to Indonesian
a. that based on Article 26 paragraph (1) clause k Law No. 10/1995 concerning Customs as amended by Law No. 17/2006, import of goods and material to be processed, manufactured, or combined at other goods to be exported, can get Exemption of import duty;
b. that based on consideration as intended in paragraph a and in the framework to implement provision in Article 26 paragraph (3), it is necessary to stipulate Regulation of the Minister of Finance concerning Exemption of Import Duty on the Import of Goods and Materials to be processed, manufactured, or combined at other goods to be exported;
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 Administration sanction in the form of fine in Customs Field (Statute Book of the Republic of Indonesia No. 53/2008, Supplement to Statute Book of the Republic of Indonesia No. 4838);
3. Presidential Decree No. 56/P/2010;
REGULATION OF THE MINISTER OF FINANCE EXEMPTION OF IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO BE PROCESSED, MANUFACTURED, OR COMBINED AT OTHER GOODS TO BE EXPORTED.
In this Ministerial Regulation:
1. Import is activities of enter goods into customs area.
2. Export is activities of release goods from customs area.
3. 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.
4. Company gets Exemption hereinafter called as Company is business entity that get Exemption.
5. Exemption Company Number hereinafter abbreviated as Exemption NIPER is identity number that is given to the Company that get Exemption.
6. Raw Materials are goods and/or materials that are imported to be processed, manufactured, or combined at other goods by get Exemption.
7. Production Results are processing, manufacturing, or combination results of import origin Raw Materials that get Exemption.
8. Minister is Minister of Finance of the Republic of Indonesia.
9. Regional Office or KPU is Regional Office or Main Service Office within Directorate General of Customs and Excise environment.
10. Person is individual or legal entity.
(1) Import Raw Materials to be processed, manufactured, or combined at other goods to be exported can get 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 Production Result goods 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 and/or such kind of activities.
(6) Exemption as intended in paragraph (1) is not given to:
(1) Exemption as intended in Article 2 paragraph (1) only be given to the business entities already obtain Exemption NIPER.
(2) To obtain Exemption NIPER, business entity should fulfill following requirements:
(3) To obtain Exemption NIPER as intended in paragraph (1), business entity file application to Head of Regional Office or KPU that supervises the business entity factory location by attached:
(4) In case business entity has more than 1 (one) factory locations, application to obtain Exemption NIPER is to Head of Regional Office or KPU yang supervises factory location that has the highest import activities.
(5) Head of Regional Office or KPU or appointed official checking administratively and field inspection to the Application as intended in paragraph (3).
(6) Head of Regional Office or KPU gives approval or rejection on the application as intended in paragraph (3), within 45 (forty-five) working days since received complete application.
(7) In case application as intended in paragraph (3) is approved, Head of Regional Office or KPU on behalf of Minister issues Exemption NIPER.
(8) In case application as intended in paragraph (3) is rejected, Head of Regional Office or KPU submit notification letter by state the reason of rejection.
Business entity that already made crime in customs and/or excise and has fixed legal force and/or stated bankrupt by the court and/or Person who has responsibility for the business entity used to do crime in customs and/or excise and has fixed legal force, and/or stated bankrupt by the court, cannot be given Exemption NIPER for 10 (ten) years since finishing crime punishment and/or stated bankrupt.
In case there is data change in Exemption NIPER, Company should file application to Head of Regional Office or KPU to change data of the said Exemption NIPER.
(1) To obtain Exemption as intended in Article 2 paragraph (1), Company should file application to the Head of Regional Office of KPU that issues Exemption NIPER by attached:
(2) In certain case based on risk management, Head of Regional Office or KPU can ask legalization of conversion as intended in paragraph (1) e to the related agency or by professional institutions are approved by related agency.
(3) All costs to ask legalization of conversion as intended in paragraph (2) are borne by Company.
(4) On the application to obtain Exemption as intended in paragraph (1), Head of Regional Office or KPU gives approval or rejection within 14 (fourteen) working days since received complete application.
(5) In case application as intended in paragraph (1) is approved, Head of Regional Office or KPU on behalf of Minister issues decision on the Exemption that stipulate detail of kind and quantity of Raw Materials are given Exemption, Exemption period, unloading ports, and active period of decision on the Exemption.
