REGULATION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. 11/BC/2005

ON
PRIORITY LANE

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Attachment

Considering:

• a. the smooth supply of imported goods can bring about positive impacts to national economy in enhancing the competitiveness of domestic industries;
• b. that companies having very good reputation need to be given special service;
• c. that fair, fast and simple customs service can be provided through priority lane;
• d. that regulation of the priority lane in Decision of the Director General of Customs and Excise No. KEP-07/BC/2003 needs further clarification and affirmation;
• e. that based on the considerations as meant in letters a, b, c and d, it's necessary to stipulate a regulation of the Director General of Customs and Excise on priority lane;

In view of:

• a. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612);
• b. Law No. 11/1995 on excise affairs (Statute Book of 1995 No. 76, Supplement to Statute Book No. 3613);
• c. Decree of the Minister of Finance No. 453/KMK.04/2002 on customs procedures in the import field as already amended several times and the latest by Decree of the Minister of Finance No. 112/KMK.04/2003;
• d. Joint Decree of the Minister of Finance and Minister of Industry and Trade No. 527/KMK.04/2002 and No. 819/MPP/KEP/12/2002 on orderly administration of importers;
• e. Decree of the Minister of Finance No. 580/KMK.04/2003 on procedures for relief of import for export purpose and supervision;
• f. Regulation of the Minister of Finance No. 25/PMK.04/2005 on the amendment to Decree of the Minister of Finance No. 441/KMK.05/1999 on the use of written guarantee for guaranteeing the payment of import duty, excise, administrative fine and taxes in the framework of the import;
• g. Decision of the Director General of Customs and Excise No. KEP-07/BC/2003 on technical directives for customs procedures in the import field as already amended several times and the latest by Decision of the Director General of Customs and Excise No. KEP-178/BC/2003;

DECIDES:

To stipulate:

THE REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON PRIORITY LANE

Article 1

Referred to in this regulation as:

• 1. Priority Lane is a facility granted to importers fulfilling the stipulation requirements for obtaining special service so that the import can be settled simpler and faster.
• 2. Priority-Lane Importer (IJP) is an importer stipulated as recipient of the priority-lane facility on the basis of a decision of the Director General.
• 3. Trucklossing is the unloading of imported goods directly from ship to land transport without collecting first in Provisional Collection Place (TPS) for releasing imported goods from Customs Area.
• 4. Periodical Payment is the payment of import duty, excise and Taxes in The Framework of Import (PDRI), which is realized periodically.
• 5. Electronic Delivery of Declaration is delivery of customs declaration data by using diskette, direct inter-computer connection or through Electronic Data Interchange (EDI) System.
• 6. Electronic Data Interchange is automatic flow of business information between organizations, without human intervention wherein the information is integrated and flowing inward and outward an organization of management business system.
• 7. Electronic Media is diskette or direct inter-computer connection.
• 8. Diskette of Import Declaration (PIB) is import declaration given up in the form of a hard copy and diskette, which contains data on PIB.
• 9. Manually is a process of customs service provided without using computer.
• 10. Note of Intelligence Result (NHI) is information coming from intelligence activities indicating customs and/ or excise violations.
• 11. Director General is the Director General of Customs and Excise.
• 12. Regional Offices are Regional Offices of the Directorate General of Customs and Excise.
• 13. Service Offices are Customs and Excise Service Offices.

Article 2

(1) The priority lane is granted to producer importers and general importers fulfilling certain requirements.

(2) The requirements as meant in paragraph (1) are:

• a. having very good reputation reflected from corporate profile;
• b. having clear and specific nature of business;
• c. never misusing customs facilities in the last one year;
• d. never wrong to notify the quantity of goods, kind of goods and/or customs value in the last one year;
• e. already audited by Public Accountant Office certifying that the company does not obtain a disclaimer or adverse opinion;
• f. having no debt arrears in the form of the shortage of payment of import duty to the Directorate General of Customs and Excise (DJBC);
• g. having capability of submitting customs declaration directly.

