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REGULATION OF THE MINISTER OF FINANCE
No. 253/PMK.04/2011

CONCERNING
RETURNING OF SETTLED IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO BE PROCESSED, MANUFACTURED, OR COMBINED AT OTHER GOODS TO BE EXPORTED

BY GRACE OF THE ALMIGHTY GOD
THE MINISTER OF FINANCE,

Considering:

a. that based on Article 27 paragraph (1) b Law No. 10/1995 concerning Customs as amended by Law No. 17/2006, returning can be given to all or a part of settled Import Duty on the import of goods as intended in Article 25 and Article 26 Law No. 10/1995 concerning Customs as amended by Law No. 17/2006;

b. that based on consideration as intended in paragraph a and in the framework to implement provision in Article 27 paragraph (2) Law No. 10/1995 concerning Customs as amended by Law No. 17/2006, it is necessary to stipulate Regulation of the Minister of Finance concerning Returning of settled Import Duty on the Import of goods and materials to be processed, manufactured, or combined at other goods to be exported;

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 Financial (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. 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);

5. Presidential Decree No. 56/P/2010;

DECIDES:

To stipulate:

REGULATION OF THE MINISTER OF FINANCE CONCERNING RETURNING OF SETTLED IMPORT DUTY ON THE IMPORT OF GOODS AND MATERIALS TO BE PROCESSED, MANUFACTURED, OR COMBINED AT OTHER GOODS TO BE EXPORTED.

CHAPTER I
GENERAL PROVISION

Article 1

In this Ministerial Regulation:

1. Customs Law is Law No. 10/1995 concerning Customs as amended by Law No. 17/2006.

2. Import is activities of enter goods into customs area.

3. Export is activities of release goods from customs area.

4. Returning is returning of settled Import duty on the Import of goods and materials to be processed, manufactured, or combined at other goods to be exported.

5. Company gets Returning hereinafter called as Company is business entity that get Returning.

6. Returning Company Number hereinafter abbreviated as Returning NIPER is identity number that is given to the Company.

7. Raw Materials are goods and/or materials that are imported to be processed, manufactured, or combined at other goods that can get Returning.

8. Production Results are processing, manufacturing, or combination results of import origin Raw Materials that get Returning.

9. Export Inspection Report hereinafter abbreviated as LPE is report of customs inspection result of export goods with Returning facility that is issued by Customs Office of loading after reconciliation.

10. Minister is Minister of Finance of the Republic of Indonesia.

11. Regional Office or KPU is Regional Office or Main Service Office within Directorate General of Customs and Excise environment.

12. Customs Office is office within Directorate General of Customs and Excise environment where customs obligation is fulfilled in according to Customs Law.

13. Customs and Excise Official is employee of Directorate General of Customs and Excise that is appointed in the certain position to do certain duties based on Law.

14. Person is individual or legal entity.

Article 2

(1) Import Raw Materials to be processed, manufactured, or combined at other goods to be exported that import duty already paid can be given Returning.

(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.

CHAPTER II
STIPULATION OF RETURNING NIPER

Article 3

(1) Returning as intended in Article 2 paragraph (1) only be given to the business entities already obtain Returning NIPER.

(2) To obtain Returning NIPER as intended in paragraph (1), business entity should fulfill following requirements:

• a. has good reputation;
• b. not has payable import duty and tax in the framework of import and/or administration sanction in the form of fine;
• c. do processing, Manufacturing and/or installation at other goods as intended in Article 2 that its production results for Export purpose;
• d. has or control location for production activities, place to pile Raw Materials, and place to pile Production Results;
• e. make bookkeeping based on general accounting principles in Indonesia;
• f. has financial report already audited by Public Accountant Office with audit result state that the business entity not get disclaimer or adverse opinion; and
• g. use computer base information system for using Raw Materials management in the business entity production process that can be accessed for inspection by Directorate General of Customs and Excise.

(3) To obtain Returning 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:

• a. copy customs identity Number;
• b. copy of ownership or control for the location for Raw Materials piling storage, fabric of production process place, and Production Result goods piling storage;
• c. copy of industrial business permit and its change;
• d. list of business entities of subcontract receiver; and
• e. list of Production Results and Raw Materials plan.

(4) In case business entity has more than 1 (one) factory locations, application to obtain Returning 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 Returning 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.

