REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-42/BC/2008

CONCERNING
GUIDANCE TO RELEASE IMPORTED GOODS FOR USE

DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

That to implement provisions in Article 9 of Regulation of the Minister of Finance No. 144/PMK.04/2007 concerning the Release of Imported Goods for Use, it is necessary to stipulate Regulation of the Director General of Customs and Excise concerning Guidance to Release Imported Goods for Use;

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 No. 93/2006, Supplement to Statute Book No. 4661);
• 2 Law No. 11/1995 concerning Excise (Statute Book No. 76/1995, Supplement to Statute Book No. 3613) that is amended by Law No. 39/2007 (Statute Book No. 105/2007, Supplement to Statute Book No. 4755);
• 3. Presidential Regulation No. 10/2008 concerning the Use of Electronic System within the Framework of Indonesian National Single Window;
• 4. Regulation of the Minister of Finance No. 114/PMK.04/2007 concerning the Exchange Rate of Foreign Currency Used for the Calculation and Payment of Import Duties;
• 5. Regulation of the Minister of Finance No. 139/PMK.04/2007 concerning Customs Inspection in the Import;
• 6. Regulation of the Minister of Finance No. 144/PMK.04/2007 concerning the Procedure of Releasing Imported Goods for Use;
• 7. Regulation of the Minister of Finance No. 161/PMK.04/2007 concerning Control of the Import or Export of Goods Put Under Ban and/or Restriction;
• 8. Regulation of the Minister of Finance No. 100/PMK.01/2008 concerning the Organizational Structure and Work Mechanism of the Ministry of Finance that is amended by Regulation of the Minister of Finance No. 149/PMK.01/2008;

HAS DECIDED:

To stipulate:

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE CONCERNING GUIDANCE TO RELEASE IMPORTED GOODS FOR USE.

CHAPTER I
GENERAL PROVISIONS

Article 1

In this Regulation of the Director General of Customs and Excise:

• 1. "Customs Law" refers to Law No. 10/1995 concerning Customs that is amended by Law No. 17/2006.
• 2. "Customs area" refers to an area with certain borders at a sea port, airport, or other designated area for the traffic of goods under full surveillance of the Director General of Customs and Excise.
• 3. "Directorate General" refers to the Directorate General of Customs and Excise.
• 4. "Director General" refers to the Director General of Customs and Excise.
• 5. "Customs office" refers to an office of the Directorate General where customs obligations are met according to the Customs Law, namely:
• a. Customs and Excise Primary Service Office, hereinafter abbreviated as KPU BC;
• b. Customs and Excise Secondary Control and Service Office, hereinafter abbreviated as Secondary KPPBC;
• c. Customs and Excise Control and Service Office, hereinafter abbreviated as KPPBC.
• 6. "Official" refers to an employee of the Directorate General appointed to a certain post to carry out certain tasks according to the Customs Law.
• 7. "Supervisory unit" refers to a working unit at the Directorate General conducting intelligence, action and investigation and other activities within the framework of surveillance.
• 8. "Individual" refers to a person or corporate body.
• 9. "Import" refers to the act of taking goods into a customs area.
• 10. "Imported goods" refers to goods taken into a customs area.
• 11. "Importer" refers to a person or corporate body conducting imports.
• 12. "Customs service brokering company", hereinafter abbreviated as PPJK, is a corporate body taking care of customs obligations on behalf of importers.
• 13. "Electronic data" refers to information or a series of information compiled and/ or collected for special purposes, received, recorded, sent, stored, processed, retaken or produced electronically using a computer or electronic, optical data processing instrument or other similar method.
• 14. "Electronic Data Exchange", hereinafter referred to as PDE, refers to the flow of electronic business information between the application and organization in an integrated way using the standard agreed jointly.
• 15. "Complementary customs documents" refers to all documents used as supplement to customs notification, for instance, packing list, bill of lading/airway bill, import requirement documents and other required documents.
• 16. "Import notification", hereinafter abbreviated as PIB, refers to a customs notification to release imported goods for use.
• 17. "Electronic data storing media" refers to media that can store electronic data such as diskette, compact disc, flash disc, and the like.
• 18. "Temporary hoarding place", hereinafter abbreviated as TPS, refers to a building and/ or field or other similar place in a customs area to store goods pending their loading or release.
• 19. "Other place treated the same as TPS" refers to a building and/or yard or other similar place outside a customs area to store goods pending their loading or release.
• 20. "Base value for the calculation of import duties", hereinafter abbreviated as NDPBM, refers to an exchange rate used as the basis for the calculation of import duties.
• 21. "Tariff" refers to the classification of goods and the charging of import duties.
• 22. "Import Tax", hereinafter abbreviated as PDRI, refers to tax collected by the Director General on the import of goods, consisting of value added tax, sales tax on luxury goods and income tax.
• 23. "Customs, excise and tax payment form", hereinafter abbreviated as SSPCP, refers to a document used to make payments or serve as proof of payment for state receipts in the form of import duty, excise, PDRI, and non-tax state revenue (PNBP);
• 24. "Registration number" refers to the number given by the Customs Office to endorse PIB.
• 25. "Priority MITA" refers to importers appointed by Director of Customs Technical on behalf of the Director General to obtain customs facilities.
• 26. "Non-Priority MITA" refers to importers appointed by Director of Customs Technical on behalf of the Director General based on proposal from the Head of the Customs Office to obtain customs facilities.
• 27. "Priority MITA lane" refers to the process of service and supervision given to Priority MITA to release imported goods without physical inspection and document verification.
• 28. "Non Priority MITA lane" refers to the process of service and supervision given to non Priority MITA to release imported goods without physical inspection and document verification, except in the case of:
• a. export goods re-imported;
• b. goods subject to random inspection; or
• c. certain imported goods set by the government.
• 29. "Green lane" refers to the process of service and supervision to release imported goods without physical inspection, except document verification after the issuance of approval to release goods (SPPB).
• 30. "Yellow lane" refers to the process of service and supervision to release imported goods without physical inspection, except document verification after the issuance of SPPB.
• 31. "Red lane" refers to the process of service and supervision to release imported goods by conducting physical inspection and document verification before the issuance of SPPB.
• 32. "Note of Notification of Prohibited/Restricted Goods", hereinafter abbreviated as NPBL, refers to the note made by the official to the importer to adhere to the import ban and/or restriction.
• 33. "Note of intelligence results", hereinafter abbreviated as NHI, refers to the product of intelligence activity showing an indication of violation in the customs and/or excise fields.
• 34. "Container scanner" refers to an instrument used to conduct physical inspection of goods in containers or packs using an X-Ray or Gamma Ray technology.
• 35. "Coordinator of service users", hereinafter called as client coordinator, refers to an official appointed to serve as a liaison between the Directorate General and individuals.

CHAPTER II
IMPORT NOTIFICATION

Part One
Submission of PIB

Article 2

(1) The release of imported goods from the customs area or other place treated the same as TPS for use shall be notified using an import notification (PIB). submitted to the Customs Office.

(2) Excepted from provisions in paragraph (1) shall be:

• a. personal effects;
• b. imported goods using courier services;
• c. goods belonging to passengers and crew members of transport means;
• d. goods sent through PT. (state limited liability company) Pos Indonesia; or
• e. imported goods carried by border crossers.

(3) Importers shall make PNBP payments for PIB services through a perception foreign exchange bank, perception post office, or Customs Office at the time of submitting PIB at the latest.

(4) Provisions on tariffs, procedure of imposing tariffs and making payments for PNBP shall follow the regulation on PNBP.

(5) Provisions on the release of imported goods as described in paragraph (2) are to be laid down in a special regulation of the Director General.

Article 3

(1) PIB shall be made by importers based on complementary customs documents and excise tape order documents by calculating import duty, excise and PDRI themselves.

(2) If importers do not take care of PIB as described in paragraph (1) themselves, they shall delegate it to PPJK.

Article 4

(1) Importers shall adhere to import ban and/or restriction set by technical agency.

(2) Research on whether or not importers adhere to import ban and/or restriction as described in paragraph (1) shall be carried out by:

• a. Indonesia National Single Window (INSW) portal; or
• b. official handling the research on the import ban and/ or restriction.

(3) PIB is served after provisions on import ban and/or restriction as described in paragraph (1) have been fulfilled.

