YES

   1: nats() -> :(0(),inc(nats()))
   2: inc(:(x1,x2)) -> :(s(x1),inc(x2))
   3: inc(tl(nats())) -> tl(inc(nats()))
   4: hd(:(x1,x2)) -> x1
   5: tl(:(x1,x2)) -> x2
   6: d(:(x1,x2)) -> :(x1,:(x1,d(x2)))

@Rule Labeling
--- R
   1: nats() -> :(0(),inc(nats()))
   2: inc(:(x1,x2)) -> :(s(x1),inc(x2))
   3: inc(tl(nats())) -> tl(inc(nats()))
   4: hd(:(x1,x2)) -> x1
   5: tl(:(x1,x2)) -> x2
   6: d(:(x1,x2)) -> :(x1,:(x1,d(x2)))

--- S
   1: nats() -> :(0(),inc(nats()))
   2: inc(:(x1,x2)) -> :(s(x1),inc(x2))
   3: inc(tl(nats())) -> tl(inc(nats()))
   4: hd(:(x1,x2)) -> x1
   5: tl(:(x1,x2)) -> x2
   6: d(:(x1,x2)) -> :(x1,:(x1,d(x2)))