to Indonesian

ELUCIDATION ON
LAW OF THE REPUBLIC OF INDONESIA
No. 10/1995

CONCERNING
THE CUSTOMS

GENERAL

1. The Republic of Indonesia, as a constitutional state, wishes to establish a firm national legal system that serves the national interests, based on Pancasila and the 1945 Constitution. However, there is no national customs law since the declaration of Indonesian independence; therefore the Indische Tarief Wet (Indonesian Tariff Law) Staatsblad Year 1873 no.35, Rechten Ordonnantie (Duty Ordinance) Staatsblad Year 1882 No.240 and Tarief Ordonnantie (Excise Ordinance) Year 1910 No.628 are still in effect by virtue of Clause II of the Transitional Provisions of the 1945 Constitution.

In order to fulfil the demand of national development, the cited law and ordinances have been revised and supplemented. However, the revisions and supplementary are deemed unable to meet the demand since such revisions are made partially and not related to fundamental aspect as well as based on different philosophycal background. Therefore a reformation of the law and ordinances should be conducted.

2. To establish a legislation based on Pancasila and the 1945 Constitution that contains the aspect of fairness, human rights, and places customs formalities as the national obligation which reflects the participation of the people in collecting funds through Import Duties, this legislation which is regarded as a part of the fiscal law, shall ensure the security of the people interest, the expeditious flow of goods, person, and documents, the optimality of Import Duties Revenue, and shall establish a business climate that induces the pace of the national development.

To that end, customs administration is urged to provide better, more effective and efficient services in accordance with its function and duty.

3. This Customs Law has considered the following aspects:

4. This Customs Law also regulates new matters that are not covered under the previous legislation and ordinances, such as the provisions of Antidumping and Countervailing Duties, control of import and export of goods which violate intellectual property rights, bookkeeping, administrative sanction, investigation and appeal institution.

5. In addition, to increase the effectiveness and efficiency of the costoms service inexpediting flow of goods, person and documents, this law also regulates, among others:

6. Considering point 1 to 5, Article 23 paragraph (2) of the 1945 Constitution, and those written and implied orders under the Guidelines of State Policy, this Customs law is a national product that should be able to respond to the demand of the development.

ARTICLE BY ARTICLE

Article 1

This article covers the definition of the terms used in this law. Full understanding of these terms shall avoid any misunderstanding and misinterpretation that may occur in the implementation of the concerned articles. Therefore the people could easily understand this law.

Article 2

Paragraph (1)

This paragraph defines a clear understanding of the term importEjuridically, that is the time when goods enter the Customs Territory and determine the moment when the goods are subject to the Import Duty and provides juridical basis for the Customs Official to conduct control.

Paragraph (2)

This paragraph provides affirmation of the notion of Export. Export significantly occurs when goods cross the Customs Area, but remember in terms of service and security is not possible to place Customs Officers along the border to provide services and to supervise the export of goods, the export legally deemed to have occurred when the goods have been loaded or loaded on the means of transport will be left outside the Customs Area. What is meant by "means of transport" means any vehicle, aircraft, ships, or other means used to transport goods or people.

Will be contained in this paragraph implies that exports of goods may be known to have been sent to a destination outside the Customs Area (exports), because it has been handed to the Customs Notification of Customs and Excise Officers. Can only item still in Hoarding meantime or in places reserved for it, including in the warehouse or factory exporters concerned.

Paragraph (3)

This paragraph defines a clear understanding of goods that have already been loaded into means of transport going out of the Customs territory. Such goods are not regarded as exported goods if it can be proven that the goods will be unloaded in the Customs Territory by lodging the Customs Declaration.

Article 3

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. To ensure the expeditions inspection flow of goods, the fisical inspections of the goods shall be done selectively, in a sense that the inspection shall only be focused on imported goods pertaining to high risk, such as goods with high import duties, dangerous goods for the state and the people, and goods imported by black list importers.

Article 4

To encourage export, especially the efforts to increase the competitiveness of Indonesian export goods in the world market, speedy and certainty of customs procedures are needed by exporter. Therefore the examination of exported goods shall be kept to a minimum level by verifiying documents only.

To obtain accurate data and evaluation concerning the lodged Customs Declaration, this article authorizes the Minister, under a certain condition, to determine a provision on the inpspection of exported goods.

Article 5

Paragraph (1)

Geographically, the Republic of Indonesia is a huge archipelago state. It is impossible 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 formality shall be done at the Customs Office.

It means that loading or unloading goods at any place other than the Customs Office shall be regarded as violation againts this law. In this way the control is easier to be done since the place to meet Customs formality such as : the lodgement 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 the Customs formality 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 an easier, safer and cheaper way to fulfill the Customs formality. Such facilitation is granted on a temporary basis.

Paragraph (2)

This paragraph clearly states that the Customs Declaration for the fulfillment of Customs formality may be done in writings or through electronic media such as a diskette or intercomputer direct connection.

Paragraph (3)

For the purpose of service, control, smoothness of the flow of goods, proper loading and unloading of goods, and safeguard of state funds, this law specifies that there is a certain area at the harbor, airport or other places regarded as the Customs Areas that are under the full supervision of the Directorate General of Customs and Excise.

For the same purpose, the appointment of the Customs Station to provide the Customs Official a place to conduct control. However a part of the Customs Office, the station cannot be function to fulfill customs formality.

Paragraph (4)

Self explanatory.

Article 6

This article states that anything 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 enforcement of this law shall be only conducted by the Directorate General of Customs and Excise.

Article 7

Paragraph (1)

The obligation to notify the arrival of imported goods to the Customs Office at the first destination through the designated route is to ensure that unloading is done in accordance with this law. In the term of imported goods also includes means of transport imported for home use or temporarily imported.

