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DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. KEP-81/BC/1999

CONCERNING
IMPLEMENTING GUIDELINES OF CUSTOM VALUE DETERMINATION FOR CALCULATION OF IMPORT DUTY

MINISTRY OF FINANCE OF THE REPUBLIC OF INDONESIA
DIRECTORATE GENERAL OF CUSTOMS AND EXCISE

Attachment

Considering:

that, in the framework of implementation of Law No. 10/1995 on Customs Affairs, it is deemed necessary to regulate provisions on determination of custom value of imported goods.

In view of:

• 1. Law No. 7/1994 on Ratification of Agreement Establishing The World Trade Organization (Statute Book/1994 No. 57, Supplement to Statute Book No. 3564);
• 2. Law No. 10/1995 on Customs Affairs (Statute Book/1995 No. 75, Supplement to Statute Book No. 3612);
• 3. Decree of the Minister of Finance RI No. 690/KMK.05/1996 dated December 18, 1996 on Customs Value for Calculation of Import Duty;
• 4. Decree of the Minister of Finance RI No. 491/KMK.05/1996 dated July 31, 1996 on Basis for Calculation of Import Duty on Imported Goods;
• 5 Decree of the Minister of Finance RI No. 25/KMK.05/1997 dated January 15, 1997 on Procedures of Customs Clearance in Import Sector;
• 6. Decree of the Minister of Finance RI No. 32/KMK.01/1998 dated February 4, 1998 on Organization and Working Sys¬tem of the Directorate General of Customs and Excise;

DECIDES

To stipulate :

DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON IMPLEMENTING GUIDELINES OF CUSTOM VALUE DETERMINATION FOR CALCULATION OF IMPORT DUTY

CHAPTER I
GENERAL PROVISIONS

Article 1

In this Decision, meant by:

• a. "Inter-related" or "related" person is:
• (i) an employee or leader in a company who is at the same time also employee or leader in his company
• (ii) those who are known legally as partners in trade;
• (iii) The employee and the employer;
• (iv) those among which one of them controls either directly or indirectly 5 percent or more of their share in a company;
• (v) those among which one of them supervises either directly or indirectly other parties;
• (vi) those who are supervised either directly or indirectly by third party;
• (vii) those who collectively control either directly or indirectly third parties; or
• (viii) those who are members of one family, namely spouse, parents, children, brothers and sisters (of the same other or not), grand father, grand mother, grand child, uncle, aunts, nephews, parents in law, children in law, and brothers/sisters in law.
• b. "Produced" includes planted, made and mined.
• c. Identical goods are goods that are the same in all respects including physical characteristics, quality and reputation, and:
• (i) produced by the same producer in the same country; or
• (ii) produced by another producer in the same country, in case there are no identical goods that is produced by the same producer in the same country.
• d. Similar goods are goods that are despite of not the same in all respects, but having similar characteristics and components of materials, commercially exchangeable and functioning equally, and:
• (i) produced by the same producer in the same country; or
• (ii) produced by another producer in the same country, in case there are no similar goods that is produced by the same producer in the same country.
• e. Real evidence or objective and measurable data is evidences or data based on documents that are actually available and such documents contain certain amounts, value or size in the form of figures, words and/or sentences.
• f. Commercial level is a level or status of buyer, such as wholesaler, retailer and end-user.
• g. Goods of the same class and type are goods that are falling into a group of goods that are produced by a certain industrial sector, in this case including identical goods or similar goods.
• h. Import point is a place where settlement of custom clearance obligations is performed by delivery of goods import notice.
• i. Terminologies of delivery FOB, C&F, CIF, Ex Works, and DDP are as defined in the INCOTERM.
• j. Article VII of GATT 1994 is one of articles of the General Agreement on Tariffs and Trade 1994 providing for Valuation for Customs Purposes.

CHAPTER II
METHOD OF DETERMINATION OF CUSTOMS VALUE OF THE IMPORTED GOODS

First Part
Method and Sequence of Use

Article 2

(1) In principle customs value is transaction value of the relevant imported goods and such a transaction value complies with certain requirements.

(2) Customs value for calculation of import duty is determined by using of the six determination methods, namely as follows:

• a. Method I, customs value is determined based on transaction value of the relevant imported goods;
• b. Method II, customs value is determined based on transaction value of identical goods;
• c. Method III, customs value is determined based on transaction value of similar goods;
• d. Method IV, customs value is determined based on deduction method;
• e. Method V, customs value is determined based on computation method;
• f. Method VI, customs value is determined based on procedure that is reasonable and consistent with the principles and provisions in Article VII GATT 1994 based on data available in the Customs Region with certain limitations.

(3) The six customs value determination methods as contemplated in paragraph (2) shall be used pursuant to their hierarchical order.

Second Part
Method I
Customs Value is Transaction Value

Paragraph 1
Transaction Value

Article 3

(1) Transaction value as meant in Article 2 paragraph (1) is the price actually paid or payable by the buyer to the seller for goods sold for export to the Customs Region plus certain costs as long such costs are not included yet in the price actually paid or payable.

(2) The transaction value as contemplated in paragraph (1) can be accepted and stipulated as a customs value if complies with requirements as meant in Article 6.

Paragraph 2
Price Actually Paid or Payable

Article 4

(1) Price actually paid or payable is total payment that is made of will be made by the buyer to or for the interest of the seller for the goods imported.

(2) Price actually paid or payable shall exclude:

• a. costs incurred from activities conducted by the buyer for his own interest;
• b. costs incurred after the goods importation;
• c. dividends;
• d. interests.

(3) Price actually paid or payable as contemplated in paragraph (1) may include discount element.

Paragraph 3
Costs that are Added to the Price Actually Paid or Payable

Article 5

(1) In order to obtain transaction value, price actually paid or payable are added with certain costs, namely:

• a. costs paid by the buyer that is not included yet in the price actually paid or payable, in the forms of:
• (i) commission and mediation fee, except the selling commission;
• (ii) packaging cost, that for the interest of customs office, the packaging becomes an integral part of the related goods;
• (iii) packing cost, both for labour wage and packing materials.
• b. assist is in the form of value of goods and services, namely:
• (i) materials, components, parts and similar items that are contained in the imported goods;
• (ii) tools, prints and similar items that are used in the making of the imported goods;
• (iii) materials that are used .consumed in the making of imported goods; and / or
• (iv) techniques, developments, art works, designs, plans and sketches that are conducted anywhere outside the Customs Region and required for the manufacturing of imported goods, that are supplied directly or indirectly by the buyer, provided that these goods and services:
• - are supplied free of charge or at lowered price;
• - for the interest of production and sale for export of imported goods they buy; and
• - its price is not included yet in the price actually paid or payable.
• c. royalty and licensing cost, as long as:
• (i) paid by the buyer either directly or indirectly;
• (ii) constitutes requisites for sale of imported goods;
• (iii) relates with the imported goods whose customs value is being determined; and
• (iv) not included in the price actually paid or payable.
• d. proceeds are value of parts of income that are obtained by the buyer by reselling, utilization or usage of the imported goods that is later delivered either directly or indirectly to the seller.
• e. transportation cost of the imported goods that are sold for export to the import point in the Customs Area.
• f. Loading, unloading costs and handling charges relating with transportation of imported goods to the import point in the Customs Region.
• g. insurance cost.

(2) Costs that are added to the price actually paid or payable as contemplated in paragraph (1) must be based on objective and measurable data.

Paragraph 4
Requirements of Transaction Value To Be Acceptable and Stipulated as Customs Value

Article 6

Transaction value can be accepted and stipulated as a customs value as long as fulfilling requirements, as follows:

• a. There are no requirements or considerations that are imposed to the transaction or price of the imported goods that result in the price of related imported goods can not be determined;
• b. There are proceeds which must be delivered by the buyer to the seller, unless value of such proceeds can be added to the price actually paid or payable;
• c. There is no relation as meant in Article 1 letter a, between the seller and the buyer that affects the price of goods;
• d. There is no limitation on utilization or usage of the imported goods other than limitations that are:
• (i) applied or required by statutory regulations applicable in the Customs Region;
• (ii) limiting the geographical areas where the related goods are resold;
• (iii) not affecting substantially the prices of goods.

Paragraph 5
Limitations of Use of Method I

Article 7

Method I shall not be used to determine the customs value if:

• a. The imported goods are not subject of a sale for export to Customs Region;
• b. transaction value does not meet the requirements of acceptance and stipulation as customs value as meant in Article 6;
• c. Addition or reduction that must be conducted to the price that is actually or should be paid is not supported by objective and measurable data; and/or
• d. Customs and Excise Official has fundamental grounds based on objective and measurable data to doubt the correctness or accuracy of the transaction value notice.

Paragraph 6
Further Provisions on Method I

Article 8

Further provisions on:

• a. Method I;
• b. procedures of investigation of influences of the relation between the seller and the buyer on the goods price, are specified in Attachments I and II to this Decision.

Third Part
Method II
Customs Value Based on Transaction Value of Identical Goods

Paragraph 1
Transaction Value of Identical Goods

Article 9

(1) If the customs value can not be determined based on transaction value of the relevant imported goods, customs value is determined based on transaction value of identical goods.

(2) Transaction value of identical goods as contemplated in paragraph (1) can be used as a basis to determine customs value by using Method II as long as meeting the following requirements:

• a. originating from the Goods Import Notice (PIB) whose customs value has been determined based on the transaction value by the Customs and Excise Service Office;
• b. date of its Bill of Lading (B/L) or Airway Bill (AWB) is the same as or within thirty days before or after the date of B/L or AWB of the imported goods whose customs value is being determined;
• c. its commercial level and goods quantity is the same as the commercial level and goods quantity of the imported goods whose customs value is being determined.

(3) If there are more than one transaction values of identical goods, then, in order to determine the customs value, the lowest transaction value of identical goods shall be used.

Paragraph 2
Adjustment of Commercial Level and Goods Quantity

Article 10

(1) Determination of customs value based on transaction value of identical goods shall maximally use identical goods originating from commercial level and quantity of goods is equal to the imported goods whose customs value is being determined.

(2) If there are no identical goods as contemplated in paragraph (1), then identical goods with other conditions shall be used as long as adjustments are conducted to:

• a. goods quantity, in case the goods quantity differs but the commercial level equals ;
• b. commercial level, in case the commercial level differs but goods quantity equals; or
• c. quantity and commercial level, in case the commercial level and goods quantity differs.

(3) Adjustment as contemplated in paragraph (2) shall be conducted based on real evidence that allows implementation of adjustment reasonably and properly.

(4) If there is no real evidence as contemplated in paragraph (3), then adjustment can not be conducted and transaction value of identical goods cannot be used to determine the customs value.

(5) Example of adjustment of commercial level and/or goods quantity as contemplated in paragraph (2) are detailed in Attachment III to this Decision.

Fourth Part
Method III
Customs Value Based on Transaction Value of Similar Goods

Paragraph 1
Transaction Value of Similar Goods

Article 11

(1) If the customs value can not be determined based on transaction value of the relevant imported goods or transaction value of identical goods, customs value is determined based on transaction value of similar goods.

(2) Transaction value of similar goods as contemplated in paragraph (1) can be used as a basis to determine customs value by using Method III as long as meet the following requirements:

• a. originating from PIB whose customs value has been determined based on the transaction value by the Customs and Excise Service Office;
• b. date of its Bill of Lading (B/L) or Airway Bill (AWB) is the same as or within thirty days before or after the date of B/L or AWB of the imported goods whose customs value is being determined
• c. its commercial level and goods quantity is the same as the commercial level and goods quantity of the imported goods whose customs value is being determined.

(3) If there are more than one transaction values of similar goods, then, in order to determine customs value, the lowest transaction value of similar goods is used.

Paragraph 2
Adjustment of Commercial Level and Goods Quantity

Article 12

(1) Determination of customs value based on transaction value of similar goods shall to best possible use similar goods originating from the commercial level and quantity of goods is equal to the imported goods whose customs value is being determined.

(2) If there are no identical goods as contemplated in paragraph (1), then identical goods with other conditions shall be used as long as adjustments are conducted to:

• a. goods quantity, in case the goods quantity differs but the commercial level equals ;
• b. commercial level, in case the commercial level differs but goods quantity equals; or
• c. quantity and commercial level, in case the commercial level and goods quantity differs.

(3) Adjustment as contemplated in paragraph (2) shall be conducted based on real evidence that allows implementation of adjustment reasonably and properly.

(4) If there is no real evidence as contemplated in paragraph (3), then adjustment can not be conducted and transaction value of identical goods cannot be used to determine the customs value.

(5) Example of adjustment of commercial level and/or goods quantity as contemplated in paragraph (2) are detailed in Attachment III to this Decision

Fifth Part
Method IV
Customs Value Based on of Deduction Method

Paragraph 1
Deduction Method

Article 13

(1) If the customs value can not be determined based on transaction value of the relevant imported goods, transaction value of identical goods or transaction value of similar goods, customs value is determined based on Deduction Method.

(2) Deduction Method is a customs value determination method based on unit price that occurs from a sale in marketplaces within the Customs Region for:

• - identical goods; or
• - similar goods,

with conditions at importation, less reduction factor in the form of costs that incur after importation.

Paragraph 2
Unit Price Requirement

Article 14

(1) Unit price that is used as a basis of calculation in Deduction Method must meet the following requirements:

• a. unit price is obtained from sale in the market places within the Customs Region in which the seller and the buyer are not related each others;
• b. constitutes the unit price relevant imported goods, identical goods or similar goods that are sold in greatest amount (greatest aggregate quantity);
• c. Sale as referred to in letter a is a first hand sale;
• d. Sale as referred to in letter a occurs on the same date as or occurs within 30 (thirty) days before or after the PIB registration date of the imported goods whose customs value is being determined;
• e. if there is no sale as referred to in letter d, the sale occurred on the nearest date shall be used, after the importation date of goods whose customs value is being determined, at the latest within 90 (ninety) days as of importation date of the relevant imported goods;
• f. is not a sale in market places within the Customs Region of the relevant imported goods, identical goods or similar goods to the buyer who applies the assist to manufacture the relevant imported goods.

(2) If there is no unit price that meets requirements as referred to in paragraph (1), then, the Deduction Method can not be used to determine customs value of the relevant imported goods.

Paragraph 3
Reduction Factor

Article 15

(1) In order to calculate the customs value, unit price as meant in Article 13 is subtracted with certain costs, namely :

• a. commissions or profit and general expenses of sale of the relevant imported goods, identical goods or similar goods in the market places within the Customs Region;
• b. transportation expenses, insurances and other costs that are born by the buyer after the relevant imported goods, identical goods, or similar goods have arrived at the import point in the Customs Region;
• c. import duty, excises, and taxes in the framework of import.

(2) Unit price, after deducted with costs in letters a, b, and c above becomes customs value of the relevant imported goods.

(3) Data of amount of costs as contemplated in paragraph (1) letter a and b shall be obtained from the buyer, unless the data doe not conform to common practices applicable in the Customs Region.

(4) Further provisions on selection of unit price and reduction cost are detailed in Attachment V to this Decision.

Paragraph 4
Different Condition of Goods

Article 16

(1) If there is no sale in the market places within the Customs Region of the relevant imported goods, identical goods or similar goods with goods condition the same as at the time of importation, the Deduction Method can be used based on the relevant imported goods, identical goods or similar goods that are sold in the market places within the Customs Region with different conditions, as long as adjustment is made on such condition difference.

(2) Data that is used to calculate the adjustment of condition difference as contemplated in paragraph (1) must be based on objective and measurable data.

Sixth Part
Method V
Customs Value Based on Computation Method

Paragraph 1
Computation Method

Article 17

(1) If the customs value can not be determined based on transaction value of the relevant imported goods, transaction value of identical goods, transaction value of similar goods or Deduction Method, customs value is determined based on Computation Method.

(2) Computation Method is a customs value determination method by means of summing up a number of forming elements of customs value of the relevant imported goods.

(3) Forming elements of customs value as contemplated in paragraph (2) are:

• a. costs or prices of raw materials and manufacturing process or other processes that are conducted in production of relevant imported goods;
• b. profit and general expenses the amount of which equals to or proximate the profit and general expenses of sale of similar goods that are produced by a producer in the exporting country for delivery to the Customs Region;
• c. transportation expenses from the loading port to the import point in the Customs Region, including the Loading, unloading costs and handling charges; and
• d. insurance cost as meant in Article 5 paragraph 1.g.

(4) Forming elements of customs value as contemplated in paragraph (2) include costs:

• a. that are born by the buyer in the forms of:
• (i) commissions and brokerage services, unless the commission Pemb Elian;
• (ii) packaging costs that for the interest of customs office, the packaging becomes an integral part of the related goods; and/or
• (iii) packing cost including labour wages and packing materials,
• b. assist

(5) Computation Method shall only be used in case there is inter-relationship between the seller and the buyer, and the producer or their proxy undertakes to give the customs part information on forming elements of customs value and undertakes to provide facilities for further examination is necessary.

(6) Provisions on forming elements of customs value based on the Computation Method article specified in more detail in Attachment VI to this Decision.

Seventh Part
Method VI
Customs Value Based on Procedures that is Reasonable and Consistent with the Principles and Provisions of Article VII GATT 1994 and Based on Data Available in the Customs Region with Certain Limitation

Paragraph 1
Definition of Method VI

Article 18

(1) If the customs value can not be determined based on transaction value of the relevant imported goods, transaction value of identical goods, transaction value of similar goods, Deduction Method or Computation Method, customs value is determined based on procedure that is reasonable and consistent with the principles and provisions in Article VII GATT 1994 with certain limitations based on data available in the Customs Region.

(2) Determination of customs value based on Method VI shall be conducted by repeating the principles and provisions in Methods I through V that are determined flexibly based on data available in the Customs Region.

(3) Further explanation on Method VI is described in Attachment VII to this Decision.

Paragraph 2
Provision on Prohibitions in Implementation of Method VI

Article 19

Application of customs value using Method VI is not allowed based on:

• a. selling price in the Customs Region of goods that are produced within the customs region;
• b. systems that determine customs value higher if there are alternative values;
• c. domestic market price of the exporter country;
• d. production costs other than as calculated using Computation Method that has been determined for identical goods or similar goods;
• e. price of goods exported to a country other than into the Customs Region;
• f. minimal customs value;
• g. customs value that is determined arbitrarily or fictive.

CHAPTER III
PROCEDURES OF INVESTIGATION AND DETERMINATION OF CUSTOMS VALUE

First Part
Investigation of Goods Import Notice

Article 20

(1) In order to determine customs value, the Customs and Excise Official in the Customs and Excise Service Office conducts investigation on the customs value notice as specified in the PIB documents and all documents attached thereto.

(2) Investigation as contemplated in paragraph (1) includes:

• a. identifying whether the relevant imported goods are subject of a sale-purchase transaction that causes the goods exported to be imported to the Customs Region;
• b. investigating requirements of sale-purchase transaction value to be acceptable and stipulated as customs value;
• c. investigating cost elements that should be added to the transaction value;
• d. investigating cost elements that should not be included in the transaction value;
• e. testing the fairness of customs value notification that is specified in the PIB.

Article 21

Investigation as meant in Article 20 is conducted to PIBs both that are obliged to be examined physically and not.

Article 22

(1) If the investigation as meant in Article 20 shows that:

• a. The relevant imported goods are not a subject of a sale-purchase transaction that causes the goods exported to be imported to the Customs Region;
• b. any transaction value requirements for acceptability and admissibility as customs value is not met;
• c. cost elements that should be added to/deducted from the transaction value cannot be calculated and/or are not based on objective and measurable data; and/or
• d. results of physical examination show type and quantity of goods notified do not comply with the notification,

(2) If the results of investigation as meant in Article 20 show that:

• a. The relevant imported goods are subject of a sale-purchase transaction that causes the goods exported to be imported to the Customs Region;
• b. The transaction value requirements for acceptability and admissibility as customs value are met;
• c. cost elements that should be added to/deducted from the transaction value can be calculated based on objective and measurable data; and
• d. results of physical examination show type and quantity of goods notified conform to the notification,

the Customs and Excise Official conducts fairness test of customs value notification that is specified in PIB.

Second Part
Fairness Test of Customs Value Notification

Article 23

(1) The fairness test as meant in Article 22 paragraph (2) shall be conducted by means of comparing the customs value notified in the PIB with the price of identical goods or similar goods that is listed in the Price Database I.

(2) In the event results of fairness test as contemplated in paragraph (1) show the customs value notified is lower not exceeding 20% than, equal to, or larger than the price of identical goods or similar goods in the Price Database I, the customs value notified in PIB is accepted.

(3) In the event the fairness test of customs value notification shows customs value notified is lower exceeding 20% than the price of identical goods or similar goods in the Price Database I, the Customs and Excise Official shall make Customs Value Information (INP) as a notification to the buyer:

• a. that the Customs and Excise Official is in doubt on the correctness of the customs value notification;
• b. to submit declaration of facts relating to the transaction and/or importation of the related goods in the form of Customs Value Declaration (DNP).

Third Part
Customs Value Information (INP) and Customs Value Declaration (DNP)

Article 24

(1) INP as meant in Article 23 paragraph (3) shall be sent to the buyer or his/her proxy at the latest on the next working day after the results of fairness test of customs value notification as meant in Article 23 that show that customs value notified lower exceeding 20% than the price of identical goods or similar goods.

(2) Delivery of INP to the buyer or his/her proxy shall be conducted through electronic media, courier or express mail.

(3) DNP as contemplated in paragraph (1) together with attachment thereto in the form of documents relating to transaction/importation must be delivered by the buyer or his/her proxy to the Customs and Excise Official whose names are listed in the INP at the latest within 7 (seven) working days as of the INP sending date.

(4) In case the DNP is not delivered within the period as contemplated in paragraph (3), the customs value shall be determined not based on the transaction value of the relevant imported goods.

(5) Delivery of DNP is not required for imported goods that has no sale-purchase transaction value.

(6) Form of INP and procedures of completing DNP is provided for in Attachment VIII and IX to this Decision.

Fourth Part
Custom Value Investigation and Determination Sheet

Article 25

(1) Results of investigation and determination of customs value that is conducted by the Customs and Excise Official as meant in Article 20, fairness test of customs value notification as meant in Article 23 and DNP investigation are obliged to be described in the Customs Value Investigation and Determination Sheet (BCF 2.7) as provided for in Attachment XII to this Decision.

(2) Custom Value Investigation and Determination Sheet(BCF 2.7) as contemplated in paragraph (1), after being completed in accordance with the investigation results, shall be attached to the relevant PIB and constitute a document of customs value stipulation that is conducted by the Customs and Excise Official in the Customs and Excise Service Office.

Fifth Part
Obligations of Buyer

Article 26

(1) In order to determine customs value accurately and correctly, complete, correct and accurate facts and/or data of transaction and/or importation are required. For that purpose, then, if asked so by the Customs and Excise Official, the buyer or his/her proxy is obliged to:

• a. deliver all information, documents and/or declarations that are necessary in the framework of customs value determination;
• b. give explanation both verbally and in writing concerning how the buyer or his/her proxy calculates customs value, forming elements of customs value, and other matters related to transaction and/or importation of the related goods.

(2) In case the importer is not buyer, information, documents, declarations, verbal and written explanation as contemplated in paragraph (1) shall originate from the buyer.

