DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. KEP-03/BC/2002

ON
AMENDMENT TO DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. KEP-63/BC/1997
ON
THE PROCEDURES FOR THE ESTABLISHMENT OF BONDED ZONES,
THE ENTRY OF GOODS INTO AND THE RELEASE OF GOODS FROM BONDED ZONES

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

that to facilitate the calculation of state levies on the release of goods processed by PDKB using imported and local raw materials to DPIL, it is deemed necessary to amend Decision of the Director General of Customs and Excise No. Kep-63/BC/1997 on the procedures for the establishment of bonded zones, the entry of goods into and the release of goods from bonded zones.

In view of:

• a. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• b. Law No. 11/1995 on excise (Statute Book of 1995 No. 76, Supplement to Statute Book No. 3613);
• c. Government Regulation No. 33/1996 on bonded warehouses (Statute Book of 1996 No. 50, Supplement to Statute Book No. 3535) as has been amended by Government Regulation No. 43/1997 (Statute Book of 1997 No. 90, Supplement to Statute Book No. 3717);
• d. Decree of the Minister of Finance No. 25/KMK.05/1997 on the customs procedures in the import sector;
• e. Decree of the Minister of Finance No. 291/KMK.05/1997 on bonded zones as has been several times amended the latest by Decree of the Minister of Finance No. 94/KMK.05/2000;
• f. Decision of the Director General of Customs and Excise No. Kep-63/BC/1997 on the procedures for the establishment of bonded zones, the entry of goods into and the release of goods from bonded zones.

To stipulate:

DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON AMENDMENT TO DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE NO. KEP-63/BC/1997 ON THE PROCEDURES FOR THE ESTABLISHMENT OF BONDED ZONES, THE ENTRY OF GOODS INTO AND THE RELEASE OF GOODS FROM BONDED ZONES.

Article I

Article 38 of the Decision of the Director General of Customs and Excise No. Kep-63/BC/1997 dated July )), 1997 on the procedures for the establishment of bonded zones, the entry of goods into and the release of goods from bonded zones shall be amended to read as follows:

"Article 38

(1) The release of goods already processed by PDKB to DPIL can be done only after there has been the realization of export and/or the release of goods to other PDKB.

(2) The goods to be released to DPIL as referred to in parr3 graph (1) shall be:

• a. as much as 50%, for the goods that do not require further processing, can function themselves the help of other goods and are used by end-users;
• b. as much as 100% of the export and/or the quality of goods released to other PDKB, for the goods other than those referred to in letter a.

(3) The calculation as referred to in paragraph (2) shall be based on the Export Notification (PEB) and/or document on the release of goods to other bonded zones (KB) (Form BC.2.3) no later than 1 (one) year after the registration date of PEB and Form BC.2.3.

(4) The goods of import origin that have been processed by PDKB and will be released to DPIL shall be subject to customs inspection.

(5) The release of goods as referred to in paragraph (2) shall be done using Import Notification (PIB) according to the customs procedures in the import sector.

(6) The release of goods as referred to in paragraph (2) shall be liable to import duty (BM), excise, value added tax (PPN), sales tax on luxury goods (PPnBM) and income tax (PPh) under article 22/import, provided the goods are not delivered to the parties granted BM, excise or import-related tax suspension or exemption facilities.

(7) The bases for the calculation of the state levies as referred to in paragraph (6) shall be as follows:

• a. BM is bawl oil the tariff of raw materials prevailing at the time of import for own use and the customs value occurring at the time when the goods enter KB;
• b Excise is based oil the existing excise rules;
• c. PPN and PPnBM are based on Me delivery prices;
• d. PPh under article 22/import is based on the delivery prices, for the goods processed entirely using imported raw materials;
• e. PPh under article 22/import on the release of goods processed using imported and local materials, is based on the tariff multiplied by the percentage of imported raw materials content and the delivery price.

(8) The change in the percentage of the export value as referred to in paragraph (2) shall be stipulated by the Minister."

Article II

This decision shall begin to take effect on the date of stipulation. For public cognizance, this decision shall be announced by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On January 15, 2002
THE DIRECTOR GENERAL
sgd
R.B. PERMANA AGUNG D.