DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. KEP-166/BC/2003

ON
PROCEDURES FOR ISSUING CUSTOMS ADVICE AND VALUATION RULING

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Attachment

Considering:

• a. that the principle of calculation of import duty is self-assessment, but many importers have not understood procedure for calculating the customs value correctly;
• b. that in order to provide certainty for importers with regard to the customs value of identical goods to be imported in the condition of transaction the same as the previous import;
• c. that based on the considerations in letters a and b, it is deemed necessary to stipulate a decision of the Director General of Customs and Excise on procedures for granting customs advice and valuation ruling;

In view of:

• 1. Law No. 7/1994 an ratification of agreement establishing the World Trade Organization;
• 2. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• 3. Decree of the Minister of Finance No. 690/KMK.05/1996 on customs value for the calculation of import duty;
• 4. Decree of the Minister of Finance No. 453/KMK.04/2002 on customs procedures in the import field;
• 5. Decision of the Director General of Customs and Excise No. KEP-81/BC/1999 on technical directives for stipulation of customs value for calculating import duty, as already amended and supplemented the latest by Decision of the Director General of Customs and Excise No. KEP-69/BC/2003;
• 6. Decision of the Director General of Customs and Excise No. KEP-07/BC/2003 on customs procedures in the import field;

DECIDES:

To stipulate:

THE DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON PROCEDURES FOR GRANTING CUSTOMS ADVICE AND VALUATION RULING

CHAPTER I
DEFINITION

Article 1

(1) Customs Advice shall be directive for way of calculation of customs value of goods to be imported, which is given to an importer on the basis of request of the said im-porter.

(2) Valuation ruling shall be information on stipulation of the customs value of goods once imported, for use as the basis for calculating the customs value of identical goods to be imported by the same importer from the same supplier, which is given to importer on the basis of request of the said importer.

CHAPTER II
CUSTOMS ADVICE

Article 2

(1) Customs advice, which constitutes directive for way of calculation of the customs value of goods to be imported can be used by importers to notify the custom value upon submitting customs declaration.

(2) Customs advice can be given to the import, which constitutes selling-buying transaction or non selling-buying transaction.

(3) Customs advice shall not apply, if:

• a. data notified in application are untrue; or
• b. there is difference from result of physical inspection of goods; or
• c. evidence different from customs advice is found in the examination of customs value upon releasing goods or customs audit.

Article 3

(1) Customs advice in the form of directive for calculation of the customs value using Method I shall be given to importers to help the importers undertake self assessment and not be used as the basis for calculation of customs value at the level of examination of custom value upon releasing goods and customs audit.

(2) Customs advice in the form of directive for calculation of customs value using Methods II, III, IV, V and VI shall be used as the basis for calculation of customs value at the level of examination of the custom value upon releasing goods and customs audit, unless the other evidence as meant in Article 2 paragraph (3) is found.

(3) Customs advice shall apply to the import one time.

CHAPTER III
VALUATION RULING

Article 4

(1) Valuation ruling, which constitutes information on stipulation of customs value of goods once imported shall be used by importers for notifying customs value in cus-toms declaration.

(2) Valuation ruling shall not apply, if:

• a. data notified in application are untrue; or
• b. there is difference from result of physical inspection of goods; or
• c. evidence different from valuation ruling is found in the examination of customs value upon releasing goods or customs audit.

Article 5

(1) Valuation ruling shall be used as the basis for calculation of customs value at the level of examination of customs value upon releasing goods and customs audit, unless the different evidence as meant in Article 4 paragraph (2) is found.

(2) Valuation ruling shall apply as long as condition of transaction does not change or 6 (six) months at the maximum.

Article 6

(1) Valuation ruling shall be given to importers in the case of the goods being already imported twice or more with the following conditions upon importing:

• a. kind of the imported goods is identical;
• b. transaction requirement is the same;
• c. supplier is the same.

(2) Evaluation of the requirement as meant in paragraph (1) shall be based on result of customs audit.

CHAPTER IV
PROCEDURES

Article 7

(1) In order to obtain customs advice of the import; which constitutes selling-buying transaction or valuation ruling, importers shall submit applications to the Director General of Customs and Excise attn. The Director of Customs Technical Affairs by using the form as meant in Attachment I to this decision.

(2) In order to obtain customs advice of the import, which constitutes non selling-buying transaction, importers shall submit applications to the Director General of Customs and Excise attn. The Director of Customs Technical Affairs by using the form as meant in Attachment II to this decision.

(3) The applications for securing customs advice or valuation ruling as meant in paragraphs (1) and (2) shall be completed in accordance with the procedures as meant in Attachment III to this decision as well as accompanied by documents related to the import of the said goods.

Article 8

(1) The Director of Customs Technical Affairs shall examine applications submitted by importers.

(2) The Director of Customs Technical Affairs for the Director General shall decide to approve or reject the granting of customs advice or valuation ruling to applications submitted by importers.

(3) The model of customs advice shall be as meant in Attachment IV and the model of valuation ruling shall be as contained in Attachment V to this decision.

CHAPTER V
CONCLUSION

Article 9

This decision shall come into force as from October 1, 2003

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

Stipulated in Jakarta
On August 19, 2003
THE DIRECTOR GENERAL,
sgd
EDDY ABDURRACHMAN

Attachment to DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. KEP-166/BC/2003