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REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NUMBER PER-42/BC/2012

CONCERNING
IMPLEMENTATION GUIDELINE FOR ELIMINATION AND DETERMINATION OF THE AMOUNT OF IMPORT DUTY AND/OR EXCISE RECEIVABLES

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Attachment

Considering:

a. That in the framework to implement the provisions of Article 10 of Regulation of the Minister of Finance Number 71/PMK.04/2012 concerning Procedures for Elimination and Determination the Amount of Elimination Import Duty and/or Excise Receivable, it is necessary to stipulate Regulation of the Director General of Customs and Excise concerning Implementation Guideline for Elimination and Determination the Amount of Import Duty and/or Excise Receivables;

In view of:

1. Law Number 6 of 1983 concerning General Provisions and Procedures OF Taxation (Statute Book of the Republic of Indonesia Number 49 of 1983, Supplement to Statute Book of the Republic of Indonesia Number 3262) as amended several times, the latest by Law Number 16 of 2009 (Statute Book of the Republic of Indonesia Number 62 of 2009, Supplement to Statute Book of the Republic of Indonesia Number 4999);

2. Law Number 10 of 1995 concerning Customs (Statute Book of the Republic of Indonesia Number 75 of 1995, Supplement to Statute Book of the Republic of Indonesia Number 3612) as amended by Law Number 17 of 2006 (Statute Book of the Republic of Indonesia Number 93 of 2006, Supplement to Statute Book of the Republic of Indonesia Number 4661);

3. Law Number 1 of 1995 concerning Excise (Statute Book of the Republic of Indonesia Number 76 of 1995, Supplement to Statute Book of the Republic of Indonesia Number 3613) as amended by Law Number 39 of 2007 (Statute Book of the Republic of Indonesia Number 105 of 2007, Supplement to Statute Book of the Republic of Indonesia Number 4755);

4. Law Number 19 of 1997 concerning Tax Billing By Force Letter (Statute Book of the Republic of Indonesia Number 42 of 1997, Supplement to Statute Book of the Republic of Indonesia Number 3686) as amended by Law Number 19 of 2000 (Statute Book of the Republic of Indonesia Number 129 of 2000, Supplement to Statute Book of the Republic of Indonesia Number 3987);

5. Regulation of the Minister of Finance Number 71/KMK.04/20142 concerning Procedures for Elimination and Determination The Amount of Elimination Import Duty and/or Excise Receivables;

DECIDES:

To stipulate:

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE CONCERNING IMPLEMENTATION GUIDELINE FOR ELIMINATION AND DETERMINATION OF THE AMOUNT OF IMPORT DUTY AND/OR EXCISE RECEIVABLES

Article 1

In the Regulation of the Director General:

1 Import Duty and/or Excise Receivable is import duty and/or excise payable, the lack of payment of import duties and/or excise, administrative sanctions in the form of fine, and/or interest in the field of customs and/or excise.

2. Source Documents of Beginning Receivable are beginning source or evidence documents recognized so that the resulting obligation to pay as a result of a determination.

3. Source Documents of Receivable Mutations are the source or evidence documents that caused the addition or subtraction on Source Documents of Beginning Receivable.

4. Person is an individual or legal entity.

5. Minister is the Minister of Finance of the Republic of Indonesia.

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

7. Regional Office is Regional Office of the Directorate General of Customs and Excise.

8. Service Office of the Directorate General of Customs and Excise hereinafter called as the Service Office is the Office within the Directorate General of Customs and Excise environment, including.

• a. Main Service Office of Customs and Excise, and/or
• b. Control and Service Office of Customs and Excise.

Article 2

(1) In the framework to administer Import Duty and/or Excise Receivable at the Directorate General of Customs and Excise of, the Import Duty and/or Excise Receivables can be eliminated.

(2) Import Duty and/or Excise Receivable that may be eliminated as intended in paragraph (1) is Import Duty and/or Excise Receivables are listed in:

• a. Letter of Determination of Rates and/or Customs Value (SPTNP);
• b. Letter of Determination of Customs (SPP);
• c. Letter of Determination of Administrative Sanctions (SPSA);
• d. Letter of Re-Determination of Rates and/or Customs Value (SPKTNP);
• e. Notification of Lack Payment of Import Duty, Excise, Administrative Sanction and Taxes in the framework of Import (SKPBM);
• f. Excise Billing Letter (STCK-1);
• g. Notification of Imposition of Replacement Cost (SPPBP);
• h. Notification for Determination of Administrative Sanctions (SPPSA); or
• i. Correction Decision, Objection Decision, Judgment Appeal, and Judicial Review Decision, which causes the increasing amount of import duty and/or excise should be paid, include administrative sanctions in the form of fine and/or interest.

