/1996 on the Use of Guarantee for the Payment of Import Duty, Excise, Administrative Fine and Taxes in the Framework of the Import as already amended by Decree of the Minister of Finance No. 209/KMK.01/199;
• 3. Decree of the Minister of the Minister of Finance No. 457/KMK.05/1997 on the Use of Guarantee of cash Guaranteeing the Payment of Import Duty, Excise, Administrative Fine and Taxes in the Framework of the Import;
• 4. Decree of the Minister of the Minister of Finance No. 461/KMK.05/1997 on the Use of Customs Bond as Guarantee for the Payment of Import Duty, Excise, Administrative Fine and Taxes in the Framework of the Import as already amended by Decree of the Minister of Finance No. 208/KMK.01/1999;
• 5. Decree of the Minister of the Minister of Finance No. 441/KMK.05/1999 on the Use of Written Guarantee for Guaranteeing the Payment of Import Duty, Excise, Administrative Fine and Taxes in the Framework of the Import as already amended by Decree of the Minister of Finance No. 25/PMK.04/2005;
• 6. Decree of the Minister of Finance No. 545/KMK.01/2003 dated December 18, 2003 on Stipulation of Systems of Classifications of Imported Goods;
• 7. Decree of the Minister of Finance No. 547/KMK.01/2003 dated December 18, 2003 on Stipulation of Tariffs of Import Duty on Imported Goods;
• 8. Regulation of the Minister of Finance No. 79/PMK.010/2006 dated September 25, 2006 on Exemption from Import Duty on the Import of Parts and Accessories of Motor Vehicle for Manufacturing Motor Vehicle destined to the Export;

DECIDES :

To stipulate :

THE REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON TECHNICAL DIRECTIVES FOR REGULATION OF THE MINISTER OF FINANCE NO. 79/PMK.010/2006 DATED SEPTEMBER 25, 2006 ON EXEMPTION FROM IMPORT DUTY ON THE IMPORT OF PARTS AND ACCESSORIES OF MOTOR VEHICLE FOR MANUFACTURING MOTOR VEHICLE DESTINED TO THE EXPORT

Article 1

The import of parts and accessories of motor vehicle for manufacturing motor vehicle solely destined to the export shall be exempt from import duty so that the final tariff of import duty becomes 0% (zero percent).

Article 2

(1) The exemption from import duty as meant in Article 1 shall only be given to companies importing parts and accessories of motor vehicle to be used for manufacturing motor vehicle to be used for manufacturing motor vehicle in a Completely Built Up (CBU) and Completely Knock Down (CKD) condition and the output is solely exported by the importing companies.

(2) The motor vehicle in CKD condition as meant in paragraph (1) shall be exported collectively as an integrated unit.

(3) For the need of identification of parts and accessories of motor vehicle exempt from import duty, independent surveyors shall stipulate conversion of parts and accessories into motor vehicle in CBU and CKD condition as meant in paragraph (1).

Article 3

(1) Applications for exemption from import duty as meant in Article 1 shall be submitted to the Director General of Customs and Excise attn. The Director of Customs Facility.

(2) The applications as meant in paragraph (1) shall be accompanied by:

• a Import plan of Goods (RIB) to which the exemption from import duty is requested;
• b The conversion as meant in Article 2 paragraph (3);
• c Export Plan of Motor Vehicle for a period of 12 (twelve) months;
• d Data about installed capacity of automotive manufacturing/assembling companies;
• e Export/transaction contract with buyers abroad;
• f Contract between automotive manufacturing/assembling companies, excluding exporting producers.

Article 4

(1) The Applications for exemption from import duty as meant in Article 3 shall be submitted separately for the respective need for manufacturing motor vehicle.

(2) The Applications for exemption from import duty only can be submitted once for every kind of motor vehicle in accordance with the Export Plan of the motor vehicle.

Article 5

(1) The Import Plan of Goods (RIB) as meant in Article 3 paragraph (2) letter a shall minimally contain substances of the following data:

• a Customs and Excise Service Office overseeing the Importing place of goods:
• b Detail of kinds and quantity of parts and accessories which will be imported;
• c Tariff headings of the respective parts and accessories of motor vehicle in accordance with the Indonesia Customs Tariff Book.

