REGULATION OF THE MINISTER OF FINANCE
No. 160/PMK.04/2010

CONCERNING
CUSTOMS VALUE FOR THE CALCULATION OF IMPORT DUTY

BY GRACE OF THE ALMIGHTY GOD,
THE MINISTER OF FINANCE,

Attachment

Considering:

That in order to exercise provisions of Article 15 paragraph (7) of Law No. 10/1995 concerning Customs as amended by Law No. 17/2006, it is necessary to stipulate a Regulation of the Minister of Finance concerning Customs Value for the Calculation of Import Duty;

In view of:

1. Law No. 10/1995 concerning Customs (Statute Book of the Republic of Indonesia No. 75/1995, Supplement to Statute Book of the Republic of Indonesia No. 3612) as amended by Law No. 17/2006 (Statute Book of the Republic of Indonesia No. 93/2006, Supplement to Statute Book of the Republic of Indonesia No. 4661);

2. Presidential Decree No. 56/P/2010;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF FINANCE CONCERNING CUSTOMS VALUE FOR THE CALCULATION OF IMPORT DUTY.

CHAPTER I
GENERAL PROVISIONS

Article 1

In this Ministerial Regulation:

1 Customs Law is Law No. 10/1995 concerning Customs as amended by Law No. 17/2006.

2. Person is an individual person or legal entity.

3. Inter related persons or those that are related are:

• a. employee or management in a company simultaneously acting as an employee or management in another company;
• b. parties legally known/understood as partners in trade;
• c. employee and employer;
• d. parties who one of them directly or indirectly possesses, controls, or holds 5% (five percent) or more of the circulating shares;
• e. parties who one of them control other partner directly or indirectly;
• f. parties controlled by a third party directly or indirectly;
• g. patties who simultaneously control a third party directly or indirectly; or
• h. members of a family i.e. husband, wife, parents, children, older/younger brother/sister (same parents or not), grandfather, grandmother, grandchildren, uncle, aunt, nephew, parents in law, children in law, and brother/sister in law.

4. Importer is an individual person or legal entity importing goods.

5. Two goods are considered identical, hereinafter called as identical goods, if both are the same in all matters, at least the same physical character, quality, and reputation, and:

• a. produced by the same producer in the same country; or
• b. produced by another producer in the same country.

6. Two goods are considered to be similar, hereinafter called as similar goods, if both possess the same characteristic and material components, therefore can perform the same functions and can be exchanged commercially, and:

• a. produced by the same producer in the same country; or
• b. produced by another producer in the same country.

7. Factual proof or objective and measured data is proof or data based on documents that are really available where-in there are certain units, values or measurements in the form of numbers, words and/or sentences.

8. Commercial level is the level or status of a buyer, such as whole seller, retailer, and end user.

9. Customs Value Database is a collection of data of imported goods value on Cost, Insurance, and Freight (CIF) and/or re-calculated imported goods value, available in a Customs Zone.

10. Testing of genuineness is a checking activity on customs value performed by the Customs and Excise Official in the context of evaluating the genuineness of a customs value notification.

11. Customs Value Information hereinafter abbreviated INP, is a notification of a Customs and Excise Official to an importer to deliver statement on facts related with the transaction of imported goods.

12. Customs Value Declaration hereinafter abbreviated DNP, is a statement of an importer on facts related to a transaction of imported goods accompanied with its supporting documents.

13. Customs Office is an office within the Directorate General of Customs and Excise where customs obligations are fulfilled in accordance with provisions of Customs Law.

14. Customs Zone is the territory of the Republic of Indonesia covering land areas, waters and the air space above it, and certain places in the Exclusive Economy Zone and Continental Shelf where in Customs Law is applicable.

15. Director General is the Director General of Customs and Excise.

16. Customs and Excise Official is an employee of the Directorate General of Customs and Excise assigned in a certain position to perform a certain duty based on Customs Law.

Article 2

(1) Customs value for the calculation of import duty is the value of a transaction of related imported goods meeting certain requirements.

(2) The customs value as intended in paragraph (1) is the customs value available in International Commercial Terms (Incoterms) Cost, Insurance, and Freight (CIF).

Article 3

(1) In the event customs value for the calculation of import duty cannot be determined based on the transaction value as intended in Article 2 paragraph (1), the customs value shall be determined based on the transaction value of identical goods.