Article 3

Import Duty and/or Excise Receivable can be eliminated if the billing process has been implemented maximally according to Regulation on the Tax Billing with Force Letter.

Article 4

(1) Import Duty and/or Excise Receivables that can be eliminated as intended in Article 2 are Import Duty and/or Excise Receivables that can not be collected again because:

• a. The Person who is a personal person as the party responsible for Import Duty and/or Excise Receivables, had died and had no inheritance or wealth;
• b. The Person who is a personal person as the party responsible for Import Duty and/or Excise Receivables, can not be found;
• c. The Person who is a legal entity as the party responsible for Import Duty and/or Excise Receivables, has been dissolved, liquidated, bankrupt, or can not be found;
• d. Right to collect import duty and/or excise has expired;
• e. document as the basis for collection of import duty and/or excise not found and has been done in an optimal search in accordance with the provisions of the regulation in the field of customs and excise; or
• f. right of states to collect import duty and/or excise can not be implemented due to certain conditions with respect to a change in policy and/or under considerations are determined by the Minister.

(2) Fulfillment requirements for Elimination of Import Duty and/or Excise Receivables as intended in paragraph (1) shall be proved with supporting evidences, including:

• a. In case of the Person who is a personal person as intended in paragraph (1)a has died and has no inheritance or wealth, evidenced by:
• 1. death certificate from the appropriate authorities;
• 2. heir statement from the authorized agency and/or the official, and
• 3. statement from the beneficiary stating that the insurer does not have inheritance and acknowledged by a notary.
• b. In case of the Person who is personal person as intended in paragraph (1) b, which can not be found, evidenced by:
• 1. domicile certificate from the relevant agency;
• 2. certificate from Tax Service Office on the status of the taxpayer; and
• 3. other supporting certificate or evidence (if any).
• c. In case of the Person who is a legal entity as intended in paragraph (1) c can not be found, evidenced by:
• 1. domicile certificate from the relevant agency;
• 2. statement from Tax Service Office on the status of the taxpayer; and
• 3. other supporting certificate or evidence (if any).
• d. In case of the Person is a legal entity as intended in paragraph (1) c already dissolved or liquidated, evidenced by:
• 1. Notary Act and the Decree of the Minister of Law and Human Rights, or
• 2. court decision that have permanent legal force.
• e. In case of the Person is legal entity as intended in paragraph (1) c already bankrupt, evidenced by the decision of the court has been legally fixed.
• f. In case of the right to collect import duty and/or excise as intended in paragraph (1) d already expired, evidenced by:
• 1. Source Documents of Beginning Receivable and Receivables Mutation Source Documents, and
• 2. other supporting certificate or evidence (if any).
• g. In case of documents as the basis for the billing of import duty and/or excise as intended in paragraph (1) e are not found, evidenced by:
• 1. Statement or incident reports from authorities that state already happened fire, natural disaster, or theft, and
• 2. Statement with stamp duty from the Head of Service Office on the basis documents of billing are not found.

Article 5

(1) Service Office shall perform administrative checking to ensure the state of Person who is responsible for Import Duty and/or Excise Receivable or Import Duty and/or Excise Receivable can not be collected anymore as intended in Article 4 paragraph (1).

(2) Service Office shall perform field checking to ensure the state of Person who is responsible for Import Duty and/or Excise Receivable or Import Duty and/or Excise Receivable can not be collected anymore as intended in Article 4 paragraphs (1) a, b and c.

(3) The checking as intended in paragraphs (1) and (2) shall for each propose Source Documents of Beginning Receivable.

(4) Result of administrative checking for Import Duty and/or Excise Receivable can not be collected anymore as intended in Article 4 paragraph (1) is written in Administrative checking Result Report (LHP-A) in according with sample format as determined in Attachment I that is an integral part of this Regulation of the Director General.

(5) Result of field checking for Import Duty and/or Excise Receivable can not be collected anymore as intended in Article 4 paragraphs (1) a, b, and c, is written in Field Checking Result Report (LHP-L) and Field Checking Warrant in according with sample format as determined in Attachment II and Attachment III that are integral parts of this Regulation of the Director General.

Article 6

(1) Administrative checking and/or field checking as intended in Article 5 paragraphs (1) and (2) are conducted by the team for elimination of import duty and excise receivables that is established by the Head of Service Office.

(2) Administrative checking by receivables elimination team as intended in paragraph (1) including:

• a. Inventor Import Duty and/or Excise Receivables that are predicted cannot or may not be billed anymore;
• b. Check the suitability of data relating to:
• 1. existence and identity of the person in charge;
• 2. source documents of beginning receivables of import duties and/or excise with documents that resulted receivables mutation, and
• 3. reference data are published by relevant agencies, and
• c. Check completeness tax billing process with force letter.