Article 4

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 Returning NIPER for 10 (ten) years since finishing crime punishment and/or stated bankrupt.

Article 5

In case there is data change in Returning NIPER, Company should file application to Head of Regional Office or KPU to change data of the said Returning NIPER.

CHAPTER III
IMPORT, PROCESSING, MANUFACTURING AND/OR INSTALLATION OF RAW MATERIALS, PROVISIONS ON THE SUBCONTRACT, AND EXPORT PRODUCTION RESULTS

Part One
Import Raw Materials

Article 6

For Import Raw Materials that will be filed application for Returning shall in according general provision in Import field, include regulation that govern restriction and/or prohibition in Import.

Article 7

For Import Raw Materials that will be filed application for Returning as intended in Article 6, Company should file Import customs notification documents by state Returning NIPER at import facility requirement fulfillment column.

Article 8

(1) Company should unload and/or pile Raw Materials from Customs zone to locations are listed in Returning NIPER by using Import customs notification documents as intended in Article 7.

(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 Returning NIPER.

Part Two
Processing, Manufacturing and/or Installation of Raw Materials and Provisions on the Subcontract

Article 9

Company should do activities of processing, manufacturing and/or installation of Raw Materials at other goods as intended in Article 3 paragraph (2) c by itself.

Article 10

(1) Company can subcontract a part from Activities of processing, manufacturing and/or installation of Raw Materials as intended in Article 9 to industrial business entity that are listed in NIPER Returning data while fulfill following criteria:

• a. work will be subcontracted is not main activity of production process; and
• b. work will be subcontracted is not beginning checking, sorting, packaging, and/or final checking.

(2) In case subcontract is done by industrial business entity that is not list in Returning 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.

Part Three
Export of Production Results

Article 11

(1) Export of Production Results that will be filed for Returning as intended in Article 2 paragraph (1) should follow provision of Customs procedure in Export field.

(2) On the Export as intended in paragraph (1) shall be conducted customs inspection based on risk management.

CHAPTER IV
REPORTING AND RETURNING

Part One
Reporting

Article 12

(1) Company should submit report for using imported Raw Materials by import notification document as intended in Article 7 and conversion for each unit of Production Result, each company will produce Production Results unit that will be applied for Returning.

(2) Conversion as intended in paragraph (1) is in the form of a written statement from company on the composition of Raw Materials using for every unit of Production Results.

Part Two
Returning Conditions

Article 13

(1) Returning can be given to all or a part of paid Import Duty on the Import of Raw Materials that their Production Results have been exported.

(2) Returning as intended in paragraph (1) is given as much as Import Duty of Raw Materials are in Production Results have been exported.

(3) Returning can be given while fulfill following criteria:

• a. Production Results that use Raw Materials are filed for Returning are exported by applied export customs notification;
• b. Export as intended in paragraph a is done within period of:
• 1) maximum 12 (twelve) months since registration date of import customs notification documents; or
• 2) more than period as intended in paragraph 1) in case Company has production period more than 12 (twelve) months on the imported Raw Materials after get permit from Head of Regional Office or KPU.
• c. Import duty on the Imported Raw Materials of exported Production Results as intended in paragraph a has been settled by payment receipt use Import Duty Income Account in the framework of Returning Facility;
• d. has submit Raw Materials using report and conversion for every unit of Production Result as intended in Article 12;
• e. Returning Import Duty Application is applied within 6 (six) months since LPE date;
• f. import customs notification date not in the frozen Returning NIPER date; and
• g. not has payable Import Duty.

(4) Returning as intended in paragraph (1) is not given to:

• a. Raw Materials are consumed in the production process; and/or
• b. auxiliary materials are used in the production process but not integral part of Production Results.

Part Three
Returning Application

Article 14

(1) To obtain Returning as intended in Article 2 paragraph (1), Company file application to Head of Regional Office or KPU by attached:

• a. List of Raw Materials using reports are applied for Returning;
• b. Import documents in the form of:
• 1) Import customs notification documents were gotten customs release from Customs and Excise Official; and
• 2) payment receipt of Import Duty that used Import Duty Revenue Account in the framework of Returning Facility;
• c. Export documents in the form of:
• 1) export customs notification documents;
• 2) Export approval from Customs and Excise Official;
• 3) LPE from Customs Office of export goods loading place;
• d. copy of Export transaction receiving evidence in the form of account receivable ledger, letter of credit, account statement, telegraphic transfer, and/or documents as the evidence of Export transaction; and
• e. list of conversion of Raw Materials using are applied for Returning as intended in Article 12.

