a.

that the provisions on the granting of the exemption from import duty on imports of tools and materials used to prevent environmental pollution have been stipulated under the Minister of Finance Regulation Number 101/PMK.04/2007 concerning the Exemption from Import Duty on Imports of Tools and Materials Used to Prevent Environmental Pollution;

b.

that to adjust to technological developments, simplify business process in the imports of tools and materials used to prevent environmental pollution, provide legal certainty in the customs treatment of business entities as well as improve customs services for imports of tools and materials used to prevent environmental pollution, the Minister of Finance Regulation Number 101/PMK.04/2007 concerning the Exemption from Import Duty on Imports of Tools and Materials Used to Prevent Environmental Pollution needs to be replaced;

c.

that based on the considerations referred to in letter a and letter b as well as to implement the provisions under Article 26 paragraph (3) of Law Number 17 of 2006 concerning the Amendment to Law Number 10 of 1995 concerning Customs, it is necessary to enact a Minister of Finance Regulation concerning the Exemption from Import Duty on Imports of Tools and Materials Used to Prevent Environmental Pollution;

 

 

 

 

 

 

 

1.

Article 17 paragraph (3) of the 1945 Constitution of the Republic of Indonesia;

2.

Law Number 10 of 1995 concerning Customs (State Gazette of the Republic of Indonesia of 1995 Number 75, Supplement to State Gazette of the Republic of Indonesia Number 3612) as amended by Law Number 17 of 2006 concerning the Amendment to Law Number 10 of 1995 concerning Customs (State Gazette of the Republic of Indonesia of 2006 Number 93, Supplement to the State Gazette of the Republic of Indonesia Number 4661);

3.

Law Number 39 of 2008 concerning State Ministries (State Gazette of the Republic of Indonesia of 2008 Number 166, Supplement to State Gazette of the Republic of Indonesia Number 4916);

4.

Presidential Regulation Number 57 of 2020 concerning the Ministry of Finance (State Gazette of the Republic of Indonesia of 2020 Number 98);

5.

Minister of Finance Regulation Number 118/PMK.01/2021 concerning the Organisation and Work Procedures of the Ministry of Finance (State Gazette of the Republic of Indonesia of 2021 Number 1031) as amended several times, last amended by the Minister of Finance Regulation Number 135 of 2023 concerning the Second Amendment to the Minister of Finance Regulation Number 118/PMK.01/2021 concerning the Organisation and Work Procedures of the Ministry of Finance (State Gazette of the Republic of Indonesia of 2023 Number 977);

 

 

 

 

 

 

 

MINISTER OF FINANCE REGULATION CONCERNING THE EXEMPTION FROM IMPORT DUTY ON IMPORTS OF TOOLS AND MATERIALS USED TO PREVENT ENVIRONMENTAL POLLUTION.

 

 

 

 

 

 

 

 

Referred to herein this Ministerial Regulation:

1.

Tools are installations, machines and machinery as well as the equipment and parts thereof which are solely used for monitoring, processing and/or utilising waste, thereby, when disposed, not polluting and damaging the environment in the context of preventing or controlling environmental pollution.

2.

Materials are all consumable physical materials, biological materials and/or chemical materials which are solely used for monitoring, processing and/or utilising waste, thereby, when disposed, not polluting and damaging the environment in the context of preventing or controlling environmental pollution.

3.

Business Entity is a business entity in the form of a legal entity incorporated in the territory of the Unitary State of the Republic of Indonesia:

 

a.

whose production processes generate waste, such as manufacturing;

 

b.

whose business activities generate waste, such as hospitals or laboratories; or

 

c.

is specifically engaged in waste processing.

4.

The Directorate General of Customs and Excise Portal is an integrated system for all public and web- based services of the Directorate General of Customs and Excise for all service users.

5.

The Indonesian National Single Window System, hereinafter referred to in as the SINSW, is an electronic system that integrates information and/or systems relating to the process of handling customs documents, quarantine documents, permit documents, port/airport documents and other documents, related to exports and/or imports, which guarantees data and information security as well as automatically integrates information flows and processes between internal systems.

6.

