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

PROCEDURES OF COLLECTION OF IMPORT DUTY, EXCISE, ADMINISTRATION FINE, INTEREST AND TAXES FOR IMPORT CLAIM

I. ISSUANCE OF SPKPBM

1. Notification of Shortage of Payment of Import duty, Excise, Administration fine and Taxes for Import (SPKPBM) shall be issued by Head of Customs and Excise Service Office in order to collect Import duty and/or Excise and/or Administration fine and/or Taxes for import not/ less paid.

2. SPKPBM shall be made by Treasury Section based on:

• a. Correction Note specifying calculation of additional payment;
• b. Note on Verification Findings or results of Post Audit
• c. Notification of Administration fine Impose (SPPDA), requiring Customs/Excise Bearer to pay Import duty and/or Excise and/or Administration fine and/or Taxes for import.

3. Prior analysis shall be carried out concerning validity of payable customs calculation in Note on Verification Findings/results of Post Audit.

4. Before sending SPKPBM to Customs/Excise Bearer, it must first be registered in Special Record for SPKPBM.

5. SPKPBM shall be delivered by Mail or Courier.

II. Settlement of SPKPBM

Settlement of SPKPBM may be made at Perceptive Foreign Exchange Bank or through Treasurer of Customs and Excise at Customs Office issuing SPKBM.

1. Settlement through Perceptive Foreign Exchange Bank.

1.1. For Customs/Excise Bearer

• a. Based on SPKPBM, Customs/Excise Bearer completes Customs Excise Deposit (SSBC) form in 4 (four) copies for each type of revenue of Import duty, Excise and Administration fine.
• b. For taxes for import, Customs/Excise Bearer completes Tax Deposit (SSP) form in 5 (five) copies comprehensively and correctly.
• c. SSBC/SSP form that has been completed comprehensively and correctly enclosing SPKPBM is submitted to Perceptive Foreign Exchange Bank officer of the city/territory of the Customs and Excise Service Office along with the deposit money at the amount equal to nominal written down in SSBC and SSP.
• d. For payment of such invoice customs/excise bearer receive back following documents from Perceptive Foreign Exchange Bank:
• - SPKPBM
• - SSBC pages 1 and 3
• - SSP pages 1, 3, and 5.
• e. After paying the debt as mentioned above, Customs/excise bearer submits SSBC page 1 and SSP page 5 to Customs and Excise Service Office for Head of Treasury Section.

1.2. For Perceptive Foreign Exchange Bank

• a. Verifying validity of completion of SSBC/SSP.
• b. Verifying whether payment made by Customs/Excise Bearer is exposed to 2% (two percent) interest per month or not as Import duty and/or Administration fine.
• c. Verifying claimed debt specified in SSBC /SSP against SPKPBM.
• d. Receiving deposit.
• e. Affixing on SSBC and SSP:
• - Date of deposit;
• - Name and signature of receiver;
• - Seal of the Bank.
• f. Furnishing following documents to Customs/ excise bearer:
• - SPKPBM;
• - SSBC pages 1 and 3;
• - SSP pages 1, 3 and 5.

2. Settlement through Customs and Excise Service Office

2.1. For Customs/Excise Bearer

• a. Customs/Excise Bearer wishing to settle the debt contacts Treasurer of Customs and Excise at Customs and Excise Service Office issuing SPKPBM by submitting SPKPBM along with the money at the amount equal to nominal specified in SPKPBM.
• b. For the debt payment, Customs/ excise bearer receives back following documents from Treasurer of Customs and Excise:
• - SPKPBM;
• - Receipt of Customs and Excise (BPBC) pages 1 and 2 ;
• - Proof of Tax for import collection (KPU.22) page 1.

2.2. For Treasurer of Customs and Excise

• a. Verifying whether the payment made by Customs/Excise Bearer should be imposed 2% (two percent) interest per month or no for Import duty and/or Administration fine.
• b. Receiving SPKPBM along with the money at the amount equal to nominal specified in SPKPBM.
• c. Returns to Customs/Excise Bearer:
• - SPKPBM;
• - Receipt of payment of Customs and Excise (BPBC) pages 1 and 2 ;
• - Proof of collection of Tax for Import (KPU.22) page 1.
• d. Recording the proof of settlement of the debt in Special Register for SPKPBM.

III. Issuance of Warning Letter

1. Warning Letter (ST) is issued by Head of Customs and Excise Service Office to Customs/Excise Bearer in case Customs/Excise Bearer not yet settled settle the debt after 30 (thirty) days as of issuance of SPKPBM (due date) plus 7 (seven) days. The Warning Letter is made pursuant to model form in Appendix IV (BCF 3.1.P) hereof.