(2) Provision as intended in paragraph (1) b and c is not applied for Company that Import and Export goods through Customs Office already apply Electronic Data Exchange (PDE).

Article 15

(1) On the Returning Application that is filed by Company as intended in Article 14, Head of Regional Office or KPU or appointed official conduct checking on the:

• a. completely of reports and documents as intended in Article 14 paragraph (1);
• b. fulfill condition of Export period and applying for Returning Application as intended in Article 13 paragraph (3) b and e;
• c. matching of conversion with Raw Materials using, quantity of Production Results are reported, and rest of production process; and
• d. in certain case based on risk management, Head of Regional Office or KPU can ask legalization on the conversion as intended in Article 12 to the related agency or professional institutions that are appointed by related technical agencies.

(2) Application as intended in Article 14 is processed to be approved or rejected by Head of Regional Office or KPU within 30 (thirty) working days since received complete application.

(3) In case application as intended in Article 14 is approved, Head of Regional Office or KPU issues Stipulation Letter for Payment of Import Duty Returning Facility (SKP.FPBM) as the base to issues Order to Re-pay Import Duty Returning Facility.

(4) In case application as intended in Article 14 is rejected, Head of Regional Office or KPU submit notification letter by state the reason of rejection.

Article 16

(1) Original sheet of Stipulation Letter for Payment of Import Duty Returning Facility (SKP.FPBM) as intended in Article 15 paragraph (3) is submitted to the Company and make copies of Stipulation Letter for Payment of Import Duty Returning Facility (SKP.FPBM) to:

• a. Local State Treasury Service Office (KPPN);
• b. Directorate of Receiving and Customs and Excise Regulation of Directorate General of Customs and Excise;
• c. Customs Office or KPU, where fulfill import customs obligations; and
• d. Office that issues Stipulation Letter for Payment of Import Duty Returning Facility (SKP.FPBM) as file.

(2) Submission copy of Stipulation Letter for Payment of Import Duty Returning Facility (SKP.FPBM) to local State Treasury Service Office (KPPN) as intended in paragraph (1)a is submitted through Customs Office or KPU where fulfill import customs obligations to be filed together with applying Order to Re-pay Import Duty Returning Facility.

Part Four
Procedure of Returning Payment

Article 17

(1) Based on Stipulation Letter for Payment of Import Duty Returning Facility (SKP.FPBM) as intended in Article 15 paragraph (3), Company file application for payment of Returning Import Duty to Customs Office or KPU where fulfill import customs obligations.

(2) Based on Company’s application as intended in paragraph (1) Head of Customs Office or KPU, or appointed official checks copy of Stipulation Letter for Payment of Import Duty Returning Facility (SKP.FPBM).

(3) In case checking result as intended in paragraph (2) found match, Head of Customs Office or KPU or appointed official issues Payment Request Letter (SPP).

(4) In case testing result as intended in paragraph (2) found not match, Head of Customs Office or KPU submits notification letter of rejection.

(5) Based on Payment Request Letter (SPP) as intended in paragraph (3), Head of Customs Office or KPU or appointed official issues Order to Re-pay Import Duty Returning Facility in 5 (five) copies for:

• a. 1st and 2nd sheet for State Treasury Service Office (KPPN);
• b. 3rd sheet for Company;
• c. 4th sheet for Regional Office that issued Stipulation Letter for Payment of Import Duty Returning Facility (SKP.FPBM); and
• d. 5th sheet for file at Customs Office or KPU that issued Order to Re-pay Import Duty Returning Facility.

(6) Order to Re-pay Import Duty Returning Facility as intended in paragraph (5) is issued within 15 (fifteen) working days since date of received Returning Application from Company.

(7) 1st sheet Order to Re-pay Import Duty Returning Facility as intended in paragraph (5)a is submitted directly to State Treasury Service Office (KPPN) by appointed official within 2 (two) working days after date of issued Order to Re-pay Import Duty Returning Facility.