(2) In the event customs value for the calculation of import duty cannot be determined based on the transaction value as intended in Article 2 paragraph (1) and the transaction value of identical goods as intended in paragraph (1), customs value shall be determined based on the transaction value of similar goods.

(3) In the event customs value for the calculation of import duty cannot be determined based on the transaction value as intended in Article 2 paragraph (1), the transaction value of identical goods as intended in paragraph (1) and the transaction value of similar goods as intended in paragraph (2), then the customs value shall be determined based on deduction method.

(4) In the event customs value for the calculation of import duty cannot be determined based on the transaction value as intended in Article 2 paragraph (1), the transaction value of identical goods as intended in paragraph (1), the transaction value of the similar goods as intended in paragraph (2), and the deduction method as intended in paragraph (3), then the customs value shall be determined based on computation method.

(5) In the event customs value for the calculation of import duty cannot be determined based on the transaction value as intended in Article 2 paragraph (1), the transaction value of identical goods as intended in paragraph (1), the transaction value of the similar goods as intended in paragraph (2), the deduction method as intended in paragraph (3), and the computation method as intended in paragraph (4), then the customs value shall be determined based on fallback method (fallback).

Article 4

On the request of an importer, the stipulation of customs value based on the provisions as intended in Article 3 paragraph (4) is entitled to be used preceding the provisions as intended in Article 3 paragraph (3).

CHAPTER II
CUSTOMS VALUE PROVISIONS FOR THE CALCULATION OF IMPORT DUTY

Part One
Transaction Value

Article 5

(1) The transaction value as intended in Article 2 paragraph (1) constitutes the price really paid or that must be paid by a buyer to the seller on goods sold for export into Customs Zone added with costs and/or values that must be added to a transaction value on condition that the costs and/or values are not yet included in the price that are really paid or that must be paid.

(2) The transaction value as intended in paragraph (1) shall come from a sale/purchase transaction in a free competition condition.

(3) Costs and/or values as intended in paragraph (1) are in the form of:

• a. costs paid by a buyer not yet contained in the price really paid or that must be paid, in the form of:
• 1. intermediary commission and services, except buying commission;
• 2. packing costs, being an inseparable part of the related goods for the interest of customs office, and
• 3. packaging costs covering material costs and wages of packing workers;
• b. value of goods and services in the form of:
• 1. material, components, parts, and similar goods contained in imported goods;
• 2. equipment, moulds, and similar goods used in the production of imported goods;
• 3. material used in the production of imported goods; and
• 4. technique, development, art works, design, planning, and sketches performed any where outside of a Customs Zone and required for the production of imported goods, supplied directly or indirectly by a buyer, on condition that the goods and services are:
• 1) supplied freely or with a lower price;
• 2) for the interest of production and for the sale of export of imported goods that were bought; and
• 3) price is not yet included in the price really paid or that must be paid for the related imported goods;
• c. royalty and license costs that must be paid by a buyer directly or indirectly as a term of sale purchase of the valued imported goods, to the extent the royalty and license costs are not yet included in the really paid price of the related imported goods;
• d. value of every part of the product or yield gained by a buyer that shall be submitted directly or indirectly to the seller, on sales, utilization, or use of the related imported goods (proceeds);
• e. transportation costs of imported goods sold to be exported to ports or places of import in a Customs Zone;
• f. loading, unloading, and handling costs related with the transportation of imported goods to ports or places of import in a Customs Zone; and
• g. insurance costs.

(4) Price really paid or that must be paid as intended in paragraph (1) is the total payment of imported goods that had been paid or will be paid by a buyer to the seller or for the interest of the seller.

(5) Price that is really paid or that must be paid as intended in paragraph (1) does not cover:

• a. costs arising from activities performed by a buyer for his own interest;
• b. costs that can be expressly differentiated from the price really paid or must be paid arising after the import of goods;
• c. dividend; and/or
• d. interest.

(6) Price that is really paid or that must be paid as intended in paragraph (1) is entitled to take into account discount elements in accordance with genuineness in trade practices.

(7) Procedure on the stipulation of customs value for the calculation of import duty based on transaction value of the related imported goods is as stipulated in Attachment I of this Minister of Finance Regulation.