The designated routeis sea route, air route, inland water route and inland route. It means that transport shall pass the sea route mentioned in the navigation manual, the air route as established by the Ministry of Communication, the inland water route and inland route at the border area as determined by the Minister.

The term carrierEapplies to person, his/her behalf or person responsible for the operation of means of transport that are actually used to transport goods or persons.

The Customs Declaration is made and submitted by the carrier within a determined period of time.

Paragraph (2)

In principle, imported goods shall be only unloaded after the Customs Declaration of the arrival of means of transport is submitted. Nevertheless, under emergency circumstances such as fire, unrepairable broken engine, bad weather or other force majeur unloading may be done without prior notice upon the arrival of the means of transport.

The Nearest Customs Office means the easiest Customs office to be reached.

Paragraph (4)

Obligation which shall be carried out by a carrier or his/her behalf is to notify the arrival of means of transport by submitting the Customs Declaration to the Customs Officials and such a document shall states all imported goods, either commercial goods 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 is deemed to have already imported the goods. Therefor the carrier shall be obliged to pay both Import Duty on the shortage goods and administrative sanction, unless the cause of the shortage can be proven as not his/her fault.

Paragraph (5)

Self explanatory.

Paragraph (6)

It is not obligatory to store imported goods at the Temporary Storage, unless such goods cannot be immediately released.
The term "release" means taking goods out of the Customs Area, the Temporary Storage, Bonded Storage or the Customs Storage, into free circulation with the approval from the Customs Official, after the fulfilment of Customs Formality.

Paragraph (7)

The term "transitted goods" means goods transported by means of transport, through any Customs office without prior unloading.

The term "transshipped goods in transshipment" means goods transported by means of transport, transshipping at any Customs office after prior unloading.

The term "re-exported" means re-consignment of imported goods outside Customs Territory for reasons that the goods are inconformity with the order or the existence of new government provisions which do not allow such goods to be imported into the Customs Territory.

Paragraph (8)

Although the removal of the goods as referred to in this paragraph done without any intention to avoid theImport Duty payment, 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 Duty are already fulfilled. Therefore the releasel is subject to administrative sanction.

Paragraph (9)

Self explanatory.

Article 8

Paragraph (1)

Self explanatory.

Paragraph (2)

This paragraph allows an importer having fulfilled the requirements to release imported goods for home use prior to the payment of Import Duty by depositing a security. However, the importer shall fulfill the obligation to pay the Import Duty within a specified period of time stipulated in this Law. The facility is granted to expedite the flow of goods.

Paragraph (3)

Self explanatory.

Paragraph (4)

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.

Paragraph (5)

Self explanatory.

Paragraph (6)

The provision in this paragraph imposes a sanction to the importers, having facilities as referred to in paragraph (2) (b) or (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 duty within a specified period of time by virtue of this law.

"Importer" means a person who imports.

Article 9

Paragraph (1)

The objective of applying temporary admission is to provide a facility for importation of goods for specific purposes, such as goods for exhibition, games, vehicles brought by tourists, equipment for scientific and technological research and education purposes, appliances used by technicians, journalists and experts, for temporary use and at the time of importation, it is obvious that the goods will be re-exported.

Paragraph (2)

The term "Custom controls" means control carried out by the Directorate General of Customs and Excise.

Paragraph (3)

Self explanatory.

Paragraph (4)

Self explanatory.

Article 10

Paragraph (1)

Self explanatory.

Paragraph (2)

Self explanatory.

Paragraph (3)

It is not obligatory to store exported goods at the temporary storage, unless such goods can not be immediately loaded.

Paragraph (4)

In order to settle and have proper administration order as well as to control the facilities granted by this provision, it is mandatory to notify the cancellation of exportation of goods.

Paragraph (5)

"Exporter" means a person who exports.

Paragraph (6)

Self explanatory.

Article 11

Paragraph (1)

The provision in this paragraph is a means used to control goods to be taken out of the Customs Territory.

Paragraph (2)

The provisions under (a) and (b) are laid down to secure the state rights of the goods that are still subject to the Import Duty. While the provision under (c) is used to control exported goods, and the provision under (d) is used to ensure that domestic goods can be differed from imported goods loaded outside the Customs Territory.

Paragraph (3)

Self explanatory.

Paragraph (4)

Self explanatory.

Paragraph (5)

Self explanatory.

Paragraph (6)

Self explanatory.

Article 12

Paragraph (1)

Having noted Law Number 7 of 1994 on the ratification of the Agreement Establishing the World Trade Organization, the maximum tariff rate stated in this paragraph is forty percent including surcharge which is still imposed on the particular goods when this law was enacted.

However, considering the capability of the domestic industrial competitiveness, the general policy on tariff shall be always directed towards the reduction of tariff rate, to:

a. increase competitiveness of Indonesian products in the international market.

b. protect domestic consumers; and

c. reduce distortion of international trade in order to support the creation of free trade.

Paragraph (2)

In accordance with the Notification of Indonesia to the General Agreement on Tariff and Trade (GATT) for :

Letter a

certain agricultural products listed in Schedule XXI- Indonesia, the tariff shall be bound at more than forty percent level in order to abolish the usage of non tariff barriers.

Letter b

the sake of the national interest, the tariff for certain products listed in the exclusive list of Schedule XXI-Indonesia, shall not be bound to a certain tariff rate, thus it is excepted from the imposition of the maximum tariff rate as referred to in paragraph (1). However, within a certain period of time, the tariff rate of such products will be reduced in accordance with the provision as referred to in paragraph (1).

Letter c

Self explanatory.

Paragraph (3)

To anticipate the rapid development of international trade while maintaining the national interest, the Minister is authorized to determine and change the tariff rate of each product.

