REGULATION OF MINISTER OF FINANCE
No. 489/KMK.05/1996

ON
THE IMPLEMENTATION OF AUDIT IN CUSTOMS AFFFAIRS

THE MINISTER OF FINANCE,

Considering:

• a. that on the basis of Article 86 of Law No. 10/1995 on Customs Affairs, customs and excise officers shall be authorized to implement audit in customs affairs;
• b. that it is therefore deemed necessary to stipulate a decree of the Minister of Finance on the implementation of audit in customs affairs;

In view of:

Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to statute Book No. 3612);

DECIDES:

To stipulate:

THE DECREE OF THE MINISTER OF FINANCE ON THE IMPLEMENTATION OF AUDIT IN CUSTOMS AFFAIRS

Article 1

(1) A customs and excise officer shall be authorized to subject importers, exporters, operators of temporary stockpiling sites, operators of bonded stockpiling sites, businessmen dealing with the settlement of customs services or transportation businessmen to the implementation of audit in customs affairs.

(2) Audit in customs affairs shall be undertaken by an examination of documents, books and reports connected with activities in customs affairs and by the counting of supplies of goods.

Article 2

The objective of audit in customs affairs shall be to determine the degree of a businessman's compliance as meant in Article 1 sub-article (1) with the laws in customs affairs and the financial accounting standard and to safeguard the state's rights.

Article 3

Audit shall be implemented at any time on the basis of a letter of instruction issued by the Director General of Customs and Excise.

Article 4

(1) In the interest of the implementation of audit in customs affairs, the businessman as meant in Article 1 sub-article (1) shall be obligated to submit documents, books and reports connected with activities in customs affairs.

(2) All data and information obtained in the implementation of audit in customs affairs shall be treated as official secret.

Article 5

The implementation of audit shall take as its guideline the auditing standard in customs and excise affairs stipulated by the Director General of Customs and Excise.

Article 6

The implementation of audit shall lead to the issuance of reports on audit results with the following stages:

• a. The findings resulting from audit shall lead to the issuance of a list of provisional findings, which shall be submitted to the audited party.
• b. To give his response, the audited party shall be allowed a maximum of 7 (seven) days as from the time when the list of provisional findings is received. If a letter of response from the audited party has not been received within the period of 7(seven) working days as from the time when the audited party receives the list of provisional findings, the list of provisional findings shall be considered as having been received and shall be made a basis for the drawing up of a report on audit results.
• c. In the event of the time allowed being insufficient, the Director General of Customs and Excise may, at the request of the audited party, extend the period for the submission of a letter of response with a maximum of 7 (seven) working days as from the final day for the submission of a letter of response.
• d. If within a period of 7 (seven) working days as from the time when the audited party receives the extension of the submission of a letter of response, a letter of response from the audited party still has not been received, the list of provisional findings shall be considered as having been received and shall be made a basis for the drawing up of a report on audit results.
• e. Evidence in support of the objections contained in the letter of response received by the audited party must be attached to the letter of response and on the basis of the evidence discussions and joint testing shall be conducted with the audited party and the results of the discussions and testing shall lead to the issuance of a report on audit results.

Article 7

A report on audit results shall be conveyed to the Director General of Customs and Excise and to the audited party.

Article 8

As a result of audit implementation, the Director General shall take a follow-up action pursuant to the prevailing laws.

Article 9

The Director General of Customs and Excise shall further regulate the implementation of this decree.

Article 10

This decree shall take effect as from August 1, 1996.

For public cognizance, this decree shall be announced by publishing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On July 31, 1996

THE MINISTER OF FINANCE
sgd.
MAR'IE MUHAMMAD