Article 6

(1) Costs and/or values that are added to the price that is really paid or that must be paid as intended in Article 5 paragraph (3) must:

• a. be based on factual proof or objective and measured data; and
• b. not be included in price really paid or that must be paid.

(2) Costs and/or values other than those as intended in Article 5 paragraph (3) cannot be added to the price really paid or that must be paid.

(3) Example of the calculation of import duty containing assist originating from Customs Zone is as stipulated in Attachment II of this Minister of Finance Regulation.

Article 7

(1) The transaction value as intended in Article 2 paragraph (1) can be accepted as customs value to the extent it meets the following requirements:

• a. there is no limitation on the utilization or use of the imported goods other than limitations that are:
• 1. applied or obligated by prevailing statutory regulations in the Customs Zone;
• 2. limiting the geographical area of the place for the re-sale of the related goods; or
• 3. not affecting the value of goods substantially;
• b. there are no requirements or considerations applied on the transaction or value of the imported goods causing the value of the related imported goods cannot be used to determine its customs value;
• c. there are no proceeds as intended in Article 5 paragraph (3) d that must be delivered by a buyer to the seller, unless the proceeds can be added to the price really paid or that must be paid; and
• d. there is no relationship between the seller and the buyer as intended in Article 1 number 3 that affects the price of goods.

(2) Procedure on checking the effect of relations between the seller and buyer on the price of goods is as stipulated in Attachment III of this Minister of Finance Regulation.

Article 8

The transaction value as intended in Article 2 paragraph (1).shall not be used to determine customs value In the event:

• a. the imported goods are not objects of sale/purchase transactions or sale for export to a Customs Zone;
• b. the transaction value does not meet the requirements to be accepted as customs value as intended in Article 7;
• c. the addition or subtraction that shall be imposed on price that is really paid or that must be paid is not supported by factual proof or objective and measured data; and/or
• d. Customs and Excise Official has reasons based on factual proof or objective and measured data not to accept the transaction value as customs value.

Part Two
Transaction Value of Identical Goods

Article 9

(1) Transaction value of the identical goods as intended in Article 3 paragraph (1) shall be used as basis for the stipulation of customs value to the extent it meets the following requirements:

• a. it originates from an import customs notification where the customs value had been determined based on transaction value;
• b. date of Bill of Lading (B/L) or Airway Bill (AWB) is the same or within a period of 30 (thirty) days before or after the date of B/L or AWB of the imported goods that is being determined as of its customs value; and
• c. level of trade and amount of goods are the same as the level of trade and amount of imported goods that is being determined as of its customs value.

(2) Import customs notifications as intended in paragraph (1) a shall meet the following criteria:

• a. the import customs notifications shall be submitted by an importer having a clear field of business;
• b. the import customs notifications shall clearly informed the description, specification and unit of goods; and
• c. the import customs notifications may not be submitted by the same importer with an import customs notifications being determined as of its customs value, except if based on the result of customs audit, the customs value on the import customs notification shall be determined based on transaction value.

(3) In the event there is more than one transaction value of identical goods as intended in paragraph (1), the customs value to be used is that having the lowest transaction value.

Article 10

(1) In the event there is no data of identical goods as intended in Article 9 paragraph (1) c, then data of identical goods of other conditions shall be used on condition that adjustments shall be made on the:

• a. amount of goods, if the amount of goods differs but the level of trade are the same;
• b. level of trade, if the level of trade differs but the amount of goods are the same; or
• c. amount of goods and level of trade, if the amount of goods and level of trade are different.

(2) The adjustments as intended in paragraph (1) shall be performed based on factual proof or objective and measured data enabling the performance of adjustments properly and precisely.

(3) In the event the factual proof or objective and measured data as intended in paragraph (2) are not available, adjustments cannot be performed and the transaction value of the identical goods cannot be used to determine the customs value.

(4) Example of the adjustment of the level of trade and/or amount of goods is as described in Attachment IV of this Minister of Finance Regulation.

Part Three
Transaction Value of Similar Goods

Article 11

(1) Transaction Value of similar goods as intended in Article 3 paragraph (2) shall be used as basis for the stipulation of customs value on condition it meets the following requirements:

• a. it originates from an import customs notification where its customs value had been stipulated based on transaction value;
• b. the date of the Bill of Lading (B/I) or Airway Bill (AWB) there-of is the same or within a period of 30 (thirty) days before or after the date of B/L or AWB of the imported goods being determined as of its customs value; and
• c. the level of trade and amount of goods are the same as the level of trade and amount of imported goods being determined as its customs value.

