The rapid development in industry and trading is the reason of social demands on government law enforcement in business. Government, particularly Directorate General of Customs and Excise (DGCE) as trading facilitator, should have a customs law that anticipate social development to serve and control with speedy, better and efficient.
Since the prevailing of Customs Law No. 10/1995, the society consider that the definition of criminal act in article 102 "Any person who imports or exports or attempts to import or export goods, not complying with the provisions by virtue of this law, shall be penalized for smuggling" is bendable because the meaning of "not complying with this Law" in the explanatory notes unfulfilled the provision or procedure. It means if they comply one of the obligation, such as submitting customs declaration with inattention its truth, uncategorized as smuggling therefore dissatisfied fairness in society. It is necessary to re-formulate actions that categorize as smuggling.
The Customs Law No. 10/1995 explicitly stated that the authority of DGCE is controlling traffic goods incoming or outgoing of Customs Territory. Indonesian geographic as a huge archipelago state that has border seas with another state necessitate controlling on goods transportation by sea in Customs Territory to avoid sort of smuggling such as transited particular goods. Implicitly, controlling transportation of particular goods in the Customs Territory is the extension or un-separated customs authority as one of border control institution.
Regarding the society judgment, it is necessary to give DGCE an authority to control traffic of particular goods that propose by related technical institution. Bonded zone as one of customs facilities that has been obtained, cannot accommodate global investors demand to do auction, recycle, another activities because of restricted objectives to store imported goods for processing, exhibition, and/or selling only. Incentives, law enforcement and trading assurance are necessary in Bonded Zone to protect the movement of global investors out of Indonesia.
Related with global trading, ideal customs law must follow international conventions and international customs operation therefore customs law amendment is needed to add or adjust this provision a line with those conventions.
Appeal institution regulate in Article 96 up to Article 101 Customs Law No. 10/1995. Regarding Appeal Tax institution Law No. 17/1997 that has been change with Tax Arbitrary Law No. 14/2002, those appeal institution has not been founded. Tax Arbitrary competence cover customs appeal thus removes the Article 96 up to Article 101 Customs Law No. 10/1995.
Agree with article 22 of Agreement on Implementation of Article VII of General Agreement on Trade and Tariff (GATT) 1994 statute that national law must contain customs value determination a line with World Trade Organization (WTO) Valuation Agreement. Article 4 of that convention regulates computation method used prior deduction method on the importer request. Indonesia uses that opportunity to postpone the implementation article 4 for 5 years that end in year 2000. Therefore the provision on customs valuation determination in article 4 must be carried on in the customs law amendment.
Self-explanatory
This paragraph defines a clear understanding of the juridical term of "import", that is the time when goods enter the Customs Territory and determine the time when goods are subjected the import duties and provides legal basis for the Customs Official to conduct control.
Territory, nevertheless considering the aspect of service and security, it is impossible to place the Customs Official along the borderline, therefore, juridicaly, export is already deemed occurred when goods are already loaded or to be loaded into means of transportation leaving the Customs Territory.
The term "means of transport" is any vehicle, aircraft, ship or other means used to carry goods or person.
The term "loading" is bring This paragraph defines a clear understanding of the term "export". In reality, Export occurs when goods cross the Costuming the goods into the means of transport which also have submitted the customs declaration include fulfilled the export duties.
This paragraph defines if the goods have been loaded to the means of transport that will depart out of Customs Territory and it is proven that the goods will be discharged in the Customs Territory by submitting a customs declaration, the goods will not admit as exported goods.
Export duties in this article aim to protect domestic interest instead of impede the domestic export commodities in international trading.
To obtain accurate data and evaluation concerning the lodged Customs Declaration, customs examination shall be carried out upon imported goods through the inspection of the goods and verification of documents.
Self-explanatory
Basically, customs official shall do physical inspection selectively on high-risk imported goods in the Customs Area. Regarding the speedy flows of goods and safeguard the state monetary, the Minister can authorized customs examination out of Customs Area by Customs Official or other party in the name of Directorate General of Customs and Excise.
Self-explanatory
Principally, Customs official shall do customs examination in the Customs Area.
To encourage export, in the framework of endeavoring the increase of the competitive of Indonesian export in the world market, speedy and certainty of customs procedures are required by exporter. Therefore the examination of exported goods shall be kept at a minimum level by verifying documents only.
To obtain accurate data and evaluation concerning the lodged customs declaration, this article authorizes the Minister, under a certain circumstances, to stipulate provisions on the inspection of exported goods.
Transportation surveillance of certain exported goods as referred to this article shall be done particularly on the sea transportation in the Customs Territory.
The aim of this surveillance is to prevent export smuggling by transshipment of strategic goods such as product of forest, mining or subsidized goods in the Customs Territory.
Related technical institution means Ministry or other legal non-Ministry institution.
Self explanatory
Geographically, the Republic of Indonesia is a huge archipelago state. It is impossible to place the Customs Official along the seashores to secure that goods incoming to and outgoing from the Customs Territory have fulfilled the prevailing provisions. Therefore, the fulfillment of Customs formalities shall be done at the Customs office. It means that loading and unloading of goods at any place other than Customs office shall be regarded as violation against this law.
In this way the control is easier to be done since the place to meet Customs formalities such as: the lodgment of the Customs Declaration or payment of the Import Duties has been clearly limited by designating the Customs Office in accordance with the trading needs.
The fulfillment of Customs formalities at a place other than the Customs Office can be done when certain conditions determined by the Minister are fulfilled in accordance with trading and economic needs or when such a procedure provides and easier, safer, and cheaper way to fulfill Customs formalities.
The facilitation to fulfill Customs formalities at a place other than the Customs Office is granted on a temporary basis.
Self-explanatory.
