DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. KEP-33/BC/2001

ON
THE AMENDMENT TO THE DECISION OF
THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. KEP-81/BC/1999
ON
TECHNICAL DIRECTIVES FOR THE STIPULATION 0F CUSTOMS VALUE
FOR THE CALCULATION OF IMPORT DUTY

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

• a. that to follow the implementation of the Decision of the Director General of Customs and Excise No. Kep-81/BC/1999 dated December 31,1999 on technical directives for the stipulation of customs value for the calculation of import duty, it is deemed necessary to change the provision on the reasonability test;
• b. that the provision on the reasonability test of customs value notified by importers causes importers not to inform the real price;
• c. that the provision on the reasonability test of customs value is less effective in the implementation.

In view of:

• a. Law No. 7/1994 on the ratification of the agreement establishing the World Trade Organization (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3564);
• b. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• c. Decree of the Minister of Finance No. 690/KMK.05/1996 dated December 18,1996 on the customs value for the calculation of import duty;
• d. Decree of the Minister of Finance No. 491/KMK.05/1996 dated July 31,1996 on the basis for the calculation of import duty on goods;
• e. Decree of the Minister of Finance No. 25/KMK.05/1997 dated January 15,1997 on the customs procedures in the import field;
• f. Decree of the Minister of Finance No. 32/KMK.01/1998 dated February 4,1998 on the organization and working arrangement of the Directorate General of Customs and Excise;
• g. Decision of the Director General of Customs and Excise No. Kep-81/BC/1999 dated December 31,1999 on technical directives for the stipulation of customs value for the calculation of import duty.

DECIDES:

To stipulate:

THE DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON THE AMENDMENT TO THE DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE NO. KEP-81/BC/1999 ON TECHNICAL DIRECTIVES FOR THE STIPULATION OF CUSTOMS VALUE FOR THE CALCULATION OF IMPORT DUTY

Article 1

To amend the provisions of Article 23 paragraphs (2) and (3) of the Decision of the Director General of Customs and Excise No. Kep-81/BC/1999 dated December 31,1999 on technical directives for the stipulation of customs value for the calculation of import duty to become as follows:

"(1) In the case of the reasonability test as meant in paragraph (1) showing that the notified customs value turns out to be the same as or higher than the price of identical or similar goods in the Price Data Base I, the customs value mentioned in the import declaration (PIB) shall be accepted.

(2) In the case of the reasonability test as meant in paragraph (1) showing that the notified customs value turns out to be lower than the price of identical or similar goods in the Price Data Base I, Customs and Excise Officials shall make out Customs Value Information (INP) as a notification to buyers:

a. that Customs and Excise Officials doubt about the truth of customs value notification;

b. for giving up declarations on facts connected with transactions and/or the importation of the relevant goods in the form of Customs Value Declaration (DNP)."

Article 2

To amend the provision in Article 24 paragraph (1) of the Decision of the Director General of Customs and Excise No. Kep-81/BC/1999 dated December 31,1999 on technical directives for the stipulation of customs value for the calculation of import duty to become as follows:

"(1) The Customs Value Information as meant in Article 23 paragraph (3) shall be sent to importers/buyers or their proxies not later than the following working day after the receipt of the result of the reasonability test of customs value notification as meant in Article 23 showing that the notified customs value is lower than the price of identical or similar goods in the Price Data Base I."

Article 3

To amend the provision in point 3.3. of Attachment II to the Decision of the Director General of Customs and Excise No. Kep-81/BC/1999 dated December 31,1999 on technical directives for the stipulation of customs value for the calculation of import duty to become as follows:

"3.3. In order to ascertain whether the relations between sellers and buyers influence prices of goods or not the customs value mentioned in import documents shall be compared with the test value. In the case of results of the comparison showing that:

• a. the customs value notified in import documents is higher than the customs value of identical or similar - goods contained in the test value, the relations between sellers and buyers are considered not to influence the price so that the notified customs value is accepted.
• b. the customs value notified in import documents is equal to the customs value of identical or similar goods contained in the test value, the relations between sellers and buyers are considered not to influence the price so that the notified customs value is accepted.
• c. the customs value notified in import documents is lower than the customs value of identical or similar goods contained in the test value, the relations between sellers and buyers are considered to influence the price so that the customs value mentioned in the import documents is not accepted. The customs value of the goods mentioned in the import documents is, stipulated on the basis of a method belonging to Method II up to Method IV which is applied in accordance with the hierarchy of the use."

Article 4

To amend the provision in points 6.2. and 7.2. of Attachment XII to the Decision of the Director General of Customs and Excise No. Kep-81/BC/1999 dated December 31,1999 on technical directives for the stipulation of customs value for the calculation of import duty to become as follows:

"6.2. In the case of relations between sellers and buyers being existent:

• a. the verification is executed by means of test value to ascertain whether the relations between sellers and buyers influence the original price of the test value:
• - From Buyers - From Customs and Excise Service Office
  PIB No. : Price Data Base II:
  Date: Key No. :
• b. With the result:
• a) lower than test value;
• b) equal to or higher than test value;
• c) result of verification shows that the relations are not influencing/influence (pick one of the answers).

7.2. In the case of result of the reasonability test turning out to find that the notified customs value is:

• a. lower than the Price Data Base I, the notified customs value is doubted and Customs Value Information is sent to ask for the delivery of Customs Value Declaration;
• b. equal to or higher than the Price Data Base I, the notified customs value is accepted (Method I)."

Article 5

This Decision of the Director General of Customs and Excise shall come into force as from the date of stipulation.

Stipulated in Jakarta
On June 7, 2001
THE DIRECTOR GENERAL,
sgd
R.B. PERMANA AGUNG D