Article 13

Paragraph (1)

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.

Letter c

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.

Paragraph (2)

Self explanatory.

Article 14

The Nomenclature in this article means a list of goods set up systematically to simplify tariffication, trade transactions, transportation, and statistics.

Article 15

Paragraph (1)

"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 labour 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, designs, plans and sketches undertaken elsewhere outside the Customs Area and is required for the manufacture of imported goods, which is supplied directly or indirectly by the buyer, provided those 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 being 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 or payable.

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.Paragraph (2)

"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.

Paragraph (4)

"Deduction method" means a method to calculate customs value of imported goods based on a market price in the Customs Territory minus cost/expenses for commission/profit, transportation, insurance, the Import Duty and tax; catalog price, price cost, or other price data.

Paragraph (5)

"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.

Paragraph (6)

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.

Paragraph (7)

Self explanatory.

Article 16

The principle adopted in the payment of Import Duty is self assessment. However, the Customs Official is authorized to examine/verify and determine the classification and customs value for the calculation of the Import Duty stated in the Customs Declaration lodged by the importer.

The classification determination may be given prior to or after the lodgement of the Customs Declaration on import, while the assessment of customs value for the calculation of Import Duty may only be given after the lodgement of Custom Declaration.

The term "may" in this article means the Customs Official determines the classification and customs value only in case where the classification and customs value stated differ from the actual classification and/or customs value, so that:

a. Import Duty is shortly paid in case the tariff and/or customs value is over stated;

b. Import Duty is paid in excess in case the tariff and/or customs value is under stated.

In case the declaration is conformed and correct, the declaration is accepted and it is regarded that the Customs Official has already determined the classification and customs value. In a certain case, classification and customs value for Import Duty are determined after physical examination, prior to Customs Declaration lodgement, i.e. passengers goods.

To provide certainty of service to the public, where the Customs Declaration is registered, a decision shall be given within thirty days after the date of registration. Thirty days period is deemed feasible for the Customs Official to gather all information necessary for making a decision.

Article 17

Paragraph (1)

Principally the decision made by the Customs Official is binding and applicable. However, in case re-examination of the Customs Declaration and complementary documents indicates any shortage or excess of the Import Duty payment, the Director General may review and redetermine, such a decision to secure state revenue and to ensure the rights of importers.

Paragraph (2)

Self explanatory.

Paragraph (3)

Self explanatory.

Article 18

The term "export value" means price actually paid or payable for goods exported to the Customs Territory. In case there is particular relationship between importer and exporter or a third party, or due to certain reasons the export price is doubtful, then it should be determined based on :

a. price of the imported goods concerned, re-sold for the first time to free buyer; or

b. normal value, in case (a.) has not taken place or to be re-sold under a condition differs to the condition by the time of importation.

The term "normal value" means the price actually paid or payable for similar goods for consumption purposes in common trade in the domestic market of the exporting country .

In case there is no similar goods traded in the domestic market of the exporting country or if the selling volume at the domestic market is relatively small so that it cannot be used as a comparison factor, then normal value is calculated based on :

a. The highest price of the similar goods exported to a third country; or

b. The price established by accumulating production cost, administrative cost, saling cost and normal profit (constructed value)

The term "domestic industry" means:
The term "similar goods" means identical goods or goods entirely equal, or goods having similiar physical characteristic, technic or chemical imported goods concerned.

Article 19

Self explanatory.

Article 20

Self explanatory.

Article 21

The term subsidyEmeans :

a. any financial assistance given by the government or by government agencies, either directly or indirectly, to companies, industries, groups of industries, or exporters, or

b. any kind of support on earnings or prices, given directly or indirectly, to increase export or decrease import from or to a country concerned.

Article 22

Self explanatory.

Article 23

Self explanatory.

Article 24

In principle, goods from outside the Customs Territory are subject to the Import Duty at the moment such good are brought into the Customs Territory. Considering that these goods are not intended to be imported for home use, the Import Duty is not impossed.

Article 25

The Import Duty exemption provided in this article is an absolute exemption, meaning that, the Import Duty is exempted if the requirements in this article are met.

Paragraph (1)

The exemption of Import DutyEmeans the payment of the Import Duty as required by this law is nullified.

Letter a

Goods of foreign countries representatives and their staffEmean 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 staffEmean 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 as referred to herein is an exemption to eliminate the burden on the importer producer giving a value added to imported goods or materials by processing, assembling, or installing them on other goods to make finished products for export.

Letter d

The Import Duty exemption is granted, based on the recommendation of the related government agencies, on books intended to increase the knowledge and developethe intelligent of the people.

Letter e

The definition of "goods for the purposes of public worship" means goods that are used solely for the purpose of worship of any religion that is recognized in Indonesia.

The definition of "charitable purposes and social goods" are goods intended solely for the purposes of charity / social and contain no commercial elements, such as assistance for natural disasters or outbreaks of disease eradication.

The definition of "goods for the purposes of culture" are items intended to increase inter-cultural relations negara.Pembebasan Duty is granted based on recommendations from related departments.

Letter f

Self explanatory.

Letter g

Goods for scientific research and development purposesE mean the goods or equipment used for research or experiments to enhance or develope scientific and technological inventions. The Import Duty exemption is granted based on the recommendations of related government agencies.

Letter h

Self explanatory.

Letter i

Self explanatory.

Letter j

Self explanatory.

Letter k

SampleEmeans goods specifically imported in limited numbers and types as samples, among others to be used for prototype production and exhibition.

Letter l

Self explanatory.

Letter m

Removal goodsEmeans household goods, owned by those who formerly domiciled abroad, brought by the owners when they move into the country.