Part Two
Procedure of Submitting PIB

Article 5

(1) PIB is submitted to the Customs Office for any import or periodically after the transporter has submitted customs notification on the goods transported (BC.1.1), except importers allowed to submit pre-notification.

(2) PIB is submitted in the form of electronic data or writing on paper.

(3) PIB in the form of electronic data is submitted through the customs PDE system or using electronic data storing media.

(4) The submission of PIB to the Customs Office already applying a customs PDE system is done through a customs PDE system.

(5) PIB, complementary customs documents and import duty, excise and PDRI payment documents are submitted to the official at the Customs Office where goods are released.

(6) If imported goods are in the form of excisable goods (BKC), whose excise is settled by attaching excise tapes, in addition to import duty, PPnBM, PPh and PNBP payment documents, excise tape order documents are submitted to the official at the Customs Office where the goods are released.

(7) Provisions on the periodic submission of PIB as described in paragraph (1) are to be set forth in a separate regulation of the Director General.

Article 6

(1) When PIB is submitted through the customs PDE system, PIB, complementary customs documents, import duty, PDRI, and PNBP payment documents, and excise tape order documents must be submitted to the official at the Customs Office where the goods are released, within:

• a. 3 (three) working days after the date of red lane notification (SPJM) for the red lane,
• b. 3 (three) working days after the date of yellow lane notification (SPJK) for the yellow lane,
• c. 3 (three) working days after the date of SPPB for the green lane, and
• d. 5 (five) working days after the date of SPPB for the Priority MITA lane and non Priority MITA lane.

(2) Excepted from the obligation to submit the print outs of PIB and import duty, excise, PDRI, and PNBP payment documents, and excise tape order documents as described in paragraph (1) are Priority MITA and non Priority MITA.

(3) If provisions in paragraph (1) are not met, the submission of the next PIB by the relevant importer will not be served until the provisions are met.

Part Three
Application To Change PIB Data

Article 7

(1) Any importer can correct wrong PIB data by filing an application to the Head of the Customs Office.

(2) Provisions on the correction of wrong PIB data as described in paragraph (1) are to be laid down in a separate regulation of the Director General.

Part four
Import Duty, Excise and PDRI payments

Article 8

(1) Import duty and PDRI payments are made by:

• a. cash; or
• b. periodic payment.

(2) Periodic payment can be made by Priority MITA and importers granted periodic PIB privileges.

(3) If payments are made by cash, the importer shall make payments for import duty, excise on imported alcoholic ethyl and PDRI before submitting PIB to the Customs Office.

(4) Payments for import duty, excise on imported alcoholic ethyl and PDRI as described in paragraph (3) are made through a perception foreign exchange bank or perception post office.

(5) Especially for imports at the Customs Office applying a customs PDE system, payments for import duty, excise on imported alcoholic ethyl and PDRI as described in paragraph (4) are made through a perception foreign exchange bank or perception post office connected to the customs PDE system.

(6) Payments as described in paragraph (3) are made using SSPCP.

(7) SSPCP as described in paragraph (6) submitted to the Customs Office must carry bank transaction number (NTB)/post transaction number (NTP) and/or state receipt transaction number (NTPN).

(8) NTB/NTP and/or NTPN as described in paragraph (7) for PIB registered at the Customs Office applying a customs PDE system are submitted by the perception Foreign Exchange Bank or Perception Post Office to the Customs Office in an electronic way.

CHAPTER III
IMPORT DUTY, EXCISE AND PDRI

Part One
Customs Value

Article 9

(1) The Customs Value for the calculation of import duty and PDRI is the transaction value of the relevant goods.

(2) If The Customs Value as described in paragraph (1) can not be calculated based on transaction value, customs value is set hierarchically based on transaction value of identical goods, the transaction value of similar goods, deduction method, computation method or fair and consistent method.

(3) The Customs Value as described in paragraph (1) and paragraph (2) is calculated based on cost insurance freight (CIF).

(4) Provisions on the calculation of customs value are to be set forth in a separate regulation of the Director General.

