In the current era of trade globalisation, competition to get market access for industrial products other than oil and natural gas ha. become so fierce. In line with this, the competitiveness of Indonesian export products needs to be improved by, among others, improving the efficiency of production process, increasing the quality of goods, ensuring the smooth flow of goods from and to Indonesia, and making available promotional facilities in support of the marketing of the Indonesian export products.
The efforts to improve the quality of goods and the efficiency of production process may be spurred if the supply of raw materials to the domestic industry is made on time and the goods produced by the domestic industry are still exempt from customs, excise and taxation levies. In such a way, investors will feel more encouraged to carry on their bussiness integratedly and be able to compete on the international market to sell their industrial products.
In addition, in international and state practices such facilities in the customs, excise and taxation sectors are also granted to diplomatic corps and international institute officials on a mutual basis, and to individuals who are about to travel abroad or who have just arrived from abroad to buy goods in certain amounts.
Facilities in the customs, excise and taxation sectors are granted by setting up bonded stockpiling sites fully under the control of customs authorities.
ARTICLE BY ARTICLE
Article 1 : Sufficiently clear
Article 2
Paragraph (1) : Sufficiently clear.
Paragraph (2) : Sufficiently clear.
Paragraph (3) : Sufficiently clear.
Paragraph (4)
Referred to as goods for the relevant companies' own consumption are goods personally consumed by bonded stockpiling site operators or companies, such as daily necessities in the form of drinks, food or cigarettes.
Article 3
Sufficiently clear.
Article 4
Bonded stockpiling site operators and companies are of two different undertakings (according to Article 1 points 6 and 7). operators that concurrently act as companies at their bonded stockpiling sites must meet requirements as operators in addition to fulfiling all requirements as companies.
Article 5
Paragraph (1)
The parties granted exemption or suspension of import duty, excise or tax on imports are those granted facilities based on the law in force, including goods in the interests of representatives of foreign countries or international bodies, or goods in the interests of museums or zoos.
Paragraph (2)
Sufficiently clear.
Article 6
Sufficiently clear.
Article 7
Sufficiently clear.
Article 8
KB may only consist of one company in which PKB concurrently acts as PDKB, or may accommodate several PDKB engaged in manufacturing activities in which PKB may become one of PDKB carrying on business activities in its KB, or the operator only makes available physical facilities and infrastructure to several PDKB operating In the relevant KB.
Article 9
Paragraph (1)
As incentives for PKPB already receiving KB licences, the government grants suspension of Import duty and on the import of capital goods or office equipment solely used for the development/construction/expansion organisation of KB offices (office equipment Is expendable supplies such as paper, typewriter ribbon, diskette).
paragraph (2)
To grant facilities to investors planning to become PDKB, the government entrusts the task of examining the requirements of PDKB to PKB.
Paragraph (3)
The task of reporting new PKB In KB to the Minister of Finance constitutes the manifestation of responsibility entrusted to PKB.
Article 10
Paragraph (1)
Sufficiently clear.
Paragraph (2)
The obligation of PDKB to register with the Minister of Finance before starting their business activities is aimed to give services to relevant PDKB, so that they can receive all customs, excise and taxation facilities granted to them.
Paragraph (3)
Sufficiently clear.
Article 11
Sufficiently clear.
Article 12
Paragraph (1)
PDKB take goods into and out of their companies on a self assessment basis requiring honesty on the part of relevant PDKB. Therefore, if during the audit of records on the goods taken into and out of the companies. The Directorate General of Customs and Excise finds irregularities inflicting financial losses on the state, then relevant PDKB are held responsible for the import duty, excise and tax on the import of the relevant goods and materials.
Paragraph (2)
Sufficiently clear.
Articles 13
Sufficiently clear.
Article 14
Sufficiently clear.
Article 15
Paragraph (1)
Since KB serve as places for carrying out manufacturing activities whose output is mainly for exports, goods manufactured at KB may only be taken out of KB to other Indonesian customs areas after export is realised and the obligation to pay import duty, excise and tax on import and general provisions in the import sector are fulfilled.
Paragraph (2)
Sufficiently clear.
Article 16
See elucidation of Article 7 with term adjustments.
Article 17
See elucidation of Article 8 with term adjustments.
Article 18
See elucidation of Article 9 with term adjustments.
Article 19
Paragraph (1)
Unlike PDKB that only report the start of their business, PPGB planning to operate in bonded warehouses is obliged to obtain prior licences from the Minister of Finance. The difference of treatment is due to the fact that PPGB are importers engaged in
trade activities by receiving suspension of import duty, excise tax on imports.
Paragraph (2)
Referred to as "presenting guarantees" In letter e of this paragraph is that PPGB present guarantees in return of suspension of Import duty, excise, PPN, PPnBM and PPh Article 22 on their imports, as long as the relevant PPGB directly manage the warehouses.
If the bonded warehouses managed by PPGB are under the direct control of the Directorate General of Customs and Excise In the sense that the warehouse keys are jointly held by PPGB and the Directorate General of Customs and Excise, then PPGB need not to present the said guarantees.
Paragraph (3)
Sufficiently clear.
Article 20
Sufficiently clear.
Article 21
Paragraph (1)
See elucidation of Article 12 with term adjustments.
Paragraph (2)
Sufficiently dear.
Article 22
See elucidation of Article 7 with term adjustments.
Article 23
See elucidation of Article 9 paragraph (1) with term adjustments.
Article 24
Paragraph (1)
Since it is PETP that organize displays and take care of the temporary entry of imported goods to be put on display, the responsibilities for import duty, excise and tax on the import of the relevant goods rest with PETP.
Paragraph (3)
Sufficiently clear.
Article 25
Sufficiently clear.
Article 26
See elucidation of Article 7 with term adjustments.
Article 27
Paragraph (1)
This paragraph concerns individuals eligible to buy goods at TBB. In this connection, PTBS are obliged to examine and record the identities of all individuals buying goods at their TBB.
Paragraph (2)
Sufficiently clear.
Article 28
See elucidation of Article 12 with term adjustments.
Article 29
Referred to as "control of customs authorities" is control fully conducted by the Directorate General of Customs and Excise over the entry of goods into and the release of goods from bonded stockpiling sites so as to avoid abuse of government facilities because such a practice will in turn inflicts financial losses on the state and leads to domestic trade distortion.
Article 30
Paragraph (1)
The freezing of bonded stockpiling site licences as a follow-up to the audit of relevant bonded stockpiling sites conducted by Customs and Excise Officials.
Point (2)
Sufficiently clear.
Point (3)
Sufficiently clear.
Point (4)
Sufficiently clear.
Article 31
Sufficiently clear.
Article 32
Point (1)
Sufficiently clear.
Point (2)
Sufficiently clear.
Article 33
Sufficiently clear.
Article 34
Sufficiently clear.
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Since the licencing procedures, requirements and facilities for KB companies and EPTE companies are the same, the names of KB and EPTE are integrated into KB in order to facilitate the granting of services to the companies.
Paragraph (3)
Sufficiently clear.
Article 35
Sufficiently clear.