Implementing Guideline on the Utilization of Government-Borne Import Duty Facility for Industries in Certain Sectors

Government-borne import duty may be provided to industries in certain sectors on the import of goods and materials. Government-borne import duty may be given to industries in certain sectors based on the assessment criteria:

  1. fulfilling the supply of goods and/or services for public interests, consumed by the  community at large, and/or protecting consumer’s interests,
  2. improving competitiveness,
  3. increasing the absorption of manpower, and
  4. increasing state revenues.

The determination of weight of each assessment criterion is regulated in the attachment to Regulation of the Minister of Finance Number 248/PMK.011/2014. Each assessment criterion for industries in certain sectors is given a score from 10 to 100 with the total score of industries in certain sectors that may be provided with government-borne import duty of no less than 50.

Industrial companies and/or industrial associations submit the proposal for industries in certain sectors to receive government-borne import duty to the Director of Industry Development.  Based on the analysis of the application, the Director of Industry Development approves or rejects the application for government-borne import duty. The Director of Industry Development subsequently submits the application to the Director General of Industry Development through the Secretary of the Directorate General. If the results of analysis of the application for government-borne import duty is approved, the Minister of Industry submits the application to the Minister of Finance. The Minister of Finance issues ceiling budget of government-borne import duty based on industries in certain sectors through a Regulation of the Minister of Finance.

Industrial companies which will receive a budget ceiling of government-borne import duty must have a goods import plan validated by the Director General of Industry Development. Based on the application for industry verification, a verification implementing institution conducts industry verification and issue an industry verification certificate by no later than 10 days since the application of industrial company is declared complete and correct. A verification implementing institution conducts industry verification and domestic producer’s capability verification. A verification implementing institution is assessed by a verification implementing institution assessment team.

A company may make an addition to a goods import plan and change of goods import plan according to the provisions of this regulation. In the event that there is an industrial company claiming being able to produce goods and materials as set out in the attachment to the Regulation of the Minister or Finance regarding provision of government-borne import duty facility for the current fiscal year, the industrial company may submit an application to the Director General of Industry Development for domestic producer’s capability verification by a verification implementing institution. A report on the results of domestic producer’s capability verification becomes one of the inputs in giving a government-borne import duty facility.

This regulation comes into effect on 30 July 2019 by revoking and declaring null and void Regulation of the Minister of Industry Number 07/M-IND/PER/3/2017 and Regulation of the Minister of Industry Number 27/M-IND/PER/5/2008.

 

 

 

 

 

 

 

Source https://legalcentric.com/content/view/142165

The Director General of Taxation Regulation Number PER – 67/PJ/2010
The Director General of Taxation Regulation Number PER – 67/PJ/2010

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