(2) Notification on import customs as intended in paragraph (1) a shall meet the following criteria:

• a. the import customs notifications shall be submitted by an importer having a clear field of business;
• b. the import customs notifications must clearly inform the description, specification and unit of goods; and
• c. the import customs notifications may not be submitted by the same importer with an import customs notification being determined as of its customs value, unless it is based on the result of customs audit, the customs value in the import customs notifications is determined based on the transaction value.

(3) In the event there is more than one transaction value of similar goods as intended in paragraph (1), the lowest transaction value of the similar goods shall be used to determine the customs value.

Article 12

(1) In the event there is no data of similar goods as intended in Article 11 paragraph (1) c, data of similar goods with other conditions may be used to the extent adjustments shall be made on:

• a. the amount of goods, if it differs but the level of trade is the same;
• b. the level of trade, if it differs but the amount of goods is the same; or
• c. amount of goods and level of trade, if the level of trade and amount of goods are different.

(2) The adjustments as intended in paragraph (1) are performed based on factual proof or objective and measured data enabling the performance of adjustments properly and precisely.

(3) In the event the factual proof or objective and measured data as intended in paragraph (2) are not available, adjustments cannot be made and the transaction value of the similar goods may not be used to determine its customs value.

(4) Example of the adjustment of the level of trade and/or amount of goods is as stipulated in Attachment V of this Minister of Finance Regulation.

Part Four
Deduction Method

Article 13

Deduction method as intended in Article 3 paragraph (3) is a method for the stipulation of customs value of imported goods based on unit price arising from sales by an importer in a market within a Customs Zone on:

• a. related imported goods;
• b. identical goods; or
• c. similar goods.
• in the condition as at the time of import and subtracted by costs arising after the import.

Article 14

(1) Unit price used as basis for the calculation of deduction method as intended in Article 13 must meet the following requirements:

• a. unit price is acquired from sales in a market within the Customs Zone between sellers and buyers not inter-related and occurring on the same date or within a period of 30 (thirty) days before or after the date of registering the import customs notification that is being determined as of its customs value;
• b. constitutes the unit price of the related imported goods, identical goods or similar goods sold in the largest quantity;
• c. In the event there is no sale within the period as intended in paragraph a, unit price may be taken from sales after the date of the import customs notifications that is being determined as of its customs value, within a period of 90 (ninety) days from the date of import of the goods the unit price thereof will be used to determine the customs value; and
• d. not constituting sale in a market within the Customs Zone on the related imported goods, identical goods or similar goods to the buyer supplying the value of goods and services as intended in Article 5 paragraph (3) b for the production of the related imported goods.

(2) In the event there is no unit price meeting the requirements as intended in paragraph (1), the deduction method shall not be used to determine the customs value of the related imported goods.

Article 15

(1) The customs value as intended in Article 13 is determined by subtracting the unit price with certain costs arising after an import occurred, i.e.:

• a. commission or profit and general expenses on the sale of imported goods in markets within the Customs Zone;
• b. transportation costs, insurance, loading costs, unloading costs and other costs borne by the buyer after the arrival of the imported goods at the port of destination in a Customs Zone; and/or
• c. import duty, excise, and tax in the context of import.

(2) Data on the costs as intended in paragraph (1) paragraphs a and b shall be obtained from a buyer, except if the data is not in accordance with common practice in the Customs Zone.

(3) In the event the data as intended in paragraph (2) is not available, the Customs and Excise Official shall use data available in the Customs Zone.

Article 16

(1) In the event there are no imported goods or identical goods or similar goods sold in the condition as during its import in the importing country, then the customs value shall be based on the unit price of the sold imported goods after undergoing further process in the largest amount to a buyer having no relations with the seller in the importing country by taking into account the added value of the goods and the subtracting elements as intended in Article 15 paragraph (1).

(2) Provisions on procedure for the selection of unit price and subtracting costs are as stipulated in Attachment VI of this Minister of Finance Regulation.