2. Warning Letter is made in 4 (four) copies

• – page 1 Original; for Customs/Excise Bearer.
• – page 2 copy sent to Director General of Customs and Excise.
• – page 3 copy sent to Head of Regional Office.
• – page 4 for archive of Customs and Excise Service Office.

3. Issuance of Warning Letter is recorded in Special Register for SPKPBM.

4. If after issuance of Warning Letter Customs/Excise Bearer settle invoice debt, the Procedures of settlement refers to point II.

5. Warning Letter is delivered by Mail or Courier.

IV.A. Issuance of Compel Letter

Procedures of Collection of Customs/Excise debt with Compel Letter are as follows:

1. Customs and Excise Bailiff checks Special Register SPKPBM of which the Customs/Excise Bearer has not yet settled the debt after issuance of Warning Letter until the elapsing of 21 (twenty one) days.

2. Customs and Excise Bailiff makes Compel Letter using Form in Appendix V hereof (BC.3.3.P) through Head of Collection and Repayment Sub Section and the Head of Treasury Section forwards it to Head of Customs and Excise Service Office for signature.

3. Compel Letter is made in 4 (four) copies

• – page 1 Original to read out by Bailiff when notify Customs/Excise Bearer; thereafter kept in Official Office.
• – page 2 Copy sent to Director General Customs and Excise.
• – page 3 Copy sent to Head of Regional Office.
• – page 4 Archive of Customs and Excise Service Office.

from the original one copy is made for Customs/Excise Bearer ; please note Explanation of LAW No. 19/1997 article 10 paragraph (1) and (2). Copies are legalized by Head of Treasury Section.

4. Number and date of Compel Letter is recorded in Special Register for Collection with Compel Letter.

5. Bailiff carries out collection with Compel Letter.Procedures of collection of Customs/Excise debt using Compel Letter are as follows:

• a. Bailiff comes to Customs/Excise Bearer residence/domicile, by showing ID card. Bailiff explains his/her intention namely to notify Compel Letter with Statement and furnish the copy of the Compel Letter.
• b. If Bailiff meets Customs/Excise Bearer then he/she asks Customs/Excise Bearer to show customs documents for checking:
• – Apakah tunggakan Bea/Cukai menurut SPKPBM
• – Is the Customs/Excise debt according to SPKPBM is in accordance with the amount specified in Compel Letter.
• – Have eligible objection been proposed against Compel Letter.
• c. If Bailiff does not meet Customs/Excise Bearer then Copy of Compel Letter is furnished to:
• c.1. Family of Customs/Excise Bearer or those mature residing with Customs/Excise Bearer (adult and mentally healthy),
• c.2. Member of Commissioners or sahreholders of the Business Entity, or
• c.3. Local Government Official (Regent/Mayor/District Head/Village Head) in case those mentioned in point c.1. and c.2. cannot be met.
• These Officials must affix their signature on the Compel Letter and the copies, as acknowledgment and furnish the copy to Customs/Excise Bearer.
• c.4. Bailiff who has made Collection of Tax with Compel Letter must compile a report on the Implementation of Compel Letter Appendix VIII hereof (BCL. 3.5.P).
• d. If Customs/Excise Bearer cannot be found in the office or business domicile/residence, then Bailiff may furnish the copy of Compel Letter to:
• – an employee at the office.
• – someone at the residence (such as: wife, children or maid)
• Note:
• Guest, coincidentally at the places, is not representative of Customs/Excise Bearer who may receive the copy of Compel Letter. Children should be Years old or more.
• e. In case the indebted amount differs.
• If in furnishing the SP Bailiff finds this kind of problem, namely the amount specified in SP differs from the one mentioned in SPKPBM kept by Customs/Excise Bearer, then Bailiff may not alter the amount on the SP or delete or add the correction.
• Bailiff should return the SP to Head of Treasury Section and Head of Collection and Repayment Sub Section along with report and proposal to issue new SP using the same Number and date (to replace the old SP) with the right data. The same procedure applies to other mistakes such as: wrong/different address, Number of collection document and others.
• f. If Customs/Excise Bearer declines the Compel Letter.
• Sometimes Customs/Excise Bearer declines SP due to various reasons. If the reason of the refusal is because of the mistakes in the (such as in the case of point e) then the solution is as described in point e above.
• If the refusal is based on other reasons such as:
• – Because he/she is applying for objection;
• – Because of absurd reasons.
• Then, in this case, Bailiff, after giving explanation accordingly, continues furnishing the copy of SP to the person concerned. And if Customs/Excise Bearer or his/her representative keeps on insisting to decline, then the copy of SP should remain be left at the residence/domicile of Customs/Excise Bearer or his/her representative. In this case, SP should be considered delivered.
• g. Surat Paksa tidak dapat disampaikan.
• If due to one or another SP fails to deliver to the Customs/Excise Bearer concerned then Bailiff should make written report concerning the causes of such failure and the efforts that have been made to deliver. It needs to emphasize that Bailiff should first contact the District/Village Head to collect information concerning the Customs/Excise Bearer concerned. If the Customs/Excise Bearer still live at the address then SP should be furnished to the District/Village Head concerned. If the Customs/Excise Bearer has moved and the new address is unknown, then Bailiff's report should, as long as possible, enclose local District/Village Head. In this case, Compel Letter may be patched at the main gate of Customs and Excise Service Office (KPBC). With the patching, Compel Letter should be considered notified to Customs/Excise Bearer.
• h. If Customs/Excise Bearer resides in other KPBC's territory.
• If it is still in one city, for example in Jakarta or Surabaya (in which there are more than one KPBC in one city) then Bailiff of KPBC issuing SP may deliver the copy of the SP to the Customs/Excise Bearer concerned by first reporting to Head of KPBC in the territory where the Customs/Excise Bearer resides.
• If it is in different KPBC of other city (for example KPBC Tanjung Priok issues SP for Customs/Excise Bearer residing at the territory of KPBC Bandung ) then the procedure is as follows:
• Head of KPBC authorized issues SP (KPBC Tanjung Priok ) requiring assistance of Head of KPBC Bandung where Customs/Excise Bearer resides. Head of KPBC Bandung then orders his/her Bailiff to deliver the SP (SP from KPBC Tanjung Priok).
• Afterward, Head of KPBC Bandung reports to Head of KPBC Tanjung Priok
• Bandung where Customs/Excise Bearer resides. Head of KPBC Bandung then orders his/her Bailiff to deliver the SP (SP from KPBC Tanjung Priok). Afterward, Head of KPBC Bandung reports to Head of KPBC Tanjung Priok