(6) In case application as intended in paragraph (1) is rejected, Head of Regional Office or KPU submit notification letter by state the reason of rejection.
(1) Exemption period as intended in Article 6 paragraph (5) is period that is given to Company to realize Export.
(2) Exemption period as intended in paragraph (1) is given in:
Import Raw Material that is obtain Exemption based on decision on the Exemption as intended in Article 6 paragraph (5) is according to general provision in import field, including provision that govern on the import restriction and/or prohibition.
On the import Raw Materials that is given Exemption based on decision on the Exemption as intended in Article 8, Company should file import customs notification documents by state decision number on the Exemption at fulfill Import facility condition column.
(1) Company should give guarantee to the Directorate General of Customs and Excise while in:
(2) Guarantee that is given as intended in paragraph (1) is as much as import duty on the Raw Materials that is notified in import customs notification.
(3) Import Duty as intended in paragraph (2) include antidumping import duty, counter import duty, safety measure import duty, and/or counter strike import duty.
(4) Form, time, and procedure to submit guarantee as intended in paragraph (1) in according to the regulations in customs.
(1) Customs and Excise Official conduct customs inspection on the import customs notification that is applied by Company.
(2) Customs inspection as intended in paragraph (1) is conducted selectively based on risk management.
(3) In case based on customs inspection result as intended in paragraph (1) found not matching in tariff and/or customs value, Company should adjust guarantee value while it still believe that kind of imported goods are match with goods are listed in decision on the Exemption as intended in Article 6 paragraph (5).
(4) In case based on customs inspection result as intended in paragraph (1) found not match in quantity and/or kind of goods, all imported in notification of imported goods that are filed by Company cannot get Exemption and will be checked or further investigated in according to regulation in the customs field.
(1) Company should unload and/or pile Raw Materials from Customs zone to locations are listed in Exemption NIPER by using Import customs notification documents as intended in Article 9.
(2) Company can unload and/or pile in other location as intended in paragraph (1) based on Company’s application to get approval from Head of Regional Office or KPU.
(3) Approval for unloading and/or piling in location as intended in paragraph (2) only for 1 (once) time of unloading and/or piling.
(4) In case unloading and/or piling is in location as intended in paragraph (2) will be used permanent and/or repeat, Company should file change of Exemption NIPER.
(1) Company should submit conversion as intended in Article 6 paragraph (1) e before starting of production, in case of:
(2) Activities of processing, manufacturing, and/or combination of Raw Materials to other goods so change main characteristics and/or form of Raw Materials as intended in Article 3 paragraph (2) e should be done by company itself.
(3) In case Company does not do all processing, manufacturing, and/or combination activities as intended in paragraph (2), Company will subject to administration sanction in the form of fine in according to the regulation in customs field.
(1) Company can subcontract a part from Activities of processing, manufacturing and/or installation of Raw Materials as intended in Article 13 to industrial business entity that are listed in NIPER Exemption data while fulfill following criteria:
(2) In case subcontract is done by industrial business entity that is not list in Exemption NIPER, Company should file application to Head of Regional Office or KPU to obtain approval.
(3) Head of Regional Office or KPU gives answer for approval or rejection to the Application as intended in paragraph (2) within 15 (fifteen) working days since received complete application.
(4) In case Company does not fulfill subcontract provision as intended in paragraph (1) and paragraph (2), Company will subject to administration sanction in the form of fine in according to the regulation in the customs field.
Company should export all Production Results from Raw Materials that get Exemption facility, in according to the regulation that govern customs procedure in export field.
In the framework to keep on stability of national economics, Ministerial Regulation can change quantity of Production Result from Raw Materials that get Exemption facility and should be exported as intended in Article 15.
(1) Company should make responsibility on the Export realization as intended in Article 15 by submit responsibility report to Head of Regional Office of KPU periodically at the latest once in 6 (six) months while in Exemption period.
(2) Responsibility report as intended in paragraph (1) should be attached with:
(3) If Company does not submit conversion as intended in Article 13 paragraph (1), Raw Materials are used by Company itself to produces the Production Results will not get Exemption.
(4) Provision as intended in paragraph (2) a and b is not applied for Company that Import and Export goods through Customs Office already apply Electronic Data Exchange (PDE).