(2) The import plan of goods shall be made in accordance with specimen of format in Attachment I to this regulation.

Article 6

The conversion as meant in Article 3 paragraph (2) letter a shall be made by independent surveyors, namely in the form of list of parts and accessories of motor vehicle imported and used for manufacturing/assembling a unit of motor vehicle in CBU or CKD condition.

Article 7

(1) The export plan of motor vehicle as meant in Article 3 paragraph (2) letter c shall be made for a period of 12 (twelve) months and minimally contain elements of the following data:

• a Kind of motor vehicle to be exported;
• b Mark and type;
• c Category/kind (sedan, station wagon, etc);
• d Cylinder capacity;
• e Passenger capacity (including driver);
• f Tariff heading in accordance with the Indonesian Customs Tariff Book;
• g Destination country of export;
• h Estimated export value per unit;
• i Total export value; and
• j Customs and Excise Service Office overseeing the loading place.

(2) The export plan of motor vehicle shall be made in accordance with specimen of form in Attachment II to this regulation.

Article 8

(1) The Director of Customs Facility shall examine the received applications as meant in Article 3 paragraph (1).

(2) In the case of applications fulfilling the requirements, the Director of Customs Facility on behalf of the Minister of Finance on Exemption from Import Duty on the Import of Parts and Accessories of Motor Vehicle Destined to the Export.

(3) The exemption from import duty as meant in paragraph (2) shall be given for a period up to August 25, 2007

(4) In the case of applications failing to meet the requirements, the Director of Customs Facility shall issue letter of rejection to applicants.

Article 9

(1) The import of parts and accessories of motor vehicle coming into the decree of the Minister of Finance as meant in Article 8 paragraph (2) shall be attached to guarantee with the amount minimally as much as the imposed import duty.

(2) The guarantee as meant in paragraph (1) shall be made and given up to every submission of Import Declaration (PIB) in Customs and Excise Service Offices overseeing the importing place of goods.

Article 10

(1) The quantity of the imported parts and accessories of motor vehicle shall be suitable, on the basis of the conversion as meant in Article 6, to the total units of motor vehicle to be exported.

(2) In the case of the imported parts and accessories of motor vehicle, based the conversion as meant in Article 6, exceeding the total exported motor vehicle, the excess shall be subjected to collection of import duty plus interest as high as 2% every month as from the date of registration of PIB.

Article 11

(1) Motor vehicles having parts and accessories exempt from import duty on the basis of the Decree of the Minister of Finance as meant in paragraph (2) shall be exported wholly in the period as meant in Article 8 paragraph (3)

(2) In the case of the export of motor vehicle as meant in Paragraph (1) being not realized, in accordance with the conversion as meant in Article 6 shall be subjected to import duty plus interest as high as 2% every month as from the date of registration of PIB.

Article 12

The exemption from import duty shall not apply to motor vehicle imported to Bonded Zone.

Article 13

(1) Recipients of facility (approved applicants) shall convey to the Director of Customs Facility:

a Report to the realization of import of parts and accessories of motor vehicle exempt from import duty and realization of the export of motor vehicle periodically, every three months, as from the that of the Decree of the Minister of Finance as meant in Article 8 paragraph (2);

b The report as meant in paragraph (1) shall be made in accordance with the from in Attachment III to this regulation

Article 14

The decree of Minister of Finance on Exemption form Import Duty on Parts and Accessories of Motor Vehicle Destined to the Export as meant in Article 8 paragraph (2) shall be revoked and declared null and void in the case of the recipients of facility (approved applicants) not realizing their import in six months as from the date of issuance.

Article 15

The regulation shall come into force as from the date of stipulation.

For public cognizance, the regulation shall be announced by placing it in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On October 11, 2006

THE DIRECTOR GENERAL
(signature)
ANWAR SUPRIJADI

Attachment (Indonesian)
Regulation of The Director General of Customs and Excise No. P-16/BC/2006