Letter n

Goods brought by passengers, crews of means of transport, and border crossersEmean goods brought by individuals as stated in the explanatory of Article 8, paragraph (3). While consigned goodsEmean goods sent by certain consigners abroad to certain consignees in the country.

Paragraph (2)

Self explanatory.

Paragraph (3)

This paragraph authorizes the Minister to further regulate the requirements procedures to obtain the exemption based on this article.

Paragraph (4)

Self explanatory.

Article 26

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.

Paragraph (1)

Relief of Import DutyEmeans a partial elimination of the Import Duty payment by virtue of this law.

Letter a

Machinery for the establishment and development of industriesEmeans any machine, machinery, component for the installation of factories, or equipment used in the establishment and development of industries.

The establishment and development of industriesE 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 b

Goods and materialsEmean 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 c

Self explanatory.

Letter d

Stocks and seedsEmean all kinds of import plants or animals clearly intended for further breeding for the development of agriculture, plantations, forestry, animal husbandry, and fishery.

Letter e

Marine productEmeans 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 vesselsEmean one or a group of boats having equipment to catch or take marine products, including those with processing facilities.

Licensed hauling vesselsEmean hauling vessels under Indonesian or foreign flag, which have been given licenses by the Indonesian Government to catch or take marine products.

Letter f

Import Duty exemption can be granted on the imported goods which have previously been exported for reparation, handling, or testing.

RepairEmeans 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 the repair 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 g

Import Duty exemption may be granted on re-imported goods without being subject to any processing or upgrading whatsoever, for example properties 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 h

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 i

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.

Letter j

Public interestEmeans the interest of the society, that does not give priority to financial interest, for example streetlight installation project.

Letter k

Considering that these goods are only temporarily imported, Import Duty exemption or reduction is granted on them.

Paragraph (2)

Self explanatory.

Paragraph (3)

Self explanatory.

Paragraph (4)

Self explanatory.

Article 27

Paragraph (1)

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.

Paragraph (2)

Self explanatory.

Article 28

This law authorizes the Minister to further regulate matters related to the Customs Declaration, customs records, and complementary customs documents. For example the format of such declaration and documents can be in written forms, diskettes, or Electronic Data Interchange.

The Customs Declarations are :

a. notification of the arrival of the means of transport,

b. declaration of import for home use,

c. declaration of temporary import,

d. notification of goods transported from the Customs Area to the Bonded Storage,

e. notification of goods transported from one to another Customs Office in the Customs Territory,

f. declaration of export.

Customs recordsEmean books or forms used to record Customs Declaration and Customs activities by the virtue of this law.

Customs records are used among others to record:

a. the notification of the arrival of means of transport,

b. the declaration of import for home use,

c. declaration of export,

d. unclaimed goods,

e. goods to be auctioned

Complementary CustomsEdocuments mean all documents complementing the Customs Declarations, such as invoices, bills of lading, packing lists, and manifests.

Article 29

Paragraph (1)

Self explanatory.

Paragraph (2)

Basically this law regards that the owner of goods is capable to settle customs formality. Considering that not all owners have the knowledge of the customs procedures, or that for some reasons owners cannot by themselves settle their customs formality, this paragraph provides the possibility for them to authorize the settlements of customs formality to customs brokers.

Similar firms have already existed and are known as Marine Freight Forwarders (EMKL), Air Freight Forwarders (EMKU or EMPU), or Transportation Services Firms.

Paragraph (3)

Self explanatory.

Article 30

Self explanatory.

Article 31

The importer shall be liable for the payment of import duty, except if the settlement of the import declaration is authorized to a customs broker and if the importer cannot locate or elude the authorities, the responsibility should be transferred to the customs broker.

A customs brokerEis a firm that handles the settlements of customs formalities for and on behalf of the owners of the goods.

Article 32

Paragraph (1)

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.

Paragraph (2)

Self explanatory.

Paragraph (3)

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.

Article 33

Self explanatory.

Article 34

Paragraph (1)

The Import Duty exemption or relief as referred to in Articles 25 and 26 should not essentially free the importer from the responsibility for the payment of Import Duty owed, since it has to meet specified requirements which have been determined limitatively when the facility is given. There is always the possibility that at a certain moment the facility used inconformity with the requirements.

Since the imposition of the Import Duty is determined based on the item of goods imported, to avoid the possibility of misuse of the facilities, this law affirms that the responsibility for the payment of Import Duty owed is charged to the person who
obtains the facility or who possesses the goods.

The purpose of the extension of responsibility for the payment of Import Duty in this law is to ensure the rights of the State.

Paragraph (2)

Self explanatory.

Article 35

The previous articles of this section have stated the person who is responsible for the Import Duty. This article affirms the responsible person for the Import Duty owed on imported goods found under the possession of another person who is not mentioned in the previous articles of this section.

In such a case, the person can be a passenger, a crew of means of transport, a border crosser, or any person posessing the imported goods at the point of arrival of the means of transport or at any designated place in the border area.

The Designated place in the border areaE means a place in the border area constituting a part of an inland waterway or of a land way in the border area, which has been designated as a point of entry.

Article 36

Self explanatory.

Article 37

Paragraph (1)

According to this article, the obligation of the payment of import duty arises as of the date of the registration of the Customs Declaration, and, of penalties, begins at the moment the notification is received by the party concerned.

Paragraph (2)

DefermentEin this paragraph means the extension of the period of the payment of Import Duty and penalties. This extension of the payment period is given in consideration of the fact that the indebted party has expressed his willingness to settle his debt but cannot pay it at the specified time, so it is necessary to give a postponement of the debt settlement.

Paragraph (3)

Self explanatory.

Article 38

Paragraph (1)

The due dateEis the time specified :

a. in case of a claim of the state on a debtor as referred to in Article 37 paragraph (1);

b. Thirty days after the decision of claim in case the state is a debtor to another party.

