REGULATION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. P-17/BC/2005

ON
AMENDMENT TO THE DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. KEP-81/BC/1999
ON
GUIDELINES FOR IMPLEMENTATION OF DESIGNATION
OF CUSTOMS VALUE FOR CALCULATION OF IMPORT DUTY

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

• a. that, after the enforcement of the Decision of the Director Genera) of Customs and Excise No. KEP-44/BC/2003 dated July 17, 2002 on Amendment to the Decision of the Director General of Customs and Excise No. KEP-81/BC/1999 on Guidelines for Implementation of Designation of Customs Value for Calculation of Import Duty, it is deemed necessary to amend the provisions regarding value test;
• b. that, in the value test by comparing one value with the other, it has to be observed the actual differences in prices, which are still within the tolerated limit.

In view of:

• a. Law No. 7/1994 on Ratification of Agreement Establishing 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 No. 690/KMK.015/1996 dated December 18, 1996 on Customs Value for Calculation of Import Duty;
• d. Decree of the Minister of Finance No. 491/KMK.05/1996 dated July 31, 1996 on Basis for Calculation of Import Duty on Import Commodities;
• e. Decree of the Minister of Finance No. 453/KMK.04/2002 on Customs Procedure In The Field of Import as already amended by Decree of the Minister of Finance No. 548/KMK.04/2002 on Amendment to Decree of the Minister of Finance No. 453/KMK.04/2002 on Customs Procedure In The Field of Import;
• f. Decree of the Minister of Finance No. 02/KMK.01/2001 of January 2001 on Organization and Operational Procedure 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 Guidelines for Implementation of Designation of Customs Value for Calculation of Import Duty as amended latest by Decision of the Director General of Customs and Excise No. KEP-69/BC/2003 dated March 31, 2003 on Amendment to Decision of the Director General of Customs and Excise No. KEP-81/BC/1999 on Guidelines for Implementation of Designation of Customs Value for Calculation of Import Duty;

DECIDES:

To stipulate:

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON AMENDMENT TO DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE No. KEP-81/BC/1999 ON GUIDELINES FOR IMPLEMENTATION OF DESIGNATION OF CUSTOMS VALUE FOR CALCULATION OF IMPORT DUTY.

Article 1

To amend Article 23 paragraphs (2) and (3) of the Decision of the Director General of Customs and Excise No. KEP-81/BC/1999 on Guidelines for Implementation of Designation of Customs Value for Calculation of Import Duty to become as follows:

"(2) In case that the result of the value test, as meant in paragraph (1), shows that the notified customs value is lower, less than, or equal to 5%, equal to, or higher than the prices of identical or similar goods in Price Data Base 1, the customs value notified in the PIB is acceptable.

(3) In case that the value test into the notification of customs value shows that the notified customs value is less than, more than 5% of prices of identical or similar goods in Price Data Base l, the Customs and Excise Official shall make Information of Customs Value (INP) as a notification to the buyer:

a. that the Customs and Excise Official doubts the honesty of the notification of customs value;

b. To submit declaration of facts relating to transactions and/or import of the goods in the form of Customs Value Declaration (DNP)."

Article 2

To amend Article 24 paragraph (1) of the Decision of the Director General of Customs and Excise No. KEP-81/BC/1999 on Guidelines for Implementation of Designation of Customs Value for Calculation of Import Duty to become as follows:

"(1) The Information of Customs Value, as meant in Article 23 paragraph (3), shall be delivered to importer/ buyer or its agent not later than the following second day after the result of the value test into notification of customs value, as meant in Article 23, shows that the notified customs value is less than, more than S% of prices of identical or similar goods in Price Data Base 1."

Article 3

To amend item 3.3 of Attachment II to the Decision of the Director General of Customs and Excise No. KEP-81/BC/1999 on Guidelines for Implementation of Designation of Customs Value for Calculation of Import Duty to become as follows:

"3.3 To find out whether the relation between seller and buyer affects prices of goods or not, a comparison shall be made between the customs value notified in import declaration and the value test. In case that the result of the comparison shows that:

a. The customs value notified in the import declaration is less than or equal to 5%, equal to or higher than the customs value of identical or similar goods as contained in the value test, the relation between seller and buyer shall be deemed not affecting prices so that the notified customs value is acceptable.

b. The notified customs value is less than 5% of customs value of identical or similar goods as contained in the value test, the relation between seller and buyer shall be deemed affecting prices so that the customs value notified in the import declaration is unacceptable. The customs value for the import declaration shall be determined based on one of the methods of Methods II to VI applied hierarchically."

Article 4

To amend items 6.2 and 7.2 of Attachment II to the Decision of the Director General of Customs and Excise No. KEP-81/BC/1999 on Guidelines for Implementation of Designation of Customs Value for Calculation of Import Duty to become as follows:

"6.2 In case there is relation between seller and buyer:

a. An evaluation with the value test shall be performed to find out whether the relation between seller and buyer affects the prices as a result of the value test:

- of Buyer - of Customs and Excise Service Office

PIB No: Price Data Base II:

Date: Key No:

b. The result is:

a) ...% less than the value test;

b) Equal to or higher than the value test.

c. The result of the evaluation shows that the relation does not affect/affects prices (delete one of them)."

"7.2. The result of the value test shows that the notified customs value:

a. Is ...% less than the Price Data Base 1, the notified customs value is acceptable/need to deliver Information of Customs Value to ask for delivery of Customs Value Declaration (delete one of them).

b. Is equal to or higher than the Price Data Base 1, the notified customs value is acceptable (Method 1)."

Article 5

With the validity of this Regulation, Decision of the Director General of Customs and Excise No. KEP-44/BC/2002 on Amendment to the Decision of the Director General of Customs and Excise No. KEP-81/BC/1999 on Guidelines for Implementation of Designation of Customs Value for Calculation of Import Duty becomes invalid.

Article 6

This Regulation shall be valid from the date it is stipulated.

Stipulated in Jakarta
On September 29, 2005
THE DIRECTOR GENERAL,
sgd
EDDY ABDURRACHMAN