DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. KEP-32/BC/1997

ON
IMPLEMENTING MANUAL OF VERIFICATION OF GOODS IMPORT DECLARATION
IN THE REGIONAL OFFICE OF DIRECTORATE GENERAL OF CUSTOMS AND EXCISE

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Attachment

Considering:

That in the framework of implementation of Law No. 10/1995 on Customs Affairs and Law No. 11/1995 on Excise, it is considered necessary to provide an implementing manual of verification of goods import declaration in the Regional Office of Directorate General of Customs and Excise.

In view of:

• a. Law No. 10/1995 on Customs Affairs (Statute Book of 1995 No. 75 Supplement to Statute Book of 1995 No. 3612);
• b. Law No. 11/1995 on Excise (Statute Book of 1995 No. 76 Supplement to Statute Book of 1995 No. 3613);
• c. Decree of the Minister of Finance of the Republic of Indonesia No. Kep-759/KMK.01/1993 dated 03 August 1993 on Organisation and Work System of Directorate General of Customs and Excise as amended by No. Kep-82/KMK.01/1994 dated 18 March 1994;
• d. Decree of the Minister of Finance of the Republic of Indonesia No. 25/KMK.05/1997 dated 15 January 1997 on Procedures of Customs Affairs in Import Sector;
• e. Circular of the Directorate General of Customs and Excise No. SE-10/BC/1997 dated 17 February 1997 on Guidelines of Customs Affairs Service for Imported Goods.

DECIDES:

To stipulate:

DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON IMPLEMENTING MANUAL OF VERIFICATION OF GOODS IMPORT DECLARATION IN THE REGIONAL OFFICE OF DIRECTORATE GENERAL OF CUSTOMS AND EXCISE

Article 1

Verification of Goods Import Declaration is an activity to examine documents of Goods Import Declaration together with complementary documents thereof tat is conducted after the imported goods go out of the customs area.

Article 2

Verification of Goods Import Declaration is purposed to:

• 1. Maximise states revenues in import duty and other import charges sector;
• 2. Guarantee compliance with provisions applicable in import sector;
• 3. Assess the importers performance;
• 4. Assess performance of customs service system in import sector;
• 5. Assess performance of human resources who are involved in customs service system in import sector.

Article 3

Verification of Goods Import Declaration shall be conducted to every Goods Import Declaration both individually per document and collectively per importer.

Article 4

For purpose of implementation of Verification of Goods Import Declaration, not later than:

• 1. One month after vessel arrival, the customs office sends 1 (one) copy of PU/Manifest to the Regional Office of the Directorate General of Customs and Excise c.q. verification section;
• 2. One month after the issue date of Goods Departure Approval Letter (SPPB), the customs office sends Goods Import Declaration together with complementary documents thereof to the Regional Office of the Directorate General of Customs and Excise c.q. verification section.

Article 5

In order to insure the correctness of amount of Goods Import Declarations that shall be sent by the customs office, the Regional Office of the Directorate General of Customs and Excise c.q. verification section reconciles the Goods Import Declaration with the PU/Manifest.

Article 6

Verification of Goods Import Declaration in the Regional Office of the Directorate General of Customs and Excise c.q. verification section is conducted through 3 (three) phases consecutively, namely:

• 1. Verification of Goods Import Declaration Phase A;
• 2. Verification of Goods Import Declaration Phase B;
• 3. Verification of Goods Import Declaration Phase C.

Article 7

Implementation of Verification of Goods Import Declaration Phases A, B and C is based on verification procedure standard stipulated by the Director General of Customs and Excise c/o. the Director of Verification.

Article 8

Verification of Goods Import Declaration Phase A is conducted to every Goods Import Declaration individually with verification targets including:

• 1. Completeness and Correctness of Goods Import Declaration Completion;
• 2. Completeness and Validity of Complementary Documents of Goods Import Declaration;
• 3. Completeness of Description on Amounts and Types of Goods;
• 4. Correctness of Classification of Harmonized System And Tariff Imposition;
• 5. Correctness of exchange rate use and charge calculation;
• 6. Compliance with Import System Regulation (Peraturan Tata Niaga Impor/PTNI) and import prohibition;
• 7. Determination of Lines and its reasons;
• 8. Effectiveness and Efficiency of Physical Check Note;
• 9. Fairness of Declaration on amount and type of goods.