6. Notification of Compel Letter to late Customs/Excise Bearer.

Concerning this matter, provision in article 10 paragraph (3) point c and d of Law Number 19/1997 divides into 2 (two) categories, namely:

• a. Customs/Excise Bearer who had passed away while the inheritance has not yet apportioned.
• In this case, notification of Compel Letter (SP) should be given to:
• – One of the heirs of Customs/Excise Bearer, or
• – Bearer of testament, or
• –Someone authorized to arrange for property/inheritance of the Customs/Excise Bearer.
• If the copy of SP is not furnished to one of the above then the procedure should be as intended in point 5 c and 5 d.
• b. Customs/Excise Bearer who had passed away and the inheritance has been apportioned.
• In this case SP should be made in the name of the heirs. Each heir should be imposed with their respective SP and the amount should be adjusted to the inheritance portion.
• Afterward, provisions in point 5c and 5d may also be applied if the SP is undelivered.

7. Biaya Penyampaian SP.

• a. The SP delivery cost is set forth with separate Decision of DJBC in term of Bailiff Daily Fees and Transportation Fee.
• b. If a Bailiff has carried out his/her duties pursuant to the prevailing provisions, then he/she reserves full right to receive collection fee regardless the credit Tax and the collection fee have been settled by
• Customs/Excise Bearer or not. On the contrary, in case the provisions are not thoroughly followed, then the collection fee cannot be awarded. It does not, however, mean that after receiving the collection fee the Bailiff concerned is free from his/her responsibility to clear up the Customs/Excise debt. If Bailiff is convinced that the Customs/Excise Bearer is still active and potential then he/she has to immediately step to further Collection Action.

8. Compel Letter that has been done should be submitted to Head of Collection and Repayment Sub Section along with Report on Implementation of Compel Letter/ Appendix VIII (BCL.3.5.P) and forwarded to Head of Treasury Section for signature and then entered to the Collection File of Customs/Excise Bearer concerned by first recording the date of Implementation of Compel Letter in the Special Register for Collection and the Compel Letter.

In implementing the SP Bailiff should as long as possible take into account the condition of household/Company of Customs/Excise Bearer in order to gain information in the framework of taking next steps..

9. Laporan Pelaksanaan Surat Paksa : Lampiran VIII (BCL.3.5.P)

• a. For Implementation of Compel Letter a Report should be made by Bailiff performing Collection of Tax with Compel Letter.
• b. Matters to consider in making the report:
• 1. Application for objection resolution.
• This matter should be described thoroughly and please avoid compelling collection while in fact the arrears have been lessened.
• 2. Type, location and estimation of price of confiscation object should consider the arrears of Customs/Excise and the Implementation cost that may be incurred.
• 3. In the space for impression and suggestion it should be reported the real condition of Customs/Excise Bearer such as; capability to pay, willingness to pay, and his/her opinion on the stipulation/collection of Customs/Excise et cetera so that Bailiff can make suggestion for the next Collection Action.
• c. If Bailiff cannot implement Compel Letter straightly, then he/she should make written report concerning the causes and efforts that have been made in order to implement Compel Letter such as contacting local Government Official, Police and others.