For the purpose of the service, the control, the smoothness of the flow of the goods, the proper loading and unloading of goods, and the safeguard of state finance, this law specifies a certain area at the harbor, airport, or other places that are under the full supervision of the Directorate General of Customs and Excise.
The Appointment of customs controlling station is meant as a place for custom and excise officials to carry out controlling. The place is part of customs office and on that place can not execute the customs obligation.
Self-explanatory
Electronic data (softcopy) means information or integrated information that is arranged or compiled for special purpose which is received, recorded, send, stored, process, re-acquire, or produce electronically by computer or other electronic data processing equipment, optic, or other similar way.
Self-explanatory
Self-explanatory
Self-explanatory
This article states that all matters related to the accomplishment of Customs formality upon imported or exported goods, shall always be based on the provisions laid down in this law. The Directorate General of Customs and Excise shall only conduct the enforcement of this law.
Self-explanatory
Private identity number from Directorate General of Customs and Excise is necessary to recognize customs users along with the increasing users of information technology in customs. Everyone who has private identity number can access Customs system technology of Information. Private identity number from Directorate General of Customs and Excise is necessary to recognize customs users along with the increasing users of information technology in customs. Everyone who has private identity number can access Customs system technology of Information.
Persons who fulfill certain customs formalities such as goods brought by passenger, goods of foreign countries representatives, or consignment are not included in this paragraph.
Self-explanatory
This provision regulates the carrier obligations to notify the arrival schedule of the means of transport before it arrives at the custom area both regulate (liner) and un-regulate (tramper) transporter in Customs area. The purpose is to enhance controlling export and import goods.
Arrival of the means of transportation means:
a. since releasing anchor at the harbor for the sea transportation
b. since landing at the airport for the air transportation.
Manifest means list of trading goods that is loaded in the means of transportation.
Customs declaration in this paragraph contains information about imported, exported, or domestic trading goods that is brought by the means of transportation to another area in the customs territory through outside customs territory.
Self-explanatory
Docking in this paragraph is counted since the arrival of the means of transportation as referred to the explanation paragraph (1).
In principle, imported goods shall only be unloaded after the Customs Declaration of the arrival of means of transport is submitted. Nevertheless, under emergency circumstances such as fire, un-repairable broken engine, bad weather or other force major, exemption unloading can be done without prior notice upon the arrival of the means of transport.
Letter a
The Nearest Customs Office means the easiest Customs Office to be reached.
Notifying emergency circumstances as referred to this provision only can be done using walkie-talkie, telephone, or facsimile.
Letter b
Self-explanatory
Self-explanatory
Self-explanatory
Self-explanatory
Transport in this paragraph means inland transport imported goods
Operator in this paragraph means the operator of Temporary storage or Bonded storage.
Importer means person who does importation.
Self-explanatory
Self-explanatory
Considering different nature of electric power, liquid goods and gas, the transportation on those goods may be done in particular way such as transmission or pipeline. Customs declaration on imported or exported those goods shall be done base on sum and quantity once measuring at the last destination in the customs territory.
Software can be formed an integrated programme in the computer system that commands the computer what shall be done.
Software and softcopy that its transport and mail can be done through electronic transmission such as internet are object of this law.
Self-explanatory
Self-explanatory
Legal document means prerequisite documents for transporting particular goods
Administrative fine be subjected to the excessive or less particular goods when transported or discharged.
Self-explanatory
Self-explanatory
Imported goods means imported goods neither transited nor transshipped.
Self-explanatory
Self-explanatory
Self-explanatory
Discharge at another place shall be done by paying attention to the discharging technique or another reason depends on the head of customs office justification such as means of transport cannot dock or the unavailability of discharging equipment.
Discharging in this paragraph means discharging goods from one mean of transport to another outside harbor (reede).
The designated route means the means of transport shall pass the route from reede to customs office.
The obligation in this paragraph which shall be carried out by a carrier or proxy, is to notify the arrival of means of transport by submitting the Customs Declaration to the Customs official and such a document shall states all imported goods, either merchandises or ship supplies carried by the means of transport. When the amount of the unloaded goods is less than that stated in the Customs Declaration, the carrier based on this paragraph deemed to have already imported the goods. Therefore the carrier shall be obliged to pay both Import duties on the shortage goods and administrative fine, unless the cause of the shortage can be proven that it is not his/her fault.
In condition the goods brought in package, quantity of goods means sum of package.
Self-explanatory
The purpose of this provision is that it is not obligatory to store exported goods at the temporary storage, so that, the storage of goods at Temporary Storage shall only be done when such goods cannot be immediately loaded.
"Certain Condition" means a condition when it is impossible to store goods at the temporary storage because of congestion, technical storage difficulty, goods nature, or another reason. This interpretation includes given facility to store except at the temporary storage to avoid accumulated cost that may be arises during customs formality accomplishment.
Temporary Storage provision will be carried on at the other place as referred to this paragraph.
Letter a
Self-explanatory
Letter b
Self-explanatory
Letter c
Self-explanatory
Letter d
Self-explanatory
Letter e
The term "transited goods" means goods transported by means of transport, through any Customs Office without prior unloading.
The term "transshipped goods" means goods transported by means of transport, through any Customs Office after prior unloading.
Letter f
The term "re-exported" means:
1) re-consignment of imported goods destined outside the Customs Territory for reasons that the goods do not conform with the order;
2) due to the issuance of new government provisions which do not allow such goods to be imported into the Customs Territory.
Releasing imported goods as referred to in this paragraph done without any intention to evade the payment of Import Duty, the release, if it is not approved by the Customs Official, shall be regarded as violation against this paragraph even though both the Customs Declaration and the Import Duties are already fulfilled. Therefore the release is subject to administrative fine.
Self-explanatory
Letter a
Self-explanatory.
Letter b
Self-explanatory.
Letter a
Self-explanatory.
