DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. KEP-152/BC/2003

ON
GUIDELINES FOR IMPLEMENTING CUSTOMS PROCEDURES IN
THE EXPORT SECTOR FOR EXPORT GOODS GRANTED IMPORT FACILITIES
WITHIN THE FRAME OF EXPORT

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Attachment

Considering:

• a. that the smooth flow of goods and documents within the frame of export is prerequisite to the improvement of economic activities;
• b. that based on the above consideration, by observing the rights and interests of the state within the frame of export, to support the implementation of electronic customs data system in the export sector in accordance with the international standard, it is deemed necessary to stipulate a decision of the Director General of Customs and Excise on guidelines for implementing customs procedures in the export sector for export goods granted import facilities within the frame of export.

In view of:

• 1. Law No. 10/1995 on Customs (Statute Book of 1995 No. 75, supplement to Statute Book No. 3612);
• 2. Law No. 11/1995 on Excise (Statute Book of 1995 No. 76, Supplement to Statute Book No. 3613);
• 3. Law No. 20/1997 on Non Tax State Revenue (Statute Book of 1997 No. 18, Supplement to Statute Book No. 3687);
• 4. Government Regulation No. 1/1982 on the Implementation of Export and Import and the Flow of Foreign Exchange (Statute Book of 1982 No. 1, Supplement to Statute Book No. 3210) as has been amended by Government Regulation No. 24/1985 (Statute Book of 1985 No. 32, Supplement to Statute Book No. 3291);
• 5. Government Regulation No. 22/1995 on the Imposition of Administrative Sanction in the Customs Sector (Statute Book of 1995 No. 37, Supplement to Statute Book No. 3627);
• 6. Government Regulation No. 24/1996 on the Imposition of Administrative Sanction n the Excise Sector (Statute Book of 1996 No. 39, Supplement to Statute Book No. 3629);
• 7. Government Regulation No. 22/1997 on the Type and Payment of Non Tax State Revenue (Statute Book of 1997 No. 57, Supplement to Statute Book No. 3694);
• 8. Decree of the Minister of Finance No. 101/KMK.05/1997 on Customs Declaration as has been amended the latest by Decree of the Minister of Finance No. 190/KMK.05/2000;
• 9. Decree of the Minister of Finance No. 102/KMK.05/1997 On List of Codes for Filling Customs Declaration;
• 10. Decree of the Minister of Finance No. 241/KMK.01/1998 On the Tariff of and Procedure for the Payment of Export Taxes on Certain Commodities as has been amended the latest by Decree of the Minister of Finance No. 567/KMK.017/1999;
• 11. Decree of the Minister of Finance No. 335/KMK.017/1999 on the Procedure for the Payment of Export Taxes on Oil Palm, Palm Oil and By-products;
• 12. Decree of the Minister of Finance No. 66/KMK.017/2001 on the Tariff of Export Taxes on Oil Palm, Palm Oil, Crude Palm Oil and By-products;
• 13. Decree of the Minister of Finance No. 2/KMK.01/2001 on the Organization and Work Mechanism of the Ministry of Finance;
• 14. Decree of the Minister of Finance No. 444/KMK.01/2001 on the Organization and Work Mechanism of the Regional Office of the Directorate General of Customs and Excise and of Customs and Excise Service Office;
• 15. Decree of the Minister of Finance No. 557/KMK.04/2002 on the Customs Procedures in the Export Sector;
• 16. Decree of the Minister of Finance No. 129/KMK.04/2003 on the Exemption of and/or Refund on Uncollected Import Duty and/or Excise as well as Value Added Tax and Sales Tax on Luxury Goods on the Import of Goods and/or Materials for Processing, Assembling or Fitting on other goods for the purpose of export and the control of such goods and materials;
• 17. Decision of the Director General of Customs and Excise No. 141/BC/2003 on Guidelines for the Exemption of and/or Refund on Uncollected Import Duty and/or Excise as well as Value Added Tax and Sales Tax on Luxury Goods on the Import of Goods and/or Materials for Processing, Assembling or Fitting on Other Goods for the Purpose of Export and the Control of Such Goods and/or Materials;

DECIDES:

To stipulate:

DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON GUIDELINES FOR IMPLEMENTING CUSTOMS PROCEDURES IN THE EXPORT SECTOR FOR EXPORT GOODS GRANTED IMPORT FACILITIES WITHIN THE FRAME OF EXPORT.

