DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. KEP-06/BC/1999

CONCERNING
DIRECTIVES FOR IMPLEMENTATION OF COLLECTION OF IMPORT DUTY, EXCISE, ADMINISTRATION FINE, INTEREST AND TAXES FOR IMPORT CLAIM

DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Attachment 1

Attachment 2

Considering:

• a. whereas upon enactment of Law No. 19/1997 on Collection of Tax with Compel Letter, then Decision of Finance Minister No. 234/KMK.05/1996 and Decision of Finance Minister No. 147/KMK.04/1998 have been amended;
• b. whereas therefore it is considered necessary to stipulate Directives for Implementation of collection of import duty, excise, administration fine, interest and taxes for import with Decision of Director General of Customs and Excise;

In view of:

• 1. Law No. 19/1997 on Collection of Tax with Compel Letter (Statutory Gazette/1997 No. 42, Supplementary Statutory Gazette No. 3686);
• 2. Government Regulation No. 3/1998 on Procedures of Confiscation In the Framework of Collection with Compel Letter (Statutory Gazette/1998 No. 5, Supplementary Statutory Gazette No. 3725);
• 3. Decision of Finance Minister No. 234/KMK.05/1996 on Procedures of Collection of Import duty, Excise, Administration fine, Interest, and Taxes for import Claim as has been amended with Decision of Finance Minister No. 22/KMK.01/1999;
• 4. Decision of Finance Minister No. 147/KMK.04/1998 on Appointment of Official for Collection of Central Taxes, Procedures and Schedule of Implementation of Collection of Tax as has been amended with Decision of Finance Minister No. 21/KMK.01/1999;

HAS DECIDED:

To Stipulate:

DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON DIRECTIVES FOR IMPLEMENTATION OF COLLECTION OF IMPORT DUTY, EXCISE, ADMINISTRATION FINE, INTEREST AND TAXES FOR IMPORT CLAIM.

Article 1

In this Decision meant by:

• 1. Official is official authorized to appoint and discharge Customs and Excise Bailiff, issue Order of Immediate and Straight Collection, Warning Letter, Compel Letter, Order to Perform Confiscation, Confiscation Revocation Letter, Auction Announcement, Auction Cancellation, Detainment Order and other letters necessary for collection of Customs/Excise with regard to Customs/Excise Bearer does not settle part or all of Customs/Excise debt as specified in SPKPBM pursuant to the prevailing statutory regulation;
• 2. Customs and Excise Bailiff is executive of collection of Customs/Excise covering Immediate and Straight Collection, notification of Compel Letter, Confiscation and Detainment;
• 3. Central Taxes are all types of Tax collected by Central Government pursuant to the prevailing statutory regulation, including Import duty and Excise;
• 4. Central Taxes collected by Directorate General of Customs and Excise including Import duty and Excise;
• 5. SPKPBM is Notification of Shortage of Payment of Import duty, Excise, Administration Fine, Interest and Taxes for import which administratively serves as collection letter,
• 6. Customs/Excise Collection Action is series of active actions demanding Customs/Excise Bearer to settle Customs/Excise debt and collection fee of Customs/Excise by giving warning or reprimanding, performing Immediate and Straight Collection, notifying Compel Letter, proposing ban, performing Confiscation, performing detainment, selling confiscated assets;
• 7. Customs/Excise Bearer is Tax Payer as intended in Law Number 19 Year 1997 covering individual or body responsible for import duty, excise, administration fine, interest and taxes for import including importer, transporter, entrepreneur of Temporary Stockpile, entrepreneur of Bonded Stockpile or entrepreneur of Arrangement of Customs Service.

Article 2

(1) Head of Customs and Excise Service Office shall perform collection of Import Duty, Excise, Administration Fine, Interest and Taxes for Import Claim not paid or indebted by Customs/Excise Bearer except Income Tax (PPh) Article 22 not paid or indebted after passing the Calendar Year.