Paragraph (2)

Self explanatory.

Article 39

Paragraph (1)

This paragraph stipulate the position of the state as a preferred creditor, which has privilege on the goods owned by the debtor. Payments to other parties are only executed after customs claims are paid off.

The purpose of this paragraph is to give the opportunity to the government to get a share, before the other creditor, of the property of the debtor in order to pay off the customs claims.

Paragraph (2)

Self explanatory.

Paragraph (3)

Self explanatory.

Paragraph (4)

Self explanatory.

Paragraph (5)

Self explanatory.

Article 40

Paragraph (1)

The right to claim the payment of a debt as referred to in this article, applies to a claim of the state on a debtor as well as a claim of another party on the state.

Paragraph (2)

Self explanatory.

Article 41

In case where debts cannot be settled based on the provisions of this law, the settlement will be transferred to the government agency that handles the settlements of accounts receivable of the state.

Article 42

Paragraph (1)

Letter a

Self explanatory.

Letter b

Continuous Security means a security submitted in a specified form and amount that can be used in the following ways:

1. the security is deducted each time the Import Duty is paid until its balance is zero;

2. the amount of security remains the same for an unlimited time, so that each settlement of the Import Duty is done without deducting it.

Paragraph (2)

Letter a

Self explanatory.

Letter b

Self explanatory.

Letter c

Self explanatory.

Letter d

Other secutities in this paragraph are intended to give the possibility of submitting securities other than those as referred to in letter a to c.

Paragraph (3)

Self explanatory.

Article 43

Paragraph (1)

Self explanatory.

Paragraph (2)

Considering that theTemporary Storage is established for storing goods temporarily, the limitation of the storing time it to set-up.

The thirty days period of time provided is deemed sufficient to give the concerned party the opportunity to take the goods out of the Temporary Storage. This provision is also intended to prevent congestion of the flow of goods at the harbor.

Paragraph (3)

The provision in this paragraph affirms that the obligations to pay the Import Duty on goods which are lost from the Temporary Storage is the responsibility of the Temporary Storage Operator. In addition to such obligations, sanction is also charged to the Temporary Storage Operator in the form of an administrative penalty.

Paragraph (4)

Self explanatory.

Article 44

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, while at the same time they can keep, store, exhibit, sell, pack, re-pack, and/or process goods originating from outside the Customs Territory without prior being charged with the Import Duty in.

The establishment of the Bonded Storage is to ensure the expeditious flow of goods on exportation and importation as well as the increase of domestic production in the framework of promoting development and growth of national economy.

DefermentEmeans the temporary postponement of the obligation to pay the Import Duty, until such an obligation emerges by virtue to this law.

The Bonded Storage OperatorEmeans person who obviously stores, processes, exhibits or sells goods in the Bonded Storage.

The operator of the Bonded Storage means a person who possesses a licence to operate a Bonded Storage at a place, building, or area. In certain cases, the operator of the Bonded Storage may also function as the management of the Bonded Storage when the organization of the Bonded Storage is solely intended to run business activities of the operator of the Bonded Storage.

Article 45

Paragraph (1)

Self explanatory.

Paragraph (2)

Tariffs rate that are used to asses the Import Duty of goods taken out from the Bonded Storage into free circulation are those that prevail at the time when the goods are taken out. Customs values used as a basis to asses the Import Duty are customs values of the goods at the time they are brought into the Bonded Storage.

If the basis to asses the Import Duty is in a foreign currency, the exchange rate used is the rate that prevails at the time when the goods are taken out from the Bonded Storage.

Paragraph (3)

Although the goods, as referred to 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 penalized.

Paragraph (4)

The provision in this paragraph affirms that when imported goods are lost from the Bonded Storage, in addition to the obligation to pay the Import Duty, the Bonded Storage operator shall be also charged with the administrative penalty.

Article 46

Paragraph (1)

The term "licence of the Bonded Storage is discontinued" means that the Storage is not allowed to carry out activities until the reactivation of the licence has been issued. This discontination is a follow-up of the result of the audit of the Customs Official on such Bonded Storage.

Paragraph (2)

Self explanatory.

Paragraph (3)

Self explanatory.

Paragraph (4)

Self explanatory.

Paragraph (5)

Self explanatory.

Article 47

Self explanatory.

Article 48

Self explanatory.

Article 49

The obligation to carry out book-keeping and the filing of documents and correspondence relating to Import or Export is required to undertake Customs audits after goods are released from the Customs Area. These Customs audits are carried out to secure the rights of the state as a consequence of the implementation of self-assessment and the performance of selective inspection of goods.

Transportation managementEmeans person provide transportation services of imported or exported goods with means of transport on land, sea, or air.

Article 50

Self explanatory.

Article 51

Books, records, and correspondence relating to Import or Export activities shall be kept for a period of ten years, therefore if during that period of time a violation against this law is discovered, the required books, records, and correspondence are still available. The obligation to keep such books, records, and correspondence is consistent with the provisions of Article 111 concerning the expiration dates of criminal prosecutions in Customs affairs.

Article 52

Self explanatory.

Article 53

Paragraph (1)

Basically supervision on the implementation of prohibitive and restrictive regulations on the import or export of certain goods cannot be carried out individually by each government agency that stipulate such regulations at the time of goods incoming to or outgoing from the Customs Territory.

In accordance with international customs practices, the supervision on the traffic of goods incoming to and outgoing from the Customs Territory is carried out by the customs administration. Therefore, to make the implementation of the supervision on these prohibitive and restrictive regulations more effective, and coordinative each government agency concerned is obliged to hands over the regulations to the Minister to be stipulated and implemented by the Directorate General of Customs and Excise.