Part Five
Computation Method

Article 17

(1) The computation method as intended in Article 3 paragraph (4) is a method for the stipulation of customs value by adding elements forming customs value of the related imported goods, i.e.:

• a. costs or price of raw material and production process or other processes carried out in the production of related imported goods;
• b. profit and general expenses the amount thereof is the same as or close to the profit and general expenses in the sale of similar goods made by the producer in the exporting country to be sent to the Customs Zone;
• c. transportation costs until with the port of destination in the Customs Zone, including loading, unloading, handling costs; and
• d. insurance costs for the shipment of goods until the port of destination in the Customs Zone.

(2) Elements forming the customs value as intended in paragraph (1) include:

• a. value of supplied goods and services as intended in Article 5 paragraph (3) b; and/or
• b. costs borne by the buyer in the form of:
• 1. intermediary commission and services, except purchasing commission;
• 2. packing costs for the interest of customs office to the extent the packing material constitutes an inseparable part of the related goods; and/or
• 3. packaging costs covering wages of workers and packing material.

(3) Computation method is used only if there is an inter-relation between the seller and the buyer, and the producer or his/her proxy is willing to provide information to Customs and Excise Officials on elements forming customs value and is willing to provide facilities for further checks if required.

(4) Provisions on elements forming customs value based on computation method are stipulated in Attachment VII of this Minister of Finance Regulation.

Part Six
Fallback Method

Article 18

(1) The Fallback Method as intended in Article 3 paragraph (5) is performed by repeating the principles and provisions as intended in Article 5, Article 6, Article 7, Article V8, Article 9, Article 10, Article 11, Article 12, Article 13, Article 14, Article 15, Article 16, and Article 17.

(2) The provisions as intended in paragraph (1) are performed by using a proper and consistent procedure applied flexibly and based on data available in the Customs Zone with certain limitations.

(3) Provisions on the use of Fallback Method are as stipulated in Attachment VIII of this Minister of Finance Regulation.

Article 19

The stipulation lf customs value using the provisions as intended in Article 18 is not permitted to be based on:

• a. selling price of goods produced domestically;
• b. a system stipulating a higher value if there are two alternatives of comparative value;
• c. price of goods in the local market of the exporting country;
• d. production costs, other than the value calculated based on the computation method as intended in Article 18 stipulated for identical or similar goods;
• e. price of goods exported to a country other than to the Customs Zone;
• f. reference price; or
• g. value stipulated arbitrarily or fictitiously.

Article 20

(1) In the event the transportation costs as intended in Article 5 paragraph (3) e are not yet included in the transaction value, and factual proof or objective and measured data on the amount of transportation costs are not available, then the amount of transportation cost to be used in the stipulation of customs value as intended in Article 18 shall be determined with the following method:

• a. Transportation by sea:
• 1. 5% (five percent) of the value of Free On Board (FOB) for goods originating from ASEAN;
• 2. 10% (ten percent) of the value of FOB for goods originating from Asia that are non ASEAN or Australia; or
• 3. 15% (fifteen percent) of the value of FOB for goods originating from countries other than those as intended in number 1 and number 2.
• b. Transportation by air is stipulated based on International Air Transport Association (IATA) tariff.

(2) In the event there is more than one type of goods in an import customs notification, the amount of transportation costs for each type of goods shall be determined with the following method:

• a. comparison of the weight or volume of the goods with the total weight or volume of the goods, multiplied by the amount of the total transportation costs; or
• b. In the event the stipulation as intended in paragraph a cannot be performed, then it shall be determined based on comparison of the price of the goods with the total price of goods, multiplied by the total transportation costs.

Article 21

(1) In the event the insurance costs as intended in Article 5 paragraph (3) g are not yet included in the transaction value, and factual proof or objective and measured data on the amount of insurance costs are not available, the amount of insurance costs used in the stipulation of customs value as intended in Article 18 is 0.5% (zero point five percent) of Cost and Freight (CFR) value.

(2) In the event there is more than one type of goods in an import customs notification, the amount of insurance costs for each type of goods shall be determined with the following method:

• a. comparison between the weight or volume of the goods with the total weight or volume of goods, multiplied by the total insurance costs; or
• b. If the stipulation as intended in paragraph a, cannot be performed, then it shall be determined based on the comparison of the price of the goods with the total price of the goods, multiplied by the total insurance costs.

(3) In the event the insurance costs as intended in Article 5 paragraph (3) g is taken in the Customs Zone based on factual proof or objective and measured data, the amount of insurance costs used in the stipulation of customs value as intended in Article 18 is considered as 0 (zero).

