DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. KEP-63/BC/1999

ON
MAINTENANCE AND SAFE-KEEPING OF ACCOUNT BOOKS,
RECORDS AND DOCUMENTS IN THE CUSTOMS SECTOR

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

• a. that on the basis of Law No. 10/1995, importers, exporters, operators of temporary container yard, operators of bonded container yards, companies providing services of taking care of customs affairs or transportation companies are obligated to operate account books and keep the records and correspondence connected with imports and exports;
• b. that to guarantee legal certainty and protect the interest of the parties in customs activities, it is compulsory that the books, records, documents and correspondence connected with the activities in the customs sector should be kept for ten years;
• c. that technological progress has enabled records and documents made on paper to be transferred into electronic media or made directly in the electronic media;
• d. that in the framework of the implementation of audit it is deemed necessary to issue a directive on the requirements for account books, records and safe-keeping of customs documents for a company.

In view of:

• 1. Law No. 1/1995 on customs affairs (Statute Book No. 75/1995, Supplement to Statute Book No. 2612);
• 2. Law No. 8/1997 on corporate documents (Statute Book No. 18/1997, Supplement to Statute Book No, 36741;
• 3. Decree of The Minister of Finance No. 489/KMK.05/1996 dated July 31, 1996 on the execution of audit in the customs sector.

DECIDES :

To stipulate:

THE DECISION OF THE DIRECTOR GENERAL OF TAXATION CONCERNING THE MAINTENANCE AND SAFE-KEEPING OF ACCOUNT BOOKS, RECORDS AND DOCUMENTS IN THE CUSTOMS SECTOR

Article 1

Referred to in this decision as:

(1) a company is an individual or a Statutory body undertaking business activities as an importer, an exporter, an operator of a temporary container yard, an operator of a bonded container yard, a company providing services of taking care of customs affairs or a transportation company;

(2) account books is a process re recording undertaken regularly to collect data and information encompassing and affecting the condition of assets, liabilities or debts, capital, income and expenses, which specifically can illustrate the total amount of the prices to acquire and deliver goods or services of which the import duty, the value added tax, the sales tax on luxury goods and the income tax are either outstanding or not and are covered by drawing up a financial report in the form of a balance sheet and a profit and loss account every time a fiscal year ends;

(3) records are a collection of data and/or information originating in documents and made regularly and systematically either written on paper or in a book or recorded in any legible form;

(4) documents are data and/or information made and/or received by the company in the framework of the implementation of its activities, either written on paper or recorded in any form which is visible, legible or audible.

Article 2

A company is obligated to maintain account books and organize records and documents and hand them over for audit purposes in the customs sector.

Article 3

A company is obligated to keep records and documents for ten years at its business location in Indonesia.

Article 4

(1) The records as meant in Article 1 must use the. Latin letters, the Arabic numerals, the rupiah currency and the Indonesian language.

(2) The use of the currency and/or language other than what has been regulated in sub-article (1) Must obtain a permit from the Minister of Finance.

Article 5

It is obligatory that account books should be operated on the basis of the principles of accounting prevailing in Indonesia.

Article 6

(1) It is obligatory that records should be organized with account being taken of good intention and reflect the actual business condition or activities and must be supported by accurate evidences so that the amounts of outstanding levies in the framework of import and/or export may be calculated.

(2) The records must comprise at least notes on purchases, sales, liabilities or debts, cash/bank spending and receipts the condition of assets, capital, income and expenses.

Article 7

Documents must at least comprise those about purchases, sales, liabilities or debts, cash/bank spending and receipts, the condition of assets, capital, income and expenses.

Article 8

(1) Records and documents may be transferred from their original form into another form.

(2) It is obligatory that the transfer as meant in sub-article 1 should be legalized by the company's management or the officer within the company appointed by means of having an official account made.

(3) The official account as meant in sub-article (2) should contain at least:

• a. information about the place, day, date, month and year of legalization;
• b. information that the transfer of records and documents into another form is in keeping with the original;
• c. the signature and the full name of the officer concerned.

Article 9

Records and documents already transferred into another form constitute a valid instrument of evidence.

Article 10

This decision will take effect as from the date of stipulation and if an error is found in future, proper amendment will lo introduced.

Stipulated in Jakarta
On October 6, 1999
THE DIRECTOR GENERAL,
sgd
DR. R.B. PERMANA AGUNG, MSc.