CHAPTER I
GENERAL PROVISIONS

Article 1

Hereinafter referred to as:

• 1. Regional Office is the Regional Office of the Directorate General of Customs and Excise that oversees Customs Offices.
• 2. Customs Office is the service office of the Directorate General of Customs and Excise where customs obligations are fulfilled.
• 3. Loading Office is the customs office where export goods are loaded and which can also function as a place for registering, checking and issuing LHP.
• 4. Inspection Office is the Customs Office, which conducts physical inspection of goods and is close to exporter's warehouses or places for hoarding goods to be exported.
• 5. Customs area is an area, which has definite borders at seaport, airport or other place declared as a place for the traffic of goods and is fully overseen by the Directorate General of Customs and Excise.
• 6. Director General is the Director General of Customs and Excise.
• 7. Employee is the employee of the Directorate General of Customs and Excise.
• 8. Official is the employee who is authorized to carry out certain tasks based on this Decision of the Director General.
• 9. Inspector is the employee who conducts physical inspection of goods.
• 10. Stuffing inspector is the employee who inspects the entry of goods that have been inspected into containers.
• 11. Outside Officer is the employee who inspects the entry of goods at the entrance of a customs area.
• 12. Exporter is the individual or corporate body that has secured corporate registry number (NIPER) or the receiving company that exports joint export goods.
• 13. Delivering company is the domestic company that delivers its goods to a receiving company for the purpose, combining goods into joint export goods.
• 14. Receiving company is the domestic company that obtains or does not obtain import facility within the frame of export (KITE), and receives goods produced by a delivering company for the purpose of combining goods into joint export goods.
• 15. Sales Purchase Agreement is the agreement between a seller in Indonesia and a foreign buyer or his/her representative in Indonesia stating that the seller agrees to deliver goods as stated in the document to the foreign buyer under certain conditions, among other things payments are only made by the buyer abroad.
• 16. Export goods granted import facility within the frame of export (KITE) are export goods that wholly or partially originate from imported goods that are exempted from and/or receive refunds on uncollected Import Duty and; or Excise as well as Value Added Tax and Sales Tax on Luxury Goods on the import of goods and/or materials for processing, assembling or fitting on other goods for the purpose of export.
• 17. Export goods are export goods that are granted KITE and released from a customs area for delivery abroad.
• 18. Joint export goods are goods that are granted KITE and are combined with other goods that are granted or are not granted KITE so that they are united or are not united.
• 19. Technical specifications of goods are technical data of export goods, including type/model, size, article number and brand.
• 20. United is condition in which all types of goods constitute an integral part so that each type of the goods no longer shows essential characteristics and all types of the goods become new goods, for instance, gold-plated metal spoons.
• 21. Ununited is condition in which all types of goods constitute an integral part, however, they still can be distinguished from one another, for instance, fertilizers put in sacks.
• 22. Temporary delivery is the sending of goods produced by an entrepreneur granted KITE to other entrepreneur for combining as meant in point 20 or 21, until the goods are loaded onto ship for export.
• 23. Export Notification (PEB) is customs declaration used to notify the export of goods produced according to BC 3.0.
• 24. Notification on the readiness of goods (PKB) is notification made by an exporter to the Loading Office about the readiness of export goods for physical inspection.
• 25. Certificate of Goods Delivery (SSTB) is evidence signed by both domestic companies that goods have been delivered and received for the purpose of export.
• 26. Export goods subject to export levies (PE) are export goods, which based on the existing rules are subject to PE.
• 27. Notification on Goods Inspection (PPB) is notification made by the Customs Office to an exporter that the physical inspection of export goods is to be conducted.
• 28. Export approval is a sheet of approval given by an employee to protect the transport of export goods from the exporter's warehouse or hoarding place appointed by the exporter to the Customs Area at the port of loading and the loading of goods onto transport means.
• 29. Customs and Excise Inspection Identity Card (TPPBC) is safety mark in the form of signature and date or other safety marks put by an inspector on a container of export goods in case a physical inspection of goods is conducted.
• 30. Inspection Report (LHP) is a report on the customs inspection of export goods issued by the Office where PEB is registered.
• 31. Export seal is the safety mark attached by a stuffing inspector to a container of goods.
• 32. Intelligence Note (NHI) is the result of an analysis of information about the strong indication of potential violation or violation of customs rules in the export sector which serves as the basis for the physical inspection of export goods.
• 33. Place for consolidating export goods is the place for gathering (consolidating) export goods before being taken into a customs area which may be located in the consolidator's place, the company belonging to the same group, or the company consolidating export goods on its own.
• 34. Consolidator of export goods is the corporate body that has been registered to gather (consolidate) export goods notified in two or more PEB using LCL containers before the export goods are taken into a customs area for loading onto a transport means.
• 35. Submission of declaration through the electronic media is the submission of customs declaration by means of a diskette or direct electronic data interchange based on the standards of the United Nations/Electronic Data Interchange for Administration, Commerce, and Transport (UN/EDIFACT).
• 36. UN/EDIFACT is the standard for writing electronic documents which is drawn up by a working group under the aegis of the United Nations and is recommended for use in many business fields covering administration, commerce and transport worldwide.
• 37. Electronic Data Interchange (PDE) is the electronic flow of business information among applications, and among organizations in a direct and integrated way using UN/EDIFACT standards by means of computers managed by a provider.
• 38. Customs declaration (Cusdec) is the customs declaration containing PEB and PKBE as well as supplementary customs documents using UN/EDIFACT standards which is sent by an exporter, his/her proxy, consolidator or PJT to the Customs Office.
• 39. Customs response (Curses) is the response using UN/EDIFACT standards which is sent by the Office based on the response received previously.
• 40. Credit advice is the notification on the receipt of PE payments using UN/EDIFACT standards which is received by the Loading Office from the foreign exchange bank receiving PE.
• 41. Export cancellation is the condition in which the release of goods from a customs area is canceled.

