REGULATION OF THE MINISTER OF FINANCE
NUMBER 125/PMK.04/2007

CONCERNING
CUSTOMS AUDIT

THE MINISTER OF FINANCE,

Considering:

That in the framework of implementing the provision of Article 86 paragraph (3) of Law No. 10/1995 concerning Customs that is amended by Law No. 17/2006, it is necessary to stipulate a Regulation of the Minister of Finance concerning Customs Audit;

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 concerning the Amendment to Law No. 10/1995 concerning Customs (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);
• 2. Law No. 8/1997 concerning Corporate Document (Statute Book No. 18/1997, Supplement to Statute Book No. 3674);
• 3. Government Regulation No. 21/1996 concerning Disciplinary Action in the Customs (Statute Book of No. 36/1996, Supplement to Statute Book No. 3626);
• 4. Presidential Decision No. 20/P/2005;

HAS DECIDED:

To stipulate:

THE REGULATION OF THE MINISTER OF FINANCE CONCERNING CUSTOMS AUDIT

Article 1

In this regulation:

• 1. "Custom Law" refers to Law No. 10/1995 concerning Customs that is amended by Law No. 17/2006.
• 2. "Customs Audit" hereinafter called Audit refers to examination of financial statements, books, records and documents becoming the basic evidences of bookkeeping and letters related to business activities, including electronic data as well as correspondence related to activities in the customs field and/or stocks of goods in the framework of implementing the provisions of customs legislation.
• 3. "Body" refers to individuals or statutory body.
• 4. "Customs and Excise Official" refers to employee of the Directorate General of Customs and Excise appointed in certain positions to execute certain tasks on the basis of the customs law.
• 5. "Auditee" refers to anybody audited by customs and excise official.
• 6. "Director General" refers to the Director General of Customs and Excise.
• 7. "General Audit" refers to customs audit with the complete and comprehensive scope of audit of the fulfillment of customs liabilities.
• 8. "Special Audit" refers to customs audit with scope of audit of fulfillment of certain customs liabilities.
• 9. "Investigation Audit" refers to customs audit with a view of investigating the alleged customs crime.
• 10. "Audit Team" refers to a team assigned to undertake customs audit on the basis of letter of assignment or order of the Director General.
• 11. "Provisional Finding List", hereinafter abbreviated to DTS refers to a list containing provisional findings and conclusions of audit.
• 12. "Report on Audit Result", hereinafter abbreviated to LHA refers to a report on the implementation of audit, which is formulated by an audit team in accordance with the scope and objective of the audit.
• 13. "Auditor" refers to employee of the Directorate General of Customs and Excise already securing certificate of expertise as auditor, assigned, authorized and responsible for executing audit.
• 14. "Chairman of Auditor" refers to auditor already securing certificate of expertise as chairman of customs and excise auditor.
• 15. "Audit Technical Controller", hereinafter abbreviated to PTA refers to auditor already securing certificate of expertise as customs and excise audit technical controller.
• 16. "Audit Quality Supervisor", hereinafter abbreviated to PMA refers to auditor already securing certificate of expertise as supervisor of customs and excise audit quality.

Article 2

Customs and Excise Officials refers to authorized to audit anybody acting as importer, exporter, organizer of provisional stockpiling place, organizer of bonded stockpiling place, customs settlement service provider or transport organizer.

Article 3

The audit shall aim at verifying the compliance of the body as described in Article 2 to the fulfillment of provisions of customs legislation and other customs related legislation.

Article 4

(1) Audit shall consist of general audit, special audit and investigation audit.

(2) The audit as described in paragraph (1) shall be done concertedly or at any time.

Article 5

(1) To implement the audit as described in Article 2, the Director General shall set up audit team.

(2) The membership composition of the audit team as described in paragraph (1) shall consist of:

• a. PMA;
• b. PTA;
• c. auditor chief; and
• d. one auditor or more.

(3) If necessary, the membership composition of the audit team as described in paragraph (2) can be supplemented by:

• a. one non-auditor customs and excise official or more; and/or
• b. one official or more from other institutions outside the Directorate General of Customs and Excise.

Article 6

(1) Members of the audit team as described in Article 5 paragraph (2) shall have certificate of expertise in accordance with hierarchy of assignment as PMA, PTA, auditor chief or auditor.

(2) The Director General shall issue the certificate of expertise as described in paragraph (1).

Article 7

(1) General audit and special audit shall be executed on the basis of letter of assignment from the Director General.

(2) Investigation audit shall be executed on the basis of order from the Director General.

Article 8

Audit can be executed jointly with other institutions.

Article 9

In executing the audit, the audit team shall refer to the customs audit standards.

Article 10

In executing the audit, the audit team shall be authorized:

• a. to ask financial statements, books, records and documents becoming the basic evidences of bookkeeping, letters related to business activities, including electronic data as well as letters related to activities in the customs field;
• b. to ask verbal and/or written information from related persons and parties;
• c. to enter buildings of business activities, rooms where financial statements, books, records and documents becoming the basic evidences of bookkeeping, letters related to business activities, including electronic data storage facility/media, stocks of goods and goods which can provide directives regarding the condition of business activities related to customs activities are saved; and
• d. to take security measures deemed necessary against storage places or rooms of documents related to customs activities.

Article 11

(1) In the interest of audit, auditee shall be obliged:

• a. to give up financial statements, books, records and documents becoming the basic evidences of bookkeeping, letters related to business activities, including electronic data, letters related to activities in the customs, and shows stock of goods for inspection;
• b. to provide verbal and/or written information;
• c. to provide personnel and/or equipment at expense of the auditee if the use of electronic data requires special equipment and/or expertise.

(2) In the case of leader of auditee being not in place or absent, the obligation as described in paragraph (1) shall shift to the representing.

(3) Auditee not implementing the obligation as described in paragraph (1) shall be subject to sanction in accordance with the provisions of legislation in force.

Article 12

(1) The audit shall be completed in not later than 3 (three) months as from the date of letter of assignment or order.

(2) The period as described in paragraph (1) can be extended with the provision regulated in a decision of the Director General.

Article 13

(1) Based on the implementation of audit, the audit team shall formulate DTS.

(2) Excluding from the provision as described in paragraph (1) shall be:

• a. special audit executed in the framework of objection to stipulation of customs and excise officials; and
• b. investigation audit.

(3) DTS as described in paragraph (1) refers to conveyed by the audit team to auditee to gain response.

(4) The response as described in paragraph (3) refers to conveyed to the audit team in not later than 7 (seven) working days as from the date of receipt of DTS by auditee and the period can be extended once to another period of 7 (seven) working days at the maximum.

(5) In the case of auditee not responding in the period as described in paragraph (4), the finding in DTS refers to deemed approved by auditee.

Article 14

(1) Results of the implementation of audit shall be mentioned in the form of LHA.

(2) LHA as described in paragraph (1) shall be signed by PMA, PTA and Auditor Chief.

Article 15

LHA as described in Article 14 shall be used as the basis for stipulation of the Director General and followed up by collection letter and/or recommendation.

Article 16

Further provisions on audit, certification of expertise and audit standards shall be regulated by a regulation of the Director General.

Article 17

With the enforcement of this regulation, Decision of the Minister of Finance No. 489/KMK.05/1996 concerning Customs Audit shall be revoked and declared null and void.

Article 18

The regulation shall come into force after 30 (thirty) days as from the date of stipulation.

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

Stipulated in Jakarta
On October 5, 2007
THE MINISTER OF FINANCE
signed,
SRI MULYANI INDRAWATI