Letter b
This provision gives importer opportunities to comply the requirement to release home used imported goods before fulfilled its Import Duty by submitting guarantee. However, Importer shall fulfill his/her obligation in definite period as stipulated by this law. The facility is given to accelerate goods flow.
Letter c
Self-explanatory.
A "Passenger" means any person, other than crew of means of transport and border crossers, passing the borderline of a country using means of transport.
The term "crew of means of transport" means any person, due to the nature of his/her job shall be inside the means of transport and arrives with the means of transport.
The term "border crossers" means a resident, living or residing at the border area of a country holding an identity card issued by authorized government agencies. Who travel across the border area passing the border post.
The term "declare" means notifying both spoken and written.
An approval of the Customs Official means the decision made by the Customs Official indicating that such goods have undergone Customs formality by virtue of this law.
Self-explanatory
The provision in this paragraph shall regulate on administrative sanction imposition to the importers, having facilities as referred to in paragraph 2 (b) or 2 (c) to import goods for home use prior to the payment of the Import Duty by depositing a security, who do not pay the import duties within a specified period of time virtue of this law.
Obvious erroneous is human mistakes in customs declaration that often happen such as unnecessary miswritten, miscalculation, and/or dis-implementation of regulation, that unload dispute between customs officer and stakeholders, such as:
- miswritten of name or address
- miscalculation customs duties
- dis-implementation because of unknown regulation amendment that usually happen at the beginning implementation of new regulation.
Letter a
Self-explanatory
Letter b
Self-explanatory
Letter c
The Customs Official can decide by using customs service office computer system.
Self-explanatory
The objective of applying temporary admission is to provide a facility for importance of goods for specific purposes, such as goods for games; vehicles brought by tourists; equipment for research; appliances used by technicians; journalists and expert; recycle package and project equipment that obviously will be re-exported.
Self-explanatory
Temporary importation will obtain exemption or relief customs duties.
Self-explanatory
The term "belated" means the goods have been used in an approval period, but the person does not manage the customs administration till closing period.
In this paragraph Import duties shall be calculated based on tariff and customs value at the time submitting customs declaration on those temporary importation.
Self-explanatory
Self-explanatory
The term "Declare" in this paragraph referred to medium control on releasing goods to customs territory.
Self-explanatory
Self-explanatory
Self-explanatory
The term cancellation means a whole or partial.
Self-explanatory
Self-explanatory
This paragraph authorizes the Minister to determine the tariff rate which is different from that of Article 12 Paragraph (1).
Letter a
The tariff is imposed based on the agreement between the Government of the Republic of Indonesia and government of another country or several other countries, i.e. the Import Duty under the Common Effective Preferential Tariff for Asean Free Trade Area (CEPT for AFTA).
Letter b
To facilitate and expedite clearance of imported goods carried by passengers, crews of means of transport, border crossers, and postal or courier services, the tariff rate which is different from the one as referred to in Article 12 Paragraph (1) may be imposed, for example by imposing flat tariff rate. The provision is necessary since the goods brought by passengers, crews, border crossers are of various kinds.
Self-explanatory
The Nomenclature in this Article means a list of goods set up systematically to simplify tariffication, trade transactions, transportation, and statistics.
Self explanatory.
"Transaction value" means the price actually paid or payable by the buyer to seller for the goods when sold for export to the Customs Territory, adjusted in accordance with :
a. the costs incurred by the buyer but are not included in the price actually paid or payable :
1. commission and brokerage, except buying commission;
2. the cost of containers which are treated as being one for customs purpose with the goods in questions.
3. the cost of packing whether for labor or materials.
b. the value of goods and services :
1. material, component, part and similar items corporated in the imported goods;
2. tools, dies, molds and similar items used in the production of the imported goods;
3. material consumed in the production of the imported goods;
4. engineering, development, artwork, design work, plans and sketches undertaken elsewhere than in the Customs Territory and necessary for the production of the imported goods, supplied directly or indirectly by the buyer, on the condition that goods and services:
a) free of charge or at reduced cost;
b) for use in connection with the production and sale for export of the imported goods;
c) has not been included in the price actually paid or payable.
c. royalties and license fees related to the goods valued that the buyer must pay either directly or indirectly as a condition of sale of the goods being valued, to the extent that such royalties and license fees are not included in the price actually paid.
d. the value of any part of proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller.
e. the cost of transport of the imported goods to the port or place of importation.
f. loading, unloading and handling charges associated with the transport of the imported goods to the port or place of importation.
g. the cost of insurance.
"Identical Goods" means goods which are the same in all respect, including physical characteristic, quality and reputation, and:
a. produced by the same producer in the same country; or
b. produced by different producer in the same country.
"Similar Goods" means goods which, although not alike in all respect, have like characteristics and like component materials which enable them to perform the same function and to be commercially interchangable, and:
a. produced by the same producer in the same country; or
b. produced by different producer in the same country
Paragraph (3a)
Self explanatory.
"Deduction method" means a method to calculate customs value of imported goods based on a selling price of imported goods, identical or similar imported goods at the market of the Customs Territory minus cost/expenses for commission or profit, transportation, insurance, the Import Duty, and tax.
"Computed method" means a method to calculate customs value of imported goods based on the sum of the cost or value of material, fabrication or processing, and other cost/expenses occurred until the goods reach the port or place of importation at the Customs Territory.
No customs value shall be determined under provisions of this paragraph on the basis of :
a. the selling price in the country of importation of goods produce in such country;
b. a system which provide for the acceptance for customs purposes of the higher of two alternative values;
c. the price of goods in the domestic market of the country of exportation;
d. the cost of production other than computed values which have been determined for identical or similar goods in accordance with the provisions of Paragraph (5);
e. the price of goods for export to a country other than Customs Territory;
f. minimum customs values; or
g. arbitrary or fictitious values.
Self explanatory.