Part Two
The Setting of NDPBM

Article 10

(1) To calculate import duty, excise on imported alcoholic ethyl and PDRI, NDPBM used is that prevailing at the time of:

• a. making payments for import duty, excise on imported alcoholic ethyl, and PDRI, when it comes to PIB with import duty payment, periodic PIB or PIB settlement for goods granted exemption facilities;
• b. handing guarantee as much as the value of import duty, excise and PDRI when it comes to PIB accompanied by the handover of guarantee; or
• c. PIB receiving registration number at the Customs Officer when it comes to PIB granted import duty or PIB exemption facilities by periodic payments.

(2) The exchange rate of currency used as NDPBM, as described in paragraph (1) is set under a Decision of the Minister of Finance that issued periodically.

(3) If the exchange rate of currency used as NDPBM is not mentioned in the Decision of the Minister of Finance as described in paragraph (2), the exchange rate of currency used as NDPBM is the daily spot exchange rate of the relevant foreign currency at the international market against the United States dollar in the closing trade on the previous working day.

Part Three
The Classification and Charging of Imported Goods

Article 11

(1) The classification and charging of imported goods for the calculation of import duty and PDRI are based on the Indonesia Import Duty Tariff Book (BTBMI).

(2) In case of amendment to provisions in the import sector making the charging different from BTBMI, the amended provisions shall be applied.

(3) The dassification and charging of imported goods is subject to provisions at the time when PIB is granted registration number at the Customs Office.

Part Four
The Calculation of Import Duty, Excise and PDRI

Article 12

(1) Import duty that must be paid is calculated as follows:

• a. For advalorum tariff, import duty = Customs value x NDPBM x charged import duty; or
• b. For specific tariff, import duty = units of goods X import duty charged to each unit of goods.

(2) PPN, PPnBM, and PPh that must be paid are calculated as follows:

• a. PPN = % PPN x (customs value + import duty + excise);
• b. PPnBM = % PPnBM x (customs value + import duty + excise); and
• c. PPh = % PPh x (customs value + import duty + excise).

(3) The Import Duty as described in paragraph (2) is import duty paid, deferred and/or government borne.

(4) Import duty, excise and PDRI are calculated for each type of imported goods contained in PIB and rounded up to full thousand rupiah for one PIB.

CHAPTER IV
CUSTOMS INSPECTION

Part One
Selective Customs Inspection

Article 13

(1) Imported goods whose PIB has been submitted are subject to selective customs inspection based on risk management.

(2) The customs inspection as described in paragraph (1) covers the inspection of documents and the physical inspection of goods.

Part Two
The Setting of Lanes

Article 14

To conduct selective customs inspection as described in Article 13 paragraph (1), lanes for the release of imported goods are set.

Article 15

(1) The Lanes for the release of Imported Goods as described in Article 14 are as follows:

• a. Red Lane;
• b. Yellow Lane;
• c. Green Lane;
• d. Non-Priority MITA Lane; and
• e. Priority MITA Lane.

(2) For Imported Goods constituting:

• a. export goods re-imported;
• b. goods subject to random inspection; or
• c. certain goods declared by the government, whose release is declared non Priority MITA lane, physical inspection notification (SPPF) is issued to serve as a permit to conduct physical inspection in the importer's place.

(3) If the lane for the release of imported goods is declared Yellow Lane and laboratory inspection is needed, the importer is required to prepare goods for sampling.

(4) The yellow lane as described in paragraph (1) b may be subject to physical inspection through NHI mechanism based on information from the document inspecting official.

Article 16

(1) The importer whose imported goods are declared red lane must:

• a. hand hardcopy of PIB, complementary customs documents, and SSPCP, when PIB is submitted using the customs PDE system;
• b. prepare goods for inspection;
• c. attend the physical inspection, within a period of at least 3 (three) working days after the date of red lane notification (SPJM).

(2) If the importer does not meet provisions in paragraph (1), the importer may be subject to physical inspection by the official at the importer's risk and cost.

(3) At the request of importer or proxy, the period of time as described in paragraph (1) can be extended if the relevant party can explain the cause of failure conduct physical inspection.

(4) To conduct physical inspection as described in paragraph (1) the TPS entrepreneur must give the needed technical assistance at the importer's cost.

Part Three
Physical Inspection

Article 17

(1) The physical inspection of goods must be started at least 3 (three) working days after the date of SPJM or SPPF.

