REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-23/BC/2007

CONCERNING
EXCISE SUPERVISORY LABEL FOR TAXABLE GOODS SOLD IN DUTY FREE SHOPS

DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

a. that since taxable goods sold in duty free shops is provided with facility in the form of exemption from excise so that the goods need to be supervised;
b. that design of the existing excise supervisory label needs to be changed to support optimal supervision;
c. that based on the considerations as described in letters a and b, it is necessary to stipulate a regulation of the Director General of Customs and Excise on taxable goods sold in duty free shops;

In view of:

1. Law No. 10/1995 concerning Customs (Statute Book No. 75/1995, Supplement to Statute Book No. 3612) that is amended by Law No. 17/2006 (Statute Book of 2006 No. 93, Supplement to Statute Book No. 4661);
2. Law No. 11/1995 concerning Excise (Statute Book No. 76/1995, Supplement to Statute Book No. 3613);
3. Government Regulation No. 33/1996 concerning Bonded Collection Place (Statute Book No. 50/1996, Supplement to Statute Book No. 3638) that is amended by Government Regulation No. 43/1997 (Statute Book No. 90/1997, Supplement to Statute Book No. 3717);
4. Decision of the Minister of Finance No. 128/KMK.05/2000 concerning Duty Free Shop;
5. Decision of the Minister of Finance No. 453/KMK.04/2002 concerning Customs Procedures in the Import that is amended the latest by Decision of the Minister of Finance No. 112/KMK.04/2003;
6. Regulation of the Minister of Finance No. 47/PMK.04/2007 concerning Exemption from Excise;
7. Decision of the Director General of Customs and Excise No. KEP-74/BC/2001 concerning Procedures for Importing and Releasing Goods to and from Duty Free Shops;

HAS DECIDED:

To stipulate:

THE REGULATION OF THE MINISTER OF FINANCE CONCERNING EXCISE SUPERVISORY LABEL OF TAXABLE GOODS SOLD IN DUTY FREE SHOPS

CHAPTER I
GENERAL PROVISION

Article 1

Referred to in this regulation as:

1. Duty Free Shops shall be buildings with certain borders, which are used for selling imported goods and/or goods resulting from customs area to certain foreign citizens assigned in Indonesia, people departing abroad, or people arriving from other countries with import duty, excise and taxes exempt or not exempt.
2. Duty Free Shop Operators shall. be limited liability companies specifically selling goods resulting from the import and other Indonesian customs area (DPIL) in duty free shops.
3. Ethyl Alcoholic Beverage Manufacturers shall be domestic ethyl alcoholic beverage manufacturers selling their production in duty free shops.
4. Tobacco Product Manufacturers shall be domestic tobacco product manufacturers selling their production in duty free shops.
5. Head Office shall be the head office of the Directorate General of Customs and Excise.
6. Service Offices shall be Customs and Excise Service Offices overseeing the relevant duty free shops.

Article 2

Taxable goods sold in duty free shops, having their excise not yet settled shall be affixed by excise supervisory label.

Article 3

(1) Taxable goods in the form of domestic tobacco products and ethyl alcoholic beverages, which will be supplied to duty free shops shall be affixed by excise supervisory label before the goods are taken out of factories.

(2) Taxable goods in the form of imported tobacco products and ethyl alcoholic beverages, which will be supplied to duty free shops shall be affixed by excise supervisory label before the goods are imported into the customs area.

CHAPTER II
DESIGN OF EXCISE SUPERVISORY LABEL

Article 4

(1) The excise supervisory label as described in Article 2 for ethyl alcoholic beverages shall be 105 pieces per sheet.

(2) The excise supervisory label as described in paragraph (1) shall have a size of 1.5 cm x 3.8 cm every piece.

(3) The design of every piece of the excise supervisory label as described in paragraph (2) shall contain at least:

a. text "THE REPUBUC OF INDONESIA";
b. logo of the Directorate General of Customs and Excise;
c. text "INDONESIA DUTY AND EXCISE NOT PAID";
d. text "MMEA";
e. text "BCBCBC".

Article 5

(1) The excise supervisory label as described in Article 2 for tobacco products shall be 150 pieces per sheet;

(2) The excise supervisory label as described in paragraph (1) shall have a size of 2.1 cm x 4.5 cm every piece.

(3) The design of every piece of the excise supervisory label as described in paragraph (2) shall contain at least:

a. text "THE REPUBUC OF INDONESIA";
b. logo of the Directorate General of Customs and Excise;
c. logo of Garuda Pancasila which constitutes the symbol of the Republic of Indonesia;
d. text "INDONESIA DUTY AND EXCISE NOT PAID";
e. text "BCBCBC";
f. hologram foil containing logo of the Directorate General of Customs and Excise, figure of fiscal year, text "BC" and text "RI",

CHAPTER III
PROVISION, ORDERING AND AFFIXING OF EXCISE SUPERVISORY LABEL

Article 6

(1) The head office shall provide excise supervisory label for imported ethyl alcoholic beverages.

(2) Service Offices shall provide excise supervisory label for domestic ethyl alcoholic beverages and tobacco products.

Article 7

(1) The excise supervisory label as described in Article 2 shall be ordered by holders of NPPBKC with the provision as follows:

a. by duty free shop operators, in the case of imported tobacco products;
b. by registered importers of ethyl alcoholic beverages, in the case of imported ethyl alcoholic beverages;
c. tobacco product manufacturers, in the case of domestic tobacco products; or
d. ethyl alcoholic beverage manufacturers in the case of domestic ethyl alcoholic beverages.

(2) The excise supervisory label as described in paragraph (1) shall be ordered by using the document of excise supervisory label order (CK-1B).

(3) The format of CH-1B as described in paragraph (2) shall use the format as stipulated in Attachment I to this regulation.

Article 8

The excise supervisory label as described Article 2 shall be affixed to retail packages of taxable goods so as to see and read easily.

CHAPTER IV
PRINTING COS OF EXCISE SUPERVISORY LABEL

Article 9

(1) To obtain the excise supervisory label as described in Article 2, duty free shop operators, importers, ethyl alcoholic beverage manufacturers and tobacco product manufacturers shall be subject to the printing cost of excise supervisory label.

(2) The printing cost of excise supervisory label as described in paragraph (1) shall be set at:

a. Rp 21,000 per sheet, in the case of ethyl alcoholic beverages;
b. Rp 1,800 per sheet in the case of tobacco products.

Article 10

Procedures for providing the excise supervisory label as described in Article 6 and ordering excise supervisory label as described in Article 7 for taxable goods sold in Duty Free Shops shall be regulated as stipulated in Attachment II to this regulation.

CHAPTER V
TRANSITIONAL PROVISION

Article 11

Taxable goods not yet affixed by the excise supervisory label, which are still in duty free shops before this regulation comes into force shall be affixed by excise supervisory label in not later than 30 (thirty) days as from the date of enforcement of this regulation.

CHAPTER VI
CONCLUSION

Article 12

With the enforcement of this regulation, Decision of the Director General of Customs and Excise No. KEP-68/BC/1997 on Excise Supervisory Label of Taxable Goods sold in Duty Free Shops that is amended by Decision of the Director General of Customs and Excise No. KEP-56/BC/1999 shall be revoked and declared null and void.

Article 13

The regulation shall come into force as from the date of stipulation.

For public cognizance, the regulation shall be published by placing in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On July 5, 2007
THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,
signed,
ANWAR SUPRIJADI
NIP 120050332

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE No. P-23/BC/2007

CONCERNING EXCISE SUPERVISORY LABEL FOR TAXABLE GOODS SOLD IN DUTY FREE SHOPS