MINISTRY OF FINANCE OF THE REPUBLIC OF INDONESIA
DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. KEP-44/BC/2002

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

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-33/BC/2001 dated June 7, 2001 on Implementing Guidance 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 in the reasonability test of customs value by means of comparing one value and the other, deeds to pay attention the reality on the value differences that are still within the reasonability limit.

In view of:

a. Law No. 7/1994 on the Ratification of the Agreement Estab-lishing 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 of the Republic of Indonesia 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 of the Republic of Indonesia 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 of the Republic of Indonesia No. 25/KMK.05/1997 dated January 15, 1997 on the Customs Procedures in the Import Field;
f. Decree of the Minister of Finance of the Republic of Indonesia No. 02/KMK.01/2001 dated January, 2001 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 Implementing Guidance for the Stipulation of Customs Value for the Calculation of Import Duty lastly amended by Decision of the Director General of Customs and Excise No. Kep-33/BC/2001 dated June 7, 2001 on Amendment to Decision of the Director General of Customs and Excise No. Kep-81/BC/1999 dated December 31, 1999 on Implementing Guidance 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.

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 Implementing Guidance 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 lower less than or equal to 10%, equal to 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 of the customs value notification showing that the notified customs value turns out to be lower over 10% 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 the buyer:

a. that Customs and Excise Officials doubt about the truth of customs value notification;
b. for submission of 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 Number Kep-81/BC/1999 dated December 31,1999 on Implementing Guidance 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 subsequent 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 over 10% 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 Number Kep-81/BC/1999 dated December 31,1999 on Implementing Guidance 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 lower util 10% than, equal to or 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 lower than 10% of the customs value of identical or similar goods con-tained 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 based on one of methods belonging to Method II up to Method VI 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 Number Kep-81/BC/1999 dated December 31,1999 on Implementing Guidance 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 the Buyers - From Customs and Excise Service Office
PIB Number : Price Data Base II :
Date : Key Number :
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/influencing (scratch-out where ppropriate).

7.2. Result of the reasonability test, turns out to that the notified customs value is:

a. lower …% than the Price Data Base I, the notified customs value is accepted/Customs Value Information shall be 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

With enactment of this Decision, the Decision of the Director General of Customs and Excise Number Kep-33/BC/2001 dated June 7, 2001 on Amendment to Decision of the Director General of Customs and Excise Number Kep-81/BC/1999 dated December 31,1999 on Implementing Guidance for the Stipulation of Customs Value for the Calculation of Import Duty Implementing Guidance for the Stipulation of Customs Value for the Calculation of Import Duty is decflared as null and void.

Article 6

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

Stipulated in Jakarta
On July 17, 2002
THE DIRECTOR GENERAL
sgd
R.B. PERMANA AGUNG D

MINISTRY OF FINANCE OF THE REPUBLIC OF INDONESIA DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE NO. KEP-44/BC/2002

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