CHAPTER II
CUSTOMS DECLARATION

Part One
Export Notification (PEB)

Article 2

(1) Export goods which are to be exported shall be notified by the exporter/proxy using PEB submitted by means of the electronic media.

(2) The PEB as meant in paragraph (1) also functions as a request for a physical inspection of goods.

(3) The exporter/proxy shall fill the PEB in a complete and correct way and be held responsible for the truth of its contents.

(4) Where PEB for export goods subject to export tax (PE) is concerned, the payment of PE can be made through a Foreign Exchange Bank or Customs Office where PEB is registered based on the exchange rate prevailing at the time when PEB is paid as well as the tariff and export benchmark prevailing at the time when PEB is regis-tered.

Part Two
Registration of PEB

Article 3

(1) The exporter/proxy shall register PEB to the Loading Office

(2) The Loading Office which has applied a PDE system shall register the PEB using the PDE system.

(3) The Loading Office which has not applied a PDE system shall register PEB using a diskette.

(4) In case PEB uses a diskette, PEB shall be registered at the Loading Office or other Customs Office appointed to serve PEB KITE.

(5) The exporter/proxy shall register PEB to the Loading Office in no more than 1 (one) day before a request for physical inspection of goods notified in the PKB is made according to the specimen BCF.3.10. in Attachment VIII to this Decision of the Director General.

(6) Export goods which are to be exported through PT Post Indonesia shall be registered to the Customs office at the Customs Passage Post Office where the export goods.00 are to be shipped.

CHAPTER III
CUSTOMS INSPECTION

Part One
Document Examination

Article 4

(1) Any PEB: shall be subject to document examination to see if:

• a. data contained in the PEB are complete and true;
• b. the calculation and settlement of PE is true in case the export goods are subject to PE;
• c. supplementary customs documents required are complete;
• d. other supplementary customs documents required are complete within the frame of fulfilling customs rules in the export sector.

(2) The supplementary customs documents as meant in paragraph (1), letter c, shall be in the form of invoice and packing list.

(3) Other supplementary customs documents required as meant in paragraph (1), letter c, shall cover payment slip (STBS), certificate of acknowledgement as registered exporter, export approval from the Ministry of Industry and Trade, quality certificate, quality statement, export permit (SIE), certificate of the validity of forest products (SKSHH) and/or other special permits issued by relevant agencies.

Article 5

(1) In case the result of document examination shows that the PEB has been filled in a complete and correct way, the PEB shall be given registry number and date.

(2) In case the result of document examination shows that the PEB has been filled in a complete and correct way however, other supplementary customs documents required as meant in article 4, paragraph (3) are still needed:

• a. where a PDE system is concerned, the PEB shall be given registry number and date on the stipulation that the exporter is obliged to submit other supplementary customs documents required to the Official before or when the goods are taken into the customs area;
• b. where a diskette is used, the PEB shall be given registry number and date after the exporter/proxy meets the requirements.

(3) In case the result of document examination shows that the PEB is not filled in a complete and/or correct way, the PEB shall be returned to the exporter/proxy by providing a note of rejection (NPP) according to the format BCF 3.04 in Attachment VIII to this Decision of the Director General.

(4) After the PEB has been given registry number and date, the following documents shall be issued:

• a. Export approval signed by the Official containing the name and civil servant's official registry number (NIP) of the Official in case no physical inspection of goods is conducted;
• b. PPB in case no physical inspection of export goods is conducted, however, the exporter is still required to submit other supplementary customs documents required.
• c. PPB in case physical inspection of the relevant export goods has to he conducted.

(5) The export approval as meant in paragraph (4), letter a shall accord with the format BCF 3.01 in Attachment VIII to this Decision of the Director General and be made in triplicate:

• a. 1st sheet for the exporter;
• b. 2nd sheet for the operator of temporary hoarding place (TPS);
• c. 3rd sheet for the carrier.

(6) The PPB as meant in paragraph (4), letters b and c shall accord with the format BCF 3.02 in Attachment VIII to this Decision of the Director General.