(3) For the purposes of the administrative checking, team for elimination of import duty and/or excise receivables of Service Office can ask additional documents and/or data to another work unit and/or related agency.

(4) Field checking by Team for elimination of import duty and/or excise receivables of Service Office conducted after the administrative checking as intended in paragraph (2) and should be done with Field Checking Order Letter (SPPL) in according with sample format as determined in attachment IV that is an integral part of this Regulation of the Director General.

(5) In the field checking as intended in paragraph (4), Team for elimination of import duty and/or excise receivables of Service Office shall test conformance with data of administrative checking.

Article 7

(1) Based on the results of the checking as intended in Article 5, receivables elimination team as intended in Article 6 paragraph (1) makes proposal of receivables elimination to the Head of Service Office.

(2) Head of Service Office makes Proposal for Elimination of Import Duty and/or Excise Receivables (DUPP) in according with sample format as determined in Attachment V that is an integral part of this Regulation of the Director General.

(3) Proposal for Elimination of Import Duty and/or Excise Receivables (DUPP) as intended in paragraph (2) with its supporting documents are submitted to:

• a. Head of Regional Office if the proposal was submitted by the Head of the Control and Service Office of Customs and Excise; or
• b. Director General with attention to Director of Revenue and Regulation of Customs and Excise if the proposal was submitted by the Head of the Main Service Office of Customs and Excise.

(4) Supporting documents as intended in paragraph (3) including:

• a. Source Documents of Beginning Receivable and Receivable Mutation Source Documents;
• b. Documents to process collection by using force letter;
• c. Supporting evidences as intended in Article 4 paragraph (2);
• d. The administrative checking report (LHP-A), and
• e. The field checking report (LHP-L), in case of field checking conducted by the Service Office.

(5) Submission of Proposal for Elimination of Import Duty and/or Excise Receivables (DUPP) as intended in paragraph (3) shall only 1 (once) in one fiscal year with the following conditions:

• a. In case of receivables elimination is proposed by Head of Control and Service Office of Customs and Excise, Proposal for Elimination of Import Duty and/or Excise Receivables (DUPP) is submitted no later than March 31; and
• b. In case of receivables elimination is proposed by the Head of Main Service Office of Customs and Excise, Proposal for Elimination of Import Duty and/or Excise Receivables (DUPP) is submitted no later than June 30.

Article 8

(1) Regional Office checks the Proposal for Elimination of Import Duty and/or Excise Receivables (DUPP) with supporting documents are submitted to Head of Control and Service Office of Customs and Excise as intended in Article 7 paragraph (3) a.

(2) The checking as intended in paragraph (1) shall to each Source Documents of Beginning Receivable are proposed.

(3) The checking for proposal for receivable elimination by Regional Office as intended in paragraph (1) is conducted by team of receivables elimination established by the Head of the Regional Office.

(4) Tim of receivables elimination as intended in paragraph (3) checks on:

• a. Conformity of Proposal for Elimination of Import Duty and/or Excise Receivables (DUPP) with supporting documents attached, and
• b. Completeness of documents to process collection by using force letter;

(5) The result of the checking as intended in paragraph (4) is written in Checking Result Report of Receivables Elimination Proposal (LHP-U),

(6) In case of checking result report as intended in paragraph (5) is found match, receivables elimination team as intended in paragraph (3) makes the receivables elimination proposal to Head of Regional Office;

(7) Head of the regional office compiles Recapitulation Proposal for Elimination of Import Duty and/or Excise Receivables (DRUPP) from Control and Service Offices of Customs and Excise within its authority;

(8) Recapitulation Proposal for Elimination of Import Duty and/or Excise Receivables (DRUPP) as intended in paragraph (7) with supporting documents attached is submitted by the Head of the Regional Office to the Director General with attention to Director of Revenue and Regulation of Customs and Excise no later than June 30.

(9) Supporting documents as intended in paragraph (8) include:

• a. Source Documents of Beginning Receivable and Receivable Mutation Source Documents;
• b. Documents to process collection by using force letter;
• c. Supporting evidences as intended in Article 4 paragraph (2);
• d. The administrative checking report (LHP-A), and
• e. The field checking report (LHP-L), in case of field checking conducted by the Service Office.
• f. Proposal for Elimination of Import Duty and/or Excise Receivables (DUPP); and
• g. Checking Result Report of Receivables Elimination Proposal (LHP-U) of Regional Office as intended in paragraph (5).

(10) In case of the checking as intended in paragraph (5) is not appropriate or there is necessary supporting document of proposal for elimination of Import Duty and/or Excise Receivables, Head of Regional Office may return documents of application to the Head of Service Office with the reasons of return, with the statement has not been complete or not fulfill requirements.