(2) The importer or proxy shall report preparations for the start of physical inspection to the official.

(3) Provisions on the physical inspection of imported goods are to be provided for in a separate regulation of the Director General.

Article 18

(1) When the Customs Office operates a container scanner, physical inspection can be conducted using the container scanner.

(2) The inspection using a container scanner as described in paragraph (1) is conducted on:

• a. goods whose release is declared green lane and is subject to random inspection through a container scanner;
• b. goods whose release is declared red lane but only consists of 1 (one) kind (one tariff heading);
• c. imported goods in refrigerated container that based on considerations of the official handling customs service may be inspected using a container scanner;
• d. highly risk goods based on the results of intelligence analysis;
• e. goods sensitive to air; or
• f. other goods which based on the considerations of the head of Customs Office or the appointed official can be subject to inspection through a container scanner.

(3) Excepted from inspection through a container scanner as described in paragraph (1) are:

• a. imported goods sensitive to ray;
• b. imported goods containing radioactive substance; or
• c. other imported goods which because of their characteristics can easily be damaged if scanning is done.

Article 19

(1) To obtain accurate identification of Imported Goods, the document inspector Official can order a laboratory test.

(2) The laboratory test as described in paragraph (1) conducted at the Goods Test and Identification Hall is subject to PNBP.

Part Four
The Inspection of Customs Tariffs and Value

Article 20

(1) To meet the financial rights of the state and provisions on the import of goods, the official shall conduct an inspection on the customs tariffs and value notified.

(2) The inspection as described in paragraph (1) shall be completed no later than 30 (thirty) days after PIB is registered.

(3) Provisions on the inspection of customs tariffs and value as described in paragraph (1) are to be provided for in a separate regulation of the Director General.

Article 21

(1) If the inspection as described in Article 20 paragraph (1) leads to import duty, excise and PDRI underpayments, the official shall issue a customs tariff and/or value assessment form (SPTNP).

(2) When SPTNP is issued to PIB declared red lane or yellow lane, the official shall issue SPPB after:

• a. the importer has settled import duty, excise and PDRI underpayments and/ or administrative sanction in the form of fine; or
• b. the importer gave guarantee as much as the amount of import duty, excise, PDRI and/or administrative sanction in the form of fine if an objection is filed.

Part Five
Objection

Article 22

(1) Any individual can file an objection in writing to the decision made by the official on:

• a. customs tariff and/or value for the calculation of import duty leading to import duty, excise and PDRI under payments;
• b. administrative sanction in the form of fine;
• c. import duty, excise and PDRI underpayments due to other factors than customs tariff and/or value; and/or
• d. other customs decisions not leading to underpayment.

(2) The objection as described in paragraph (1) is filed to:

• a. the Director General attn. the Head of KPU BC if the objection is filed to KPU BC;
• b. the Director General attn. the Director of Customs and Excise Receipt and Regulation via the Head of KPPBC of primary type or the Head of KPPBC if the objection is filed to the Head of KPPBC of primary type or KPPBC.

(3) The individual filing an objection as described in paragraph (1) shall hand guarantee as much as the amount of claim to the state; except if:

• a. imported goods have not been released from the customs area until a decision on the objection is issued, provided that the official has not issued an approval for the release of the imported goods;
• b. claim has been settled; or
• c. the decision by the official does not lead to underpayment.

CHAPTER V
THE RELEASE OF IMPORTED GOODS

Article 23

The release of imported goods for use is done after receiving approval from the computer service system or official.

Article 24

(1) Provisions on the settlement of imported goods for use with PIB submitted through the customs PDE system follow attachment I to this Regulation of the Director General.

(2) Provisions on the settlement of imported goods for use with PIB submitted through electronic data storing media follow attachment II to this Regulation of the Director General.

(3) Provisions on the settlement of imported goods for use with PIB submitted using writing on paper follow attachment II to this Regulation of the Director General.

CHAPTER VI
OTHERS

Part One
Prenotification

Article 25

(1) Any importer can submit prenotification by filing PIB:

• a. before imported goods are unloaded for Priority MITA importers without having to file any application; or
• b. as early as 3 (three) working days before the planned date for the unloading of imported goods for other importers after obtaining approvals from the Head of the Customs Office or the appointed official.