(5) Head of Regional Office or KPU or appointed official check to the submitted responsibility report as intended in paragraph (1) on the:
(6) Production Results that should be exported as intended in Article 15, are given Exemption.
(7) Rest of production process (waste/scrap) from Production Results as intended in paragraph (6), will subject to import duty as much:
(8) Production Results, include damage or reject Production Results are not be exported or reported until ending of Exemption period, following provisions shall be applied:
(9) Raw Materials, included damage and reject Raw Materials are not finished be processed, manufactured, combined, exported, or reported in the responsibility report until ending period of Exemption, following provision shall be applied:
(10) Head of Regional Office or KPU, or appointed official approve or reject responsibility report that is submitted as intended in paragraph (1) within 45 (forty-five) working days since receiver responsibility report.
(11) In case responsibility report as intended in paragraph (1) is approved, guarantee will be return as much as import duty of Raw Materials that their production results are exported.
(12) In case responsibility report as intended in paragraph (1) is not submitted within Exemption period as intended in paragraph (7) or responsibility report as intended in paragraph (1) is rejected, following provision shall be applied:
(1) Head of Regional Office or KPU or appointed official monitors and Evaluates every issuing of Exemption NIPER periodically at least once in 1 (one) year since date of Decision Letter of NIPER issuance.
(2) Based on risk management, Head of Regional Office or KPU, or appointed official may conducts field checking to the Raw Materials stock, goods in production process, Production Results, and rest of production process.
(3) In the framework of control and service Exemption Facility, Director General of Customs and Excise can decides Regional Office or KPU of control and service for Exemption facility.
(1) Field checking result as intended in Article 18 paragraph (2) and report of customs audit result may become basis for evaluation for Exemption facility that is given and responsibility of settlement Raw Materials.
(2) In case based on audit result found different quantity of physical Raw Materials more than raw materials as stated in Raw Materials report that has submitted for responsibility as intended in Article 17, Company should settle import duty and administration sanction in the form of fine in according to the regulation in the customs field.
(3) Implementation of audit in specified period will not reduces:
(1) Exemption NIPER will be frozen in case Company:
(2) In case Exemption NIPER is frozen, Company not get Exemption facility on the Import Raw Materials as intended in Article 2 paragraph (1).
Exemption NIPER that is frozen as intended in Article 20 will be reactivate, in case Company:
(1) Exemption NIPER will be revoked in case Company:
(2) In case Exemption NIPER is revoked, business entity should settle all payable billing in according with regulation in Customs field.
(3) In case Exemption NIPER is revoked caused by status is change become Bonded Zone Entrepreneur or Entrepreneur in Bonded Zone as intended in paragraph (1) j. on the Raw Materials are not settle customs obligation, while still in Exemption period, become beginning balance of Bonded Zone and pretended as import goods are gotten suspension of Import Duty.
(4) Customs audit can be conducted on the revocation of Exemption NIPER.
Company will subject to administrative sanction in the form of fine minimum 100% (one hundred percent) and maximum 500% (five hundred percent) of import duty should be paid, in case company:
Fine as intended in Article 23 is fine that is stipulated in several phases in according to the regulation that govern administration sanction in the form of fine in customs field.
(1) Taxation treatment on the Raw Materials are imported by Company that get Exemption NIPER is in according to the regulation in the taxation field.
(2) Excise treatment on the Goods Subject to excise are imported by Company that get Exemption NIPER is in according to the regulation in the excise field.
(3) Export Levy treatment on the Production Results that their Raw Materials get Exemption facility is in according to the regulation in the field of customs.
(1) Company that get Exemption facility cannot use customs facility for bonded zone.
(2) In case Company will use customs facility for bonded zone, status of Company should be changed from receiver of Exemption facility become receiver of customs facility for bonded zone.
(3) In case status of company is changed from receiver of Exemption facility become receiver of customs facility for bonded zone as intended in paragraph (1), Export realization that is done by Company can be calculated in the determination of selling limit of production results from bonded zone to other place in customs area.
By effective of this Ministerial Regulation, several provision on the:
Further provision on:
will be governed by Regulation of the Director General of Customs and Excise.
This Ministerial Regulation shall come into force on April 1, 2012.
For public cognizance, this Ministerial Regulation shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
On December 28, 2011
MINISTER OF FINANCE,
signed,
AGUS D.W. MARTOWARDOJO