CIRCULAR OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. SE-02/BC/2009

CONCERNING
GUIDELINE FOR PROVISION OF PRINCIPAL REGISTRATION NUMBER FOR TAXABLE GOODS ENTREPRENEUR FOR FACTORY OWNER BUSINESSMAN AND TOBACCO PRODUCT IMPORTER

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

To:

• 1. The Head of Service Head Office;
• 2. The Heads of Customs and Excise Supervisory Offices
• in all Indonesian territories;

In connection with the enactment of Government Regulation No. 72 Year 2008 concerning Principal Registration Number for Taxable Goods Entrepreneur and stipulation of Regulation of the Minister of Finance (PMK) No. 200/PMK.04/2008 concerning Procedure for Provision, Freezing, and Revocation of Principal Registration Number of Taxable Goods Entrepreneur for Factory Owner Businessman and Tobacco Products Importer it is deemed necessary to govern guideline for further implementation of Circular Letter of the Director General of Customs and Excise as follows;

A. Whereas, Regulation of the Minister of Finance (PMK) No.200/PMK.04/2008, governs new matters relating to provision of NPPBKC for tobacco products such as:

1. amendment to the provision on the area extent for construction of tobacco products factory previously stipulated at least 50 m2 shall be now at least 200 m2;

2. Minutes of Interview shall be drawn up on the interviewing process with the requestor for NPPBKC conducted by the Customs and Excise Official.

3. The term of validity of Minutes of Examination (BAP) of the location! Building, or place of business required to comply with the requirements to obtain NPPBKC (as attachment to PMCK-6) is three (3) months effective as of the date of the Minutes of Examination (BAP).
Failure to submit application for NPPBKC (PMCK-6) within three (3) months, the BAP shall be considered null and void.

4. The term of Lease Agreement of the building used as tobacco products factory for shall be at least five (5) years and shall be approved by the Notary.

5. For tobacco products importer the requirements for application for NPPBKC must be supported by Customs Identification Number (NIK) in the name of the Importer concerned.

6. The Factory businessman or tobacco products Importer that has obtained NPPBKC shall be obliged to put on the Company signboard and fill questionnaire form for customs registration.

7. Give affirmation on follow up action to the freezing provision of NPPBKC in the form of:

• a. reinforcement of NPPBKC or
• b. revocation of NPPBKC.

B. Affirmation on the study of application and examination of the location shall cover:

1. more scrutinizing the application file for NPPBKC submitted and ensure that:

• a. administration requirements as governed in Regulation of the Minister of Finance (PMK) No. 200/PMK.04/2008 have been complied with and observed the consistency in writing the documents attached to the application, such as the name of the owner/person in charge, the name and address of the location;
• b. the building used for factory of place of business of the tobacco products Importer according to its allocation that can be seen from the Certificate to Construct Building (building allocation as set forth in the IMB not for residence);
• c. the applicant has legal right to use the location/building requested for NPPBKC for factory of place of business of tobacco products Importer.

2. Hold interview directly with the applicant prior to examining the location, building or place of business with due observance of the matters below:

• a. the interview conducted is to examine the authenticity of the data of the applicant as the person in charge and the authenticity of the data in the attachment to the application;
• b. the interview also relates to the due diligence of the applicant to run business as Factory businessman or tobacco products Importer;
• c. make understand relating to the right and obligations of the person concerned as Factory businessman or tobacco products Importer in accordance with the provision in the Excise sector, especially the crime provision in the excise sector;
• d. the result of interview shall be drawn up in Minutes of Interview (BAW) and signed by the Customs and Excise Official and the applicant.

3. Conduct physical examination on the location, building, or place of business, with due observance of all matters below:

• a. make sure compliance with the requirements of the physical location, building or place of business, as governed in Regulation of the Minister of Finance (PMK) No. 200jPMK.04/2008,
• - if the location/Factory building or place of business of tobacco products Importer is adjacent to a residence, the two buildings must not be connected directly;
• - if there is a door/window/hole of the type that connects the two buildings, the door/window/hole of the type must have been closed permanently.
• b. complete the Minutes of Examination of the location, building or place of business with drawing of the location site plan, building or place of business and photo of the building or place of business that have been examined;
• c. write the address of the location, building, or place of business as complete as possible:
• - state the name and of the road and number of the building if there is road name and number of the building, and
• - state at least the RT; RW, the name of the Village, name of Sub-District if there is no name of road and/or number of building.