Minister is the minister who administers governmental affairs in the field of state finances.

7.

Customs and Excise Officials are employees of the Directorate General of Customs and Excise who are appointed in certain positions to carry out certain tasks pursuant to the Customs Law.

8.

Customs Office is an office within the Directorate General of Customs and Excise where customs obligations are fulfiled pursuant to the Customs Law.

 

 

 

 

 

 

 

 

(1)

The exemption from import duty may be granted to:

 

a.

imports of Tools and/or Materials from outside the customs territory; and

 

b.

imports of Tools and/or Materials through bonded logistics centres.

(2)

The exemption from import duty may also be granted for the release of Tools and/or Materials from outside the customs territory from:

 

a.

bonded warehouses;

 

b.

bonded zones;

 

c.

venues for organising bonded exhibitions;

 

d.

bonded auction places;

 

e.

special economic zones; or

 

f.

free trade zones.

(3)

The imports referred to in paragraph (1) or the release referred to in paragraph (2) shall be conducted by:

 

a.

a Business Entity; or

 

b.

a third party, in the event that the Business Entity cannot conduct a direct import as proven using an agreement or cooperation contract for the procurement of Tools and/or Materials.

 

 

 

 

 

 

 

The imports of the Tools and/or Materials referred to in Article 2 paragraph (1) or the Release of the Tools and/or Materials referred to in Article 2 paragraph (2) must fulfil the following provisions:

a.

the imported goods have not been domestically produced;

b.

the imported goods have been domestically produced but have not fulfilled the required specification; or

c.

the imported goods have been domestically produced but the quantity is insufficient,

based on the list of goods determined by the ministry that administers governmental affairs in the field of industry.

 

 

 

 

 

 

 

 

(1)

To obtain the exemption from import duty on imports of the Tools and/or Materials referred to in Article 2 paragraph (1) and the exemption from import duty on the release of the Tools and/or Materials referred to in Article (2) paragraph (2), the Business Entrepreneur or third party shall apply to the Minister through the Head of the Customs Office where customs obligations are settled.

(2)

The application referred to in paragraph (1), at least contains the information on:

 

a.

the name and address of the Business Entity or third party;

 

b.

details of the types, quantity, estimated prices, functions and the use of the Tools and/or Materials for which the exemption from import duty is applied; and

 

c.

the port of entry.

(3)

The application referred to in paragraph (1) is at least attached with:

 

a.

the recommendation to be granted the exemption from import duty from officials at the lowest level of primary executive officials of the ministry that administers governmental affairs in the field of environmental protection and management:

 

b.

the invoice or a document equivalent to the invoice released/issued by the seller/supplier;

 

c.

the brochures/catalogue of the Tools and/or Materials; and

 

d.

the hard copy of the letter of agreement or cooperation contract for the procurement of the Tools and/or Materials, in the event that the Tools and/or Materials to prevent or control environmental pollution are imported by a third party.

(4)

The recommendation to be granted the exemption from import duty referred to in paragraph (3) subparagraph a at least includes:

 

a.

the identity of the Business Entity;

 

b.

details of the types, quantity, estimated custom value and functions as well as the use of the Tools and/or Materials

 

c.

the port of entry;

 

d.

description of the activities to prevent or control environmental pollution;

 

e.

the information that the Tools and/or Materials have fulfilled the provisions referred to in Article 3.

 

 

 

 

 

 

 

(1)

The Head of the Customs Office examines the application referred to in Article 4 paragraph (1) in the context of the fulfilment of the requirements to obtain the exemption from import duty.

(2)

The examination referred to in paragraph (1) is conducted no later than 3 x 24 (three times twenty-four) hours after the application is received in full.

(3)

In the event that the results of the examination referred to in paragraph (1) show that the application have fulfilled the requirements to be granted the exemption from import duty, the Head of the Customs Office on behalf of the Minister issues a Ministerial Decree concerning the exemption from import duty on the imports or release of Tools and/or Materials used to prevent environmental pollution.

(4)

The period for the imports or release of the Tools and/or Materials granted the exemption from import duty referred to in paragraph (3), is a maximum of 1 (one) year from the date the Ministerial Decree is enacted.

(5)

In the event that the results of the examination referred to in paragraph (1) show that the application does not fulfil the requirements to be granted the exemption from import duty, the Head of the Customs Office on behalf of the Minister issues a notice of rejection stating the reason for the rejection.

(6)

The Ministerial Decree referred to in paragraph (3) shall be issued using the sample format listed in Appendix letter A which constitutes an integral part of this Ministerial Regulation.

(7)

The notice of rejection referred to in paragraph (5) shall be issued using the sample format referred to in Appendix letter B which constitutes an integral part of this Ministerial Regulation.

 

 

 

 

 

 

 

(1)

The Ministerial Decree referred to in Article 5 paragraph (3), may be amended in the event of:

 

a.

misspelling or typos; and/or

 

b.

changes in data from the party concerned.

(2)

The amendment referred to in paragraph (1) may only be conducted with the following provisions:

 

a.

the customs declaration for the Tools and/or Materials referred to in Article 2 paragraph (1) and paragraph (2) has not obtained a registration number from the Customs Office where customs obligations are settled; and

 

b.

the import period referred to in Article 5 paragraph (4) has not elapsed.

(3)

To perform the amendment referred to in paragraph (1), the Business Entity or third party applies to the Minister through the Head of the Customs Office by stating the reason for the amendment.

(4)

The application referred to in paragraph (3) is attached with the documents supporting the reason for the amendment.

(5)

The Head of the Customs Office examines the application for the amendment referred to in paragraph (3) in the context of the fulfilment of the requirements to amend the the Ministerial Decree referred to in Article 5 paragraph (3).

(6)

The examination referred to in paragraph (5) is conducted no later than 3 x 24 (three times twenty-four) hours after the application is received in full.

(7)

In the event that the results of the examination referred to in paragraph (5) show that the application has fulfilled the requirements for the amendment, the Head of the Customs Office on behalf of the Minister issues a Ministerial Decree concerning the amendment to the Ministerial Decree referred to in Article 5 paragraph (3).

(8)

In the event that the results of the examination referred to in paragraph (5) show that the application does not fulfil the requirements for the amendment, the Head of the Customs Office on behalf of the Minister issues a notice of rejection stating the reason for the rejection.

(9)

The Ministerial Decree referred to in paragraph (7) shall be issued using the sample format referred to in Appendix letter C which constitutes an integral part of this Ministerial Regulation.

(10)

The notice of rejection referred to in paragraph (8) shall be issued using the sample format referred to in Appendix letter B which constitutes an integral part of this Ministerial Regulation.

 

 

 

 

 

 

 

(1)

The application referred to in Article 4 paragraph (1) and Article 6 paragraph (3) as well as the scans of the original documents of the attachment to the application referred to in Article 4 paragraph (3) and Article 6 paragraph (4) are submitted electronically to the the Directorate General of Customs and Excise Portal via the SINSW.

(2)

In the event that the the Directorate General of Customs and Excise Portal and/or the SINSW cannot yet be implemented or experiences operational disruptions, the application referred to in paragraph (1) is submitted manually accompanied by:

 

a.

the attachment to the application in the form of a hard copy; and

 

b.

scans of the original documents in the form of a soft copy stored in electronic data storage media.

(3)

The approval referred to in Article 5 paragraph (3) and Article 6 paragraph (7) or the rejection referred to in Article 5 paragraph (5) and Article 6 paragraph (8), is granted no later than:

 

a.

5 (five) working hours after the application is examined as referred to in Article 5 paragraph (1) and Article 6 paragraph (5), in the event that the application is submitted electronically; or

 

b.

1 (one) business day after the application is examined as referred to in Article 5 paragraph (1) and Article 6 paragraph (5), in the event that the application is submitted manually.

 

 

 

 

 

 

 

 

(1)

Imports of the Tools and/or Materials referred to in Article 2 paragraph (1), are implemented using customs declaration documents pursuant to statutory provisions stipulating imports of goods for home use and bonded logistics centres.

(2)

The release of the Tools and/or Materials from outside the customs territory referred to in Article 2 paragraph (2), is implemented using customs declaration documents pursuant to statutory provisions stipulating bonded warehuses, bonded zones, venues for organising bonded exhibitions, bonded auction places, free trade zones or special economic zones.

(3)

The customs declaration referred to in paragraph (1) and paragraph (2) is submitted by including the number and date of the Ministerial Decree referred to in Article 5 paragraph (3) as well as the code for the granted exemption from import duty facility.

 

 

 

 

 

 

 

 

The Tools and/or Materials that obtain the exemption from import duty referred to in Article 2 paragraph (1) and paragraph (2) must fulfil the provisions on prohibitions and/or restrictions pursuant to statutory provisions on prohibitions and/or restrictions.

 

 

 

 

 

 

 

 

 

(1)

The Business Entity is required to utilise Tools and/or Materials that have been granted the exemption from import duty referred to in Article 2 paragraph (1) and paragraph (2) according to the purpose of the granting of the exemption from import duty.

(2)

In the event that the Tools and/or Materials referred to in Article 2 paragraph (1) and paragraph (2) are used not according to the purpose of the granting of the exemption from import duty, the Business Entity shall pay import duty payable and be subject to administrative penalties pursuant to statutory provisions stipulating administrative penalties in the field of customs.

 

 

 

 

 

 

 

 

(1)

A Business Entity is required to submit the report on the utilisation of the Tools and/or Materials referred to in Article 2 paragraph (1) or paragraph (2) to the Head of the Customs Office where customs obligations are settled.

(2)

The report on the utilisation of the Tools and/or Materials referred to in paragraph (1) is submitted electronically to the the Directorate General of Customs and Excise Portal via the SINSW.

(3)

In the event that the the Directorate General of Customs and Excise Portal and/or the SINSW cannot yet be implemented or experiences operational disruptions, the utilisation of the Tools and/or Materials referred to in paragraph (1) is reported manually by submitting the report in the form of a hard copy or a soft copy.

(4)

The report on the utilisation of the Tools and/or Materials referred to in paragraph (1) is submitted every year no later than January of the following year for the first 5 (five) years from the date of the import declaration.

(5)

In the event that the Business Entity does not submit the report on the utilisation of the Tools and/or Materials within the period referred to in paragraph (4), the Business Entity is subject to a postponement of the following services of the granting of the exemption from import duty until the report on the utilisation of the Tools and/or Materials is submitted to the Head of the Customs Office where customs obligations are settled.

(6)

The report on the utilisation of the Tools and/or Materials referred to in paragraph (1) is submitted using the sample format listed in Appendix letter D which constitutes an integral part of this Ministerial Regulation.

 

 

 

 

 

 

 

 

The customs obligations for the Tools and/or Materials referred to in Article 2 paragraph (1) and paragraph (2) may be settled by:

a.

transfers;

b.

re-exports; or

c.

destruction.

 

 

 

 

 

 

 

 

(1)

The transfer of the Tools referred to in Article 12 letter a may be conducted after 2 (two) years from the date of the import declaration.

(2)

In the event that the Tools are transferred due to force majeure, it shall be excluded from the provisions referred to in paragraph (1).

(3)

The Tools referred to in paragraph (1) and paragraph (2) is transferred after obtaining a permit for the transffer from the Head of the Customs Office where customs obligations are settled on behalf of the Minister.

(4)

The Business Entity is excluded from the obligation of holding a permit for the transfer referred to in paragraph (3), in the event that the Tools are transferred after 5 (five) years from the date of the import declaration.

 

 

 

 

 

 

 

(1)

In the event of the transfer referred to in Article 12 paragraph (1), the Business Entity is required to pay import duty payable.

(2)

The payment of the import duty referred to in paragraph (1) uses the classification, imposition and customs value upon the entry.

(3)

In the event that the Tools are transferred before 2 (two) years as referred to in Article 13 paragraph (1) and without the permit as referred to in Article 13 paragraph (3), the Business Entity is required to pay:

 

a.

import duty payable; and

 

b.

an administrative penalty in the form of a fine pursuant to statutory provisions in the field of customs.

(4)

The Business Entity is excluded from the obligation to pay import duty and/or the administrative penalty in the form of a fine in the customs sector referred to in paragraph (1) and paragraph (3), in the event that:

 

a.

the Tools are transferred after 5 (five) years from the date of the import declaration;

 

b.

the Tools are transferred due to force majeure; and/or

 

c.

the Tools are transferred to a recipient of the exemption from import duty on imports of Tools or a recipient of the exemption from import duty on the release of Tools used to prevent environmental pollution.

(5)

The exclusion from the obligation to pay import duty referred to in paragraph (4) subparagraph b shall not apply in the event that the Tools still has an economic value.

(6)

The obligation to pay import duty referred to in paragraph (5) is calculated based on the price of the supply with the following provisions:

 

a.

in the event that the import duty tariff amounts to 5% (five per cent) or more, subject to a tariff of 5% (five per cent); or

 

b.

in the event that the import duty tariff amounts to below 5% (five per cent), subject to a tariff according to the type of the goods.

(7)

The customs obligations are fulfilled pursuant to the Ministerial Decree concerning the granting of the permit for the transfer.

 

 

 

 

 

 

 

(1)

To obtain the permit for the transfer referred to in Article 13 paragraph (3), the Business Entity applies to the Minister through the Head of the Customs Office where customs obligations are settled and is at least attached with:

 

a.

a copy of the business permit;

 

b.

the list of Tools to be transferred, which at least contains the information on the quantity, types, units, the import declaration number and serial numbers of the Tools in the Minister of Finance Decree concerning the exemption from import duty;

 

c.

photographs or other supporting evidence in respect of the Tools to be transferred;

 

d.

the estimated economic value of the Tools in the event of force majeure;

 

e.

the Ministerial Decree concerning the granting of the exemption from the import duty on Tools on behalf of the transferee in the event that the Tools are transferred to a Business Entity that obtains the exemption from import duty in the context of preventing environmental pollution; and

 

f.

the recommendation from relevant agencies in the event of force majeure.

(2)

The application referred to in paragraph (1) is examined no later than 3 x 24 (three times twenty-four) hours after the application is received in full.

(3)

In the event that the results of the examination referred to in paragraph (2) show that the application has fulfilled the requirements to be transferred, the Head of the Customs Office on behalf of the Minister issues a Ministerial Decree concerning the granting of the permit for the transfer.

(4)

The Ministerial Decree referred to in paragraph (3) is valid for 60 (sixty) days from the date of enactment.

(5)

In the event that the results of the examination referred to in paragraph (2) show that the application does not fulfil the requirements to be transferred, the Head of the Customs Office on behalf of the Minister issues issues a notice of rejection stating the reason for the rejection.

(6)

The application referred to in paragraph (1) is submitted electronically to the Directorate General of Customs and Excise Portal via the SINSW.

(7)

In the event that the the Directorate General of Customs and Excise Portal and/or the SINSW cannot yet be implemented or experiences operational disruptions, the application referred to in paragraph (1) is submitted manually accompanied by:

 

a.

the attachment to the application in the form of a hard copy; and

 

b.

scans of the original documents in the form of a soft copy stored in electronic data storage media.

(8)

The approval referred to in paragraph (3) or the rejection referred to in paragraph (5), is granted no later than:

a.

5 (five) working hours after the application is examined as referred to in paragraph (2), in the event that the application is submitted electronically; or

b.

1 (one) business day after the application is examined as referred to in paragraph (2), in the event that the application is submitted manually.

(9)

The Ministerial Decree referred to in paragraph (3) shall be issued using the sample format referred to in Appendix letter E which constitutes an integral part of this Ministerial Regulation.

(10)

The notice of rejection referred to in paragraph (5) shall be issued using the sample format referred to in Appendix letter B which constitutes an integral part of this Ministerial Regulation.

 

 

 

 

 

 

 

(1)

The Business Entity that has obtained the Minister of Finance Decree referred to in Article 15 paragraph (3), submits written notification to the Head of the Customs Office where customs obligations are settled when the transfer is to be implemented.

(2)

The appointed Customs and Excise Officials in the Customs Office where customs obligations are settled conduct a physical inspection of the Tools to be transferred.

(3)

The results of the physical inspection are outlined in the report of physical inspection results using the sample format referred to in Appendix letter F which constitutes an integral part of this Ministerial Regulation.

(4)

In the event that the results of the physical inspection referred to in paragraph (2) are declared to be conforming, the transfer may be implemented and the appointed Customs and Excise Officials referred to in paragraph (2) shall prepare the report of the transfer using the sample format referred to in Appendix letter G which constitutes an integral part of this Ministerial Regulation

(5)

In the event that the results of the physical inspection referred to in paragraph (2) are declared to be non-conforming, the Tools declared to be non-conforming cannot be transferred.

 

 

 

 

 

 

 

 

(1)

The re-export of the Tools and/or Materials referred to in Article 12 letter b is implemented with the following provisions:

 

a.

the re-exports are conducting using export declaration; and

 

b.

a physical inspection is conducted,

 

pursuant to statutory provisions stipulating exports.

(2)

The re-export of Tools and/or Materials referred to in paragraph (1) is conducted after obtaining a permit from the Head of the Customs Office where customs obligations are settled on behalf of the Minister.

(3)

To obtain the permit for the re-export referred to in paragraph (2), the Business Entity applies to the Minister through the Head of the Customs Office where customs obligations are settled and is at least attached with:

 

a.

a copy of the business permit;

 

b.

the list of Tools and/or Materials to be re-exported, which at least contains the information on the quantity, types, units, the import declaration number and serial numbers of the Tools and/or Materials in the Minister of Finance Decree concerning the exemption from import duty;

 

c.

photographs or other supporting evidence in respect of the Tools and/or Materials to be re- exported;

(4)

The application referred to in paragraph (3) is examined no later than 3 x 24 (three times twenty-four) hours after the application is received in full.

(5)

In the event that the results of the examination referred to in paragraph (4) show that the application has fulfilled the requirements for a re-export, the Head of the Customs Office on behalf of the Minister issues a Ministerial Decree concerning the granting of the permit for the re-export.

(6)

The Ministerial Decree referred to in paragraph (5) is valid for 60 (sixty) days from the date of enactment.

(7)

In the event that the results of the examination referred to in paragraph (4) show that the application does not fulfil the requirements for a re-export, the Head of the Customs Office on behalf of the Minister issues a notice of rejection stating the reason for the rejection.

(8)

The application referred to in paragraph (3) is submitted electronically to the Directorate General of Customs and Excise Portal via the SINSW.

(9)

In the event that the Directorate General of Customs and Excise Portal and/or the SINSW cannot yet be implemented or experiences operational disruptions, the application referred to in paragraph (1) is submitted manually accompanied by:

 

a.

the attachment to the application in the form of a hard copy; and

 

b.

scans of the original documents in the form of a soft copy stored in electronic data storage media.

(10)

The approval referred to in paragraph (5) or the rejection referred to in paragraph (7), is granted no later than:

 

a.

5 (five) working hours after the application is examined as referred to in paragraph (4), in the event that the application is submitted electronically; or

 

b.

1 (one) business day after the application is examined as referred to in paragraph (4), in the event that the application is submitted manually.

(11)

The Ministerial Decree referred to in paragraph (5) shall be issued using the sample format referred to in Appendix letter H which constitutes an integral part of this Ministerial Regulation.

(12)

The notice of rejection referred to in paragraph (7) shall be issued using the sample format referred to in Appendix letter B which constitutes an integral part of this Ministerial Regulation.

 

 

 

 

 

 

 

(1)

The re-export of the Tools and/or Materials referred to in Article 17 paragraph (1) is exempt from the obligation to pay import duty payable.

(2)

In the event that the re-export is conducted without the permit referred to in Article 17 paragraph (2), the Business Entity is required to pay:

 

a.

import duty payable; and

 

b.

an administrative penalty in the form of a fine pursuant to statutory provisions in the field of customs.

 

 

 

 

 

 

 

 

(1)

The destruction of the Tools and/or Materials referred to in Article 12 letter c is conducted after obtaining a permit from the Head of the Customs Office where customs obligations are settled on behalf of the Minister.

(2)

To obtain the permit for the destruction referred to in paragraph (1), the Business Entity applies to the Minister through the Head of the Customs Office where customs obligations are settled and is at least attached with:

 

a.

a copy of the business permit;

 

b.

the list of Tools and/or Materials to be destroyed, which at least contains the information on the quantity, types, units, the import declaration number and serial numbers of the Tools in the Minister of Finance Decree concerning the exemption from import duty;

 

c.

photographs or other supporting evidence in respect of the Tools and/or Materials to be destroyed; and

 

d.

the estimated economic value of the Tools and/or Materials to be destroyed;

(3)

The application referred to in paragraph (2) is examined no later than 3 x 24 (three times twenty-four) hours after the application is received in full.

(4)

(5)

The Ministerial Decree referred to in paragraph (4) is valid for 60 (sixty) days from the date of enactment.

(6)

In the event that the results of the examination referred to in paragraph (3) show that the application does not fulfil the requirements for the destruction, the Head of the Customs Office on behalf of the Minister issues a notice of rejection stating the reason for the rejection.

(7)

The application referred to in paragraph (2) is submitted electronically to the Directorate General of Customs and Excise Portal via the SINSW.

(8)

In the event that the Directorate General of Customs and Excise Portal and/or the SINSW cannot yet be implemented or experiences operational disruptions, the application referred to in paragraph (4) is submitted manually attached with:

 

a.

the attachment to the application in the form of a hard copy; and

 

b.

scans of the original documents in the form of a soft copy stored in electronic data storage media.

(9)

The approval referred to in paragraph (4) or the rejection referred to in paragraph (6), is granted no later than:

 

a.

5 (five) working hours after the application is examined as referred to in paragraph (3), in the event that the application is submitted electronically; or

 

b.

1 (one) business day after the application is examined as referred to in paragraph (3), in the event that the application is submitted manually.

(10)

The Ministerial Decree referred to in paragraph (4) use the sample format referred to in Appendix letter I which constitutes an integral part of this Ministerial Regulation.

(11)

The notice of rejection referred to in paragraph (6) use the sample format referred to in Appendix letter B which constitutes an integral part of this Ministerial Regulation.

 

 

 

 

 

 

 

(1)

The Business Entity that has obtained the Minister of Finance Decree referred to in Article 19 paragraph (4), submits written notification to the Head of the Customs Office where customs obligations are settled when the destruction is to be implemented.

(2)

Customs and Excise Officials conduct a physical inspection of the Tools and/or Materials to be destroyed.

(3)

The results of the physical examination referred to in paragraph (2) are outlined in the report of physical inspection results using the sample format listed in Appendix letter F which constitutes an integral part of this Ministerial Regulation.

(4)

In the event that the results of the physical inspection referred to in paragraph (3) are declared to be conforming, the Tools and/or Materials may be destroyed by the Business Entity by being witnessed by:

 

a.

representatives of the Business Entity;

 

b.

Customs and Excise Officials; and

 

c.

representatives of the ministry that administers governmental affairs in the field of environmental protection and management as the provider of the recommendation to be granted the exemption from import duty,

 

as well as outlined in the official report of destruction using the sample format referred to in Appendix letter G which constitutes an integral part of this Ministerial Regulation.

(5)

The destruction referred to in paragraph (1) is conducted by destroying the Tools and/or Materials, thereby, they cannot be refunctioned.

(6)

All costs arising from the implementation of the destruction referred to in paragraph (1) are borne by the Business Entity.

(7)

In the event that the results of the physical examination referred to in paragraph (3) are declared to be non-conforming, the Tools and/or Materials declared to be non-conforming cannot be destroyed.

 

 

 

 

 

 

 

(1)

The destruction referred to in Article 19 paragraph (1) is exempt from the obligation to pay the import duty payable.

(2)

In the event that the destruction is conducted without the permit referred to in Article 19 paragraph (1), the Business Entity is required to pay:

 

a.

import duty payable; and

 

b.

an administrative penalty in the form of a fine pursuant to statutory provisions in the field of customs.