IV.B. Follow Up of Collection with Compel Letter.

1. Issuance of Order for Confiscation.

1.1. If after elapsing two times twenty four hours as of date of Notification of Compel Letter, Customs/Excise Bearer still does not settle his/her indebted Tax, then Confiscation may be carried out over Customs/Excise Bearer's assets by Head of KPBC by issuing Order for Confiscation (Form BCF.3.8.P).

Date and number of Order for Confiscation are recorded in the Special Register of collection with the Compel Letter concerned.

1.2. Before performing Confiscation of Customs/Excise Bearer's assets or company's assets, Bailiff should collect and learn data concerning assets to confiscate. The data may be obtained from among other things:

• a. Notification of Import of Goods;
• b. Financial Statement (Balance Sheet and Profit and Loss Account);
• c. Report on Customs Audit;
• d. Report on Implementation of Compel Letter.

1.3. Ion performing Confiscation, the following provisions should be observed:

• a. Confiscation is carried out in the presence of 2 (two) Witnesses satisfying the following requirements:
• – Indonesian national;
• – Not under 21 (twenty one) years old;
• – Known to Bailiff;
• – Reliable.
• b. Movables are the first objects of confiscation.
• If the value of movables do not cover the debt, then it can be added from fixed assets until reaching an amount covering Customs/Excise bearer's debt including the Implementation costs.
• c. Minutes of Confiscation (BAS – BCF.3.9.P.) should be drawn up.

1.4. Dalam hal membuat BAS harus memperlihatkan hal-hal sebagai berikut:

• – Minutes of Confiscation should be drawn in express, accurate and comprehensive language.
• – Estimation of property's price should be made in order to limit the Confiscation. The estimation should be based on reasonable market price.
• – If confiscation fails to carry on, the reasons should be described.
• – Witnesses, whose names, occupations and addresses are mentioned in the Minutes, should also affix their signature in the Minutes as well as the copies.

1.5. Movables confiscated may be left in Customs/Excise Bearer's custody and such matter is notified to Police who shall guard the guard from theft.

1.6. Bailiff notifies Customs/Excise bearer the purpose of Confiscation, namely that the properties confiscated will be sold in an auction under mediation of State Auction House if Customs/Excise Bearer does not settle the Customs/Excise debt. One page of the Minutes should be posted in public area or places where movables and fixed assets of Customs/Excise Bearer are confiscated. The posting should be considered as notification of the purpose of Bailiff's action upon Customs/Excise Bearer.

1.7. in addition to posting of Minutes of Confiscation, then Confiscation Seal/Excerpt of Minutes of Confiscation (Form BCF.3.11.P.) should also be patched to the confiscated goods.

1.8. Confiscation of fixed assets should be registered to local Land Office /Administrator of Port/District Court by furnishing the Notification of Confiscation of Fixed Assets in the name of Customs/Excise Bearer (Form BCF.3.13.P.) enclosing copy of Minutes of Confiscation (BCF.3.9.P).

1.9. Procedures of Confiscation of Fixed Assets:

• Like in the procedure of Confiscation of movables, in Confiscation of fixed assets Bailiff should draw up Minutes of Confiscation using Form BCF.3.13.P. signed by Bailiff and 2 (two) witnesses and Customs/Excise Bearer or his/her representative. In addition, Confiscation of fixed assets should be registered to local Land Office.
• In Confiscation of Fixed Assets, the following cases may be found:
• a. The movables have been registered to Land Office.
• Minutes of Confiscation should be furnished to Land Office for Note on the original concerning: hours, days, month and Year of announcement. The Minutes is then recorded by Land Office in a special Register. Copy of the Minutes is provided to Land Office while the original is kept by Bailiff,.
• b. The Fixed Assets have not been registered to Land Office.
• In this case the Minutes is announced by copying the Minutes in Register maintained for such purpose at the Secretariat of District Court by mentioning the time, days, month and year of the announcement.

1.10. Minutes of Confiscation should be made in 3 (three)

• copies:
• o Page 1 (original) Minutes is submitted to Head of Collection/Repayment Sub Section for then bundled with the File of Collection of Customs/Excise Bearer concerned. Date and Number of Minutes of Confiscation shoukd be recorded in Special Register. Minutes of Confiscation is also recorded in Special Register of SPKPBM, Special Register of Collection with Compel Letter.
• Note:
• Register of Minutes of Confiscation has columns for: Serial Number, Date and Number of Minutes. Name and address of Customs/Excise Bearer, NPWP and remark.
• – Page 2 (two) for posted in public area or places where movables and fixed assets of Customs/Excise Bearer are confiscated
• Note:
• In case Confiscation of fixed assets, then the Minutes is drawn up in 4 (four) copies, one copy page should be furnished to local Land Office/Administrator of Port/District Court.
• – Page 3 for archive of Bailiff concerned.

1.11. Announcement by Local Government.

• In Article 17 paragraph (3) Law No. 19 Year 1997 it is stated that Bailiff should require Local Government to announce the Confiscation to wide public in a reasonable manner in the area.
• Note:
• For your knowledge, as of the Announcement of Minutes of Confiscation the Customs/Excise Bearer may not transfer the right, pawn or rent the fixed assets confiscated.
• This provision is provided in article 23 paragraph (1) a of Law No. 19 Year 1997.

1.12. Confiscation of goods outside the territory of KPBC.

• Sometimes the properties of Customs/Excise Bearer to confiscate, partly or entirely, are located outside the territory of KPBC concerned (within other KPBC territory).
• In this case, the procedures of Confiscation are as follows:
• – Head of KPBC concerned ask for assistance of KPBC where the properties of Customs/Excise Bearer concerned are located by enclosing copy of Compel Letter of the Customs/Excise Bearer.
• – Head of KPBC receiving request for Confiscation should take the following actions:
• a. Issuing Order for Confiscation by mentioning date and Number of Compel Letter issued by Head of KPBC di where Customs/Excise Bearer domiciled.
• b. the next procedures of Confiscation are the same as ones explained in point 1.1. until 1.8.
• Minutes of Confiscation that has been signed is sent to Head of KPBC asking for Confiscation assistance.
• Note:
• The above procedures are not applicable in cities having more than one KPBC such as Jakarta, Surabaya, Medan and others.
• In these cities, Order for Confiscation may be performed by KPBC where Customs/Excise Bearer domiciled, although the properties to confiscate, partly or entirely, are within the territory of other KPBC of the same city.
• In this case, Head of KPBC of the domicile is only obliged to notify the Head of KPBC where the properties of Customs/Excise Bearer are located, that on specific day and date a Confiscation will be performed on the properties of Customs/Excise Bearer located within the territory of KPBC concerned.
• This provision is merely for practical consideration so that Confiscation can be carried out quickly and smoothly.

1.13. Confiscation of properties that had been first confiscated by other people.

• This matter has been provided in article 19 of Law No. 19 Year 1997 paragraph (1) until (7).

1.14. Confiscation in the absence of Customs/Excise Bearer. In practice, it is often found that Customs/Excise Bearer is absence during confiscation.

• In such case, questions raised whether Confiscation can be carried out.
• a. Law No. 19 Year 1997 article 12 paragraph (4) until (7) states as follows:
• Bailiff shall draw up minutes on what he/she has done and notify the purpose of his/her actions to the confiscated party. One of the copy of the minutes shall be posted in public area or where the movables and fixed assets belong to Customs/Excise Bearer are confiscated. The patching of copy or copies of the minutes shall be considered as notification of the purpose of Bailiff's actions against Customs/Excise Bearer.
• Witnesses whose Names, occupations and residences shall be mentioned in the minutes, shall also affix their signatures in the minutes as well as the copies.
• b. Article 448 of Reglement of de Rechtsvordering (Rv) provides that Confiscation in the absence of WP/PP (in absentia) should be accompanied by local Village Head as witness.
• From the two provisions above, it can be concluded that Confiscation may be carried out provided that there are witnesses, one of whom should be local Regional Head (District Head or at least Village Head).

1.15. Bailiff is kept outside the house.

• During Implementation of Confiscation it is possible that Bailiff cannot enter or is kept outside the house of Customs/Excise Bearer whose properties are to confiscate.
• If Bailiff cannot enter because there is nobody in the house, then in this case Bailiff should postpone the Confiscation. However, if there is occupant in the house (even Bailiff believes that the Customs/Excise Bearer or person capable of representing him/her is in the house) then Bailiff may ask for permission to enter the house and carry out his/her duties.
• It should be kept in mind that Bailiff should not enter the house with force (such as breaking the door or other ways without permission from the occupant) as such action may be threatened by Criminal Code under article 429 of KUHP (imprisonment at the longest 1 Year 4 months).
• If Bailiff has conveyed his/her purpose to the occupants in reasonable manner yet he/she is not allowed to enter the house, then in this case Bailiff may require Police assistance to carry out Confiscation. It should be added that Customs/Excise Bearer or his/her representative obstructing officials who shall carry out their duties is threatened by imprisonment under article 216 of KUHP (imprisonment at the longest 4 months 2 weeks).