Government agenciesEare government departments or non-departments.

Paragraph (2)

Self explanatory.

Paragraph (3)

Goods, of which the import or export is prohibited or restricted, that do not meet the requirements of this paragraph are 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.

Paragraph (4)

The term otherwise regulated differently by virtue of the prevailling Government Regulation on Laws means that the provisions concerned have specifically regulated the settlement of restricted or prohibited imported goods such as a imports of waste containing hazardous and toxic materials.

What is meant by "other specified under the rules of the applicable legislation" is that the legislation in question had been set up specifically completion of imported goods which are restricted or prohibited, for example, imports of waste containing hazardous and toxic materials.

Article 54

The warrant is issued by the Head of the Local State 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 State Court whose jurisdiction includes the first Customs Area where such import is destined or 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 Local State Court whose jurisdiction covers the first Customs Area where the Export takes place.

Article 55

It is essential to have the items stated in (a) to (d), and therefore they absolutely have to be completely submitted. This is to avoid the use of this provision in trade practices contrary to the purpose of this regulation, which is to reduce or eliminate the trade of products resulting from the breach of trade marks and patent rights.

Such trade practices, which are sometimes used to weaken or paralyze competitors, are in the long run unfavourable to the economy in general. Therefore, it is very important to have adequate securities for at least three reasons. First, to protect the party allegedly doing the offense from unnecessary losses. Second, to reduce the possibility of the misuse of rights. Third, to protect the Customs Official from possible indemnity claims resulting from the executions of suspension orders.

Article 56

Self explanatory.

Article 57

Paragraph (1)

The 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.

Paragraph (2)

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.

Paragraph (3)

Self explanatory.

Article 58

Paragraph (1)

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.

Paragraph (2)

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.

Article 59

Self explanatory.

Article 60

Certain conditionsE are, for example, the condition or the nature of the goods being perishable.

Article 61

Self explanatory.

Article 62

This suspension based on the function of the official is only carried out if there is a sufficient evidence. The purpose is to prevent the circulation of goods constituting or originating from trademarks or copyrights violations, which will give an unfavorable impact on the economy in general. In case such a measure is taken, the prevailing procedures as regulated in the Laws on the Trademarks or on the Copyrights are applicable.

Article 63

Self explanatory.

Article 64

Paragraph (1)

Considering the provisions of Law Number 7 of 1994, on the Ratification of the Agreement Establishing the World Trade Organizations, the implementation of the provisions of Articles 54 up to 63 on the intellectual property rights, other than those related to trademarks and copyrights, is conducted gradually taking into account the ability and readiness of the management of the system of the intellectual property rights.

Paragraph (2)

Self explanatory.

Article 65

Self explanatory.

Article 66

Paragraph (1)

Self explanatory.

Paragraph (2)

The term as long as the goods have not been auctionedEmeans two workdays before the date of an auction.

Paragraph (3)

Letter a

Self explanatory.

Letter b

The term :

1. perishable goods are, among others, goods that spoil quickly, like fresh fruits and fresh vegetables;

2. destructive goods are goods that can destroy or pollute other goods, for example sulfuric acid and sulfur;

3. hazardous goods are, among others, goods which are inflammable, explosive, or harmful to health;

4. high-cost handling goods are goods requiring special treatments for their handling, like live animals and goods requiring cold storage.

Letter c

Self explanatory.

Letter d

Self explanatory.

Article 67

Paragraph (1)

Public auctionEmeans the sale of goods through the states auction agency.

Paragraph (2)

The balance reserved for the owner is the proceed from the auction deducted by the Import Duty, the taxes due according to this law, and costs, including rent of the storage, labor costs, transportation costs, and the auction expenses. The balance of the proceed from the auction still belongs to the owner of the the goods, and can be taken within the limits of time determined according to the provisions of this article.

Paragraph (3)

Self explanatory.

Paragraph (4)

Self explanatory.

Paragraph (5)

The term the lowest priceEis the minimum price determined by the Minister, consisting of the Import Duty, taxes due according to this law, the rent of storage, and other costs such as labor costs and transportation costs. The minimum price has to be attained in the public auction.

Article 68

Paragraph (1)

The term goods claimed by the state means goods, the ownership of which is temporarily transferred to the government until the status of these goods can be determined. The change of the status is required to enable the Customs Official to process the administrative aspects of the goods until it can be proven whether or not an error has been made. Therefore the matters related to the Customs formality of the goods can be settled in accordance with the provisions of this law.

Letter a

The goods claimed by the state as referred to herein are goods on which the importation is prohibited and/or restricted according to the prevailing laws, and is not declared or incorrectly declared, except that the laws regulating the prohibition or restriction regulate another settlement for such goods.

Letter b
The goods claimed by the state as referred to herein, are imported or exported goods on which the release, loading, transportation, or departure of the carrier is postponed by the Customs Official for the purpose of the fulfillment of customs formalities according to the provisions of this law.

Letter c

The term goods and/or a means of transport that have been abandoned in the Customs AreaEmeans goods which are left by the owner in the Customs Area because they are not covered by the documents required by the provisions of this law.

A means of transport which is abandoned is usually small in size, such as motor-boats used to transport goods that do not meet the provisions of this law.

Paragraph (2)

The written notification is a notification given in writing to the owner or his/her proxy, notifying that his/her goods or means of transport has been claimed by the state, and the owner or his/her proxy is requested to settle the Customs Formality.

The announcement is released by putting it on the announcement board at the Customs offices or publishing it in mass media such as newspapers.

Paragraph (3)

Self explanatory.

Article 69

Self explanatory.

Article 70

Self explanatory.

Article 71

Self explanatory.

Article 72

Self explanatory.

Article 73

Self explanatory.