(3) If buyer or his/her proxy fails to meet requests brought forward by the Customs and Excise Official as contemplated in paragraph (1), then the Customs and Excise Official may use other relevant data that are available in order to determine the customs value.

Sixth Part
Obligations of Customs and Excise Official

Article 27

Upon written request of the buyer or his/her proxy, the Customs and Excise Official who determines customs value is obliged to give explanation in writing concerning how the determination of customs value has been conducted on the relevant imported goods.

Seventh Part
Confidentiality of Data

Article 28

All information/data that are confidential in nature must be treated confidentially by the Customs and Excise Official and not allowed to be disclosed without a prior consent o`f the informer, unless required for litigation process.

CHAPTER IV
CUSTOM VALUE INVESTIGATION BY VERIFICATION AND AUDIT UNIT

First Part
Customs Value Investigation By Verification Unit

Article 29

Verification Unit conducts customs value investigation on the PIB that is stipulated based on Methods I through VI.

Second Part
Investigation of Account Related With Customs Value By the Audit Unit

Article 30

(1) Audit Unit conducts audit to the importer and/or the buyer whose customs value PIB is determined based on Method I by observing provisions as meant in Article 7.

(2) To any PIB in which its transaction value is found any addition elements in the form of royalty, proceeds and reduction element in the form of discount shall be the priority of the audit.

CHAPTER V
PRICE DATABASE

First Part
Types and Functions

Article 31

(1) Price Database consist of Price Database I and Price Database II

(2) Function of the Price Database I is as facility (parameter) in customs value notification fairness test activity.

(3) Functions of the Price Database II are:

• a. as Test Value in identifying whether the relationship between the seller and the buyer affects the or not;
• b. as a basis of customs value determination based on Methods II, III and VI.

Second Part
Compilation and Update

Article 32

(1) Price Database I is prepared and updated by the Head Office of the Directorate General of Customs and Excise.

(2) Data sources for preparation and update of the Price Database I are PIB whose customs value has been accepted and stipulated based on Methods I through VI, catalogues, brochures and other price information originating domestically and abroad.

(3) Price Database II is prepared and updated by the Customs and Excise Service Office, the implementation of which is conducted by the Customs Section Head or Official who is appointed by the Service Office Head.

(4) Data sources for preparation and update of the Price Database II are PIB whose customs value has been accepted and stipulated based on transaction value of the relevant imported goods (Method I), Deduction Method (Method IV) and Computation Method (Method V).

(5) Further provisions on the preparation/updating processes and usage of the Price Database shall be provided for in Attachment XIII to this Decision.

CHAPTER VI
MISCELLANEOUS

Article 33

(1) For uniformity of implementation of customs value determination, it is published a book containing compilation of decisions of the Director General of Customs and Excise on matters related to customs value.

(2) The book as contemplated in paragraph (1) shall be updated periodically every time there is a change in and issuance of decisions of the Director General of Customs and Excise on customs value.

Article 34

With enactment of this Decision, Decision of the Director General of Customs and Excise No. KEP-14/BC/1997 dated 21 February 1997 on Forms and Procedures of Completing Customs Value Declaration (DNP); Attachment XIV to Decision of the Director General of Customs and Excise No. KEP-15/BC/1999 dated 22 March 1999 on General Guidance for Implementation of Customs Administration in the Field of Import; Circular of the Director General of Customs and Excise No. SE-11/BC/1997 dated 24 February 1997 On: Implementing Manual of Customs Value Determination of Imported Goods; and Circular of the Director General of Customs and Excise No. SE-23/BC/1999 dated 1 September 1997 On: Implementing Manual of Customs Value Determination of Imported Goods Based on Transaction Value (Method I), Deduction Method (Method IV), and Customs Value Determination of Imported Goods Based on Method VI Using Deduction Method That is Applied Flexibly are declared as null and void.

Article 35

This Decision shall come to effect as of 1 January 2000.

Stipulated in: Jakarta
On: 31 December 1999
The Director General
sgd.
Dr. Permana Agung D., Msc.
NIP 060044475

Attachment to DECISION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. KEP-81/BC/1999