Tariff Classification and Customs value may be determined on a self assessment of the Customs Declaration only in case where the classification and customs value stated differ from the actual classification and/or customs value, so that:
import Duty is shortly paid in case the tariff and/or customs value is over stated;
import Duty is paid in excess in case the tariff and/or customs value is under stated.
In a certain case, classification and customs value for Import Duty are determined after physical examination, prior to Customs Declaration lodgment.
To provide certainty of service to the public, where the Customs Declaration is registered, a decision shall be given within thirty days since the date of registration. Thirty days period is deemed feasible for the Customs Official to gather all information necessary for making a decision.
The term Classification Determination prior to or after the lodgment of the Customs Declaration means the determination of tariff classification on a certain importation in an official assessment manner.
The term Customs Value Determination prior to or after the lodgment of the Customs Declaration means the determination of Customs value on a certain importation i.e. temporary admission, passenger's goods, or consigned goods in an official assessment manner.
Self explanatory.
Self explanatory.
Self explanatory.
Self explanatory.
Principally the decision made by the Customs Official is binding and applicable. However, if in the re-examination or re-determination of customs declaration or in the implementation of customs audit detects any shortage and/or excess of the Import Duty payment caused by erroneous notification of the tariff and/or customs value, the Director General may redetermine.
Self explanatory.
Self explanatory.
Paragraph (4)
This provision indicated that basically, only the seller and the buyer know the amount of transaction value, so the validation of the notification of transaction value is based on the honesty of the parties. Therefore, erroneous caused by dishonesty of the parties that is dislosed in the re-examination of the customs declaration or in the implementation of customs audit, shall be subject to an administrative fine.
In this Article, the determination of Director General before the submission of the Customs Declaration means. in order to provide a service to market forces and to comply with international Customs best practices which is known as Pre-Entry Classification and Valuation Ruling.
Pre-Entry Classification means determination of the tariff classification of imported goods by Director General before the Customs Declaration submitted based on importer's application.
Valuation Ruling means determination of Customs valuation on imported goods by Director General based on Customs Audit implementation which has been and will be done by importer in certain time before the submission of customs declaration submitted based on importer's application.
Safeguard duty means duty that imposed as government measure to recover serious injury and/or to prevent serious injury threat to the domestic industry as the impact of similar imported goods leap or competed goods in domestic industry in order to perform structural adjustment.
In case safeguard has determined in form of quota (restriction of import), the safeguard duty may not imposed.
Serious injury means tangible injury that suffered the domestic industry. This injury shall be based on fact not accusation, presumption, or estimation.
In case exported goods from Indonesia are unfairly treated by certain country by imposing restriction, prohibition, or surcharge, different tariff rate of those referred to in Article 12 Paragraph (1) may be imposed on the goods from the country concerned.
Self explanatory.
Self explanatory
Self explanatory
Paragraph (1)
"The exemption of Import Duty" means the payment of the Import Duty as required by this law is nullified.
Letter a
"Goods of foreign countries representatives and their staff" mean the goods owned by or for the interests of such foreign countries, including their staff and families holding diplomatic passports, living in Indonesia. The exemption is given on reciprocal basis.
Letter b
"Goods for the interests of international agencies and their staff" mean the goods owned by or for the interests of international agencies which are registered in and recognized by the Indonesian Government, including their staff assigned in Indonesia. The exemption is not given to international agencies staff holding an Indonesian passport.
Letter c
The Import Duty exemption is granted, based on the recommendation of the related government agencies on books intended to improve the knowledge and develop the intelligent of the people.
Letter d
"Goods for purposes of worship" mean the goods which are primarily used for the purposes of worship of any religion which is recognized in Indonesia.
"Goods for charitable and social purposes" means the goods solely intended for charitable and social purposes and have no commercial aspects, for example aids for the relief of natural disasters or for the eradication of epidemics.
"Goods for cultural purposes" means the goods intended to increase cultural relationship among nations. The Import Duty exemption is based on the recommendations of the related ministries.
Letter e
Self explanatory
Letter f
"Goods for scientific research and development purposes" mean the goods or equipment used for research or experiments to enhance or develop scientific and technological inventions. The Import Duty exemption is granted based on the recommendations of related government agencies.
Letter g
Self explanatory
Letter h
Self explanatory
Letter i
Self explanatory
Letter j
"Sample" means goods specifically imported in limited numbers and types as samples, among others to be used for prototype production and exhibition.
Letter k
Self explanatory
Letter l
"Remover goods" means household goods, owned by those people who formerly domiciled abroad, and then brought home by the owners when they move into the country.
Letter m
"Goods brought by passengers, crews of means of transport, and border crossers" mean goods brought by individuals as stated in the explanatory of Article 10B, Paragraph (3), while consignment mean goods consigned by certain consigners abroad to certain consignees in the country.
Letter n
Self explanatory
Letter o
"Repairing" means the handling of damaged, decrepit, or old goods to restore them to their original conditions without changing their essential characteristics.
"Processing "means the handling of goods, other than repairing as mentioned above, to increase the economic value of the goods without changing their essential characteristics.
Testing includes the technical inspection of the goods in regard of their qualities and capacities based on fixed standards.
The exemption or relief in this case is only granted on goods imported in the same conditions as when they were exported. Import Duty is still charged on parts which are replaced or added and on reparation costs.
Letter p
Import Duty exemption may be granted on re-imported goods without being subject to any processing or upgrading whatsoever, for example goods brought by passengers abroad, goods for exhibitions, shows, or contests.
For other exported goods, which are re-imported in the same state, the Import Duty may be exempted if all facilities received are returned.
Letter q
Materials for human therapy, blood group, and tissue type are:
1) materials for therapy originated from humans, i.e. human blood and its derivatives such as whole blood, dry plasma, albumin, gamaglobulin, fibrinogen, and body organs,
2) materials for blood group originated from humans, animals, plants, or other sources,
3) materials for tissue type originated from humans, animals, plants, or other sources
This paragraph authorizes the Minister to further regulate the requirements and procedures to obtain the exemption based on this Article.