Article 74

Paragraph (1)

It is explicitly affirmed in this paragraph that the Customs Official, in excercising the duties which are inherent to his/her authority to secure the rights of the state, may attempt any effort towards people or things, including animals, to ensure that the provisions of this law are fulfilled.

When necessary, various efforts may be attempted to seek and find incidents relating to Customs matters which are suspected to be offences against Customs law, to determine whether investigations can be carried out or not in accordance with this law.

Paragraph (2)

The use of fire arms is very restricted considering the magnitude of the danger that may threaten safety and security. Therefore, the conditions of their use are further regulated with Government Regulation by taking into account the prevailing legislation.

Article 75

Paragraph (1)

In conducting the supervision, to make sure that the means of transport proceed along their specified routes and to search vessels, the Customs Official needs to be equipped with operational equipment such as patrol boats and other supervisory media like radio-telecommunication or radar.

A means of patrolEis the vessel or airplane owned by the Directorate General of Customs and Excise, with the Customs Official as the patrol commander who has the authority to enforce the law within the Customs Territory by virtue of this law.

Paragraph (2)

Considering that in the use of the means of patrol as referred to in paragraph (1) the Customs Official may encounter dangers that threaten the life and safety of such Customs Official and a means of patrol, bearing in the prevailing provisions of this law, the means of patrol may be equipped with firearms, the types and/or number of which shall be stipulated by a Government Regulation.

Article 76

All government agencies, either civil or the armed-forces, whenever requested are obliged to give assistance and protection or to issue an order to protect the Customs official in all matters relating to his duties.

The provision of this article declares that the assistance as referred to in the above is in relation to all activities carried out by the Customs Official by according to this law.

Article 77

Paragraph (1)

This paragraph authorizes the Customs Official to carry out customs administrative task by virtue of this law.

The term to detain goodsEmeans the administrative measure to suspend the release, loading, and transportation of imported or exported goods until the Customs formalities are fulfilled.

The term to detain a means of transportEis the measure to detain the departure of a means of transport.

Paragraph (2)

Self explanatory.

Article 78

The authority of the Customs official, as regulated in this provision, is intended to ensure a better supervision to secure the states finance, since continuous physical control by the Customs Official is not required.

Article 79

This article contains the provision concerning the authority of the Minister to decide that the sealing or the affixing of a security mark as a substitute of a seal, done by a foreign customs official or by other parties abroad, is acceptable.

The term acceptable implies that the sealing or the affixing of the security mark is regarded as having been performed within the country according to the prevailing laws. Such facility will naturally enhance the trade between Indonesia and foreign parties.

When, according to the consideration of the Minister, the sealing or the affixing of a security mark is not sufficient or not safe enough, the sealing or affixing of the security mark cannot be accepted.

Article 80

Self explanatory.

Article 81

Paragraph (1)

The placement of the Customs official mentioned under this article is carried out if the security precautions by way of the sealing mentioned under Article 78 cannot be carried out or if on certain considerations, security measures by the Customs Official are more appropriate.

Paragraph (2)

The provisions in this paragraph oblige the carrier or the owner concerned to provide working facilities assistance, since the accomodation is not available, among others to make available accommodation, a place or room for work, sufficient food and drink to enable the Customs Official on duty to perform his/her tasks properly at such a place.

Paragraph (3)

Self explanatory.

Article 82

Paragraph (1)

This paragraph authorizes the Customs Official to examine goods to obtain data and an accurate assessment concerning the submitted notification or documents. The examination of exported goods can only be executed by virtue of the provisions mentioned under Article (4) paragraph (2).

The examination shall be executed selectively pursuant to the procedure prescribed by the Minister. The result of the examination represents a basis that is used for the calculation of the Import Duty.

Paragraph (2)

Self explanatory.

Paragraph (3)

Self explanatory.

Paragraph (4)

Self explanatory.

Paragraph (5)

Self explanatory.

Paragraph (6)

Self explanatory.

Article 83

The secrecy of letters entrusted to the Postal service or its appointed transportation companies shall not be violated, except in cases described in this law.

Small articles are very often sent in envelope as mail. Therefore, mail that might contain small articles may also be opened for examination purposes.

Although the opening of mail may be accounted for, the needs of examination of the article in side without reading its contents and not in contradiction with the secrecy principle of postal service, the opening of a mail shall be carried out before the addressee.

In case the addressee cannot be located, the mail may be opened, with a warrant from the Director General of Customs and Excise, together with a postal service official.

The term addresseeE is the receiver of the mail in case of Import or the sender in case of Export.

Article 84

Paragraph (1)

This paragraph authorizes the Customs official to inquire the importer or exporter.

a. to submit the books, records, and correspondence connected with :

1. purchase,

2. sales,

3. import,

4. export,

5. stocks/inventory, or

6. consignments of the goods concerned.

b. to submit samples for the purpose of examining the declaration.

The Customs Official presents the receipt for the submission of the above items by the exporter or importer. In case the above inquiry cannot be met, the Customs Official will determine a classification and/or a custom value by virtue of existing data, that will probably cause a loss for the party concerned.

Immediately after the examination is completed, the books, records, correspondence, and/or the samples of goods are returned to the owners.

Article 85

Self explanatory.

Article 86

To expedite the flow of goods, the examination of goods at the Customs Area shall be as minimal as possible by using a selective method.

To ensure the correctness of the Customs Declaration in order to secure the right of the State, Customs Audit shall be carried out to after the goods released from the Customs Area.

The Customs Audit shall be carried out by examining the bookkeeping, records, correspondence and the inventory of goods in connection with import or export.

Article 87

Paragraph (1)

From the point of view of the security interest of the state, it is necessary to control the goods that are stored either at the Temporary Storage, the Bonded Storage or at other places in which the goods have obtained exemption, relief or deferment of Import Duty or at places with inventory therein that are subject to provisions concerning prohibitions or restriction.