(7) The procedures for registering PEB and examining documents are contained in Attachment I to this Decision of the Director General.

Part Two
Physical Inspection of Goods

Article 6

(1) Export goods shall be subject to physical inspection by the Loading Office or the Inspection Office.

(2) The physical inspection of goods as meant in paragraph (1) can be conducted at the exporter's warehouse or other place appointed by the exporter.

(3) The physical inspection of goods can be conducted in a customs area after approval from the Head of the Loading Office has been secured.

(4) The approval as meant in paragraph (3) can be given by the Head of the Loading Office only after the operator of TPS provides a place for the physical inspection of goods in the customs area.

(5) Export approval of export goods subject to physical inspection shall be issued by the Loading Office or the, Inspection Office.

Article 7

(1) The physical inspection of goods shall be conducted based on PEB, supplementary customs documents and PPB.

(2) The physical inspection of goods shall cover:

• a. type of goods;
• b. quantity of goods;
• c. technical specifications of goods;
• d. number, mark, type and quantity of containers.

Article 8

(1) The physical inspection of goods shall cover a maximum of 10% (ten percent) of goods or a maximum of 2 (two) containers of goods.

(2) The physical inspection of goods as meant in paragraph (1) can be conducted in stages according to the quantity of export goods made ready for inspection and the exporter/proxy shall inform the quantity of export goods to the inspector before the inspection is conducted.

(3) In case the physical inspection of goods is conducted in stages as meant in paragraph (2), the inspector shall put the result of the physical inspection in the PEB after the quantity of export goods accords with that notified in the PEB.

(4) Certain export goods may be subject to a laboratory inspection.

(5) In case the laboratory inspection as meant in paragraph (4) is conducted, the inspector shall put the result of the physical inspection in the PEB without having to wait for the result of the laboratory inspection, except if:

• a. the laboratory inspection can be completed soon without disturbing the export of goods;
• b. the laboratory Inspection is needed to determine export goods, Including goods whose export is forbidden or restricted.

(6) Export approval of export goods that have been subjected to physical Inspection shall be signed by the inspector.

(7) The inspector shall put TPPBC on any container of export goods that have been inspected.

(8) The procedures for conducting customs inspection of export goods shall be contained in Attachment II to this Decision of the Director General.

Article 9

(1) Stuffing inspector shall inspect export goods that have been subjected to physical inspection after the physical Inspection of goods has been completed.

(2) The stuffing inspection shall be done:

• a. examining containers of goods and TPPBC;
• b. count the number of containers stuffed.

(3) Any container of goods whose stuffing inspection has been completed shall be sealed.

(4) The stuffing inspector shall put the number of container; type and number of seal as well as sealing date on the PF f3 arid sign export approval.

Article 10

(1) Certain exporters may he excepted from provisions in article 6, paragraph (1).

(2) The exception as meant in paragraph (1) does not apply in case:

• a. the facility requested is refund on import duty and/or excise,
• b. the export goods are the raw materials of import origin, which are re-exported without being processed because they do not accord with the order.

(3) The exporters as meant in paragraph (1) shall be determined by the Director of Verification and Audit base, on a management risk analysis by taking into account their reputation, namely:

• a. never violating customs and excise rules that lead to the imposition of administrative sanction in the past 1 (one) year;
• b. having no arrears in import duty, excise, tax, export, levies, and other state levies, and
• c. keeping a record of all business accounts so that they can make reports according to the Indonesian Financial Accounting Standards.

Article 11

(1) The export goods that have secured Export Approval and are subjected to NHI shall undergo physical inspection and repeat physical inspection.

(2) The physical inspection as meant in paragraph (1) car be conducted outside a customs area or inside a customs area, provided the export goods have been take into the customs area.

(3) In case the physical inspection as meant in paragraph (1) is conducted in a customs area, the Official shall inform the relevant exporter/proxy of the physical inspection in no more than 4 (four) hours before the physical inspection is conducted.

(4) In case the result of the physical inspection as meant in paragraph (1) shows irregularities in PEB with regard to the quantity and/or type of goods, the exporter shall be subjected to administrative sanction pursuant to article 82, paragraph (6) of Law No. 10/1995.

CHAPTER IV
CONSOLIDATION OF EXPORT GOODS

Article 12

(1) The consolidation of export goods from several exporters shall be done by a consolidator that has already secured a permit as a consolidator of export goods from the overseeing Customs Office.

(2) The consolidator may have the status as PPJK or non-PPJK.

(3) The consolidator shall inform the exporters of consolidated export goods by means of a notification on the consolidation of export goods (PKBE) according to the format BCF 3.03 in Attachment VIII to this Decision of me Director General.

