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CIRCULAR OF THE DIRECTOR GENERAL OF CUSTOMS AND EXCISE
NUMBER SE-12/BC/2011

CONCERNING
TECHNICAL GUIDANCE FOR VERIFYING NOTIFICATION OF IMPORT GOODS DOCUMENTS RELATED TO CHANGING OF OPERATIONAL CERTIFICATION PROCEDURE IN THE FRAMEWORK OF ASEAN-CHINA FREE TRADE AREA SCHEME

To:

• 1. Heads of Regional Offices of Customs and Excise
• 2. Heads of Main Service Offices of Customs and Excise
• 3. Heads of Control and Service Offices of Customs and Excise
• all over Indonesia.

A. General

According to Regulation of the President of the Republic of Indonesia Number 37 of 2011 concerning Ratification of Second Protocol to Amend the Agreement on Trade in Goods of the Framework Agreement on Comprehensive Economic Co-operation between the Association of Southeast Asian Nations and Peoples Republic of China, hereinafter called Second Protocol, there are several new points related to ASEAN-China Free Trade Area (ACFTA) scheme, so it is necessary to issues technical guidance for verifying notification of import goods documents related to changing of Operational Certification Procedure in the framework of ASEAN-China Free Trade Area.

B. Objective and Purpose

1. In addition for the technical guidance in verifying Certificate of Origin (SKA) Form E in related to changing of Operational Certification Procedure (OCP) in the framework of ACFTA scheme.

2. As one of internal processing procedure, especially for Customs authority/receiver of SKA Form E document to apply this Second Protocol.

C. Scope

This Circular of the Director General only covers technical guidance of SKA Form E documents verification because of changing OCP in the framework of ACFTA.

D. Basic

This Circular of Director General of Customs and Excise is stipulated based on:

1. Law Number 10 of 1995 concerning Customs as amended by Law Number 17 of 2006;

2. Law Number 24 of 2000 concerning International Agreement;

3. Regulation of the President of the Republic of Indonesia Number 37 of 2011 concerning Ratification of Second Protocol to Amend the Agreement on Trade in Goods of Framework Agreement on Comprehensive Economic Co-operation between the Association of Southeast Asian Nations and People’s Republic of China;

4. Letter of the Director General of International Trading Co-operation of the Ministry of Trade Number 791/KPI/SD/07/2011 dated July 27, 2011 concerning Government of Indonesia Preparation Toward Implementation of Second Protocol to Change Goods Trading Agreement in the ACFTA scheme.

5. Letter of the Director General of Customs and Excise Number S-60/BC/2011 with subject New Provisions on the Certificate of Origin Form F in the Framework of ASEAN China FTA Tariff Preference Scheme;

E. Some changes to the provisions of Operational Certification Procedures for ACFTA scheme in this Second Protocol should be used as guidelines in the implementation of the SKA (Form E) checking, are as follows:

1. Issuing Authority

There is extension of the definition of "issuing authority" or the authority issuing the SKA Form E, SKA Form E is not only issues by governments but also other agencies appointed by the Government.

2. Format of Form E (number of columns and the number of Form E sheets)

• a. Number of columns in a Form E is added 1 column, it is the box 13 which contains:
• 1) issued Retroactively,
• 2) Exhibition,
• 3) Movement Certificate, and
• 4) Third Party Invoicing.
• b. The number of Form E copies is changed from 4 (four) copies to 3 (three) copies with the designation as follows:
• 1) 1 (one) Form E Original is submitted to the Customs Authorities in the importing country, and
• 2) 2 (two) carbon copies are held by the issuing authority and the exporter of the country of origin.
• c. The use of the former form E format does not accepted to obtain preferential tariff by using ACFTA scheme.

3. Movement Certificate

• a. Movement certificate mechanism, in principally is the same with the back to back certificate in other FTA schemes.
• b. For China, the movement certificate is issued by the Customs authorities, whereas for the ASEAN member countries, movement certificate is issued by the issuing SKA authority.
• c. Issuing authority obligation to give tick mark on the box 13 on the movement certificate.
• d. In case of doubt, a request for retroactive check can be made (verification procedure) to the beginning of the exporting country to provide information on the beginning Form E and/or intermediate country to provide information on the movement certificate.

4. Verification Visit

Verification visit to the exporting country can be done in terms of customs authorities of the importing country (ACFTA member) is not satisfied with the results of retroactive check.

5. The date of issuance of Form E

• a. SKA Form E may be issued prior to, during, or no more than 3 (three) days after the date of shipment.
• b. Issuing authority has obligation to give tick mark on the box 13 of the issued retroactively for the SKA Form E is issued more than 3 (three) days after the date of shipment.

6. Third Party Invoicing

• a. Third party invoicing can be accepted to obtain preferential rates.
• b. Third party invoicing is a invoice publishing mechanism conducted by third party that is located either in a third country or in the ACFTA member country with the following conditions:
• 1) the products according to the provisions of the ACFTA Rules of Origin;
• 2) the number of third party invoices must be included in box 10 of the SKA Form E;
• 3) shipper exporter and consignee of goods must be located in the ACFTA member country; and
• 4) a copy of third party invoice must be attached to the SKA Form E when submitting the hard copy documents to the customs authorities of importing countries.
• c. Issuing authority obligation to give tick mark on the box 13 on the third party invoicing.

F. In the framework of the Customs and Excise official determination and the Director General of Customs and Excise determination on the SKA (Form E) checking still refer to the original document of Operational Certification Procedure that is Appendix 1 of the Second Protocol to Amend the Agreement on Trade in Goods of the Framework Agreement on Comprehensive Economic Co-operation Between the Association of Southeast Asian Nations and People's Republic of China that is ratified by Regulation of the President of the Republic of Indonesia Number 37 in 2011.

G. Based on Article 3 Paragraph (3) of the Second Protocol so this Second Protocol shall enter into force if a Party has notified in writing (notification) to all other FTA Parties on the completion of internal procedures.

H. Provisions on the SKA issuance still guided by SE-05/BC/2010 and SE-16/BC/2010 while not contrary to this Circular of the Director General of Customs and Excise.

This was stated to be implemented with full responsibility.

Stipulated in Jakarta
on October 3, 2011
DIRECTOR GENERAL
signed,
AGUNG KUSWWANDONO
NIP 19670329 199103 1001