REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-38/BC/2010

CONCERNING
MECHANISM FOR CUSTOMS VALUE CONSULTATION

DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Considering:

That in the framework to implement provision in Article 35 of Regulation of the Minister of Finance No. 160/PMK.04/2010 concerning Customs Value for Calculation of Import Duty, it is necessary to stipulate Regulation of the Director General concerning Mechanism for Customs Value Consultation;

In View of:

• 1. Law No. 10/1995 concerning Customs (Statute Book No. 75/1995, Supplement to Statute Book No. 3612) as amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);
• 2. Regulation of the Minister of Finance No. 160/PMK.04/2010 concerning Customs Value for Calculation of Import Duty.

HAS DECIDED:

To stipulate:

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE CONSERNING MECHANISM FOR CUSTOMS VALUE CONSULTATION

Article 1

In this Decree:

• 1. Law on Customs is Law No. 10/1995 concerning Customs as amended by Law No. 17/2006.
• 2. Importer is individual person or legal entity who imports goods.
• 3. Test on reasonableness is activity on examination of customs value conducted by Customs and Excise Official in the framework of evaluating the reasonableness of notification of customs value.
• 4. Information of Customs Value hereinafter abbreviated as INP is notification by Customs and Excise Official to importer to provide statement concerning fact that relates transaction of imported goods.
• 5. Declaration of Customs Value hereinafter abbreviated as DNP is statement by importer about fact pertaining to transaction of imported goods with it supporting documents.
• 6. Customs Office is office within the Directorate General of Customs and Excise environment wherein customs obligation is complied with in accordance with the provisions in the Law on Customs.
• 7. Director General is Director General of Customs and Excise.
• 8. Customs and Excise Official is employee of the Directorate General of Customs and Excise appointed in certain position to carry out certain duty based on Law on Customs.
• 9. Factual evidence or data which is objective and measured is evidence or data based on available document on which document certain amount, value or measurement in the form of figure, word and/or sentences.
• 10. Consultation is clarification activity or request for further clarification from Customs and Excise Official to the importer or its proxy on the Declaration of Customs Value to determine accuracy of the transaction.

Article 2

(1) In the framework of customs value examination, Customs and Excise Official shall conduct a test on the reasonableness of customs value set forth in import customs notification.

(2) Customs and Excise Official shall issue INP if result of reasonableness test as intended in paragraph (1) is not reasonable or there is no compared data found out.

(3) INP as intended in paragraph (2) will be submitted to the importer through electronic media or other media.

(4) On the submitted INP as intended in paragraph (3), importer should:

• a. submit DNP within 3 (three) working days after the date of INP is issued;
• b. provide all required information, documents, and/or statement required in the framework of customs value determination; and
• c. give explanation either in oral or written on how the buyer or its proxy calculate customs value, customs value variables, and others related with it transaction.

(5) Oral clarification as intended in paragraph (4) c is only provided in the framework consultation as intended in Article 3 paragraph (1).

(6) For Customs Office which is not applying Computer System Service yet, the DNP as intended in paragraph (4) a will be submitted within 5 (five) working days since INP is issued.

Article 3

(1) Result of DNP examination which authenticity and accuracy are not convincing, Customs and Excise Official may endeavour consultation with the importer concerned or its proxy.

(2) Consultation as intended in paragraph (1) is held only with importer in medium risk category or high risk category.

(3) Importer category as intended in paragraph (2) is limited in the framework of obedient and risk management.

Article 4

(1) In the framework of consultation as intended in Article 3 paragraph (1), Customs and Excise Official shall issue Notification Letter of Customs Value Consultation (SPKNP) to the importer or its proxy;

(2) SPKNP as intended in paragraph (1) will be submitted through electronic media or other media;

(3) in SPKNP as intended in paragraph (1) will state all data, information and/or documents required for further explanation;

(4) format of SPKNP as intended in paragraph (1) according sample in Attachment I that constituting as integral part of this Regulation of the Director General.

Article 5

(1) Importer or its attorney should be present at the Customs Office:

• a. within a period of 2 (two) working days since the date of SPKNP in case it is submitted by electronic data.
• b. within a period of 5 (five) working days since the date of SPKNP in case it is submitted by other media.

(2) In the event consultation is attended by importer's proxy, it should completed with letter of attorney as stipulated in Attachment II that constituting as integral part of this Regulation of the Director General.

Article 6

(1) Implementation of consultation as intended in Article 3 paragraph (1) will be held at Customs Office.

(2) Consultation must be witnessed by at least 1 (one) person of Customs and Excise Official appointed by the Head of Customs Office.

Article 7

(1) In consultation as intended in Article 3 paragraph (1), importer or its proxy should give clarification as requested by Customs and Excise Official.

(2) In giving clarification as intended in paragraph (1), importer or its proxy can give additional objective and measurable data.

(3) Consultation as intended in paragraph (1) is written in Minutes of Customs Value Consultation and signed by Customs and Excise Official, importer or its proxy, and witness as intended in Article 6 paragraph (2).

(4) Format of Minutes of Customs Value Consultation as intended in paragraph (3) is decided according sample in Attachment III that constituting as integral part of this Regulation of the Director General.

Article 8

If importer or its proxy:

• a. is absent; or
• b. fail from making clarification that convince the Customs and Excise Official on the authenticity and accuracy of transaction value of imported goods;

The Customs and Excise Official shall determine customs value based on the transaction value of identical goods up to method of repeating according to the hierarchy on its use.

Article 9

Implementation of consultation of customs value between Customs and Excise Official and Importer or its proxy is held transparently and accountable.

Article 10

This Regulation of Director General takes effect on the date it is stipulated.

Stipulated in Jakarta
On October 1, 2010
DIRECTOR GENERAL
signed,
THOMAS SUGIJATA
NIP 19510621 197903 1 00