CHAPTER III
STIPULATION OF CUSTOMS VALUE

Part One
Customs Value Check

Article 22

(1) In the context of stipulating customs value for the calculation of import duty, Customs and Excise Officials shall perform checks on the notified customs value in import customs notifications and all documents that are its attachments.

(2) Checks on customs value as intended in paragraph (1) cover:

• a. identification of whether the related imported goods is an object of a sale-purchase transaction causing the goods to be exported into the Customs Zone;
• b. checks on transaction value requirements to be accepted and stipulated as customs value;
• c. checks on elements of costs and/or value not entitled to be included in a transaction value;
• d. checks on elements of costs and/or value that had to be added in a transaction value;
• e. checks on results of physical inspection on goods subjected to physical inspection; and
• f. tests on the genuineness of customs value notification set forth in an import customs notification.

(3) Checks on customs value as intended in paragraph (2) need not be exercised on an import customs notification if the:

• a import customs notification is submitted by low risk category producer importer;
• b. import has a Mitra Utama (MITA) priority track; or
• c. import has a Mitra Utama (MITA) non-priority track.

(4) The provisions as intended in paragraph (3) are exempted for import customs notifications submitted by the importers as intended in paragraph (3) a and the import receives the track as intended in paragraph (3) c if the imported goods are:

• a. re-imported export goods;
• b. goods subject to random checks; or
• c. certain imported goods stipulated by the Government.

(5) In the event result of the physical checks as intended in Article 22 paragraph (2) e cannot be used to make checks on customs value, the Customs and Excise Official may return the result of the physical checks to the goods checker to be completed so that it can clearly show the type, specification, unit, and amount of goods.

Article 23

(1) If based on the result of the checks as intended in Article 22 paragraph (2) it shows that:

• a. the related imported goods are not objects of a sale-purchase transaction;
• b. requirements of transaction value so it can be accepted and stipulated as customs value are not met;
• c. cost and/or value elements that should be added to/not included in the transaction value cannot be calculated and/or not based on factual proof or objective and measured data; or
• d. result of physical checks shows that the type, specification or amount of the notified goods are not in accordance with the notification,
• the Customs and Excise Official shall determine the customs value based on the transaction value of identical goods up to the fallback method applied according to the hierarchy of its implementation.

(2) If based on the result of the checks as intended in Article 22 paragraph (2) it shows that:

• a. the related imported goods are objects of a sale purchase transaction;
• b. requirements of transaction value so it can be accepted and stipulated as customs value are met;
• c. cost and/or value elements that shall be added/not included in the transaction value can be calculated based on factual proof or objective and measured data; and
• d. result of physical checks shows that the type, specification and amount of the notified goods are in accordance with notification,
• the Customs and Excise Official shall perform tests on genuineness.

Part Two
Customs Value Database

Article 24

(1) In the context of checks on customs value as intended in Article 22 paragraph (2) letter f, Customs and Excise Officials shall use Customs Value Database.

(2) The Customs Value Database as intended in paragraph (1) consists of:

• a. Customs Value Database I; and
• b. Customs Value Database II.

(3) Data sources for Customs Value Database I are:

• a. Customs Value Database II;
• b. Notification of import customs that had been determined as of its customs value based on transaction value;
• c. Data on Audit Result Report where its customs value is determined based on transaction value;
• d. Data on Objection Decision Letter where its customs value is determined based on transaction value; and/or
• e. Catalogue, brochure, or other information originating from in and out of Customs Zone that had performed a re-calculation process.

(4) Data sources for Customs Value Database II are import customs notifications the customs value thereof are determined based on transaction value with a date of its Bill of Lading (B/L) or Air Way Bill (AWB) shall be in a maximum of 60 (sixty) days before the compilation of Customs Value Database II.

Article 25

(1) Customs Value Database I as intended in Article 24 paragraph (2) a is used as:

• a. parameter in testing activities of the genuineness of customs value notification;
• b. one of the data for the determination and stipulation of customs value thru official assessment way;
• c. one of the data for the determination and re-stipulation of customs value by the Director General or the appointed Customs and Excise Official; and/or
• d. one of the data for the determination and stipulation of customs value by Customs and Excise Officials using the fallback method.