1.16. Bailiff is prevented from confiscating the properties of Customs/Excise Bearer.

• Other possibility is that Bailiff is allowed to enter the house but he/she is prevented from confiscating the properties of Customs/Excise Bearer. In this case, Bailiff should give explanation to Customs/Excise Bearer concerning the purpose of the Confiscation and that Confiscation does not always last with sale of such properties if Customs/Excise Bearer is willing to settle the indebted Customs/Excise.
• If Bailiff remains unable to carry out his/her duties, and even possibly receives threat from Customs/Excise Bearer then Bailiff should report to Police and the next action should be carried out together with the police.

1.17. Customs/Excise Bearer or His/Her Representative declines to sign Minutes of Confiscation.

• Minutes of Confiscation (BCF. 3.9.P.) is drawn up and signed by Bailiff, witnesses and Customs/Excise.
• Bearer or his/her representatives. If Customs/Excise Bearer or his/her representatives declies to sign the Minutes of Confiscation, then Bailiff may take the following actions:
• a. Notifying the police and ask for their assistance to watch the confiscated properties from loosing.
• b. Bailiff may take the confiscated goods (partly or entirely) to favourable custody (see article 16 of Law No. 19 Year 1997).

1.18. Proofing of properties not belong to Customs/Excise Bearer.

• When carrying out Confiscation there is possibility that Customs/Excise Bearer said that parts of the confiscated goods are not his/hers. In this case, Customs/Excise Bearer or His/her Representative must show explicit evidences that the goods are true not his/hers. It can be added that all movables (including cars and other motor vehicles), found at the residence of Customs/Excise Bearer should be deemed as Customs/Excise Bearer properties, except Customs/Excise Bearer can otherwise.

1.19. Confiscation of Unregistered Fixed Assets.

• Sometimes fixed assets (land, building and others) to confiscate are not registered to local Land Office.
• In this case, Bailiff may require information from Local Government (Village) as it is possible that the properties are registered to the Village (registered in Register C of the Village). If this is the case, then Minutes of Confiscation should be registered to local Village to be registered in the said Register, in addition Bailiff should register the Confiscation to Land Office or local District Court to be recorded in the Register maintained for such purpose.

1.20. Patching/Sealing of confiscated goods.

There is no provision that the confiscated goods should be sealed and or patched with announcement of Confiscation. The provision is that the copy or copies of Minutes of Confiscation should be posted in public area or in places where movables or fixed assets belong to Customs/Excise Bearer are confiscated. However, in order that the aim and purpose of the Confiscation succeeded as intended then Confiscation Seal (Form BCF 3.11.P.) summarizing the contents of minutes of confiscation is patched to the confiscated goods.

1.21. Confiscation Costs.

• a. Amount of Confiscation Costs.
• Confiscation Costs include:
• – Bailiff Daily Costs
• – First witness Daily Costs
• – Second witness Daily Costs
• – Transportation Costs.
• Should be determined by separated decision of DJBC.
• b. If a Bailiff has carried out his/her duties pursuant to the prevailing provisions, then he/she reserves full right to receive collection fee regardless the credit Tax and the collection fee have been settled by Customs/Excise Bearer or not. On the contrary, in case the provisions are not thoroughly followed, then the collection fee cannot be awarded. It does not, however, mean that after receiving the collection fee the Bailiff concerned is free from his/her responsibility to clear up the Customs/Excise debt. If Bailiff is convinced that the Customs/Excise Bearer is still active and potential then he/she has to immediately step to further Collection Action

2. Issuance of Confiscation Revocation.

If Customs/Excise Bearer has settled the Customs/Excise debt before request for stipulation of confiscation date is proposed then Head of Customs and Excise Service Office should issue Confiscation Revocation Letter (Form BCF. 3.12.P.).

3. Issuance of Request fot Schedule and Place of Auction.

If after the elapsing of 14 (fourteen) days as of date of Implementation of Order for Confiscation, Customs/Excise Bearer has not settled the Customs/Excise debt then Head of Customs and Excise Service Office proposes request for stipulation of date and place of Auction to local State Auction House (Form BCF. 3.17.P.).

4. Issuance of Notification of Auction/Last Chance.

After obtaining certainty on date and place of Auction, Bailiff notifies the matter to Customs/Excise Bearer immediately and in writing by delivering Notification of Auction/Last Chance to Customs/Excise Bearer.

