INSTRUCTION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. INS-01/BC/2007

CONCERNING
RECONFIRMATION IMPLEMENTATION DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE NO. KEP-81/BC/1999 CONCERNING TECHNICAL DIRECTION OF DECIDING CUSTOMS VALUE FOR CALCULATION OF IMPORT DUTY AS ALREADY AMENDED SEVERAL TIMES AND THE LAST WITH REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE NO. P-01/BC/2007 AND NO. P-07/BC/2007 CONCERNING PHYSICAL INSPECTION OF IMPORTING GOODS

DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

That in the framework to fulfill provisions to implement Decree of Director General of Customs and Excise No. KEP-81/BC/1999 concerning Technical Direction of Deciding Customs Value for Calculation of Import Duty as already amended several times and the last with Regulation of the Director General of Customs and Excise No. P-01/BC/2007 and P-07/BC/2007 concerning Physical Inspection of Importing Goods, it is necessary to reconfirm implementation of both two regulations above.

In view of:

• 1. Decree of Director General of Customs and Excise No. KEP-81/BC/1999 concerning Technical Direction of Deciding Customs Value for Calculation of Import Duty as already amended several times and the last with Regulation of the Director General of Customs and Excise No. P-01/BC/2007;
• 2. Regulation of the Director General of Customs and Excise No. P-07/BC/2007 concerning Physical Inspection of Importing Goods, it is necessary to confirm about implementation of physical inspection of goods.

HAS INSTRUCTED:

To:

• 1. Head of Regional Offices in Directorate General of Customs and Excise Environment
• 2. Head of Service Offices of Customs and Excise
• 3. Officers who check documents/Head of Customs Section in Customs and Excise Service Office
• 4. Officers who inspect goods/inspector of goods at Customs and Excise Service Office

To do:

All provisions in Decree of Director General of Customs and Excise No. KEP-81/BC/1999 concerning Technical Direction of Deciding Customs Value for Calculation of Import Duty as already amended several times and the last with Regulation of the Director General of Customs and Excise No. P-01/BC/2007 and No. P-07/BC/2007 concerning Physical Inspection of Importing Goods with discipline, accurate, consistently and responsibility.

First:

Physical inspection result should give data about sum, kind and specification of goods completely and clearly, so can be used for deciding customs tariff and value;

Second:

In case physical inspection cannot be used for deciding customs tariff and value, Functional Official of Document Checker/Head of Customs Section can return the result of physical inspection to Goods Inspector to be filled completely, so it can show clearly sum and kind of goods include technical specification;

Third:

Direction to decide customs value should follow phases as arranged in Decision of Director General of Customs and Excise No. KEP-81/BC/1999 concerning Technical Direction of Deciding Customs Value for Calculation of Import Duty as already amended several times and the last with Regulation of the Director General of Customs and Excise No. P-01/BC/2007, and the result should be reported in BCF 2.7;

Forth:

For high risk importers which customs declaration not proper with provision in Decree of Director General of Customs and Excise No. KEP-81/BC/1999 concerning Technical Direction of Deciding Customs Value for Calculation of Import Duty as already amended several times and the last with Regulation of the Director General of Customs and Excise No. P-01/BC/2007 or there is no comparison data of identical goods at DBH I, customs value should be calculated based on Method number II until VI;

Fifth:

Head of Customs and Excise Service Office should control continuously and consistently implementation of physical inspection, deciding customs tariff and value;

Sixth:

Head of Customs and Excise Service Office shall reports importing goods data which high frequency/volume and are not in DBH I as input for updating DBH I to Head Office of Directorate General of Customs and Excise;

Seventh:

Head of Customs and Excise Regional Office monitor and control implementation of this instruction.

Eighth:

Every collision for implementation of this instruction will be taken sanction of employee discipline.

This instruction shall come into force at the date of stipulation

Copies of this instruction are for.:

• 1. Ministry of Finance;
• 2. Secretary General of Ministry of Finance;
• 3. Secretaries and Directors in Directorate General of Customs and Excise environment.

Stipulated in Jakarta
On April 20, 2007
DIRECTOR GENERAL,
Signed,
ANWAR SUPRIJADI