Not comply with the provisions means imported goods used not in regard of objectives and requirement stipulated, such as the import duties exemption on importation of sample goods which are not for trade purpose, but in fact it was for trade.
Violations in this exemption detected on surveillance, re-examination, and/or Customs audit implementation.
The Import Duty exemption granted in this Article is a conditional exemption, in the sense that the exemption granted is based on specified requirements and objectives, so that the imported goods can be granted either an exemption or only a relief of Import Duty.
"Relief of Import Duty" means a partial reduction of the Import Duty payment by virtue of this law.
Letter a
Capital Investment in this letter means overseas and domestic investment as stipulated in an effective regulation.
Letter b
"Machinery for the establishment and development of industries" means any machine, machinery, component for the installation of factories, or equipment used in the establishment and development of industries. "The establishment and development of industries" includes the establishment of new enterprises or factories and diversification of products, the modernization and rehabilitation of existing enterprises and factories to increase production capacities.
Letter c
"Goods and materials" mean all goods and materials, irrespective of their types and compositions, used as materials or components to produce finished products, while the time limits of the Import Duty reduction will be further determined in an operational guide line of this law.
Letter d
Self explanatory
Letter e
"Seeds and breeding" mean all kinds of import plants or animals clearly intended for further breeding for the development of agriculture, plantations, forestry, animal husbandry, and fishery.
Letter f
"Marine product" means all kinds of marine plants, fishes, or sea animals that edible, such as: fishes, shrimps, shellfishes, and crabs, before or after processing in their respective hauling vessels.
"Hauling vessels" mean one or a group of boats having equipment to catch or take marine products, including those with processing facilities.
"Licensed hauling vessels" mean hauling vessels under Indonesian or foreign flag, which have been given licenses by the Indonesian Government to catch or take marine products.
Letter g
In any trade transaction, it is possible that the goods undergo change in conditions before they are received by the buyer. The principle of Import Duty collection by virtue of this law, is applied to all goods imported for home use. When there has been a change in the conditions of the goods such as: damage, decrease in quality, destroyed, or decrease in volume or weight naturally, such goods cannot be fully used or give expected benefits. It is reasonable that such goods should not be charged with the Import Duty in full. Therefore the process of the changes in condition of such goods is limited between the time the goods transported and the import approval is given.
Letter h
"Public interest" means the interest of the society that does not give priority to financial interest, for example streetlight installation project.
Letter i
Self explanatory
Letter j
Self explanatory
Letter k
Self explanatory
Self explanatory
Not comply with the provisions i.e. used not in regard of objectives and requirement stipulated, such as the import duties exemption facilities on imported goods of phsycal exercise, but in fact it was for trade.
Letter a
Administrative errors are among others errors in writing, calculation, and tariff rate.
Letter b
Self explanatory
Letter c
Certain reasons in this paragraph mean reasons not caused by the intention of the importer, but by the Government policy resulting the imported goods cannot be released, and so they have to be re-exported or destroyed under the supervision of the Customs official.
Letter d
Self explanatory
Letter e
Self explanatory
Self explanatory
Self explanatory
Basically the importer shall be liable for the payment of the Import Duty. However, by the virtue of the provision of Paragraph (1) of Article 30, the liability of the importer will have been due as of the date of the registration of the Customs Declaration. Consequently, before the Customs Declaration is registered, the operator of the Temporary Storage of the imported good is responsible for the Import Duty.
Self explanatory.
If the imported goods, on which the Import Duty should be paid, consist of several Articles under one heading and the actual Article cannot be known, henceforth the calculation of the Import Duty should be done based on the headings of the goods having the highest tariff rate, and the customs value shall be determined by the Customs official.
Self explanatory.
Self explanatory.
Rounding off in thousand rupiah in this paragraph means round off over the amount so that part of the thousand will be thousand.
Self explanatory.
According to this Article, the obligation of the payment of import duty as referred to in Article 2 arises as of the date of the registration of the Customs Declaration.
"Deferment" in this paragraph means the suspension of the payment of Import Duty relating to the facility given in period of payment and suspensionn of the payment while waiting for the decision of the exemption or relief.
Paragraph (2a)
Self explanatory.
Self explanatory.
Self explanatory.
Director General can give suspension or period of payment after considering the ability of the person in paying his debts by considering financial statement and the credibility of the person.
Self explanatory.
Self explanatory.
Self explanatory.
By the Renewal of Law Number 19 year 1997 on Collecting Tax with Compulsion Letter as it is revise in Law number19 year 2000, the coleection will be conducted by Directorate General of Customs and Excise.
The purpose of the establishment of the Bonded Storage in this law is to give facilities to the operator in the form of the deferment of the payment of the Import Duty.
"Deferment" means the temporary postponement of the obligation to pay the Import Duty, until such an obligation emerges by virtue to this law.
In Bonded Storage activity such as keeping , storing, performing quality control, repairing, kitting, exhibiting, selling, packing, re-packing, processing, recycling, auctioning, assembling, disassembling, and/or preservation of flora and fauna originating from outside the Customs Territory without prior being charged with the Import Duty in.
The Bonded Storage is meant for having a smooth flow of import or export goods and increasing local production.
Letter a
Self explanatory.
Letter b
The concerned processing that is activity to process substance, raw material, fabricating material goods, and/or finished goods becomes goods with higher level value.
Letter c
Imported goods after being exhibited can be re-exported or be sold after paying all the import duties being deferment.
Goods from a customs territory can be exported after fulfilling all the export requirement applied on the field.
Letter d
The concerned certain people that is commisioned foreign citizen in Indonesia or man is going to overseas.