C. Confirmation on the activities of the supervisor on the Factory or tobacco products Importer shall be:

1. In the context of supervision, the Head of Office must improve the examination of the field periodically and continuously, such as the factory location or place of business of tobacco products Importer, the obligation to record/book and on taxable goods production activities.

2. If in the examination there is apparently sufficient evidence so that the NPPBKC requirements are no longer complied with, the NPPBKC concerned must E. Numbering of NPPB~C be frozen in accordance with the provision in Regulation of the Minister of Finance No. 200/PMK.04/2008.

D. Amendment to NPPBKC for Factory businessman or tobacco products Importer shall be as follows:

1. NPPBKC that was previously issued (based on pp No.5 of 1997), must be renewed by the holder of NPPBKC by submitting application and must comply with the requirements as governed in the new provision (based on pp No. 72 Year 2008 in conjunction with Regulation of the Minister of Finance No. 200/PMK.04/2008), within three (3) years at the latest as of the issued date of Government Regulation No.72 of 2008 (at the latest up to December 10, 2011). And if up to the time limit the NPPBKC of the Factory businessman or tobacco products Importer is not renewed the NPPBKC thereof shall be revoked and since failing to comply with the requirements stipulated, such as the area extent that fails to comply with the requirements.

2. Completion and procedure for granting NPPBKC shall be processed based on the provision governed in Regulation of the Minister of Finance PMK No. 200/PMK.04/2008 concerning Procedure for Grant, Freezing, and Revocation of Identification Number of Taxable Entrepreneur and Tobacco Products Importer.

E. Numbering of NPPBKC

Numbering of NPPBKC for Factory businessman or Tobacco Products Importer consists of ten (10) digits:

• - the first four (4) digits shall constitute the code of the NPPBKC Issuing Office.
  Code table of the NPPBKC Issuer as set forth in Attachment to Circular Letter of the Director General of Customs and Excise,
• - the second one (1) digit shall constitute the code for type of business.
  For Taxable Goods Factory shall use one (1) digits code and for Taxable Goods Importer shall use two (2) digits code.
• - the third one (1) digit shall constitute the code for type of Taxable Goods in the form of Tobacco Product using three (3) digits code.
• - the fourth four (4) digits shall constitute sequence number for Entrepreneur or Tobacco Products Importer concerned.

For smooth service operation and to support smooth operation of the customs centralized application system (SAC Centralization), the sequence numbering of NPPBKC shall abide by the provisions below:

1. the number of application for new NPPBKC, sequence of four (4) digits number shall begin with figure 5000 (five thousand) and the KPPBC that has issued the NPPBKC shall begin with figure 5000, thereafter the numbering shall continue on.

Example:

• a. It is apparent that the PR"A" Tobacco Products Factory Businessman (new factory) existing within the area under the supervision of KPPBC Kudus Excise Medium Type submitting application for NPPBKC, as soon as administrative examination and location examination have been processed according to the prevailing provision has complied with the requirements and is feasible to be granted NPPBKC. Based on the record of KPPBC on Kudus Excise Medium Type it is understood that the latest NPPBKC issued by KPPBC on Kudus Medium Type Excise Sequence Number 0603.1.3.5800.
  Therefore the PR "A" tobacco products factory shall be granted NPPBKC under Number 0603.1.3.5801, which means that:
• - 0603 shall be the code for the NPPBKC Issuing Office for Kudus KPPBC:
• - 1 shall be the code for taxable goods factory;
• - 3 shall be the code for tobacco products;
• - 5801 shall be sequence number issued for PR"A" tobacco products factory (the 802 sequence of NPPBKC issued by Kudus KPPBC Kudus).
• b. PR"B" tobacco products factory businessman (new factory) existing in the area under the supervision of KPPBC of Jambi A3 type shall submit application for NPPBKC after administrative examination and location examination have been conducted in accordance with the prevailing provision, it appears that the PR"B" tobacco products factory has complied with the requirements and is feasible to be granted NPPBKC. Based on the record of KPPBC of Jambi Type A3 it is understood that KPPBC of Jambi Type A3 never issues NPPBKC yet for tobacco products factory.
  Therefore PR "B" tobacco products factory shall be granted NPPBKC under number 0306.1.3.5000, which means that:
• - 0306 shall be the code for NPPBKC Issuing Office for Jambi KPPBC;
• - 1 shall be the code for taxable goods factory;
• - 3 shall be the code for tobacco products;
• - 5000 shall be the sequence number granted for PR"B" tobacco products factory (first (1st) sequence number of NPPBKC issued by Jambi KPPBC).

2. Provision of number for renewed NPPBKC shall be the fourth four (4) digits sequence number which is the same as the number of NPPBKC that has been granted.

Example:

• a. PR "C" tobacco products factory (new factory) already has NPPBKC under number 0603.1.3.0205 existing in the area under the supervision of KPPBC of Kudus Medium Type Excise. Based on the applicable provision, NPPBKC must be renewed by the holder of NPPBKC by submitting application and shall be obliged to comply with the requirements stipulated under Regulation of the Minister of Finance (PMK) Number 200/PMK.04/2008.
  After administrative examination and location examination have been processed according to the prevailing provision it appears that the PR "C" tobacco products has complied with requirements and is feasible to be granted NPPBKC.
  Therefore, the PR "C" tobacco product is hereby granted NPPBKC under number 0603.1.3.0205, which means that:
• - 0603 shall be the code for NPPBKC Issuing Office of Kudus KPPBC;
• - 1 shall be the code for taxable goods factory;
• - 3 shall be the code for tobacco products;
• - 0205 shall be sequence number granted for PR "C" tobacco products factory (the same sequence number as the previous NPPBKC).
• b. PR "D" tobacco products factory (previous factory) already has NPPBKC under number 0603.1.3.5055 existing in the area under the supervision of KPPBC of Kudus Excise Medium Type. Based on the prevailing provision, NPPBKC must be renewed by the holder of NPPBKC by submitting application and must comply with the requirements stipulated in Regulation of the Minister of Finance (PMK) Number 200/PMK.04/2008.
  After administrative examination and location examination have been conducted according to the prevailing provision it appears that the PR "D" tobacco products factory has complied with the requirements and it is feasible to be granted NPPBKC.
  Therefore, PR "D" tobacco products factory is hereby granted NPPBKC under number 0603.1.3.5055/ which means that:
• - 0603 shall be the code for NPPBKC Issuing Office for Kudus KPPBC;
• - 1 shall be the code for taxable goods factory;
• - 3 shall be the code for tobacco products;
• - 5055 shall be the sequence number granted for PR"D" tobacco products factory (the permanent/same sequence number as the previous NPPBKC).

F. Update of NPPBKC data base

1. To avoid similarity in the name of company for factory businessman or tobacco products Importer (similarity in name both in writing and pronunciation) the Head of Office may access to NPPBKC data base through Customs and Excise home page at Http://www.beacukai.go.id;

2. The Head of Office shall immediately send copy of issued decision for Grant of NPPBKC, Freezing of NPPBKC, Revocation of NPPBKC to Director of Excise - KPDJBC by facsimile number 021-4897544/ for update of the NPPBKC database at the Directorate of Excise.

Thus is for your information and implementation with full responsibility.

Stipulated in Jakarta
On January 13, 2009
DIRECTOR GENERAL,
signed,
ANWAR SUPRIJADI
NIP 120050332

Copied to:

• 1. Secretary of Directorate General of Customs and Excise;
• 2. All Directors;
• 3. All Research Experts;
• 4. All Head of Area Offices.