Article 3

(1) Priority-Lane Importers secure relief in the form of:

• a. not subjected to examination of document and physical inspection of goods as applied to red and green lanes, except for:
• 1. Provisionally imported goods;
• 2. Re-imported goods;
• 3. Goods subjected to Note of Intelligence Results (NHI);
• 4. Certain goods stipulated by the Director General.
• b. the physical inspection of goods as meant in point (a) can be done in importers' warehouses;
• c. the imported goods can be released by trucklossing;
• d. hardcopy of PIB is delivered in not later than 5 (five) working days as from the date of issuance of Approval of the Release of Goods (SPPB);
• e. pre-notification;
• f. periodical-payment, especially for producer importers.

(2) The relief as meant in paragraph (1) letters b, c and e is granted without the submission of application from IJP.

Article 4

(1) Priority-Lane Importers are obliged to give up a written guarantee in the form of corporate guarantee already ratified by notary.

(2) The written guarantee is made with the model according to specimen as stipulated in Attachment I to this regulation.

(3) The guarantee as meant in paragraph (1) can be used as:

• a. Guarantee for periodical payment facility;
• b. Guarantee Receipt Form (STTJ) for UP securing facilities of Import Relief for Export Purpose (KITE);
• c. Guarantee for provisional import realized by IJP;
• d. Guarantee for release of goods with the facility of postponement of Import Duty and PDRI.

(4) The guarantee as meant in paragraph (1) is given up in a centralized manner to the Director General.

Article 5

Import Duty, excise and PDRI on the import by periodical payment must be settled in not later than the end of every month after the month when PIB is registered with the provision that:

• a. in the case of the end of the month being Sunday or national holiday, the payment is realized in the previous working day;
• b. the payment of import in November and import up to December 20 is realized in not later than December 20 and in the case of the date being Sunday or national holiday, the payment is realized in the previous working day.
• c. The payment of import realized after December 20 up to December 31 is realized by ordinary payment.

Article 6

(1) Priority-Lane Importers can use facility of the priority lane for goods imported from Bonded Collection Places (TPB).

(2) Submission of PIB and/or notification of the release of goods from TPB on the import of goods as meant in paragraph (1) can be done by IJP.

Article 7

(1) Priority-Lane Importers are obliged to meet the provisions stipulated by the technical institutions concerned before submitting PIB.

(2) Priority-Lane Importers are obliged to sign statement of readiness for fulfilling the obligations and abiding by the stipulated regulations as well as accepting sanctions arising from violations.

(3) The statement as meant in paragraph (2) is made with the content and model according to the specimen as stipulated in Attachment II to this regulation.

Article 8

Priority-Lane Importers are obliged:

• a. to use their importer modules and not to give or lend them for interests of other parties/companies;
• b. to make import report every 6 (six) months as meant in Article 17 paragraph (1);
• c. to report the loss and/or misuse of importer module on the first occasion.

Article 9

(1) In order to obtain the facility of priority lane, importers submit applications to the Director Genera! through Heads of Regional Offices where import activities are mostly executed.

(2) The applications as meant in paragraph (1) are made with the model according to the specimen as stipulated in Attachment III to this regulation.

(3) The applications as meant in paragraph (1) are enclosed by:

• a. result of the latest audit by Public Accountant Office;
• b. result of the latest audit by DJBC or statement certifying that the company has never been audited or is being audited by DJBC in the case of the company being never audited or being in the course of auditing;
• c. data on import activities and violation in the last one year with the model according to the specimen as stipulated in Attachment IV to this regulation;
• d. Standard Operating Procedure (SOP) for the production, payment and delivery (transfer) of PIB that the company has owned or implemented so far;
• e. The statement as meant in Article 7 paragraph (2);
• f. Importer module for the production and delivery of PIB;
• g. Copy of certificate of customs expert owned by the company;
• h. The corporate guarantee as meant in Article 4 paragraph (1);
• i. Other information that can provide a positive description of company, e.g. registered as a compliant taxpayer at the Directorate General of Taxation, company profile and ISO certificate.

(4) Procedures for obtaining the facility of priority lane are as stipulated in Attachment V to this regulation.