(8) Based on Order to Re-pay Import Duty Returning Facility, State Treasury Service Office (KPPN) issues Order to Liquidity Fund (SP2D) based on regulations.

Article 18

(1) Signing of Stipulation Letter for Payment of Import Duty Returning Facility (SKP.FPBM) and Order to Re-pay Import Duty Returning Facility is not allowed to be done by 1 (one) person official.

(2) Sign specimens of signer officials for Stipulation Letter for Payment of Import Duty Returning Facility (SKP.FPBM) and Order to Re-pay Import Duty Returning Facility are submitted State Treasury Service Office (KPPN) every year and every change of signer officials for Stipulation Letter for Payment of Import Duty Returning Facility (SKP.FPBM) and/or Order to Re-pay Import Duty Returning Facility.

Part Five
Overpayment of Returning

Article 19

In case there is overpayment of Returning, Company should return overpayment of Returning.

CHAPTER V
Monitoring and Evaluation

Article 20

(1) Head of Regional Office or KPU or appointed official monitors and Evaluates every issuing of Returning NIPER periodically at least once in 1 (one) year.

(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 Returning Facility, Director General of Customs and Excise can decides Regional Office or KPU of control and service for Returning facility.

Article 21

Field checking result as intended in Article 20 paragraph (2) and report of customs audit result may become basis for Evaluation for Returning facility that is given.

CHAPTER VI
SANCTION

Part One
Frozen

Article 22

(1) Returning NIPER will be frozen in case Company:

• a. does not apply changes of Returning NIPER data as intended in Article 5;
• b. does not settle payable Import duty and tax in the framework of Import, and/or administration sanction in the form of fine until the expired date;
• c. does not return overpayment of Returning as intended in Article 19 until the expired date;
• d. does not submit Raw Materials using report as intended in Article 12;
• e. does not submit required documents in the framework of monitoring and evaluation implementation as intended in Article 20; and/or
• f. is supposed does crime in Customs with enough beginning evidence.

(2) In case Returning NIPER is frozen, import customs notification in the Returning NIPER frozen period will not be given Returning.

(3) While in Returning NIPER frozen period, Company cannot file application to obtain Returning on the imported Raw Materials.

Article 23

Returning NIPER that is frozen as intended in Article 22 will be reactivate, in case Company:

• a. already got approval for changes of Returning NIPER data;
• b. already settled all payable Import Duty and/or administrative sanction of interest as intended in Article 22;
• c. already returned all overpayment of Returning as intended in Article 19;
• d. already submitted Raw Materials using report as intended in Article 12;
• e. already submitted required documents in the framework of monitoring and evaluation implementation as intended in Article 20; and/or
• f. do not make crime in Customs.

Part Two
Revocation

Article 24

(1) Returning NIPER will be revoked in case Company:

• a. does not apply for change of Returning NIPER data as intended in Article 5 within 30 (thirty) days since frozen date of Returning NIPER as intended in Article 22 paragraph (1) a;
• b. does not settle payable import duty, Tax in the Framework of Import and/or administration sanction in the form of fine until issued force letter, as intended in Article 22 paragraph (1) b;
• c. does not return overpayment of Returning as intended in Article 19 until issued force letter;
• d. does not apply Returning within period as intended in Article 13 paragraph (3) b 1) and Article 13 paragraph (3) b 2) consecutively;
• e. did crime in Customs based on court determination;
• f. does unloading and/or piling Raw Materials in outside of locations are listed in Returning NIPER as intended in Article 8 paragraph (1) and not approved by Head of Regional Office or KPU as intended in Article 8 paragraph (2);
• g. does not activities of processing, manufacturing and/or installation of Raw Materials at other goods as intended in Article 9 by itself;
• h. does subcontract without fulfill provision as intended in Article 10 paragraph (1);
• i. not honest in its business, such as make wrong conversion and make lost to the state;
• j. change status become Bonded Zone Entrepreneur or Entrepreneur in Bonded Zone;
• k. stated bankrupt based on court determination;
• l. does not make bookkeeping based on general accounting principle in Indonesia;
• m. has financial report that is stated by Public Accountant Office with disclaimer or adverse opinion;
• n. does not store and keep books, notes and documents related with its business activities for 10 (ten) years;
• o. does not submit books, notes, and/or documents related with its business activities based on Customs and/or Excise Audit Result Report;
• p. has no good reputation as intended in Article 3 paragraph (2) a;
• q. does not fulfill requirements to obtain Returning NIPER as intended in Article 3 paragraph (2) based on evaluation and monitoring result as intended in Article 20 paragraph (1); and/or
• r. applies for revocation Returning NIPER.