Letter e
Self explanatory.
Letter f
Self explanatory.
Letter g
The concerned recycle that is an activity of other waste treatment and goods become product having higher level added value and economics value.
Paragraph (1a)
Stipulating by this minister to anticipate industrial development and international trade.
The concerned enterpasing of place of accumulation of tie that is business activity menyimpan, piles up, does pengetesan, memperbaiki/merekondisi, merges ( kitting), demonstrates, sells, gold, gold returns, process, recycles, auctions goods, assembles ( assembling), decomposes ( disassembling), and/or faunistic and floral conducting in place of accumulation of tie.
Self explanatory.
Letter a
Self explanatory.
Letter b
Self explanatory.
Letter c
The concerned other goods for example waste, scrap, rest / cutting, damage raw material, and/or damage goods.
The release of goods in this paragraph are taken out without having an intention to evade the payment of import duty because the Customs Declaration has already been submitted and the duty has been paid, the release of the goods without the approval from the Customs Official is classified as violation and shall be charged with the administrative penalty.
The bonded storage operator means a person who obviously conducting an act of keeping , storing, performing quality control, repairing/fixing, kitting, exhibiting, selling, packing, re-packing, processing, recycling, auctioning, assembling, disassembling, and/or preservation of flora and fauna in a bonded storage.
The provision in this paragraph affirms that when imported goods are lost at the Bonded Storage, the Bonded Storage operator must pay the import duty being deferment.
Book-keeping is a process of keeping all the record regularly to collect all the data and information which cover and affect property, debt, capital, income, and the other costs specifically picturing the amount of acquisition and delivery of goods or service which later on will be in the financial report.
The obligation in performing book keeping is necessary needed to conduct Customs audit after the goods are released from the Customs area.
"Transportation management" means person that provide transportation services of imported or exported goods with means of transport on land, sea, or air.
Self explanatory.
The person as referred to in Paragraph (1) are not in place for the person in term of law corporation shall mean the leader of the law corporation itself are not in place.
The representative shall mean employee or staff or other party who is assigned by the person as referred to in Article 49.
The arrangement of this paragraph is meant to count the value of import or export transaction. To ensure it is conducted properly, the book keeping shall be performed in a common method applied in Indonesia such as financial accountant standard.
Self explanatory
Financial reports, books, records, and documents being the reference of book keeping, letters relating to business activities including electronic data, as well as letters relating to activities in customs matters shall be kept for 10 (ten) years in Indonesia so that they are are available anytime the Director General will want to perform a customs audit then all the references of book keeping and letters necessary needed will be available.
If the data are in electronic form data, the person shall maintain the quality of data processing system so that all the electronic data will be able to be opened, read, or retaken at any convenience time.
Self explanatory
Self explanatory.
In accordance with international customs practices, supervision on the traffic of goods incoming to and outgoing from the Customs Territory is carried out by the customs administration. Therefore, to make sure that the supervision on of these prohibition and restriction regulations be more effective and well coordinated, every related government agency is obliged to provide the regulations to the Minister to be stipulated and implemented by the Directorate General of Customs and Excise.
Self explanatory
Goods, of which the import or export is prohibited or restricted, that do not meet the requirements shall mean the imported or exported goods having been declared using the Customs Declaration, but do not meet the requirements specified in the prohibitive or restrictive regulation of such goods.
The Customs Declaration as referred to in this paragraph may be a notification of the arrival of the carrier, import declaration for home use, and export declaration.
The request from importer and exporter to cancel the exportation, re-export, or annihilation will no be approved if the prevailing Government Regulation determine differently.
The term "otherwise regulated differently by virtue of the prevailling Government Regulation on Laws" is that the provisions concerned have specifically regulated the settlement of restricted or prohibited imported goods such as an importation of waste containing hazardous or poisonous substances.
The assembling of administration penalty in this paragraph will not reduce the criminal determinition.
The warrant is issued by the Head of the Local Commercial Court whose jurisdiction covers the Customs Area, where the Import or Export activity takes place.
In case the import of such goods is destined for several Customs Areas in the Customs Territory, the request for such an order shall be directed to, and issued by the Head of the Local Commercial Court whose jurisdiction includes the first Customs Area where such import is destined unloaded. In case the export is carried out from several Customs Areas, the request for the order shall be directed to and issued by the Head of the Local Commercial Court whose jurisdiction covers the first Customs Area where the Export takes place.
Commercial Court shall mean commercial court which has authority based on the prevailing Government Regulation.
Self explanatory.
The 10 (ten) working days period is the maximum time for the suspension. This period of time is provided to give the party requesting the suspension the opportunity to take immediate steps to defend his/her rights in accordance with the prevailing legislation.
Extension of the suspension period may only be granted under restricted conditions to avoid the possibility of the misuse of the right to request the suspension.
Self explanatory
The examination is carried out to identify and counts the items to give the opportunity to proceed with legal actions or measures to defend the rights which have allegedly been violated.
The examination is carried out under the supervision of the Customs Official.
Since the request for suspension is still based on allegations, the interests of the owner of the goods shall be also properly considered. These interests include among other the interest to protect trade secrets or confidential technological information used in producing the imported or exported goods. In such a case, only physical examination is permitted, merely to identify or counts the goods on which the suspension has been requested.
Self explanatory.
"Certain conditions" are, for example, the condition or the nature of the goods being perishable.
Self explanatory
"Legal Action" shall means Legal action in Customs Matters which is important to conduct by Directorate General of Customs and Excise concerning goods under prejudice related in terrorism activity and/ or state crosser crime.
Self explanatory
This provision is intended to brief that control over the means of transport to ensure they proceed along the specified route and in examining the means of transport, customs official needs to be equipped with operational equipment like radio-telecommunication or radar.