Article 10

(1) Heads of Regional Offices turn down or pass on the applications as meant in Article 9 paragraph (1).

(2) The Director General accepts or reject the applications forwarded by Heads of Regional Offices.

(3) Based on the rejected applications, new applications can be submitted again in not faster than 6 (six) months as from the date of rejection and after importer fulfill the requirements as contained in the reasons for rejection.

Article 11

Procedures for settlement of imported goods by electronic PIB through customs EDI networks, diskette and manually are as stipulated in Attachments VI, VII and VIII to this regulation.

Article 12

(1) Importers stipulated as UP are prioritized to undertake customs audit in not later than 6 (six) months as from the date of stipulation, although they have not included into the List of Audit Object Plan (DROA).

(2) The next customs audit is implemented on the basis of results of the audit as meant in paragraph (1) by observing the level of risk and/or compliance.

Article 13

(1) Priority-lane importers can submit application for improving customs declaration data already conveyed as long as the mistake is attributabl2 to real negligence.

(2) The application for improving as meant in paragraph (1) is submitted:

• a. before the goods come out of Customs Area;
• b. before Customs and Excise Official find the mistake; and/or
• c. before securing stipulation from Customs and Excise Official.

(3) The application as meant in paragraph (1) is submitted to Heads of Service Offices.

(4) Heads of Service Offices examine and make decision on the basis of the mechanism as stipulated in Attachment IX to this regulation.

Article 14

Priority-lane importers securing the relief as meant in Article 3 paragraph (1) letter f that fail to meet the obligation of periodical payment as meant in Article 5 are obliged to settle import duty, excise and PDRI as well as:

• a. subjected to administrative sanction in the form of the fine as meant in Article 8 paragraph (6) of Law No. 10/1995 on customs affairs;
• b. facility of periodical payment on behalf of the said importers is revoked for 6 (six) months, starting from the date of maturity.

Article 15

(1) The facility of priority lane is revoked provisionally for 6 (six) months in the case of:

• a. violation of any of the provisions on the requirements as meant in Article 2 paragraph (2); and/or
• b. failure to meet the licensing provisions stipulated by technical institutions concerned.

(2) The provisionally revoked facility of priority lane as meant in paragraph (1) is effective again after the expiration of the period of revocation in the case of the said IJP not committing other violation in the period.

(3) The provisional revocation as meant in paragraph (1) can be extended in the case of violation committed by IJP being in the course of settlement.

Article 16

The facility of priority lane is revoked permanently if:

• a. the relevant applies for revocation;
• b. the relevant does not undertake customs activities in the import field for 6 (six) months continuously;
• c. the court decides that the said IJP committed crime in the customs and/or excise field.

Article 17

(1) Priority-lane importers make import report and give up the report to Heads of Service Offices overseeing the import place every six months as from the date of stipulation as IJP, in the form of hard copy and soft copy.

(2) The report as meant in paragraph (1) is made in the model according to the specimen as meant in Attachment X to this regulation.

Article 18

(1) Heads of Service Offices reconcile the report as meant in Article 17.

(2) In the case of any difference being found in the report as meant in Article 17 and the import data contained in Service Offices, the Prevention and Investigation Section in the Service Offices further examine and/or pass on the issue to Heads of Regional Offices for further processing.

Article 19

The facility of priority lane can be effective throughout the Indonesian Customs Area.

Article 20

The facility of priority lane granted on the basis of Decision of the Director General of Customs and Excise No. KEP-07/BC/2003 remains effective with the pro vision that the said IJP give up written guarantee in the form of the corporate guarantee as regulated in Article 4 paragraph (1).

Article 21

With the enforcement of this regulation, provisions on the priority lane as regulated in Regulation of the Director General of Customs and Excise No. KEP-07/BC/2003 contravening this regulation are declared null and void.

Article 22

The regulation comes into force after 30 (thirty) days as from the date of stipulation.

For public cognizance, the regulation shall be announced by placing it in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On June 15, 2005
THE DIRECTOR GENERAL
sgd
EDDY ABDURRACHMAN

Attachment to REGULATION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. 11/BC/2005