REGULATION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-19/BC/2005

ON
THIRD AMENDMENT TO DECISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NO. KEP-07/BC/2003
ON
GUIDELINES FOR CUSTOMS PROCEDURE IN THE FIELD OF IMPORT

THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE,

Attachment

Considering:

• a. that, in the framework of protecting and increasing of state revenues, customs scanning shall be opti.mized effectively and efficiently;
• b. that, to ensure the fulfillment of state revenues from shortages of payment of import duty and other im.port charges due to the stipulations of the Customs and Excise Officer, it is deemed necessary to amend the procedure for issuance of license for exit of goods;
• c. that, based on the considerations as meant in paragraphs a and b, it is necessary to stipulate Regula.tion of the Director General of Customs and Excise on Third Amendment to Decision of the Director Gen.eral of Customs and Excise No. KEP-07/BC/2003 on Guidelines for Implementation of Customs Procedure In The Field of Import;

In view of:

• 1. Law No. 6/1983 on General Rules and Procedure of Taxation (Statute Book of 1983 No. 49, Supplement' to Statute Book No. 3262) as already amended several times and latest by Law No. 16/2000 (Statute Book of 2000 No. 126, Supplement to Statute Book No. 3984);
• 2. Law No. 10/1995 on Customs Affairs (Statute Book of 1995 No. 75, Supplement to Statute Book of 1995 No. 3612);
• 3. Law No. 11/1995 on Excise Duty (Statute Book of 1995 No. 76, Supplement to Statute Book of 1995 No. 3613);
• 4. Decree of the Minister of Finance No. 5/KMK.01/1993 on Appointment of Bank as Perception Bank In The Framework of Management of Payments of State Rev.enues as already amended several times and latest by Decree of the Minister of Finance No. 547/KMK.04/2007;
• 5. Decree of the Minister of Finance No. 453/KMK.04/2003 on Customs Procedure In The Field of Import as already amended several times and latest by Decree of the Minister of Finance No. 112/KMK.04/2003;
• 6. Joint Decree of the Minister of Finance and the Min.ister of Industry and Trade No. 527/KMK.04/2002 and No. 819/MPP/Kep/12/2002 on Administrative Order for Importers;

DECIDES:

To stipulate:

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE ON THIRD AMENDMENT TO DE.CISION OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE NO. KEP-07/BC/2003 ON GUIDELINES FOR CUSTOMS PROCEDURE IN THE FIELD OF IMPORT

Article 1

Some rules in Decision of the Director General of Customs and Excise No. KEP-07/BC/2003 on Guidelines for Implementation of Customs Procedure In The Field of Import as already amended several times and latest by Decision of the Director General of Customs and Excise No. KEP-178/BC/2003 shall be amended as follows:

1. Between paragraph 4 and paragraph 5 of Article 18, 2 (two) paragraphs, namely paragraph (4a) and (4b) shall be inserted and they read as follows:

"(4a) In case that the import goods are decided into the red tape and within 3 (three) working days after date of SPJM, importer or its proxy:

• a. Did not submit hard copy of PIB and supplementary customs documents;
• b. Did not prepare goods to be examined; or
• c. Is not present for the implementation of physical examination an official inspection may be carried out by Customs and Excise officer at importers risk and cost.

(4b) At the request of importer or its proxy, the period, as meant in paragraph (4a) can be extended for not later than 2 (two) working days if the concerned party is able to clarify the inability of performance of physical examination."

2. Between Article 19 and Article 30, 2 (two) articles, namely Article 19A and Article 19B shall be inserted and they read as follows:

"Article 19A

(1) Examination and designation of classification, imposition, and customs value for PIB designated into the red tape shall be performed by Document Inspecting Officer at the Customs Office serving submission of PIB by electronic means through diskette, and manually.

(2) In case that the designation of customs value, as meant in paragraph (1), uses method VI, the price data used is the data available at the Customs Office.