5. Auction.

If Notification of Auction/Last Chance has been given to Customs/Excise Bearer and it appears that Customs/Excise debt is not settled then Auction is carried out for confiscated properties of Customs/Excise Bearer.

5.1. Preparation for Auction.

• Bailiff should prepare everything for the Auction such as:
• a. Preparing Collection Files comprising of:
• – Warning Letter (Form BCF. 3.1.P)
• – Compel Letter (Form BCF. 3.3.P)
• – Report on Delivery of Compel Letter (Form BCL. 3.5.P)
• – Order for Confiscation (Form BCF. 3.8.P)
• – Minutes of Confiscation (Form BCF. 3.9.P)
• – Notification of Confiscation of Fixed Assets in the Name of Customs/Excise Bearer (Form BCF.3.13P)
• – Request for Schedule and Place of Auction (Form BCF. 3.17.P)
• – Notification of Auction/Last Chance,
• – Evidences of ownership of confiscated properties.
• Note:
• For movables, the evidence of ownership is not a must, however if the property to sell at the Auction is fixed asset then it should be accompanied with certificate of ownership of such fixed asset. If it is hard to find, then it should be requested for note from local Land Office in term of Note on Land Registration.
• – Details of Customs/Excise debt covering: Import duty; excise; administration fine; interest; and collection fee.
• Note:
• Forms BCF.3.1.P until 3.4P, BCL.3.5.P. BCF.3.6.P until 3.18P have been stipulated with Decision of Directorate General of Customs and Excise No. KEP.04/BC/1999 dated 28 January 1999.

5.2. Making Auction Announcement.

• After the day, date and time of Auction have been determined then Auction Announcement is immediately made.
• a. Bailiff prepares the draft for Auction Announcement and forward the this concept of announcement to Head of Collection/Repayment Sub Section and Head of Treasury Section to be advertised in newspaper / printed media /electronic media and others.
• b. If Auction Announcement has been posted in newspaper/printed media/electronic media/other reasonable ways then date of issue should be recorded in the Notebook of Collection with Compel Letter and in the archive of SPKPBM concerned.
• c. Matters to observe in making Auction Announcement are:
• – If the goods to sell at Auction are only movables then the announcement may be made according to local practice (does not have to be advertised in newspaper/printed media/electronic media) such as using pamphlet or announced through local Government and other ways.
• – Sale of the goods should not be made before the twenty eighth days from time of confiscation.
• – If beside movables fixed assets will also be sold at the Auction, then the announcement should be made twice with fifteen days interval in which one of the announcements should be made through advertisement in local newspaper/printed media/electronic media or if in the location no daily newspaper is published, in daily newspaper published nearby. The sale should be carried out in one time and may only be carried out after fourteen days as of announcement by advertisement in newspaper/printed media/electronic media.

5.3. Cancellation of Auction Announcement.

If Customs/Excise Bearer settles the indebted Customs/Excise and the Implementation Costs after the Auction Announcement has been published in newspaper/printed media/electronic media but before the day of Auction, then the Auction Announcement should be cancelled by publishing advertisement of Auction Cancellation in the same newspaper/printed media/electronic media.

The cancellation of Auction Announcement may only be carried out if Customs/Excise Bearer shows Receipt of payment of Customs/Excise debt and the Implementation Costs.

5.4. During Auction.

Bailiff comes to the auction house to accompany Auctioneer.

A minute before the Auction is started Bailiff should ask the Customs/Excise Bearer whether the Customs/Excise debt will be settled. If the Customs/Excise Bearer is able and willing to settle the Customs/Excise debt then Auction is cancelled, otherwise the Auction will be immediately started. During Auction it is better for Head of Customs and Excise Service Office concerned or his/her Representative to attend right on stipulated time to start Auction.

Auctioneer announces to prospective buyers concerning requirements to satisfy and ways of bidding.

Customs/Excise Bearer reserves the right to determine of sequence of goods to sell at the Auction. If the result of the sale has reached the amount of indebted Customs/Excise and the Implementation Costs, then the sale should be stopped and the remainders of the goods should immediately be returned to Customs/Excise Bearer. After the Auction has been done, the State Auction House, Bailiff, or person in charge of selling the confiscated goods reports to Head of Customs and Excise Service Office by preparing Report on the Result of Implementation Auction.

5.5. Effects of Auction

Upon the sale of the confiscated goods, then the title for the goods are transferred from Customs/Excise Bearer to the buyer with accepted bidding, immediately after the said buyer fulfill the conditions of the purchase. He/she will be provided with certificate that he/she has fulfilled the conditions by Auction House or person in charge of making the sale. If the person exposed to confiscation refuses to leave fixed assets sold at the Auction, then Judge of District Court should issue written order to a person authorized to exercise the Order and make efforts so that the fixed assets are evacuated by the person exposed to confiscation and the family along with the properties belong to him/her with the help of Registrar of District Court or other employees appointed by Judge, if necessary with the help of state apparatus.