(4) Exporters or exporters belonging to the same company group can consolidate their export goods on their own, on the stipulation that

• a. the exporters who consolidate export goods on their own shall notify the consolidation of export goods by means of PKBE;
• b. the exporters shall inform the companies belonging to the same company group in the overseeing Customs Office.

Article 13

(1) The stuffing of consolidated export goods shall be supervised in case:

• a. the export goods are combined with other goods that are not granted KITE;
• b. the export goods that undergo physical inspection are combined or are not combined with other goods that do not undergo physical inspection;
• c. the export goods that originate from TPB are combined or are not combined with goods that do not originate from TPB.

(2) In case consolidated export goods are subjected to stuffing inspection as meant in paragraph (1), the consolidator or exporter shall apply to the Official of the Cus-toms Office for stuffing inspection in no more than 2,1 (twenty four) hours before the stuffing is made.

(3) The export goods that are to be stuffed shall be equipped with PEB that has been given registry number and export approval.

Article 14

(1) Any consolidator shall:

• a. record all business accounts according to the Indonesian Financial Accounting Standard and be ready to be audited by the Directorate General of Customs and Excise;
• b. provide transport means and working space for an inspector and outside officer;
• c. employ a worker holding a certificate of customs expertise issued by a Financial Education and Training Board (BPPK);
• d. have adequate work instruments, such as computer, telephone/facsimile, scales, and forklift;
• e. ask for prior consent from the Head of the Customs Office when changing the layout of building/space; and
• f. inform the Customs Office 2 (two) months before closing his/her business.

(2) The procedure for consolidating export goods shall follow provisions in Attachment III to this Decision of the Director General.

CHAPTER V
THE ENTRY OF EXPORT GOODS INTO A CUSTOMS AREA

Article 15

(1) The entry of export goods into a customs area shall be made using:

• a. export approval signed by the Official;
• b. PEB and PPB, in case export goods do not undergo physical inspection, however, the exporter is obliged to submit other supplementary customs documents required;
• c. PEB and PPB, in case the exporter has secured approval from the Head of the Loading Office to conduct physical inspection of goods in a customs area.

(2) In case PEB is registered to the Customs Office where physical inspection is conducted, the entry of export goods into a customs area in the Loading Office shall use export approval and a copy of PEB.

(3) The export approval as meant in paragraph (1) and paragraph (2) shall serve as a document for the entry of export goods into a customs area after being signed by:

• a. the Official, in case the export goods do not undergo physical inspection;
• b. the Inspector and Stuffing Inspector, in case the export goods undergo physical inspection.

(4) The operator of TPS shall inform the Loading Office of the entry and hoarding of the export goods.

(5) The procedure for the entry of export goods into a customs area shall follow provisions in Attachment IV to this Decision of the Director General.

CHAPTER VI
THE LOADING AND TRANSPORT OF EXPORT GOODS

Part One
The Loading of Export Goods

Article 16

(1) The loading of export goods onto transport means shall made after securing export approval, on the stipulation that

• a. export goods that do not undergo physical inspection shall be loaded onto transport means using export approval signed by the Official and Outside Officer supervising the entry of export goods into the customs area;
• b. export goods that are subjected to physical inspection shall be loaded onto transport means using export approval signed by the Inspector, Stuffing Inspector and Outside Officer supervising the entry of export goods into the customs area.

(2) The third sheet of export approval shall be submitted by the exporter to the carrier to notify that the loading of export goods onto transport means has been approved by the Official of the Loading Office.

Part Two
The Transport of Export goods

Article 17

(1) The carrier whose transport means leaves a customs area shall notify the export goods transported including those transported further or those transported forward using an outward manifest, to the Official in charge of manifests in the Loading Office in no more than 3 (three) working days after the departure of the transport means.

(2) The export goods that are transported further and/or transported forward to outside customs area shall be notified by the carrier to the Official in charge of manifest in the Customs Office which serves as a transit point using a notification list of export goods (DPBE).

(3) The transport of export goods from one place to another within a customs area via a place outside the customs area shall be notified by the carrier using a notification on the transport of goods of customs area origin from one place to another via a place outside the customs area (BC. 1.3), to the Official in charge of manifests before the transport means leaves the loading place.

(4) The Official of the Loading Office who receives an outward manifest shall reconcile data in the PEB with those in the outward manifest received from the carrier and convey data in the PEB that cannot be reconciled with, those in the outward manifest to the Head of the Office and the Official in charge of investigation.

(5) In case PEB is registered to the Customs Office where physical inspection of goods is conducted, the Office of the Loading Office shall convey data in or a copy of outward manifest of the export goods to the Customs Office where PEB is registered to reconcile them with the PEB.

(6) The carrier who fails to meet provisions in paragraph (1) and paragraph (2) shall be liable to fines pursuant to article 11, paragraph (3) of Law No. 10/1999.