(2) Collection of credit as intended in paragraph (1) shall be carried out by issuing SPKPBM, pursuant to model of form in Appendix II hereof.

(3) Issuance of SPKPBM form as intended in paragraph (2), shall be performed by:

• a. Head of Customs and Excise Service Office of customs fulfillment in case of collection of credit constitutes additional payment for shortage of payment of import duty, excise, and or administration fine as specified in Correction Note, or Implementation of the result of verification of import document, or the result of post audit, or credit administration fine not due to shortage of payment of import duty;
• b. Head of Customs and Excise Service Office supervising relevant importer, transporter, entrepreneur of Temporary Stockpile, entrepreneur of Bonded Stockpile, or entrepreneur of Arrangement of Customs Service in case of collection of credit constitutes Implementation of the result of Customs audit.

(4) Income Tax (PPh) Article 22 not paid or indebted after the passing of Calendar Year as intended in paragraph (1) shall be notified by Head of Customs and Excise Service Office to all Head of Tax Service Office where Customs/Excise Bearer domiciled.

(5) Calculation of debt collection as intended in paragraph (2) shall be rounded up in full rupiah.

Article 3

Within 30 (thirty) days as of issuance of SPKPBM as intended in Article 2 paragraph (2), Customs/Excise Bearer shall be obliged to settle his/her debt and notify the settlement to Head of Customs and Excise Service Office issuing the SPKPBM.

Article 4

(1) Settlement of debt as intended in Article 3 shall be made through Perceptive Foreign Exchange Bank using:

• a. Customs and Excise Deposit (SSBC) as long as concerning indebted Import duty, Excise, Administration fine and Interest;
• b. Tax Deposit (SSP) as long as concerning indebted PPN, PPnBM and Income Tax Article 22 for import.

(2) Debt settlement may also be made through Customs and Excise Service Office by receiving deposit certificate.

Article 5

Against issuance SPKPBM as intended in Article 2 paragraph (2), Customs/Excise Bearer may propose objection to Director General of Customs and Excise.

Article 6

Against Decision of Director General of Customs and Excise declining objection as intended in Article 5, Customs/Excise Bearer may propose appeal to Tax Dispute Arbitrary Board.

Article 7

In case import duty, excise and/or administration fine debt is not settled until SPKPBM becomes due then the indebted import duty, excise and/or administration fine shall be exposed to 2% (two percent) interest per month calculated as of the due date of SPKPBM until payment day, part of month shall be deemed one full month for maximum 24 (twenty four) months.

Article 8

Procedures of collection under SPKPBM as mentioned in Article 2 paragraph (3) is specified in I and II of Appendix I hereof.

Article 9

(1) Head of Customs and Excise Service Office shall be appointed as official to perform indebted Customs/Excise Collection Action as specified in SPKPBM causing the amount of Customs/Excise payable, not paid or indebted after due.

(2) Collection action as intended in paragraph (1) shall be performed by Customs and Excise Bailiff.

(3) Official as intended in paragraph (1) shall be authorized to appoint and discharge Customs and Excise Bailiff.

(4) Procedures of collection action as mentioned in paragraph (1) is specified in III and IV of Appendix I hereof.

Article 10

(1) If after the elapsing of 30 (thirty) days as intended in Article 3 and added by 7(seven) days, Customs/Excise Bearer yet to settle his/her obligation, Head of Customs and Excise Service Office shall immediately issue Warning Letter in accordance with model form in Appendix IV hereof.

(2) If within 21 (twenty one) days as of issuance of Warning Letter as intended in paragraph (1), Customs/Excise Bearer yet to settle his/her obligation, Head of Customs and Excise Service Office shall immediately:

• a. Issue Compel Letter in accordance with Appendix V hereof for collection of import duty, excise, administration fine and interest to Customs/Excise Bearer;
• b. Furnish Notification of Credit Taxes for Import in term of Value Added Tax, Luxury Good Tax and Income Tax Article 22 in accordance with Appendix III hereof to Head of Tax Service Office (KPP) where Customs/Excise Bearer domiciled.

