Verification procedures for industries utilizing import duty reduction/exemption facilities

To ensure that the granting of import duty reduction/exemption facilities to certain national industries is correctly made to the ‘target industries’, the Minister of Industry has issued a regulation as on verification of the industries that are making use of these facilities, and the verification procedures. The regulation is Regulation of the Minister of Industry No. 27/M-IND/PER/5/2008 (the “Regulation”)The Regulation basically requires that all industrial companies utilizing import duty reduction and exemption facilities be verified. Each of such companies must have what is referred to as an Industry Verification Certificate (Surat Keterangan Verifikasi Industri) which is issued by an independent surveyor appointed by the Minister.The verification process is divided into three main stages, respectively the preliminary, production, and final stage, each of which comprises further phases of inspection by the surveyor. The Regulation has been in force since the day of issue on 15 May 2008