CHAPTER VII
THE COMBINING OF EXPORT GOODS

Article 18

(1) Any company that obtains KITE can export its goods by combining them with other goods, either those that arc granted KITE or those that are not granted KITE, at the request of a foreign buyer, by means of a sales pc chase agreement with a domestic company.

(2) Any company that obtains KITE and plans to send its goods for the purpose of combining them with other goods into joint export goods shall notify arid register the goods to be sent to the receiving company, to the Customs Office close to the location of the goods using SSTB according to the formal BCP.3.09 in the attachment to this Decision of the Director General.

(3) SSTB shall be made in quadruplicate:

• a. 1st sheet for the receiving company;
• b. 2nd sheet for the delivering company;
• c. 3rd sheet for the Customs Office where SSTB is registered;
• d. 4th sheet for the Customs Office where the goods are received.

(4) The procedure for sending goods for combining there with other goods for the purpose of export shall follow provisions in Attachment V to this Decision of the Director General.

Article 19

(1) The export as meant in Article 18, paragraph (1) can be made by combining goods produced by the following companies:

• a. between a company that obtains KITE and a company that does not obtain KITE with goods not being united;
• b. between a company that obtains KITE and a company that does not obtain KITE with goods being united;
• c. among companies that obtain KITE with goods not being united;
• d. among companies that obtain KITE with goods being united.

(2) The joint export goods as meant in paragraph (1) shall be notified in 1 (one) PEB as export goods, on the stipulation that the PEB shall contain data concerning:

• a. the company that obtains KITE with its products being used for producing joint export goods, covering name and address of the company, taxpayer code number (NPWP) and NIPER;
• b. goods from each of the delivering companies obtaining KITE that are used for producing joint export goods, covering the quantity and type of goods, headings, FOB value, number and date of SSTB.

(3) Based on the PEB as meant in paragraph (2; the Loading Office shall issue LHP for each of the companies obtaining KITE whose products are used for exporting the joint export goods.

CHAPTER VIII
THE EXPORT OF RAW MATERIALS OF IMPORT ORIGIN

Article 20

(1) Any exporter can export raw materials that have been imported by enjoying Import Duty, Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM) exemp-tions, without further processing, in case the goods do not match the order.

(2) The export as meant in paragraph (1) shall be made by using PEB granted KITE and issuing LHP.

(3) The export approval as meant in paragraph (1) shall be given by the Head of the Loading Office after the exporter has filed an application containing reasons for the export of the raw materials by providing the following information:

• a. name and address of the recipient/buyer as well as the country of destination;
• b. number and date of the Import Notification (PIB);
• c. quantity and type of goods as well as headings of goods exported.

(4) The application as meant in paragraph (3) shall be accompanied with import documents in the form of a copy of PI8 validated by the Official, invoice, packing list and statement of the receipt of guaranty (STTJ) as well as other evidences, including a letter of order cancellation from the buyer of finished goods abroad and sales contract.

(5) The approval as meant in paragraph (3) shall be given in case:

• a. the export does not exceed 12 (twelve) months starting from the date of import;
• b. the goods are re-exported to the supplying company and country at the time of importing the goods as meant in the PIB.

(6) In case the name and address of the recipient/buyer in the PEB are not the same as the name, address and supplying country in the PIB at the time of importing the goods, or the goods are re-exported in excess of 12 (twelve.) months, the PEB shall be returned to the exporter/proxy along with NPP.

(7) The export goods shall be subjected to physical inspection.

(8) The physical inspection shall be conducted based on the PEB, supplementary customs documents, PPB, PIB and supplementary customs documents of the relevant PIB.

(9) In case the physical inspection shows that the export goods are different from those notified in the PEB, the inspector shall make a note of correction (NP) according to the format BCF 3.07. in Attachment VIII to this Decision of the Director General.

(10) The export goods as meant in paragraph (9) cannot be treated as goods granted KITE and that LHP is not issued to the relevant export goods.

CHAPTER IX
CANCELLATION OF PEB AND CORRECTION/ALTERATION OF DATA IN PEB

Part One
Cancellation of PEB

Article 21

(1) In case the export of goods is canceled, the exporter shall apply for a cancellation of PEB to the Customs Office where the PEB is registered in no more than 3 (three) working days after the departure of the transport means contained in the PEB.

(2) The exporter who fails to report the cancellation of export or reports it after the period of time as meant in paragraph {1} has passed shall be liable to fines pursuant to article 10, paragraph (5) of Law No. 10/1995.

(3) In case the export goods whose export is canceled have already entered a customs area, the application for the cancellation of PEB shall be accompanied with export approval signed by the Outside Officer at the entrance of the customs area.

{4) The release of the export goods as meant in paragraph (3) from the customs area shall use a letter of approval for the release of export goods (SPKBE) according to the format BCF.3.06. in Attachment VIII to this Decision of the Director General.

