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CIRCULAR OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. SE-08/BC/2009

CONCERNING
ENFORCEMENT PROVISIONS ON THE EXPORT OF GOODS ARE REQUIRED TO HAVE LETTERS OF CREDIT (L/C)

DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

March 30, 2009

To:

• 1. Heads of Regional Offices;
• 2. Heads of Main Service Offices;
• 3. Heads of Service and Supervisory Offices;
• in Directorate General of Customs and Excise environment

In relation with stipulation of Regulation of the Minister of Trade No. 10/M-DAG/PER/3/2009 concerning the Export of Goods Required to Have Letter of Credit (L/C), it is necessary to provide following matters:

1. Exporting commodities of Crude Palm Oil (CPO) and Mining Products as stated in Attachment I and Coffee, Cacao and Rubber Commodities as stated in Attachment II of Regulation of the Minister of Trade No. 10/M-DAG/PER/3/2009, that has export value:

• a. above USD 1,000,000 (one million US Dollar) per PEB, is obliged by using L/C payment through Domestic Foreign Exchange Bank.
• b. until USD 1,000,000 (one million US Dollar) per PEB, can be paid by L/C payment or other payment form in the international trading through Domestic Foreign Exchange Bank.

2. To implement provision in paragraph 1 above, following provision is stipulated:

• a. Effective since April 1, 2009
• (1) Exporting with export value above USD 1,000,000 (one million US Dollar) per PEB:
• (a) for commodities of Crude Palm Oil (CPO) and Mining Products as stated in Attachment I of Regulation of the Minister of Trade No. 10/M-DAG/PER/3/2009:
• i. should be paid by L/C payment through Domestic Foreign Exchange Bank;
• ii. should write number and date of L/C at PEB.
• (b) for Coffee, Cacao and Rubber commodities as stated in Attachment II of Regulation of the Minister of Trade No. 10/M-DAG/PER/3/2009:
• i. can be paid by L/C payment or other payment form in the international trading through Domestic Foreign Exchange Bank;
• ii. should write number and date of L/C or number and date of other payment document at PEB.
• (2) Export with value until USD 1,000,000 (one million US Dollar) per PEB:
• All commodities as stated in Attachments I and II of Regulation of the Minister of Trade No. 10/M-DAG/PER/3/2009:
• (a) can be paid by L/C payment or other payment form in the international trading through Domestic Foreign Exchange Bank;
• (b) should write number and date of L/C or number and date of other payment document at PEB.
• b. Effective since September 1, 2009
• (1) Exporting with export value above USD 1,000,000 (one million US Dollar) per PEB:
• All commodities as stated in Attachments I and II of Regulation of the Minister of Trade No. 10/M-DAG/PER/3/2009:
• (a) should be paid by L/C payment through Domestic Foreign Exchange Bank;
• (b) should write number and date of L/C at PEB.
• (2) Export with value until USD 1,000,000 (one million US Dollar) per PEB:
• All commodities as stated in Attachments I and II of Regulation of the Minister of Trade No. 10/M-DAG/PER/3/2009:
• i. can be paid by L/C payment or other payment form in the international trading through Domestic Foreign Exchange Bank;
• ii. should write number and date of L/C or number and date of other payment document at PEB.

3. Filling of payment method, number and date of L/C at PEB on the commodities are necessary to paid by L/C payment:

• a. payment method is filled with one code of payment method that use L/C;
• b. Number and date of L/C is filled in "Kind/Number/Date of customs complementary documents" column at PEB. In case Customs complementary documents are more than one (not only L/C), so fill "……… documents (sum in number and letter)". Number and date of L/C are written in PEB documents Continuous Page.

4. Filling of payment method, number and date of payment document at PEB on the commodities can be paid by L/C payment or other payment method:

• a. payment method is filled with one code of payment method;
• b. Number and date of L/C or number and date of payment document is filled in "Kind/Number/Date of customs complementary documents" column at PEB. In case Customs complementary documents are more than one (not only L/C), so fill "……… documents (sum in number and letter)". Number and date of L/C or number and date of payment document are written in PEB documents Continuous Page.

5. On the exported commodities are necessary to use L/C payment method since April 1, 2009 shall be checked as follows:

• a. checking on the filling of payment method code with one code of payment method that use L/C, on the export should use L/C payment method;
• b. checking on the filling of payment method code with one code of payment method, on the export can use other payment method;
• c. checking on the filling of number and date of L/C or number and date of other payment method in "Kind/Number/Date of customs complementary documents" at PEB form or PEB module;
• d. on the checking as intended in paragraphs a, b, and c:
• (1) In case filling of payment method, number and date of L/C or number and date of other payment method is not in according to provisions, applied PEB shall be rejected;
• (2) In case filling of payment method, number and date of L/C or number and date of other payment method already in according to provision, PEB shall be received and further handled in according to provisions of customs procedures in export sector.

6. Checking as intended in paragraph 5 shall be conducted by:

• a. Service Computer System (SKP), in case of checking is conducted by SKP;
• b. official who handle checking of prohibited/restricted goods, in case of checking is not conducted by SKP.

7. In case of importer got approval for suspension of obligation to use L/C payment method from Director General of Foreign Trade Ministry of Trade, exporter should put number and date of the said Approval for Suspension in "Kind/Number/Date of customs complementary documents" column at PEB.

This is used as guideline of customs service in export sector.

Director General,
signed,
ANWAR SUPRIJADI
NIP 120050332

Copies to:

• 1. General Secretary of Ministry of Finance of the Republic of Indonesia;
• 2. Secretary of Director General of Customs and Excise;
• 3. Directors and Researchers in Head Office of DJBC Environment.