(3) Immediate and Straight Collection may be issued by Official if:

• a. Customs/Excise Bearer shall leave Indonesia forever or wishes to do so;
• b. Customs/Excise Bearer halts or expressly minimize the company’s operation, or job operated in Indonesia, or transfer the assets under his/her possession or control;
• c. there are indications that Customs/Excise Bearer shall dissolve the business entity or wishes to do so;
• d. the business entity shall be liquidated by the state; or
• e. Customs/Excise Bearer assets are seized by third party or there are indications of bankruptcy.

(4) Compel Letter may be issued without awaiting for the elapsing of 21 (twenty one) days period as of issuance of Warning Letter in case Customs/Excise Bearer is exposed to Immediate and Straight Collection as intended in paragraph (3).

Article 11

(1) If the invoice mentioned in Article 10 paragraph (2) point a, remains payable is not settled by Customs/Excise Bearer after the elapsing of 2 times 24 (twenty four) hours as of Compel Letter is notified to him/her, Official shall immediately issue Order to Perform Confiscation.

(2) Objection proposal from Customs/Excise Bearer shall not cause postponement of Implementation of Confiscation.

Article 12

(1) If the invoice and collection fee remain payable are not settled by Customs/Excise Bearer after the elapsing of 14 (fourteen) days as of Confiscationdate, official shall immediately make Auction Announcement.

(2) If invoice and collection fee remain payable are not settled by Customs/Excise Bearer after the elapsing of 14 (fourteen) days as of Auction Announcement date. Official shall immediately sell confiscated goods of Customs/Excise Bearer through auction house.

(3) Implementation of auction shall follow the provisions of Chapter IV of Decision of Finance Minister Number : 235/KMK.05/1996 with exception for Credit Taxes for import which shall be left to Tax Service Office.

Article 13

(1) In case the Customs/Excise Bearer domicile is outside the territory of Customs and Excise Service Office issuing Warning Letter; Compel Letter delivery and further process may be:

• a. Carried out by Official at the Customs and Excise Service Office issuing Warning Letter by first coordinating with Customs and Excise Service Office where Customs/Excise Bearer domiciled; or
• b. Carried out by Official at Customs and Excise Service Office where Customs/Excise Bearer domiciled upon request for assistance from Head of Customs and Excise Service Office issuing Warning Letter in which the result of the Implementation shall be reported to Head of Customs and Excise Service Office issuing Warning Letter, and state income gained becomes perception of Customs and Excise Service Office issuing the Warning Letter.

(2) Issuance of Compel Letter as intended in paragraph (1) shall be based on consideration of efficiency and effectiveness.

Article 14

Upon enactment hereof:

• 1. Warning Letter due before 15 January 1999 shall be governed by old provisions as intended in Decision of Finance Minister No. 234/KMK.05/1996, namely submitted to KP3N.
• 2. Warning Letter due before 15 Januariy1999 but not yet followed up pursuant to paragraph (1) shall be resolved based on Decision of Finance Minister No. 22/KMK.01/1999.
• 3. Warning Letter due on 15 January 1999 and thereafter processed pursuant to the provision of Decision of Finance Minister No. 22/KMK.01/1999 after the due date of the Warning Letter is adjusted from 14 days into 21 days.
• 4. Warning Letter as intended in paragraph (3) submitted to KP3N for follow up shall be revoked, it shall afterward be processed under Decision of Finance Minister No. 22/KMK.01/1999 pursuant to provision in paragraph (3).
• 5. Circular of Director General of Customs and Excise No. SE-05/BC/1997 dated 14 January 1997 shall be declared void.

Article 15

This Decision shall be effective as of stipulation date and govern retroactively as of 15 January 1999.

Stipulated in Jakarta
dated 5 February 1999
Director General
DR. R.B. Permana Agung, MSc.
NIP 060044475

Attachment 1 to DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. KEP-06/BC/1999

Attachment 1 (Indonesian)

Attachment 2