(5) In case the export goods consist of one container that has already entered a customs area and the contained is later damaged so that it must be replaced:

• a. the PFB shall he canceled and notified to the Official of the Loading Office,
• b. physical inspection of the export goods shall be conducted before the export goods are released from the customs area.

Part Two
Correction/Alteration of Data in PEB

Article 22

In case PEB is registered using a PDE system and diskette, correction/alteration of data in the PEB that has been given registry number and data shall be notified by the exporter to the Loading Office or the Customs Office where the PEB is registered using a corrected PEB.

Article 23

(1) In case the export goods are not subjected to physical inspection, correction/alteration of data in PEB concerning the type and quantity of goods and/or alteration of technical specifications of goods shall be made as follows:

• a. the exporter shall submit a corrected PEB;
• b. correction/alteration of the type and quantity of goods and/or technical specifications of goods that makes the quantity of goods smaller than that specified in the PEB shall be notified by the exporter before the export goods are loaded onto transport means;
• c. correction/alteration of the type and quantity of Goods and/or technical specifications of goods that makes the quality of the goods larger than that specified in the PEB shall be notified by the exporter before the export goods enter the customs area.

(2) The export goods as meant in paragraph (1), letter c may be subjected to physical inspection.

Article 24

In case the export goods undergo physical inspection, correction/alteration 3 of data in the PEB concerning the type and quantity of goods and/or alteration of technical specifications of goods shall be made as follows:

• a. tile exporter shall submit a corrected PEB before the physical inspection is conducted and submit the corrected PEB to the Inspector who conducts the physical inspection;
• b. in case the exporter makes correction/alteration of data in the PEB after the physical inspection has been completed and the PEB has already contained the result of the physical inspection, the exporter shall submit a corrected PEB before the goods enter the customs area;
• c. based on the notification on correction/alteration of PEB as meant in letter b, the Inspection Office shall conduct repeat physical inspection and the result of the repeat physical inspection shall be contained in the corrected PEB.

Article 25

(1) Correction/alteration of data in the PEB concerning FOB value shall be notified to the Official of the Loading Office before the export goods are loaded onto transport means.

(2) Correction/alteration of data in the PEB concerning the way of transporting goods and/or port of loading shall be notified to the Official of the Loading Office before the export goods enter the customs area.

(3) In case the export goods as meant in paragraph (2) have already entered the Customs area, the removal of export goods from the customs area in the initial port of loading to the customs area in the actual port of loading shall be made as follows:

• a. the exporter shall submit an application for the removal of export goods to the Official of the initial Loading 0ffice by enclosing a corrected PEB;
• b. the removal of export goods as meant in paragraph (2) can be done under the escort of employees of the initial Loading Office or by sealing the export goods;
• c. the release of export goods from the customs area shall use SPKBE;
• d. the entry of export goods into the customs area in the actual port of loading shall use the initial export approval.

Article 26

(1) Correction/alteration of data in PEB as a result of:

• a. change in the name of transport means, voyage/flight number, and departure date of transport means;
• b. Short shipment shall be notified to the Official of the Loading Office in no more than 3 (three) working days after the departure date of initial transport means.

(2) Correction/alteration of data in PEB merely as a result of administrative errors shall be submitted in no more than 1 (one) month after the registration date of PEB.

Article 27

(1) Correction/alteration of data in PEB regarding a change in containers of export goods, so long as the quantity and type of goods remain unchanged, shall be made as follows:

• a. in case the export goods do not undergo physical Inspection, the exporter shall file a corrected PEB to the Official of the Customs Office where the PEB is registered before the export goods enter the customs area;
• b. in case the export goods undergo physical inspection, the exporter shall notify the change in containers of export goods to the Inspector before the start of the physical inspection and file a corrected PEB in no more than 3 (three) working days after the departure date of transportation means.

(2) The Official or Inspector shall give export approval to the addition of containers as meant in paragraph (1).

(3) In case the number of containers of export goods entering a customs area is more than 1 (one) and later part of the containers is damaged so that they must be replaced:

• a. the PEB shall be corrected/altered and notified to the Official of the Loading Office;
• b. the export goods whose containers are to be replaced shall undergo physical inspection before the export goods are released from the customs area.

(4) The release of the export goods as meant in paragraph (3) shall be made using SPKBE, on the stipulation that:

• a. the release of export goods from the customs area to the warehouse/place appointed by the exporter outside the customs area is without the escort of employees;
• b. the Inspector shall give export approval to the change in the containers of export goods as meant in paragraph (3),
• c. the replacement of containers and the execution of repeat stuffing into the containers shall be supervised by the stuffing inspector and be sealed again;
• d. the stuffing inspector shall register container number and seal number attached to the containers m the export approval;
• e. the transport of export goods from the warehouse/place appointed by the exporter to the customs area shall use new export approval.