(2) Customs Value Database II as intended in Article 24 paragraph (2) b is used as:

• a. test value in the context of identification of relations between the seller and buyer affecting price In the event a buyer did not deliver a test value;
• b. parameter in testing activities of the genuineness of customs value notification in the event there is no comparative data in Customs Value Database - I; and/or
• c. one of the data for the determination and stipulation of customs value by Customs and Excise Officials using the transaction value of identical goods or transaction value of similar goods.

(3) Customs Value Database as intended in Article 24 paragraph (1) is applicable from the initial applicable date stated in the Customs Value Database application system.

(4) Stipulation of the application of Customs Database is made by the Director General or appointed Customs and Excise Official.

Part Three
Genuineness Test

Article 26

(1) Genuineness Test as intended in Article 22 paragraph (2) f is performed by comparing the price of goods notified in the import customs notification with the price of identical goods in Customs Value Database I.

(2) Customs values notified in import customs notifications are categorized:

• a. proper, if a genuineness check shows that the notified customs value is:
• 1. less than 5% (five percent);
• 2. smaller by 5% (five percent);
• 3. equal to; or
• 4. greater, than the price of identical goods in Customs Value Database I;
• b. improper, if a genuineness check shows that the notified customs value is found to be less than 5% (five percent) of the price of identical goods in Customs Value Database I.

(3) If based on the result of a genuineness test the customs value is:

• a. proper, the Customs and Excise Official determines customs value based on transaction value of the goods;
• b. improper, the Customs and Excise Official shall:
• 1. determine the customs value based on transaction value of the related goods and inform it to the actuating and investigating unit of Customs Office for low risk category general importers; or
• 2. issue INP for medium, high or very high risk category importers.

Article 27

(1) If comparative data of identical goods is not found in Customs Value Database I, the Customs and Excise Official shall perform genuineness test using the comparative data of identical goods in Customs Value Database II.

(2) The notified customs value in an import customs notification is categorized:

• a. proper, if based on the result of genuineness checks it shows that the notified customs value is:
• 1. equal to; or
• 2. greater,
• than the price of identical goods in Customs Value Database II;
• b. improper, if the result of a genuineness check shows that the notified customs value is smaller than the price of identical goods in Customs Value Database II.

(3) In the event the result of the genuineness test as intended in paragraph (2), the customs value is:

• a. proper, the Customs and Excise Official determines customs value based on transaction value of the goods;
• b. improper or a comparative data is not available, the Customs and Excise Official shall:
• 1. determine customs value based on transaction value the goods and inform it to the actuating and investigating unit of Customs Office for low risk category general importers; or
• 2. issue INP for medium, high or very high risk category importers.

Part Four
Customs Value Information, Customs Value Declaration and Consultation

Article 28

(1) Customs and Excise Officials shall issue and send the INP as intended in Article 26 paragraph (3) b number 2 and Article 27 paragraph (3) b number 2 to the importer by electronic media or with other means of sending.

(2) On the issuance of INP by the Customs and Excise Official as intended in paragraph (1), the importer shall:

• a. deliver DNP within a period of a maximum of 3 (three) workdays after the issuance of INP;
• b. deliver all information, documents, and/or statements required in the context of the stipulation of customs value; and
• c. give explanations orally and in writing on the way the buyer or his/her proxy calculates customs value, elements forming the customs value, and other matters related with the transaction.

(3) If based on the result of checks on DN P there is a transaction value not yet ensured as of its truth and accuracy, the Customs and Excise Official may conduct a consultation with the importer concerned or his/her proxy.

(4) The consultation as intended in paragraph (3) may be exercised only on medium risk category importers or high risk category importers.

(5) In the event the importer did not respond the request as intended in paragraph (2) or the result of the consultation as intended in paragraph (3) the value of transaction cannot be ensured as of its truth and accuracy, the Customs and Excise Official shall stipulate the customs value based on the transaction value of identical goods up to the fallback method according to the hierarchy of its use.

(6) Form of INP as intended in paragraph (2) is in accordance with the example stipulated in Attachment IX of this Minister of Finance Regulation.

(7) Format of DNP as intended in paragraph (3) is in accordance with the example stipulated Attachment X of this Minister of Finance Regulation.

CHAPTER IV
STIPULATION OF CUSTOMS VALUE

Article 29

(1) A Customs and Excise Official is entitled to stipulate customs value of imported goods for the calculation of import duty before the delivery of the import customs notifications or within a period of 30 (thirty) days from the date of the import customs notifications.

(2) Stipulation within the period of 30 (thirty) days from the date of the import customs notification as intended in paragraph (1) may be made only if the notified customs value differs from the real customs value of goods, hence:

• a. the import duty will be under-paid if the stipulated customs value is higher; or
• b. the import duty will be over-paid if the stipulated customs value is smaller.

(3) Stipulation before the delivery of the import customs notification as intended in paragraph (1) shall be made on certain imports by official assessment such as on temporary import, passenger goods and sent goods.

Article 30

(1) The Director General is authorized to make a re-stipulation of customs value for the calculation of import duty within a period of two (2) years accounted for from the date of the import customs notifications.

(2) In the context of the re-stipulation as intended in paragraph (1), re-checks or customs audit shall be made on the customs value.

(3) If based on the result of the re-checks or the performance customs audit on the customs value as intended in paragraph (2), it is found that:

• a. it is different from the notified customs value in the import customs notification In the event a stipulation had never been made; or
• b. different from the customs value that is the result of stipulation in the event a stipulation,
• had been made, causing an under and/or overpayment of import duty due to an error in the notification of customs value, the Director General shall make a re-stipulation.

Article 31

(1) For the purpose of the re-stipulation of customs value, Director General may demand for explanations and proofs supporting the truth and accuracy of the informed value of transaction.

(2) On the demand of the Director General as intended in paragraph (1), the importer shall:

• a. deliver all information, documents, and/or statement required in the context of scrutinizing customs value; and
• b. provide explanations orally and in writing on the method the buyer or proxy calculates the customs value, elements forming the customs value, and other data in connection with the related transaction.

(3) If the importer did not fulfil the demand as intended in paragraph (2), the Director General is entitled to use data available in the customs zone to re-stipulate the customs value.

Article 32

(1) In the stipulation of customs value, the Customs and Excise Official shall fill-in forms on Scrutinizing and Stipulation of Customs value.

(2) Forms on Scrutinizing and Stipulation of Customs Value as intended in paragraph (1) constitute work papers and brochures on the stipulation of customs value made by the Customs and Excise Official.

CHAPTER V
MISCELLANEOUS

Article 33

The importer is responsible on the truth of data, documents and/or statements submitted in the context of the stipulation of customs value.

Article 34

All information or data related with customs value having a confidential nature must be treated confidentially and not permitted to be disseminated without the approval of the party providing the information or data, unless it is required for judicature process in accordance with provisions of prevailing legislations.

Article 35

Performance provisions on Customs Value Database, Consultation Mechanism, Filling-in of Research Forms and Stipulation of Customs Value shall further be regulated with a regulation of the Director General.

Article 36

Attachments of this Minister of Finance Regulation, i.e.:

• a. Attachment I as intended in Article 5 paragraph (7);
• b. Attachment II as intended in Article 6 paragraph (3);
• c. Attachment III as intended in Article 7 paragraph (2);
• d. Attachment IV as intended in Article 10 paragraph (4);
• e. Attachment V as intended in Article 11 paragraph (4);
• f. Attachment VI as intended in Article 16 paragraph (2);
• g. Attachment VII as intended in Article 17 paragraph (4);
• h. Attachment VIII as intended in Article 18 paragraph (3);
• i. Attachment IX as intended in Article 28 paragraph (6); and
• j. Attachment X as intended in Article 28 paragraph (7),
• constitute inseparable parts from this Minister of Finance Regulation.

CHAPTER VI
TRANSITIONAL AND CLOSING PROVISIONS

Article 37

By the time this Minister of Finance Regulation commences to come to effect;

1. For import customs notifications with a registration date before this Minister of Finance Regulation comes to effect, the stipulation of customs value for the calculation of import duty shall use Decree of the Minister of Finance No. 690/KMK.05/1996 on Customs Value for the Calculation of import duty.

2. Decree of the Minister of Finance No. 690/KMK.05/1996 concerning Customs Value for the calculation of import duty shall be revoked and declared as not in effect any more.

Article 38

This Ministerial Regulation commence into effect after 30 (thirty) days from the date of enactment.

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

Stipulated on Jakarta
On September 1, 2010
MINISTER OF FINANCE,
signed,
AGUS D.W. MARTOWARDOJO