Article 9

(1) Directorate General of Customs and Excise checks Proposal for Elimination of Import Duty and/or Excise Receivables (DUPP) with supporting documents submitted by the Head of Main Service Office of Customs and Excise as intended in Article 7 paragraph (3) b and Recapitulation Proposal for Elimination of Import Duty and/or Excise Receivables (DRUPP) submitted to Head of Regional Office as intended in Article 8 paragraph (8).

(2) The checking as intended in paragraph (1) shall to each Source Documents of Beginning Receivable are proposed.

(3) Checking of proposal for receivables elimination as intended in paragraph (1) conducted by the receivables elimination team established by the Director General.

(4) Receivables elimination team as intended in paragraph (3) conducts checking on:

• a. Conformity of Proposal for Elimination of Receivables (DUPP) with supporting documents submitted by the Head of Main Service Office of Customs and Excise and completeness of documents to process collection by using force letter; and/or
• b. Conformity of Recapitulation Proposal for Elimination of Import Duty and/or Excise Receivables (DRUPP) with supporting documents submitted by the Head of Regional Office and completeness of documents to process collection by using force letter.

(5) The results of the checking as intended in paragraph (4) is written in Checking Result Report of Receivables Elimination Proposal (LHP-U).

(6) In case of checking result report as intended in paragraph (5) is found match, receivables elimination team as intended in paragraph (3) makes proposal for receivables elimination to the Director General;

(7) Director General compiles Recapitulation Proposal for Elimination of Import Duty and/or Excise Receivables (DRUPP) from Regional Offices and/or Main Service Offices of Customs and Excise;

(8) Based on the proposal for elimination of import duty and/or excise receivables as intended in paragraph (7), Director General proposes the elimination of Import Duty and/or Excise Receivables to the Minister of Finance;

(9) The proposal for elimination of import duty and/or excise receivables as intended in paragraph (8) shall be submitted no later than December 31.

(10) In case of the checking as intended in paragraph (5) is not appropriate or there is necessary supporting document of proposal for elimination of Import Duty and/or Excise Receivables, Director General may return documents of application to the Head of Service Office and/or Main Service Office with the reasons of return, with the statement has not been complete or not fulfill requirements.

(11) Checking Result Report of Receivables Elimination Proposal (LHP-U) as intended in Article 8 paragraph (5) is in according to sample format as determined in Attachment VI that is an integral part of this Regulation of the Director General.

(12) Recapitulation Proposal for Elimination of Import Duty and/or Excise Receivables (DRUPP) as intended in Article 8 paragraph (7) and in paragraph (7) is according to sample format as determined in Attachment VII that is an integral part of this Regulation of the Director General.

(13) The statement has not been complete or not fulfill requirements as intended in Article 8 paragraph (10) and in paragraph (10) is in according to sample format as determined in Attachment VIII that is an integral part of this Regulation of the Director General.

Article 10

(1) Based on the Decree of the Minister on the elimination of import duty and/or excise Receivables, Director General on behalf of the Minister determines the elimination of Import Duty and/or Excise Receivables for each Service Office.

(2) The determination as intended in paragraph (1) is done by issuing the Decree of the Director General.

(3) Decree of the Director General as intended in paragraph (2) is made according to sample format as determined in Attachment IX that is an integral part of this Regulation of the Director General.

Article 11

Checking conducted by the Service Office, Regional Office and the Directorate General of Customs and Excise use review paper work in according to sample format as determined in Attachment X that is an integral part of this Regulation of the Director General.

Article 12

Based on the decision of the Director General as intended in Article 10 paragraph (2), Head of Service Office eliminate Import Duty and/or Excise Receivables with following conditions:

• a. mutate value of import duty and/or excise receivables from the records in the administration of accounts receivable, and
• b. remove value of import duty and/or excise receivables from Financial Statement in according to Government Accounting Standards.

Article 13

(1) Team for elimination of import duty and/or excise receivables as intended in Article 6 paragraph (1), Article 8 paragraph (3) and Article 9 paragraph (3) consists of:

• a. Chairman;
• b. Vice Chairman,
• c. Secretary, and
• d. Member at least 1 (one) person represent of each unit under Head of Service Office, Head of Regional Office or the Director General.

(2) In case of the Team for elimination of Import Duty and/or Excise Receivables is established by Head of Service Office, Customs and Excise bailiff should be involved as member of team for elimination of Import Duty and/or Excise Receivables.

Article 14

This Regulation of the Director General of Customs and Excise shall come into force from the date of stipulation.

Stipulated in Jakarta
on August 8, 2012
DIRECTOR GENERAL
Signed,
AGUNG KUSWANDONO
NIP 196703291991031001