to Indonesian

REGULATION OF THE MINISTER OF FINANCE
No. 163/PMK.04/2007

CONCERNING
GRANTING EXEMPTION OF IMPORT DUTY ON THE IMPORTED GOODS BY THE CENTRAL GOVERNMENT OR REGIONAL GOVERNMENT INTENDED FOR PUBLIC INTEREST

THE MINISTER OF FINANCE,

Considering:

a. that based on provision of Article 26 paragraph (1) h of Law No. 10/1995 concerning Customs as amended by Law No. 17/2006, goods are imported by the Central Government or Regional Government intended for public interest are granted exemption of import duty;

b. that based on the considerations as intended in paragraph a and in the framework to implement the provisions of Article 26 paragraph (3) of Law No. 10/1995 concerning Customs as amended by No. 17/2006, it is necessary to stipulate Regulation of the Minister of Finance concerning Granting Exemption of Import Duty on the Imported Goods by the Central Government or Regional Government Intended for Public Interest;

In view of:

1. Law No. 17/2003 concerning State Finance (Statute Book of the Republic of Indonesia No. 47/2003, Supplement to Statute Book of the Republic of Indonesia No. 4286);

2. Law No. 1/2004 concerning State Treasury (Statute Book of the Republic of Indonesia No. 05/2004, Supplement to Statute Book of the Republic of Indonesia No. 4355);

3. 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);

DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF FINANCE CONCERNING GRANTING EXEMPTION OF IMPORT DUTY ON THE IMPORTED GOODS BY THE CENTRAL GOVERNMENT OR REGIONAL GOVERNMENT INTENDED FOR PUBLIC INTEREST.

Article 1

In this Regulation of the Minister of Finance:

1. Public interest is the interest of society that does not has interest in the financial sector.

2. Grants/aids are the provision of free goods without conditionally from a certain sender abroad to the Central Government or Regional Government, and in the procurement does not use Indonesian foreign exchange.

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

4. Director General is the Director General of Customs and Excise.

Article 2

(1) Any goods imported for public use by the Central Government or Regional Government, granted exemption from import duty.

(2) In case of goods as intended in paragraph (1) are not imported by the Central Government or regional government, the import can be done by a third party under the agreement/contract between the Central Government or Regional Government with third parties concerned.

(3) In case of imports made by third parties, the agreement/contract of employment as intended in paragraph (2), shall state that the contract value does not include import duty.

Article 3

Imports of goods as intended in Article 2 are:

• a. Purchases financed by the State Revenue and Expenditure Budget (APBN) or the Regional Revenue and Expenditure Budget (APBD); or
• b. Grants/aids from abroad

Article 4

(1) To obtain exemption from import duty on imported goods as intended in Article 2, the Central Government, Regional Government, or third parties as intended in Article 2 paragraph (2), file application to the Minister of Finance through the Director General.

(2) The application as intended in paragraph (1) shall be accompanied by:

• a. In case of goods imported from purchases financed by APBN or APBD:
• 1. Budget Implementation List (DIPA) or similar document with DIPA;
• 2. permit from the relevant technical agencies in case of imported goods are prohibition and/or restriction goods;
• 3. agreement/contract with appointed third party as an importer, in case of import of goods made by third party;
• 4. description, amount, type and estimated customs value of goods to be imported as well as the unloading port; and
• 5. statement signed by a minimum of Echelon II official from concerned government agencies, which states that it is financed by Budget Implementation List (DIPA) or similar document with DIPA, does not include import duty on importation of goods for which the exemption of import duty.
• b. In case of goods are imported from grants/aids:
• 1. certificate from the donor/aid abroad (gift certificate or memorandum of understanding) which states that the goods are for public interest, grants are given directly to the Central Government or Regional Government;
• 2. permit of the relevant technical agencies in case of imported goods are prohibition and/or restrictions goods; and
• 3. description, amount, type and estimated customs value of goods to be imported as well as the unloading port.

Article 5

(1) Upon application for exemption of import duty as intended in Article 4 paragraph (1), the Minister gives the approval or rejection.

(2) In case application for exemption from import duty as intended in paragraph (1) is approved, the Director General on behalf of the Minister issued a decision for exemption of import duty.

(3) The decision for exemption of import duty as intended in paragraph (2) contains description of the number, type, and the estimated value of goods given exemption of import duty, as well as the appointment of the unloading port.

(4) If the application for exemption of import duty as intended in paragraph (1) is rejected, the Director General on behalf of the Minister makes a notification letter of rejection stating the reasons.

Article 6

Provisions are required for implementation of this Ministerial Regulation will be regulated by Regulation of the Director General.

Article 7

This regulation shall come into force on the date of stipulation.

For public cognizance, this decree shall be published by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on December 17, 2007
MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI