MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

Transcription

1 COPY REGULATION OF THE MINISTER OF FINANCE NUMBER 176/PMK.04/2013 CONCERNING THE AMENDMENT TO REGULATION OF THE MINISTER OF FINANCE NUMBER 254/PMK.04/2011 ON EXEMPTION OF IMPORT DUTY ON GOODS AND MATERIALS TO BE PROCESSED, ASSEMBLED, OR INSTALLED ON OTHER GOODS FOR THE PURPOSE OF EXPORT BY THE GRACE OF THE ALMIGHTY GOD MINISTER OF FINANCE, Considering : a. whereas the provisions regarding the Exemption of Import Duty on the import of goods and materials to be Processed, Manufactured, or Installed on other goods for the purpose of export has been set out in the Regulation of the Minister of Finance Number 254/PMK.04/2011 on the Exemption of Import Duty of Goods and Materials for Processed, Manufactured, or Installed on other goods for the export purpose; b. whereas in order to encourage export activities, strengthening the competitiveness of enterprises and increasing investment, it is necessary to make improvements to the increasing fiscal incentives, simplification of procedures and automation of the service; c. whereas based on the considerations referred to in letter a and letter b, and in order to implement the provisions of Article 26 section (1) letter k of Law Number 10 Year 1995 concerning Customs as amended with Law Number 17 Year 2006, it is necessary to stipulate Regulation of the Minister of Finance on Amendment to the Regulation of the Minister of Finance Number 254/PMK.04/2011 on the Exemption of Import Duty on the Import of Goods and Materials to be Processed, Assembled, or Installed on Other Goods for the Export Purpose; In the view of : Regulation of the Minister of Finance Number 254/PMK.04/2011 on the Exemption of Import Duty on the Import of Goods and Materials to be 1

2 Processed, Assembled, or Installed on Other Goods for the Export Purpose (State Gazette of the Republic of Indonesia Year 2011 No. 943); BE IT HEREBY RESOLVED: To enact : REGULATION OF THE MINISTER OF FINANCE ON THE AMENDMENT TO REGULATION OF THE MINISTER OF FINANCE NUMBER 254/PMK.04/2011 ON EXEMPTION OF IMPORT DUTY ON GOODS AND MATERIALS TO BE PROCESSED, ASSEMBLED, OR INSTALLED ON GOODS FOR THE EXPORT PURPOSE. Article I Several provisions in the Regulation of the Minister of Finance Number 254/PMK.04/2011 on the Exemption of Import Duty on the Import of Goods and Materials to be Processed, Assembled, or Installed on Other Goods for the Export Purpose, shall be amended as follows: 1. Provision of Article 1 shall be amended as follows: Article 1 Terminologies herein shall be defined as follow: 1. Import means an activity of supplying Raw Material into the customs area. 2. Export means an activity of Production Result from the customs area. 3. Exemption is the exemption of import duty and / or Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods payable shall not be imposed to Imported Raw Materials to be processed, manufactured, or installed on other goods for export purpose. 4. Company means business entity that performs processing operations, assembly, and/ or installation of the Raw Materials that receives an exemption. 5. Company Registration Number Exemption, hereinafter referred to as NIPER Exemption, means the identification number given to the Company. 6. Raw Material means goods and/ or material, including supporting materials, which are imported to be processed, assembled, or installed on 2

3 other goods to be manufactured goods that have added value by getting the Exemption. 7. Damaged Raw Material means the raw material that damage and / or loss in quality and cannot be processed or will be processed if the production yield results that do not meet the quality/ standard. 8. Production Result means the result of processing, assembly, or installation of Raw Materials on other goods. 9. Damaged Production Result means production results that are damaged and/ or a decrease in the quality / standard that technically cannot be repaired to match the quality / standard of Production Results. 10. Processed means series of events consisting of more than one phase of activity which aims to change the early nature and / or function of the Raw Materials, so it become Produced goods that have added value. 11. Assembled means activities such as assembling and / or uniting some of the goods and / or materials to produce results or equipment / goods which have different functions with raw materials and / or components of the goods in the early state. 12. Installing is an activity to unite some of the components of the goods and / or materials on the main part of finished goods without any union of components of goods and / or materials, the production results cannot function. 13. Conversion is a written statement from the company regarding the composition of the raw material consumption for each unit of Production Results. 14. Minister is the Minister of Finance of the Republic of Indonesia. 15. Regional Office or KPU is Regional Office or Main Service office on the Directorate General of Customs and Excise are. 16. Person is an individual or legal entity. 2. Provision of Article 2 section (1) shall be amended, between section (1) and section (2) shall be inserted one section, namely section (1a), and section (2), section (3), section (4), section (5), and section (6) shall be removed, so that Article 2 reads as follows: Article 2 1) To the Imported Raw Materials to be Processed, Assembled, or installed on other goods for the export purpose could be granted the Exemption. 1a) Raw Materials spending for the subcontract of a Company to the subcontracting recipient business entity and re-entry of the 3

4 subcontracting work result to the company, shall not subject to Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods. 2) Removed. 3) Removed. 4) Removed. 5) Removed. 6) Removed. 3. Provision of Article 3section (2), section (3),section (4), and section (6) shall be amended, between section 3 and section (4), shall be inserted one section, namely section (3a) and shall be added one new section, namely section (9), so that Article 3 reads as follow: Article 3 1) Exemption, as set forth in Article 2 section (1), could be granted to the business entity that have obtained NIPER Exemption. 2) In order to obtain the NIPER Exemption, business entity should apply the application by fulfilling criteria and requirements as follow: a. have a good Internal Control System, as evidenced with the result of the audit report by an independent auditor without disclaimer or adverse opinion, or explanation on Internal Control System for a newly established business entity; b. has a computer-based information system inventory (IT Inventory) for the management of goods, which have relevance to the customs document and can be accessed by the Directorate General of Customs and Excise, as evidenced with the print screen and manual book over the computer-based information system inventory (IT Inventory); c. has the nature of business in the form of manufacturing industry business entity, as evidenced with the industrial business license and its amendment; d. has or acquire the location of production activities, stockpiles place for Raw Materials, stockpiles place for Production Result, as evidenced with proof of ownership or acquisition of the location for production activities, and stockpiles place for Raw Materials and stockpiles for Production Output; e. have Customs Identity Number (NIK); and f. have a clear plan of production, which is evidenced with the production flow, plan Import, Export plan, a list of Raw Materials, Production list, and the list of recipients subcontracting busines 4

5 entity, in the event there is production process that will be subcontracted. 3) Application, as set forth in section (2), shall be submitted to the Head of the Regional Office or KPU that has working area that supervise factory location of the business entity in question, by attaching the verification of criteria and requirements in the form of a soft copy of the scanned original documents in electronic data storage media. 3a) If it is necessary, the Head of the Regional Office or KPU could request hard copy of the verification document of criteria and requirements as set forth in section (3). 4) In case of a business entity has more than one (1) location of the factory, the filing application for obtaining NIPER Exemption shall be addressed to the Head of Regional Office or KPU that supervises the factory activity that has the largest Import volume of Raw Materials. 5) Upon application, as set forth in section (3), Head of Regional Office or KPU or the appointed official conducts administrative examination and field inspection. 6) Head of Regional Office or KPU gives approval or rejection to the application referred as set forth in section (3), within a maximum period of 30 (thirty) working days after complete application is received. 7) In case of the application, as set forth in section (3) is approved, the Head of the Regional Office or KPU on behalf of the Minister issues NIPER Exemption. 8) In case the application, as set forth in section (3) is rejected, the Head of the Regional Office or KPU delivers notification letter by informing the reason for rejection. 9) Company that has obtained NIPER Exemption shall install signage that contains the data for at least the company name and NIPER Exemption number on each stockpile site and each factory location. 4. Provision of Article 6 shall be Removed. 5. Provisions of Article 7 shall be amended so that it reads as follows: Article 7 1) Exemption Period shall be the period granted to the Company to implement the realization of Export Production Result. 2) Exemption Period, as set forth in section (1) shall be granted within the period: 5

6 a. maximum of 12 (twelve) months from the date of registration of import customs notification in regard with the Company production period; or b. exceed the period as set forth in letter a, in case the Company has production period of more than 12 (twelve) months. 3) Duratiin of the Exemption Period as set forth in section (2) could be granted an extension with the time period based on the approval of the Head of the Regional Office or KPU, in case: a. there is export delay from the overseas buyers; b. there is export cancellation or replacement overseas buyers; and / or c. there is a force majeure condition, such as: 1. war, natural disaster, or fire; 2. Other disasters declared by the relevant authorities. 4) Application for the extension of Exemption Period as set forth in section(3) could only be submitted by the Company to the Head of the Regional Office or KPU before the Exemption period as set forth in section (2) expires. 6. Provision of Article 8 shall be amended so that it reads as follows: Article 8 1) Company could conduct Imports of Raw Materials from: a. beyond the customs area; b. Bonded Warehouse; c. Bonded Zone; d. Free Zone of which undertaken by entrepreneur within the Free Zone that has a license from the Free Zone Administration Agency; and / or e. other economic zones established by the Government. 2) On Imported Raw Materials, as set forth in section (1), general provision in the field of import shall be applied, including the statutory provisions that regulates prohibition and / or import restrictions. 7. Provision of Article 9 shall be amended that reads as follows: Article 9 1) On Imported Raw Materials referred to in Article 8 section (1), the Company should submit import customs declaration documents by 6

7 mentioning NIPER Exemption at the column of requirement fulfilling/ import facility. 2) In case import customs notification document as set forth in section (1) does not include the NIPER Exemption at the column requirement fulfillment of the / Import facility, on the import of goods and/ or materials contained on import customs notification in question shall not obtain the Exemption. 8. Provisions of Article 10 section (1), section (2), and section (4) shall be amended, and in between section (3) and section(4), shall be inserted 1 (one) section, namely section (3a), so that Article 10 reads as follows : Article 10 1) Company shall be obliged submit collateral to the Directorate General of Customs and Excise at the time of submission of import customs notification documents, with the warranty period as long as: a. Exemption period as set forth in Article 7; and b. the period of completion for the examination of accountability report. 2) The submitted Collateral, as set forth in section (1), shall be as much as import duty and Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods on Raw as notified in the import customs notification. 3) Amount of import duty, as set forth in section (2), including antidumping duties, countervailing duty, safeguarding duty, and / or import retaliatory duty. 3a) Company can submit the collateral, as set forth in section (1), in the form of corporate guarantees in condition as follow: a. Company shall be included as Authorized Economic Operator; b. Company's status as an importer Main Partner (MITA) Priority or importer Main Partner (MITA) Non-Priority; or Companies with low risk category that have good financial condition, which is shown by a comparison between the value of total assets to total liabilities above 110% (one hundred and ten percent). 4) Form, time, and procedures for collateral submission, as set forth in section (1), and establishing of the Company to be able to submit collateral in the form of corporate guarantees as set forth in section (3a) shall be conducted in accordance with the legislation that sets out the collateral in the framework of customs. 7

8 9. Provisions of Article 11 section (3) and section (4) shall be amended so that Article 11 reads as follows: Article 11 1) Customs and Excise officials conduct customs examination over import customs notification filed by the Company. 2) Customs inspection as set forth in section (1) shall be carried out selectively based on risk management. 3) In case based on the results customs inspection as set forth in section (1) there is discrepancy on rate and/ or the customs value, the Company should conduct the adjustment on the value of the collateral, as long as it is believable that the type of goods in accordance with the items listed in NIPER Exemption. 4) In case based on the results customs inspection as set forth in section (1) there is discrepancy on amount and/ or type of goods, the excess amount and/ or type of goods imports cannot be granted exemption and further examination or investigation shall be conducted in accordance with the legislation in the field of customs. 10. Provision of Article 12 section (1), section (2), and section(3) shall be amended, and in between section (2) and section (3), shall be inserted 1 (one) section, namely section (2a), so that Article 12 reads as follows : Article 12 1) Company shall be obliged to unload and / or hoard the Raw Materials that come from the customs area to the location listed in NIPER Exemption. 2) Company could conduct unloading and / or hoarding in locations other than locations as set forth in section (1) with the condition as follow: a. apply and obtain approval from the Head of the Regional Office or KPU; or b. submit notification to the Head of the Regional Office or KPU prior to the unloading and / or hoarding, in case the Company is included the Authorized Economic Operator, has the status as an Main Partner (MITA) Priority importer or Main Partner (MITA) Non- Priority importer. 2a) Head of Regional Office or KPU grants approval or rejection on the application, as set forth in section (2) letter a, with maximum period of 5 (five) working days since the application is received completely. 8

9 3) Approval of unloading and / or hoarding on location as set forth in section (2) letter a, or notification as set forth in section (2) letter b, shall only be valid for 1 (one) time of unloading and / or hoarding. 4) In case the unloading and / or hoarding at the location as set forth in section (2) will be used permanently and / or repeatedly, the Company shall be obliged to submit the change of NIPER Exemption. 11. Provision of Article 13 section (1) shall be amended, between section (1) and section (2) shall be inserted two (2) sections, namely section (1a) and section (1b), and (2) and section (3) shall be removed, so that Article 13 reads as follows: Article 13 1) In the event that the Company will commence the production, the Company should submit Conversion to the Head of the Regional Office or KPU before the production process is commenced. 1a) In event that there is change in Conversion of the previous Production results, the Company Should submit the change of Conversion. 1b) Change of Conversion, as set forth in section (1a)shall be submitted to the Head of the Regional Office or KPU no later than before the companies performs the Export. 2) Removed 3) Removed 12. Provision of Article 14 shall be amended so that it reads as follows: Article 14 1) The company can subcontract some of the processing activities, Assembly, and/or the installation of raw materials to industrial business entity that are listed in data of NIPER Exemption. 2) The Company could subcontract all activities of processing, assembly, and / or installation as set forth in section (1) for the excess of contract that cannot be maed because of limited production capacity, in condition that: a. Company's status as a public company whose share are partially or wholly owned by the public; b. The Company is included in the Authorized Economic Operator; or c. The Company's status as an Main Partner (MITA) Priority importer and Key Partners (MITA) Non-Priority importer. 9

10 3) In case subcontracting is done by a business entity that is not listed in NIPER Exemption, company firstly should apply to the Head of the Regional Office or KPU to obtain permission. 4) Upon the application as set forth in section (3), Head of the Regional Office or KPU give the answer in the form of approval or rejection within a maximum period of 10 (ten) working days after the application is completely received. 13. Provision of Article 15 shall be amended so that it reads as follows: Article 15 1) All of Productions shall be exported by the Company in accordance with legislation that sets out the customs administration in the field of export. 2) Production could be handed to other company for joint export of combined goods and can be used as settlement of Raw Materials, with the conditions as follow: a. Another company that receives the Production Results is a company that receives Exemption facility and / or Return facility; b. Production Result that is handed to other company, as set forth in letter a, shall only to be combined with the Production Result of other company in question as well as required to be exported in one unit; and c. Implementation of joint export shall refers to the laws and regulations that regulates the customs administration in the field of export. 14. Provision of Article 16 shall be removed. 15. Between Article 16 and Article 17 shall be inserted a new Article, namely Article 16A that reads as follows: Article 16A Company shall be exempted from the obligation of the import duty, Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods and administrative sanctions over Raw Materials, good in processing, and Production Result that have not been accounted for, in case the force majeure is occurred, with the approval of the Head of Regional Office or KPU on behalf of the Minister. 10

11 16. Provisions of Article 17 shall be amended so that it reads as follows: Article 17 1) Company shall be obliged to account for Raw Material by submitting accountability reports to the Head of the Regional Office or KPU within a period of 30 (thirty) days from the expiration period of Exemption as set forth in Article 7 section (2) or section (3). 2) Accountability report, as set forth in section (1) shall be attached with: a. import customs notification document that has been approved by customs officials; b. export customs notification document that has obtained of Export approval; c. documents that evidence the existence of Export transaction; and d. Export inspection report. 3) Provision of the Submission of import customs notification document, as set forth in section (2) letter a and export customs notification document as set forth in section (2) letter b shall not be applicale to company that perform import and export of goods through the Customs Office that has implemented the provisions of Electronic Data Interchange (PDE). 4) Provision of the Submission of Export inspection report as set forth in section (2) letter d shall not be applicable to: a. Company whose status is public company whose shares are partially or entirely owned by the public; b. Company that is included in Authorized Economic Operator; or c. Company whose status as Main Partner (MITA) Priority importer and Key Partners (MITA) Non-Priority importer. 5) On the submission of accountability report as set forth in section(1), Head of the Regional Office or KPU or appointed official shall conduct examination on: a. completeness of the documents as set forth in section (2); b. fulfillment of Exemption period, the truth Import, Export truth and correctness of accountability reports; and c. conversion conformity with the amount of Raw Materials usage, amount of Production Results reported, and the rest of the production process. 6) On the Production Results that should be exported as set forth in Article 15 shall be granted the Exemption. 7) In the event of any difference between the amount of Raw Materials usage based on conversion conformance testing results as set forth in section 11

12 (5) letter c, then to the difference in question shall not be granted the Exemption and subject to appropriate administrative sanctions such as fines in accordance with the legislation in the field of customs and taxation. 8) Upon the rest of production process (waste / scrap) that is sold to another place within the customs area, the following provisions shall applicable: a. subject to be imposed to import duty as much as: i. 5% (five percent) multiplied to the selling price, if the general tariffs (Most Favored Nation) of Raw Material is 5% (five percent) or more; or ii. applicable rate shall be multiplied to the selling price, if the general tariffs (Most Favored Nation) of Raw Material is less than 5% (five percent); b. subject to be imposed to Import Tax that is calculated based on the sale price; and c. shall be obliged to make tax invoice and to collect Value Added Tax (VAT) or Value Added Tax (VAT) and Sales Tax on Luxury Goods (Sales Tax) in accordance with the legislation in the field of taxation. 9) Upon the Raw Materials and Production Results that not reported until the complete Exemption period, the Exemption shall not be granted and subject to be imposed to administrative sanctions in the form of fine in accordance with the legislation in the field of customs and taxation. 10) Upon the damaged or reject Production Results, they should be destroyed or tampered with. 11) Over the damaged or reject Raw Materials, so it cannot be processed, assembled, installed, they shall be destroyed or tampered or exported. 12) Destruction results upon the damaged or rejected Production as set forth in section (10) and damaged or rejected Raw Materials as set forth in section (11) shall be treated as waste/ scrap. 13) Over the damaged or rejected Raw Materials as set forth in section(11), which are re-exported, the collateral shall be returned as much as equal to the import duties and Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods on the raw material in question. 14) On the submission of Accountability report as set forth in section (1), Head of the Regional Office or KPU or the appointed official to approve or reject within a maximum period of 45 (forty five) working days since the accountability report is received. 12

13 15) In case the accountability report, as set forth in section (1) is approved, the collateral shall be returned as much as the import duty and Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods from Raw that its products are exported. 16) In case the accountability report is not submitted within the period referred to in paragraph (1) or rejected entirely, exemption shall not be granted the and subject to be imposed to administrative sanctions in the form fine in accordance with the legislation in the field of customs and taxation. 17) In events of accountability report is partly rejected, on the rejected Raw Materials shall not e granted the Exemption and subject to appropriate administrative sanctions in the form of fines in accordance with the legislation in the field of customs and taxation. 18) Settlement on the damaged or rejected Production results as set forth in section (10) and damaged or rejected Raw Materials as set forth in section (11) can be used as an accountability report on Raw Material. 17. Provision of Article 18 section (1) and section (2) shall be amended, and between section (2) and section(3) shall e inserted two (2) section, namely section (2a) and section(2b), so that Article 18 reads as follows: Article Head of Regional Office or KPU or appointed official conducts monitoring and evaluation of the NIPER Exemption issuance periodically at least 1 (one) times in one (1) year from the date of decree issuance of the NIPER Exemption. 2. Head of Regional Office or KPU or the appointed official could conduct inspection on field and testing the requirements for the issuance of NIPER Exemption. 2a) Implementation of monitoring and evaluation against: a. Company whose status is as a public company whose shares are partly or entirely owned by the public; b. Company that is included in the Authorized Economic Operator; or a. Company whose status as the Main Partner of the (MITA) Priority importer and the Main Partners of the (MITA) Non priority importer, shall be carried out selectively based on risk management. 2b) Results of monitoring and evaluation, as set forth in section (1) shall be submitted to the audit unit and control unit as a preliminary information. 13

14 3. In order to control and services the exemption facilities, the Director General of Customs and Excise could determine the Regional Office or KPU as the place for control and service the Exemption facilities. 18. Provisions of Article 20 section (1) shall be amended, and between section (1) and section (2) shall be inserted one section, namely section (1a), so that Article 20 reads as follows: Article 20 1) NIPER Exemption shall be suspended in the event of the Company: a. does not apply for NIPER exemption data changes as set forth in Article 5; b. does not make the acquittal on the debt in import duty, tax on import, and / or administrative sanctions in the form of fine up to maturity; c. does not submit an accountability report as set forth in Article 17; d. des not submit the required documents in the implementation of monitoring and evaluation as set forth in Article 18; e. allegedly committing the crime in the field of customs and excise with sufficient preliminary evidence; f. does not install the signage that at least contains data of the company name and NIPER Exemption number at the stockpiling site and the factory site; g. does not comply with the subcontract provisions as set forth in Article 14 section (1), section (2), and section (3); and / or h. does not perform Import or Export with the Exemption facilities respectively in the period as set forth in Article 7 section (2) letter a and Article 7 section (2) letter b. 1a) Suspension due to does not comply with the subcontracting provisions as set forth in section (1) letter g, it is valid for 3 (three) months. 2) In terms of NIPER Exemption is suspended, the Company cannot obtain Exemption on the Import of Raw Materials as set forth in Article 2 section (1). 19. Provisions of Article 21 shall be amended so that it reads as follows: 14 Article 21

15 NIPER Exemption that suspended, as set forth in Article 20, could be reactivated in case the Company: a. has applied for a change on the NIPER Exemption data as set forth in Article 5; b. has paid all the debt of import duties, tax on import, and / or administrative sanctions in the form of fines; c. has submitted accountability reports as set forth in Article 17; d. has submitted the necessary documents in the implementation of monitoring and evaluation; e. is not convicted of committing the crime in the field of customs and excise; f. has installed a signboard at least contain the data of company name and NIPER Exemption number at the stockpiling site and factory site; g. suspension period has ended as set forth in Article 20 section (1a); and h. have conducted Import or Export with the Exemption facility within the period as set forth in Article 7 section (2) letter a and Article 7 section (2) letter b. 20. Provisions of Article 22 section (1), section (2), and section (3) shall be amended so that Article 22 reads as follows: Article 22 1) NIPER Exemption shall be revoked in the event of the company: a. does not apply for the change of NIPER Exemption data as set forth in Article 5 within 30 (thirty) days from the date of NIPER Exemption suspension as set forth to in Article 20 section (1) letter a; b. does not make the acquittal to the entire debt of import duties, tax on import, and / or administrative sanctions in the form of fines as set forth in Article 20 section (1) letter b up to the issuance of Distress Warrant; c. conducts unloading and / or hoarding of Raw Materials beyond the locations that are listed in NIPER exemption as set forth in Article 12 section (1) or conduct unloading and / or hoarding of Raw Materials in a location that not given approval by the Head of the Regional Office or KPU or not notified to the head of Regional Office or KPU as set forth in Article 12 section (2); d. evidenced in guilty for committing crime in the field of customs based on ruling court; 15

16 e. its status changes to become Bonded Zone entrepreneur or entrepreneur in Bonded Zone; f. declared in bankruptcy by a ruling court; g. does not properly store and maintain on the business place the financial statements, books, records and documents that became the basis of accounting evidence, the letter that associated with business activities including electronic data, as well as letters relating to activities in the field of customs for 10 (ten) years; h. does not submit financial statements, books, records and documents that became the basis of accounting evidence, the letter that associated with business activities including electronic data, as well as letters relating to activities in the field of customs based on Audit Report customs and/ or excise; i. no longer meets the eligibility requirements for the NIPER Exemption as set forth in Article 3 section (2); and / or j. apply for the lifting of NIPER Exemption. 2) In case of NIPER exemption is revoked, business entity should pay all outstanding bills in accordance with the legislation in the field of customs and taxation. 3) In case NIPER Exemption are revoked due to change in status becoming Bonded Zone Entrepreneur or Entrepreneur in Bonded Zone as set forth in section (1) letter e, upon the Raw Materials whose liability has not been settled, as long as it is still in the period of Exemption, it could be used as initial balance for Bonded Zone and treated as Imports goods while received the suspension of import duty and free from Value Added Tax (VAT) or Value Added Tax (VAT) and Sales Tax on Luxury Goods (Sales Tax). 4) In order revocation of NIPER Exemption, customs audit could be conducted in advance. 21. Provision of Article 23 shall be removed. 22. Provisions of Article 24 shall be removed. 23. Provisions of Article 25 section (1) shall be removed, and section (2) and section (3) shall be amended so that Article 25 reads as follows: 1) Removed Article 25 16

17 2) Upon Import of Raw Material that subject to excise, it is subject to to the provisions in accordance with the regulations in the field of excise. 3) Upon Export Production that imposed to Export Duty, it subject to the provisions in accordance with legislation in the field of customs. 24. Between Article 25 and Article 26 shall be inserted one Article, namely Subsection 25A that reads as follows: Article 25A Computer-based information system inventory (IT Inventory), as set forth in Article 3 section (2) letter b can be accessed by the tax authorities by first coordinating with the Directorate General of Customs and Excise. 25. Provisions of Article 26 section (1) shall be amended, section (2) shall be removed, so that the article 26 reads as follows: Article 26 1) Company that has received Exemption facilities can utilize the customs facilities for bonded zone, as long as its location is different. 2) Removed 3) In the case of companies turning to the company that receive customs facilities for the bonded zone, the realization of exports made by the Company can be taken into account in determining the production sales limits from the bonded zone to another place within the customs area. Articles II 1. By the time this regulation comes into force: a. Towards Companies that already have NIPER Exemption based on Regulation of the Minister of Finance No. 254/PMK.04/2011 on Exemption of Import Duty on Import of Goods and Materials to be Processed, assembled, or installed at other goods for the Export Purposes, should make the change on NIPER Exemption data in accordance with the requirements herein at the latest within a period of 12 (twelve) months since this regulation comes into effect. b. Towards Company that already has NIPER Exemption based on Regulation of the Minister of Finance No. 254/PMK.04/2011 on Exemption of Import Duty on Import of Goods and Materials for Processed, Assembled, or Installed at other goods for the Export Purpose, and has not applied for any NIPER Exemption data changes 17

18 within the period referred to in letter a, NIPER Exemption shall be suspended. c. To the imports conducted based on Regulation Minister of Finance No. 254/PMK.04/2011 about Exemption of Import Duty on Import of Goods and Materials for Processed, Assembled, or Installed at other goods for the export purpose and not yet resolved accountability report, the accountability report completed by Minister of Finance Regulation No. 254/PMK.04/2011 on Exemption of Import Duty on Import of Goods and Materials for Processed, Assembled, or Installed at other Goods for the Export Purpose; d. To export of Production Result that comes from Raw Material based on Finance Minister Regulation No. 254/PMK.04/2011 on Exemption of Import Duty on Import of Goods and Materials for processed, Assembled, or Installed at other Good for the Export Purpose, and from the Raw Materials based on the regulation herein, accountability report shall be completed based on this Regulation; e. To accountability report that is still in the process of examination at the time this Ministerial Regulation is enacted, it is resolved by the Minister of Finance Regulation No. 254/PMK.04/2011 on Exemption of Import Duty on Import of Goods and Materials to be Processed, Assembled, or Installed on other Goods for the Export Purpose; f. To the Decree of Exemption, which is still valid at the time of this Ministerial Regulation is applicable, it shall remain valid and for Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods payable is not collected; g. Article 17 section (2) Regulation of the Minister of Finance No. 147/PMK.04/2011 on bonded zones, as last amended by Regulation of the Minister of Finance No. 120/PMK.04/2013 and Article 13 paragraph (3) of the Regulation of the Minister of Finance No. 143/PMK.04/2011 on Bonded Warehouse shall be stated valid and null. 2. This Ministerial Regulation shall come into force after 60 (sixty) days from the date of promulgation. For public cognizance, it is ordered to promulgate this Ministerial Regulation shall by placing in the State Gazette of the Republic of Indonesia. 18 Stipulated in Jakarta

19 On December 6, 2013 MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA, Signed MUHAMAD CHATIB BASRI Promulgated in Jakarta On December 6, 2013 MINISTER OF JUSTICE AND HUMAN RIGHTS REPUBLIC OF INDONESIA, Signed AMIR SYAMSUDIN STATE GAZETTE YEAR 2013 NUMBER