5.6. Result of Auction

• 1. The Result of Auction after being deducted with Implementation Auction Costs is immediately furnished by Auctioneer to Treasurer of KPBC making the collection.
• 2. The net result of the Auction as intended in point 1; after being deducted with the credit (import duty, excise, administration fine, interest in the Framework import); and expenses incurred in the framework of collection; the remainders should be returned to the owner (Customs/Excise Bearer).
• 3. Remainders of money as intended in point 2 should be notified in writing to the owner by Official of Customs and Excise within 7 (seven) days after the date of Auction.
• 4. Remainders of money from the Auction as intended in point 3 becomes the state property if within 90 (ninety) days after the date of notification as intended in point 3 is not taken by the owner.
• 5. The state revenue from the Auction in term of credited import duty, excise, administration fine, and interest are entirely deposited by Treasurer of KPBC to the State Cash.

V. Notification of Credit Taxes for import to KPP.

1. If within 21 (twenty one) days as of issuance of Warning Letter (ST) Customs/Excise Bearer has not settled his/her obligation, then the Head of Customs and Excise Service Office notifies the credit of taxes for import to KPP in the domicile of Customs/Excise Bearer for further process pursuant to prevailing provision.

• The said Notification of Credit Tax uses the Form as intended in Appendix III hereof by enclosing:
• – Detail calculation of the credit taxes for import;
• – Copy of supporting evidences concerning the credit that have been legalized;
• – and others considered necessary;

2. Notification of Credit Tax to KPP is recorded in Special Register for SPKPBM;

3. Credit Tax notifies to KPP does not need monitoring any longer (considered done).

VI. Objection and Appeal

1. If for issuance of SPKPBM, Customs/Excise Bearer minds because of he/she believes that he/she does not make mistakes, then Customs/Excise Bearer may ask for explanation or give respond to the Head of Customs and Excise Service Office issuing SPKPBM either concerning issuance of SPKPBM or against the amount claimed, before 30 (thirty) days.

2. For the said request for explanation as mention in point 1, the Head of Customs and Excise Service Office is obliged to give explanation at the latest 5 (five) business days as of receiving Request for Explanation concerned.

3. If for explanation from the Head of Customs and Excise Service Office, Customs/Excise Bearer still has objection, Customs/Excise Bearer may propose objection to the Director General of Customs and Excise provided that:

• – objection is proposed within 30 (thirty) days as of date of issuance of SPKPBM;
• – Furnishing security amounting to the credit invoice.

4. Director General of Customs and Excise is obliged to issue Decision on Approval or Refusal for objection proposed by Customs/Excise Bearer, within 60 (sixty) days as of receiving the objection in full.

If within 60 (sixty) days as of receiving the proposal of objection there is no decision, then objection should be deemed accepted.

5. If Customs/Excise Bearer objection is declined, then the security is cleared and credit invoice is considered paid off.

6. If Decision of Director General of Customs and Excise declines proposal of objection of Customs/Excise Bearer, then Customs/Excise Bearer may apply for appeal to Tax Dispute Arbitrary Board (BPSP) provided that:

• – Appeal is proposed within 60 (sixty) days as of date of Decision of Director General of Customs and Excise;
• – Appeal is made in writing with clear reasons and using Bahasa Indonesia;
• – Appeal should enclose copy of Decision of Director General of Customs and Excise appealed.

VII. Special Register for SPKPBM

Special Register for SPKPBM should at least have columns as follows:

• – Serial Number;
• – Number and date of SPKPBM;
• – Name and address of Customs/Excise Bearer;
• – Total debt (Import duty, Excise, Administration fine and Taxes for import);
• – Settlement (paid off, Warning Letter issued, Compel Letter issued, notified to KPP);
• – Remark.

VIII. Special Register for Implementation of Collection with Compel Letter

Special Register for Implementation of Collection with Compel Letter should at least have columns as follows:

• – Serial Number;
• – Number and date of SPKPBM;
• – Number and date Warning Letter;
• – Name and address of Customs/Excise Bearer;
• – Number and date of Compel Letter;
• – Number and date of Report on Implementation of Collection with Compel Letter;
• – Total debt (Import duty, Excise, Administration fine, and Interest in the framework of import);
• – Settlement (paid off, Confiscation, Auction Announcement, Auction sale);
• – Remark.

Director General
DR. RB. Permana Agung, MSc
NIP 060044475.