CIRCULAR OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. SE-10/BC/2007

CONCERNING
TECHNICAL IMPLEMENTATION TO PROVISION AND ORDER EXCISE BAND OF TOBACCO PRODUCTS.

June 06, 2007

In relation with stipulation of Regulation of the Director General of Customs and Excise No. P-17/BC/2007 concerning Provision and Order of Excise Band of Tobacco Products, it is necessary to describe the following:

A. PROVISION OF EXCISE BAND OF TOBACCO PRODUCTS

1. Starting from July 2, 2007, excise band for fabric entrepreneur with sum of tobacco products in year 2006 until 100,000,000 (one hundred million) pieces and/or grams, excise bands are provided by Service Office of Customs and Excise which control fabric, for fabric entrepreneur with sum of tobacco products in year 2006 more than 100,000,000 (one hundred million) pieces and/or grams, excise bands are provided by Head Office of Directorate General of Customs and Excise.

2. Head of Service Office shall mane notice to each fabric in his/her authority about location of provision of excise bands of each fabric based on realization of tobacco production year 2006.

3. P3CT and/or DP3CT of excise bands request for June 207 should be received by Head Office of DJBC on latest June 12, 2007. P3CT which received after that date will not be served for request of excise bands.

4. Entrepreneur of fabric which propose Proposal for Provision of Excise Band (P3C) for April-May-June 2007 need, if sum of excise bands were proposed is not enough, can propose Proposal for Additional Provision of Excise Band (P3CT). P3CT should be received by Head Office of DJBC on latest June 12, 2007.

5. Sum of excise bands are proposed in P3C:

• a. for Entrepreneur in Group I, II, III and IIIA maximum 100 % (one hundred percent) of average monthly sum of ordered excise bands use CK-1 in last 3 months before propose P3C, with limitation of production of each entrepreneur of fabric group:
• Example: Proposal of P3C for July 2007
• P3C = 100 % x (Realization CK-1 of March + April + May)
• = 100 % x 1/3 (500+1000+600)
• = 100 % x 700
• = 700 sheets
• b. for Entrepreneur in Group IIIB with maximum of 200 % (two hundred percent) of average monthly sum of ordered excise bands use CK-1 in last 3 months before propose P3C, with limitation of production of each entrepreneur of fabric group:
• Example: Proposal of P3C for July 2007
• P3C = 200 % x (Realization CK-1 of March + April + May)
• = 200 % x 1/3 (100+200+150)
• = 200 % x 183
• = 366 sheets
• = rounded 360 sheets
• c. In the case that the average monthly sum of ordered excise bands use CK-1 in last 3 months before propose P3C less than 500 sheets, maximum excise band can be proposed in P3C is 1,000 (one thousand) sheets, with limitation of production of each entrepreneur of fabric group; or
• d. In the case that data of average monthly sum of ordered excise band use CK-1 in at last 3 months before propose P3C for kind of proposed excise band not available, sum of proposed excise band shall follow monthly request, with limitation of production of each entrepreneur of fabric group.
• e. Maximum sum of excise bands proposed in P3CT is 50 % of P3C which proposed in same period, with limitation of production of each entrepreneur of fabric group.

B. ORDER EXCISE BAND OF TOBACCO PRODUCTS

1. Proposal document to order excise band (CK-1) to order old excise bands (before effective specific excise tariff rate) should be proposed and received:

• a. in Service Office at latest June 27, 2007, in case excise bands provided by Service Office; and
• b. in Sub-Directorate of Excise Band at latest June 27, 2007, in the case that the excise band provided by Head Office.

2. Propose CK-1 to order old excise band (before effective excise tariff rate) after stipulated dated as described in paragraph 1 will not be served.

C. THE TIME LIMIT TO STICK AND COUNT ORDERED EXCISE BANDS OF TOBACCO PRODUCTS WITH CK-1 DOCUMENT ON MARCH UNTIL JUNE 2007

1. Excise band of tobacco products starting from July 2, 2007 is few different with excise band of tobacco product before, that is Retail Price (HJE) text and personalisasi code (if any) is printed in red colour and for tobacco product of SKM, SPM and SKT has additional specific excise rate per piece in percentage tariff column.

2. Ending period to stick old excise band (before effective excise tariff rate) is August 10, 2007.

3. Counting remain of excise bands are not stuck until ending period of sticking as described in paragraph 2, is in Service Office of Customs and Excise at latest August 20, 2007, and made Warrant of Counting Excise Bands (BACK-1).

4. BACK-1 as intended in paragraph 3, should be sent from Service Office of Customs and Excise to Directorate of Excise c. q. Sub-Directorate of Excise Band at latest August 25, 2007.

5. Remain of excise bands which not stuck until ending period of sticking should return back use Declaration of Damage or not used Excise Bands document by Entrepreneur of Fabric to Service Office of Customs and Excise at latest September 9, 2007. Returning excise bands after this time will not get return of excise.

6. Head of Service Office of Customs and Excise should pay attention to period of sticking, counting and returning excise bands above and control the implementation.

These matters are submitted to be implemented.

Director General
signed
Anwar Suprijadi
NIP 120050332

Cc:

Head of Regional Office of DJBC all over Indonesia.