"Means of patrol" is the vessel and/ or airplane owned by the Directorate General of Customs and Excise, and, led by Customs Official as the patrol commander who is authorized to enforce the law within the Customs Territory by virtue of this law.
Armed means of patrol or other means is intended to counter the danger that threatens life or safety of customs officials or the means of patrol by taking into account the prevailing provision.
Whenever requested, all government agencies - either civil or the armed-forces - shall provide assistance and protection or to issue an order to protect the Customs official in all matters related to his/her duties.
The provision of this Article emphasizes that the assistance mentioned above is in relation to all activities carried out by the Customs Official in accordance the prevailing provisions.
The authority of the Customs official, as regulated in this provision, is intended to ensure a better supervision to secure the state revenue.
This paragraph authorizes the Customs Official to examine goods to obtain data and an accurate assessment on the lodged declaration or documents.
The examinantion shall be conducted in the presence of the owner of goods or their representative.
"To present the goods for examination" means, to prepare the goods in the examination area and to provide the equipment and tools to enable the Customs Official to conduct physical examination.
Self explanatory
Self explanatory
"Incorrect" in his paragraph means mistake by careless.
"Export revenue" in this paragraph, including export duty.
"Examination in ex-officio capacity" means examination conducted by the Customs official based on his/her authority by virtue of this law, for control purpose.
Self explanatory
Self explanatory
Self explanatory
This provisions is purposed in the case of person concerned has fulfilled his obligation, the Customs Officer shall give customs service immediately.
This paragraph authorizes the Customs official to carry out customs examination of certain goods on the means of transport, in loading place, and in discharge place within the Customs Territory.
Customs audit is conducted for control purpose as consequences of the implementation of:
a. Self assesment system;
b. The provision on customs valuation based on transaction value;
c. facilities on uncollectected, unimpositon, exemptions, relief, refund or postponement of import duty which may only be supervised and evaluated after the release of imported goods from customs area.
Paragraph (1a)
Letter a
Customs Audit is not for appraisal purpose or to expose any opinion on financial report. It is intended to examine the compliance level of person to the provision of Customs Law.
The request to submit financial report during Customs Audit activity, is intended to ensure that the bookkeeping presented to the Customs Official is the actual bookkeeping used to record business activities which resumed on financial report by the end of period.
Besides, the Customs Official may collect information on the person's related customs activities from the financial report.
Customs auditor is prohibited to disclose the collected information to other unauthorized parties.
Letter b
"Other unauthorized parties" means any parties related to the transaction, for example domestic buyer of imported goods, foreign buyer of exported goods, domestic supplier of exported goods, foreign supplier of imported goods, bank, and other parties considered may give any information on transaction of person, such as Centre of Financial Transaction Report and Analysis.
Letter c
Self-explanatory
Letter d
Self-explanatory
Any measures causing the Customs Official is unable to carry out his/her authority, including to withhold the submission of financial report, books, records and documentsas the basic evidence of bookkeeping, and correspondences on the business activities including electronic data, and customs related correspondences as referred to in Article 50.
Self explanatory
Self explanatory
Buildings and other places except dwelling house mentioned in this paragraph,include, for example, building specially established for storage of any goods and not for business purpose by virtue of this law.
In case of suspicious.If the goods therein are being involved in violation eiher subject to import duty or to restricted and prohibited regulations, Director General may issue an order to the Customs official to search on the buildings or places.
Self explanatory
The stoppage and the search on the means of transport by the Customs official is for supervision purpose, and intended to ensure the compliance to the law of which the implementation is under the custody of Directorate General of Customs and Excise. Therefore the stoppage and the search on the means of transport shall be carried out selectively.
Self explanatory
In conductong control over the means of transport which unloads imported goods, the Customs official is authorized to stop the unloading if it appears by virtue of the prevailing regulation that the unloaded goods are not allowed to be imported into the Customs Territory.
Self explanatory
Letter a
Revision of the claim letter onshortage ofpayment of import duty by virtue of this law shall be conducted to run good governance. When mistake or human erroneous occur in a stipulation, it shall be revised accordingly.
"To revise" means to add, to reduce or to eliminate in accordance with its mistake or erroneous characteristic.
Director General in his official capacity may revise or revoke the incorrect claim letter on shortage of payment of import duty, for example because of disfulfillment of formal requirements even if material requirement has been met.
Letter b
Director General may reduce or eliminate the administrative financial penalty in case the penalized-person did it by mistake or not on purposeor the mistake occur because of the action of other persons unrelated to his/her business and not on his/her acknowledgement or approval.
Self explanatory
The provisions of this paragraph are directed to secure the existence of legal certainty and as the manifestation of the principle of justice that provides rights to the users of customs services to file objections against decisions made by the Customs Official.
A period of sixty days that is given to users of custom services is considered long enough for them to collect the data that are needed to file objections to the Director General.
In case the time limit of sixty days is exceeded, the right of the party concerned is invalid and the determination is considered approved.
"amount of state billing" means shortages of customs duty, shortages of import duty, and administrative fine.
In case billing has been paid, objections still may filed without deposit a security.
Paragraph (1a)
Goods not take out yet from the Customs Area means import goods still in the Customs Area.
Anyone who files an objection has a responsible for his import goods and all cost may be paid.
Sixty days period for the Director General to make a decision on the objections filed by the appealer is deemed reasonable period considering that the Director General also needs to collect data and information for making up decisions concerning the objections.
"Rejected by the Director General" means the refusal of the Director General on the objections, so that the decision of the Customs Official remains valid.
The refusal of the Director General may be also a refusal of a part of the objections, meaning that the Director General made different decision from that of the Customs Official and that decision may be higher or lower than the decision of the aforesaid Customs Official.
Self explanatory
Self explanatory
Self explanatory
The objection which can be filed is the objection to assessment by customs officer besides tariff classification and/or Customs value, such as assessment of facility repeal or assessment because of misunderstood an regulation.