(2) PIB as described in paragraph (1) is submitted according to Article 24.

Part Two
Excepted Imported Goods

Article 26

(1) If at the time of releasing imported goods from the customs area the volume of goods falls short of the volume notified in PIB (excepted), the settlement of the shortage will be done using the initial PIB no later than 60 (sixty) days after the date of SPPB.

(2) Provisions on the settlement of excepted imported goods follow attachment IV to this Regulation of the Director General.

Part Three
The Import of Excisable Goods (BKC)

Article 27

(1) Any importer intending to import BKC shall hold excisable goods company code number (NPPBKC).

(2) Imported goods in the form of BKC shall have their excise settled SPPB is issued.

(3) Excepted from the obligation to settle excise as described in paragraph (2) are imported goods in the form of BKC granted:

• a. excise-free facilities; or
• b. uncollected-excise facilities.

Part Four
Banned and/or Restricted Goods

Article 28

If imported goods subject to a ban and/or restriction are notified correctly in PIB but have not met import requirements, the other imported goods not subject to a ban and/or restriction in the relevant PIB are allowed to obtain approval for their release after profound inspection is conducted.

Part Five
The Cancellation of PIB

Article 29

(1) PIB submitted to the Customs Office applying a customs PDE system can be cancelled only if:

• a. it is mistakenly sent, namely PIB is sent to the Customs Office other than the Customs Office where goods are released; and/or
• b. PIB from the import of similar goods is sent more than once.

(2) PIB is cancelled with approval from the Head of Customs Office or the appointed official based on an application from the importer.

Part Six
Forms

Article 30

The models of forms used in this Regulation of the Director General follow Attachment V.

Part Seven
Special Provisions

Article 31

Provisions in this Regulation of the Director General do not apply to the release of imported goods for use which is specifically provided for in regulations in the customs field; such as:

• a. the import of electrical power, liquid, or gas delivered through transmission facilities or pipelines; or
• b. the release of imported goods for re-export.

CHAPTER VII
TRANSITIONAL PROVISIONS

Article 31

The mechanism of settling imported goods for use with PIB sent through a customs PDE system or electronic data storing media based on:

• a. Decision of the Director General of Customs and Excise No. KEP-07/BC/2003 concerning guidance to implement customs procedure in the import sector, as has been amended the latest by Regulation of the Director General of Customs and Excise No. P-06/BC/2007; and
• b. Regulation of the Director General of Customs and Excise No. P-21/BC/2007 concerning guidance to implement customs procedure in the import at the Tanjung Priok Customs and Excise Primary Service Office that is amended by regulation of the Director General of Customs and Excise No. P-25/BC/2007; shall remain valid until March 31, 2009.

CHAPTER VIII
CONCLUSION

Article 33

If reguired, the Heads of the Regional Offices of the Directorate General or the Heads of KPU BC can stipulate further technical guidance on the procedure of importing goods for use, provided that it does not contradict this Regulation of the Director General.

Article 34

When this Regulation of the Director General takes effect:

• a. Provisions in Decision of the Director General of Customs and Excise No. KEP-07/BC/2003 concerning Guidance to implement customs procedure in the Import that is amended the latest by Regulation of the Director General of Customs and Excise No. P-06/BC/2007;
• b. Provisions in Decision of the Director General of Customs and Excise No. KEP-97 /BC/ 2003 concerning The Profiles of importers and The Profiles of commodities used to declare lanes in providing import services, provided that they have been set forth in this Regulation of the Director General; and
• c. Provisions in Regulation of the Director General of Customs and Excise No. P-21/BC/2007 concerning Guidance to implement customs procedure in the import at the Tanjung Priok Customs and Excise Primary Service Office that is amended by Regulation of the Director General of Customs and Excise No. P-25/BC/2007, provided that they have been set forth in this Regulation of the Director General, shall be declared null and void.

Article 35

This Regulation of the Director General shall come into force 30 (thirty) days after the date of stipulation.

For public cognizance, this Regulation of the Director General shall be announced by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on December 31, 2008
THE DIRECTOR GENERAL,
signed,
ANWAR SUPRIJADI
NIP 120050332