(3)

Excluded from the provisions referred to in paragraph (1) in the event that the Tools and/or Materials that have been destroyed still have an economic value.

(4)

The obligation to pay import duty referred to in paragraph (3) is calculated based on the price of the supply with the following provisions:

 

a.

in the event that the import duty tariff amounts to 5% (five per cent) or more, subject to a tariff of 5% (five per cent); or

 

b.

in the event that the import duty tariff amounts to below 5% (five per cent), subject to a tariff according to the type of the goods.

(5)

The customs obligations referred to in paragraph (4) are fulfilled in the Customs Office where customs obligations are settled.

 

 

 

 

 

 

 

 

(1)

The Director who implements duties and functions in the field of customs facilities, the Head of the Regional Office of the Directorate General of Customs and Excise or the Head of the Customs Office may monitor and evaluate the Business Entity or third party for imports of Tools and/or Materials, either independently or jointly, according to their respective duties and functions.

(2)

In the event that based on the monitoring and evaluation referred to in paragraph (1), indications of abuse of the granting of the exemption from import duty are found:

 

a.

the director who implements duties and functions in the field of customs facilities;

 

b.

the Head of the Regional Office of the Directorate General of Customs and Excise; or

 

c.

the Head of the Customs Office,

 

may recommend that an audit be conducted by a unit in the field of customs and excise audit or another examination by a unit whose duties and functions are in the field of supervision.

 

 

 

 

 

 

 

 

(1)

An audit may be conducted of the Business Entity and/or third party referred to in Article 2 paragraph (3).

(2)

The audit referred to in paragraph (1) is implemented by the unit in the Directorate General of Customs and Excise that implements the duties and functions in the field of customs and excise audits.

(3)

In the implementation of the audit referred to in paragraph (1), the Business Entity and/or third party is required to provide the necessary information and documents.

(4)

The audit referred to in paragraph (1) is implemented pursuant to statutory provisions stipulating audits.

(5)

In the implementation of the audits referred to in paragraph (1), the unit in the Directorate General of Customs and Excise that implements the duties and functions in the field of customs and excise audits may involve relevant units in the Ministry of Finance and/or relevant ministries/technical agencies.

 

 

 

 

 

 

 

 

The Director General of Customs and Excise may determine the instructions for the granting of the exemption from import duty services for imports of Tools and/or Materials used to prevent environmental pollution and the settlement of customs obligations for imports of Tools and/or Materials.

 

 

 

 

 

 

 

 

When this Ministerial Regulation comes into force:

a.

the application for the exemption from import duty on imports of Tools and/or Materials which have been submitted before this Ministerial Regulation comes into force and have not yet received a decision shall be completed pursuant to the provisions under this Ministerial Regulation; and

b.

the imports of Tools and/or Materials pursuant to the Ministerial Decree concerning the granting of the exemption from import duty on imports of Tools and/or Materials which has been issued pursuant to the Minister of Finance Regulation Number 101/PMK.04/2007 concerning the Exemption from Import Duty on Imports of Tools and Materials Used to Prevent Environmental Pollution, may be conducted within a maximum period of 1 (one) year from the entry of force of this Ministerial Regulation..

 

 

 

 

 

 

 

 

When this Ministerial Regulation comes into force, the Minister of Finance Regulation Number 101/PMK.04/2007 concerning the Exemption from Import Duty on Imports of Tools and Materials Used to Prevent Environmental Pollution, is revoked and declared invalid.

 

 

 

 

 

 

 

This Ministerial Regulation shall come into force after 30 (thirty) days from the date of promulgation.

 

 

 

 

 

 

 

For public cognisance, this Ministerial Regulation shall be promulgated by placement in the Official Gazette of the Republic of Indonesia.

 

 

 

 

 

 

 

Enacted in Jakarta

on 20 May 2024

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

signed

SRI MULYANI INDRAWATI

 

Promulgated in Jakarta

on 5 July 2024

DIRECTOR GENERAL OF LEGISLATION

MINISTRY OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA,

signed

ASEP N. MULYANA

 

OFFICIAL GAZETTE OF THE REPUBLIC OF INDONESIA OF 2024 NUMBER 375