Self explanatory
Self explanatory
Sixty days period for the Director General to make a decision on the objections filed by the appealer is deemed reasonable considering that the Director General also needs to collect data and information for making up decisions concerning the objections.
Self explanatory
Self explanatory
Self explanatory
Self explanatory
Self explanatory
Self explanatory
Letter a
Self explanatory
Letter b
Self explanatory
Letter c
Self explanatory
Letter d
Import goods which in customs control are import goods which its obligation has finished yet.
An example of unload or store in a place besides determined location or allowed location, that is a good with destination to bonded storage A unloaded or stored outside of bonded storage A.
Letter e
Hiding import good by against the law means storing goods in factious place and/or designedly close the existence its goods.
Factious place, means for example in container wall, in suitcase wall, in body, in ship wall at engine room, or other places.
Letter f
Self explanatory
Letter g
Self explanatory
Letter h
Differences of violation in this paragraph with violation in Article 82 Paragraph (5) are this violation based on intended action and against the law.
Letter a
Self explanatory
Letter b
State collection in export field means export duties
Letter c
Loading means loading export goods into means of transport which is going to leave the Customs Territory.
Letter d
The purpose of this provision is to prevent re-unloading export goods which has been loaded on the means of transport, with the main goal is to prevent illegal export, for example export goods loading in Semarang to unload in Singapura, but then unloaded in Jakarta.
Letter e
Self explanatory
Self explanatory
Self explanatory
Self explanatory
Letter a
Invalid document or falsified for example can in the form of:
a. document made by person who has no authority; or
b. document made by person who has an authority but their input data is not true
Letter b
Self explanatory
Letter c
Giving oral statement as referred to this letter especially for passengers and border crosser.
Letter d
The provision of the crime herein related to the condition that any person found storing, keeping, possessing, purchasing, selling, exchanging, obtaining or providing goods as result of a crime as referred to in Article 102.
Person who is found storing, possessing, placing, buying, selling, exchanging, getting, or giving goods without detected who is that person can hit by crime as according this Article. However, if that person get the goods in a good faith, that person not be claimed. Possibility can happened, that person can be known, so that both of them can be claimed.
To access means an action or effort to login into customs system.
To login means to get in or linked with an electronic system so he/she can send and/or receive information through it or send or receive information on that system.
Self explanatory
Letter a
Self explanatory
Letter b
Self explanatory
Letter c
Self explanatory
Letter d
The purpose of this paragraph is to prevent falsification or manipulation of data of the complementary custom documents, for instance invoices.
To damage is to damage physically or do something that can change a function, seal, or safety sign.
This Article confirms that if a customs broker commits an offense against this law in performing business authorized by the importer or exporter, he/she is subject to the same penalty as maybe charged to the importer or exporter concerned. For instance if a customs broker falsifies the value on an invoices received from an importer so that the value declared in the Customs Declaration submitted on behalf of the importer is lower, he/she shall be subject to penalty.
This Article makes it possible to penalize a legal body, firm, corporation, including a state-owned company or a company owned by a provincial government in whatsoever form, permanent business operations or other forms of business, association, including partnerships, firms or commercial association, foundations or similar organizations, or cooperatives, because in practice it sometimes appears that persons conduct activities by hiding behind or acting on behalf of the above mentioned organizations.
Therefore, besides the aforesaid organizations, those who have instructed to carry out or have actually carried out criminal activities shall also be subject to penalty. By virtue of the results of investigation may be determined to prosecute the organization and/or its operator concerned. The penalty charged to the aforesaid organizations shall always be in a form of a fine.
On the Basis of the investigation, can be claimed a criminal prosecution to its association and/or its chief. Crime sanction which dropped to its association in form of fine.
Self explanatory
Solely used to an injustice is means of transport which on caught is really addressed to do smuggling injustice.
Paragraph (2a)
Can be hijacked means to give an authority to judge to consider a decision by paying attention case by case, for example ship which only transporting certain goods in little amount while its ship needed as a transport tool to substance economic trade area, it is of course decided not to hijacked.
In general, a court decision will be executed by the General Prosecutor. However, imported or exported goods that have been declared to be confiscated for the state based on the court decision, shall by virtue of this law, become property of the state, of which their use shall be determined by the Minister.
This Article convey each Directorate General of Customs and Excise official in carrying his duty and authority should give priority in giving service function as well as controlling the revenue collection through customs duty collection, protecting community interest , flow of goods, people, document, and can create business climate which can promote the acceleration of national development.
Considering in carry out the of Directorate General of Customs and Excise task with regard to control and service, customs official who carrying his duty have to be responsible to Code of Conduct Commission in case of violating the code of conduct
Self Explanatory
Self Explanatory
Self Explanatory
Self Explanatory
Customs fraud shall means administration collision and customs injustice. Meritorious means meritorious in handling :
a. Administration violation included giving information, finding either administratively or physically up till the complete process of pressing a claim.
b. Customs fraud included giving to give an information, performing seizure to do arrest, investigation, and prosecution.
Self Explanatory
Self Explanatory
Self Explanatory
Stipulations on this paragraph are meant to avoid infraction of the free trade area and/or free port against the inward or outward of the restricted and prohibited goods like drugs, fire gun, and explosive materials.
Self Explanatory
Certain classify information shall mean information concerning state secrecy or based on government regulation and law shall be kept as a secret.
Self Explanatory
Self Explanatory
Self Explanatory
Stipulation on this Article is meant as an effort in securing state financial which is conducted by Financial Examiner or other functional investigator based on this law.
Request of the judge as referred to in this paragraph, shall mention the name of the suspect, information needed and correlation between criminal matters which is related to the information being asked.
Self explanatory
SUPLEMEN TO STATUTE BOOK OF REPUBLIC OF INDONESIA NO. 4661