(2) In case Returning NIPER is revoked, business entity should settle all payable billing in according with regulation in Customs field.

CHAPTER VII
OTHER PROVISION

Article 25

In case Company status is change from receiver of Returning facility become receiver of bonded zone facility, the Export realization for 1 (one) year before date of issuing bonded zone permit, can be calculated in the decision for selling limit of production result from bonded zone to other place in customs area.

CHAPTER VIII
TRANSITIONAL PROVISION

Article 26

By effective of this Ministerial Regulation, several provision on the:

• a. To get Return, Business entity that already obtain NIPER based on Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedure of Import Facility for Export Purpose and Its Control as several times amended, the latest by Regulation of the Minster of Finance No. 15/PMK.011/2011 should apply Returning NIPER based on this Ministerial Regulation in period before December 31, 2012.
• b. In case business entity does not apply Returning NIPER until period as intended in paragraph a, NIPER already owned by business entity will be frozen until finishing of revocation process.
• c. In case business entity already has NIPER, but does not has Returning NIPER since effective of this Ministerial Regulation, can apply return before obtain Returning NIPER with following provisions:
• 1) Raw Materials are imported by get Import Facility for Export Purpose before this Ministerial Regulation comes into force, can apply return of import duty and/or excise based on Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedure of Import Facility for Export Purpose and Its Control as several times amended, the latest by Regulation of the Minster of Finance No. 15/PMK.011/2011 while its application is filed before March 31, 2013;
• 2) imported Raw Materials by get Import Facility for Export Purpose after this Ministerial Regulation comes into force, can be applied for returning import duty based on this Ministerial Regulation.
• d. Business entity already has NIPER based on Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedure of Import Facility for Export Purpose and Its Control as several times amended, the latest by Regulation of the Minster of Finance No. 15/PMK.011/2011 and will apply to obtain Returning NIPER based on this Ministerial Regulation, should fulfill provision on the using information technology as intended in Article 3 paragraph (2) g within period at the latest December 31, 2012.
• e. In case business entity changes from receiver of Import Facility for Export Purpose become receiver of customs facility for bonded zone, Export realization and delivery to bonded zone has done by the business entity can be calculated in the determination of selling limit of production result from bonded zone to other place in customs area.
• f. Returning submitted by business entity that already has NIPER before this Ministerial Regulation comes into force and still in the process of checking, checking is done based on Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedure of Import Facility for Export Purpose and Its Control as several times amended, the latest by Regulation of the Minster of Finance No. 15/PMK.011/2011 within the latest period April 1, 2014.

CHAPTER IX
CLOSING PROVISION

Article 27

Further provision on:

• a. applying risk management in the framework of selective customs inspection, applying risk management in the framework of conversion ratification, and applying risk management in the framework of field checking;
• b. procedure to file application of Returning NIPER and giver Returning NIPER and change of Returning NIPER;
• c. procedure of frozen and revocation of Returning NIPER:
• d. procedure to file application for Returning;
• e. procedure to submit responsibility report, arrange conversion data elements, and format of report;
• f. procedure of monitoring and evaluation on the issuance of Returning NIPER;
• g. format of Payment Determination Letter, Payment Request Letter, and Order to Re-pay; and
• h. procedure to determine Regional Office or KPU of control and supervision of Exemption facility as intended in Article 20 paragraph (3).
• will be governed by Regulation of the Director General of Customs and Excise.

Article 28

When this Ministerial Regulation comes into force:

• 1. Decree of the Minister of Finance No. 580/KMK.04/2003 concerning Procedure of Import Facility for Export Purpose and Its Control as several times amended, the latest by Regulation of the Minster of Finance No. 15/PMK.011/2011; and
• 2. Regulation of the Minister of Finance No. 37/PMK.04/2005 concerning Procedure of Returning Import Duty and/or Excise that already paid in the Framework of Import Facility for Export Purpose,
• will be revoked and declared null and void.

Article 29

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