Article 9

Verification of Goods Import Declaration Phase B is conducted to every Goods Import Declaration individually with verification targets include:

• 1. Effectiveness and Efficiency of Invoice Validity;
• 2. Effectiveness and Efficiency of the Price Database;
• 3. Fairness of Customs Value Declaration;
• 4.Effectiveness and Efficiency of Request for Customs Value Declaration (DNP);
• 5. Correctness of Customs Value Determination;
• 6. Customs Value Method.

Article 10

Verification of Goods Import Declaration Phase C is an analysis of verification results of Phase A and Phase B that is conducted on every Goods Import Declaration collectively per importer during a period of at least 1 (One) month with purpose:

• 1. To assess importers performance;
• 2. To assess customs service systems performance in import sector;
• 3. To assess performance of employees who are involved in customs service system in import sector.

Article 11

Upon Verification of Goods Import Declaration Phase A, Findings Note on Verification of Goods Import Declaration Phase A (NTVPIBA) is made as per example one attached. The NTVPIBA is attached to the Goods Import Declaration before passed for verification of Goods Import Declaration Phase B.

Article 12

Upon Verification of Goods Import Declaration Phase B, Findings Note on Verification of Goods Import Declaration Phase B (NTVPIBB) is made as per example two attached. The NTVPIBB is attached to the Goods Import Declaration before passed for Verification of Goods Import Declaration Phase C.

Article 13

(1) Upon Verification of Goods Import Declaration Phase C, Findings Note on Verification of Goods Import Declaration Phase C (NTVPIBC) as per example three attached, that is enclosed with:

• a. Data of importers performance as per example IV attached;
• b. Data of customs service systems performance in import sector as per example V attached;
• c. Data of employee performance as per example VI attached.

(2) In principle, Findings Note on Verification of Goods Import Declaration Phase C (NPVPIBC) is a verification result that can take the form of, among others:

• a. Increased Payment/Restitution;
• b. Audit Recommendation;
• c. Facility Revocation Recommendation;
• d. Investigation/Searching Recommendation;
• e. Employee Capacity Building Recommendation;
• f. System Improvement Recommendation;
• g. Profile and Price Database Updating Recommendation;
• h. Intelligent Operation Recommendation.

(3) Findings Note on Verification of Goods Import Declaration Phase C (NTVPIBC) is passed immediately to the Regional Office of the Directorate General of Customs and Excise.

Article 14

(1) The Regional Office Head of Directorate General of Customs and Excise studies and makes and sends his opinion note to the Director General of Customs and Excise c/o. the Director of Verification accompanied with the Findings Note on Verification of Goods Import Declaration Phase C (NPVPIBC).

(2) In case in the Findings Note on Verification of Goods Import Declaration (NPVPIBC) there is verification results in the for of wrong payment or restitution, the Regional Office Head of Directorate General of Customs and Excise makes a follow up official note to the Head of Customs Office.

Article 15

The Head of Customs Office reports the implementation of follow up as contemplated in article 14 paragraph 2 to the Regional Office Head of Directorate General of Customs and Excise with copy to the Director of Customs and Excise c/o. the Director of Verification.

Article 16

Goods Import Declaration that has been verified is administered and stored by the importer by the Regional Office of the Directorate General of Customs and Excise c.q. the Verification section.

Article 17

(1) At the beginning every April, July ,October and January, the Regional Office Head of Directorate General of Customs and Excise submits Quarterly Report of Verification of Goods Import Declaration as per example VII, to the Director of Customs and Excise c/o. the Director of Verification.

(2) The Quarterly Report of Verification of Goods Import Declaration as contemplated in paragraph 1 is attached with:

• a. Importers Performance List as per example VIII attached;
• b. List of Customs Service System Performance In import sector as per example IX attached;
• c. Price Database Updating Recommendation List as per example X attached;
• d. List of Increased Payment Goods Import Declaration as per example XI attached;
• e. List of Restitution Goods Import Declaration as per example XII attached.

Article 18

This decision comes to effect as of the stipulation date, provided that if later found any error it will be revised accordingly.

Stipulated in Jakarta
On 01 April, 1997
THE DIRECTOR GENERAL,
sgd
SOEHARDJO

Attachment to DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. KEP-32/BC/1997