(5) The procedure for correcting/altering and canceling PEB shall follow provisions in Attachment VI to this Decision of the Director General.

CHAPTER XI
SUBMISSION, CORRECTION AND CANCELLATION OF LHP

Part One
Submission of LHP

Article 28

(1) The Official of the Customs Office where PEB is registered shall issue LHP to export goods granted KITF

(2) A report on the result of customs inspection in LHP shall cover:

• a. type of goods;
• b. quantity of goods;
• c. technical specifications of goods;
• d. number, mark, type and quantity of containers;
• e. fulfillment of customs provisions in the export sector;
• f. classification of goods according to headings;
• g. total FOB value.

(3) The Official of the Customs Office where PEB is registered shall hand over LHP to the exporter/proxy in no more than 3 (three) working days after the exporter submits document on the realization of goods covering:

• a. PEB;
• b. corrected PEB
• c. export approval signed by the outside officer at the entrance of the customs area;
• d. document on the loading of export goods or a copy of Bill of Lading/Airway Bill (BL/AWB).

(4) The exporter shall submit documents on the realization of export as meant in paragraph (3) to the Official of the Customs Office where PEB is registered to issue LHP in no more than 2 (two) months after the registration date of PEB.

(5) In case a PDE system is used, LHP can be issued without handing over the document as meant in paragraph (3) if the result of reconciliation between PEB and out-ward manifest shows that the export of goods has been made.

(6) LHP shall be made in duplicate:

• a. 1st sheet for the exporter;
• b. 2nd sheet for the Loading Office.

(7) The LHP as meant in paragraph (1) shall follow the format BCF 3.08 in Attachment VIII to this Decision of the Director General.

(8) The procedure for submitting LHP shall follow provisions in Attachment VII to this Decision of the Director General.

Part Two
Correction of LHP

Article 29

(1) The LHP that has been issued can be corrected by the Official of the issuing Customs Office where PEB is registered.

(2) Correction of LHP can be made in case of correction/alteration of data in PEB or due to administrative errors after the LHP has been issued.

CHAPTER XII
SENDING OF DATA IN PEB AND LHP

Article 30

(1) The Customs Office where PEB is registered shall send data in PEB and LHP to:

• a. the Regional Office, in case the facilities requested by the exporter is in the form of either exemptions or a combination of exemptions and refunds.
• b. the Directorate of Customs and Excise Information.

(2) The Directorate of Customs and Excise Information shall stipulate procedures for accessing data in PEB by electronic means by Bank Indonesia and the Central Bureau of Statistics.

(3) The Directorate of Customs and Excise Information shall stipulate procedures for sending data in PEB and LHP.

CHAPTER XIII
SERVICE HOURS

Article 31

(1) The Customs Office shall provide services for 24 (twenty-four) hours a day for:

• a. receipt of PEB filed by exporters/proxies;
• b. physical inspection of goods according to exporters' request;
• c. submission of LHP;
• d. entry of export goods granted export approval into a customs area;
• e. other customs services in the export sector.

(2) The Head of the Customs Office shall regulate the placement of officers providing the services as meant in paragraph (1).

CHAPTER XIV
OTHERS

Article 32

In case the computer in the Customs office applying a PDE system is out of order, the registration of PEB shall be made using diskettes.

Article 33

All PEB that are filed by means of a PDE system shall be served under an agreement between the exporter/proxy and the Head of the Regional Office contained a note of agreement on the use of PDE system.

Article 34

(1) In case PEB are filed using a PDE system, the signature of the official of the Customs Office where PEB is registered on the export approval and LHP, and the official stamp on the column H in the PEB, shall be replaced with the printout of the name and civil servant's registry number of the Official on the document.

(2) The printout of export approval, LHP and PEB as meant in paragraph (1) shall be treated as legal documents.

Article 35

Every exporter shall keep data in PEB in the electronic media and/or PEB printout that has been given registered number and date as well as in the original sheet of supplementary customs document as meant in Article 4 a period of 10 (ten) years in his/her business site in Indonesia.

Article 36

(1) If need be, the Head of the Regional Office can stipulate further technical guidelines, provided they do not contradict this Decision of the Director General.

(2) The existing technical guidelines for the export of goods granted KITE, which contradict this Decision of the Director General, shall be declared null and void.

CHAPTER XV
CONCLUNSION

Article 37

At the time when this Decision of the Director General to take effect, Decisions of the Director General No. KEP-45/BC/2000 and No. KEP-47/BC/2001 shall be declared null and void.

Article 38

This Decision of the Director General shall begin to take effect on October 1, 2003.

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

Stipulated in Jakarta
on July 28, 2003
THE DIRECTOR GENERAL
sgd.
EDDY ABDURRACHMAN

Attachment to DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. KEP-152/BC/2003