(3) In case that the examination and designation, as meant in paragraph (1), results in additional payment, SPBB shall be issued:

• a. After importer has fully paid shortages of im.port duty, excise duty PDRI, and/or administrative sanctions in form of monetary charges; or
• b. After importer has delivered a deposit equal to the amount of import duty, excise duty, PDRI, and/or administrative sanctions in form of monetary charges in case that an objection is filed.

Article 19B

(1) Examination and designation of classification, imposition, and customs value for PIB decided into the green tape shall be conducted by:

• a. Verification Department of Regional Office of the Directorate General selectively, for Customs Office serving submission of PIB by electronic means or through Customs PDE network;
• b. Document Inspecting Officer, for Customs Of.fice serving submission of PIB by electronic means through diskette and manually.

(2) In case that the designation of customs value, as meant in paragraph (1), uses method VI, the price data used is the data available at the Customs Office or the Regional Office.

(3) In case that the designation of classification, imposition, and customs value, as meant in paragraph (1) clause a, is done within 30 days since date of registration of PIB and results in shortages of payment of import duty, the result of the designation shall immediately be submitted to the related Customs Office for issuance of Letter of Stipulation of Shortages of Payment of Import Duty, Excise Duty, PDRI, and/or Administrative Sanctions in form of monetary charges.

(4) In case that the designation of classification, imposition, and customs value, as meant in paragraph (1) clause a, causes shortages of payment of import duty, but the 30-day-period since date of registration of PIB has been over, the Verification Department of Regional Office of the Directorate General shall recommend the performance of an Audit.

(5) The designation of classification, imposition, and customs value, as meant in paragraph (3), shall be treated as enforcement of Article 16 of Law No. 10/1995 on Customs Affairs.

(6) The designation of classification, imposition, and customs value, implemented by Audit, as meant in paragraph (4), shall be treated as enforcement of Article 17 of Law No. 10/1995 on Customs Affairs."

3. To amend the headings of Chapter IV to become as follows:

"PROHIBITIONS, SPOT CHECK, INTELLIGENT NOTES, HI-CO-SCANNING, AND PROHIBITED AND RESTRICTED GOODS".

4. One (1) part shall be added in Chapter IV, namely Part Five on Prohibited and Restricted Goods.

5. Between Article 31 and Article 32, 1 (one) Article, namely Article 31A shall be inserted and it reads as follows:

"Article 31A

Goods, which import is prohibited or restricted, which, based on results of physical examination, were found, not to be reported or reported dishonestly shall be declared as being controlled by the state, except that the goods are stipulated otherwise based on the applicable laws."

6. Article 38 shall be amended to become as follows:

"Article 38

(1) Importer may submit a preliminary declaration by submitting PIB:

• a. Before unloading of import goods, for Priority Tape Importers;
• b. At least 3 (three) working days before unloading of import goods, for other importers.

(2) PIB services, as meant in paragraph (1), shall be performed in accordance with the regulations on settlement of import goods to be used, as set forth in Article 20 of this Decision.

(3) In case that the PIB, as meant in paragraph (1) clause b, is designated into red tape and physical inspection cannot be performed within 3 (three) working days after date of SPJM with reasons that import goods have not been unloaded, the concerned importer shall be blocked."

7. The provisions of Article 52 shall be deleted.

8. Attachment II shall be amended to become as speci.fied in the Attachment to this Regulation.

9. The provisions of paragraph B of Attachment VIII shall be deleted.

10. The provisions of Attachment X shall be deleted.

Article 2

This Regulation shall be valid from October 1, 2005.

For public cognizance this Regulation shall be published by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On September 30, 2005
THE DIRECTOR GENERAL,
sgd
EDDY ABDURRACHMAN

Attachment to REGULATION OF DIRECTOR GENERAL OF CUSTOMS AND EXCISE
No. P-19/BC/2005

Attachment (Indonesian)