With regard to the control above, the provisions of this paragraph regulate the authority of the Customs official to conduct the search either on buildings and other places that have already had operational licences by virtue of this law, or other places, based on the Customs Declaration or documents at which the goods subject to duty or to prohibitive and restrictive regulation are stored.

Paragraph (2)

This provision is issued, considering that at the time of the search conducted by the Customs Official, there is the possibility that goods have been removed to a building or another place having direct or indirect connection with the places that are being searched.

The term connected directlyEmeans the buildings or places are physically connected, whereas connected indirectlyEmeans having no direct physical connection but operationally connected. In this way activities to avoid the search or to conceal the goods may be prevented.

Article 88

Paragraph (1)

Buildings and other places other than dwelling house mentioned under this paragraph are buildings that are not used for business as mentioned under this law, for instance a building that is specially established to store all types of goods and the purpose of its establishment is not for business by virtue of this law.

If the goods being involved in violation eiher as goods subject to import duty or to restricted and prohibited regulations are found in such a place, the Director General may give an order to the Customs official to search such buildings or places.

Paragraph (2)

Self explanatory.

Article 89

Paragraph (1)

To conduct the search, the Customs Official shall have a warrant from the Director General to protect human rights.

In practice, the issuance of the warrant by the Director General may be delegated to the appointed Customs official.

Paragraph (2)

Self explanatory.

Paragraph (3)

Self explanatory.

Paragraph (4)

Self explanatory.

Article 90

Paragraph (1)

The halt and the search of means of transport by the Customs official is to ensure the rights of the state and the compliance of the law of which the implementation is charged to the Directorate General of Customs and Excise. Therefore the halt and the search of means of transport shall be merely carried out selectively.

Paragraph (2)

Self explanatory.

Paragraph (3)

To conduct control over such a means of transport which unloads imported goods, the Customs official is authorized to stop the unloading if it appears that the unloaded goods are not allowed to be imported into the Customs Territory, by virtue of the prevailing government regulation.

Paragraph (4)

Self explanatory.

Article 91

Paragraph (1)

SignalsEare, among others, the hand signals, sound signals, light signals, and radio signals given to a captain or a carrier, that are usually used as a signal to stop the means of transport.

Paragraph (2)

In order to prevent arbitrariness of the Customs Official, the costs that arise from the search are charged to the blame party.

Paragraph (3)

Transportation documentsEmean all documents that are required by the provisions of national and international transportation.

Paragraph (4)

Self explanatory.

Article 92

Paragraph (1)

Considering that a number of goods have very small measurements so that they can be concealed in the body or the clothes worn, the Customs Official shall be authorized to conduct body search.

Body search shall be carried out by complying with the norms of decency and politeness. Therefore, it shall be carried out in appropriate closed searching room by persons of the same sex and an official report shall be made and signed by both parties.

Paragraph (2)

Self explanatory.

Article 93

Paragraph (1)

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 thirty 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 thirty days is exceeded, the right of the party concerned is invalid and the determination is considered approved.

Paragraph (2)

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.

Paragraph (3)

Rejected by the Director GeneralEmeans 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.

Paragraph (4)

Self explanatory.

Paragraph (5)

Self explanatory.

Article 94

Self explanatory.

Article 95

The Tax Judicatory Institution mentioned under this article is the tax judicatory institution mentioned under the law Number 6 of 1983 on General Provisions and Procedures on Taxes as amended with the Law Number 9 of 1994 that was specially created to examine and take decisions concerning appeals on fiscal matters (taxes).

In the sense that taxes comprise direct and indirect taxes. Direct taxes are among others sales tax, whereas indirect taxes among others include income tax, value added tax, Import Duty and Excise.

The Tax Judicatory Institution that will be established by virtue of the Law Number 6 of 1983 on the General Provisions and Procedures on Taxes as amended with the Law Number 9 of 1994 will also arrange the judiciary in the field of Import Duty and Excise. Its purpose is to create efficiency of the judicatory institution in the fiscal field so as to avoid two judicatory bodies in the fiscal field, that must be created with a separate law.

Article 96

Paragraph (1)

Prior to the establishment of the Tax Judicatory Institution as referred to in Article 95, the appeal filed or efforts to obtain justice on Customs affairs shall be performed through an appeal institution which decisions is not a decision of the State
Administration and therefore the decision can not be appealed to the State Administration Court.

Paragraph (2)

Self explanatory.

Paragraph (3)

Self explanatory.

Article 97

Paragraph (1)

Self explanatory.

Paragraph (2)

Self explanatory.

Aeticle 98

Self explanatory.

Article 99

Paragraph (1)

The session of the committee to examine and make decisions concerning an appeal shall be of a closed in nature. It means that this session is not open for the public so that only the members of the committee may attend this session.

For the sake of the examination, the committee may request the presence of the appealer or his/her behalf.

Paragraph (2)

Self explanatory.

Paragraph (3)

Self explanatory.

Paragraph (4)

Self explanatory.

Article 100

The Customs and Excise Appeal Institutions is a neutral institution that is expected to make a decisions as objective as possible. Therefore, if in the settlement or the examination of an appeal there are members of the committee who have personal interests in the appealer, the members concerned may not involve in the examinations and shall resign from the membership of the committee.

For the sake of the examination of the appeal, the chairman of the committee shall appoint a substitute member.

The member of the committee who resign shall be replaced by another member of the same element.

Personal interest as referred to in this paragraph includes family ties, or kinship of the third degree and husband-wife relationship even in case of divorce, between members of the Customs and Excise Appeal Institution and the appealer.

Article 101

Self explanatory.

Article 102

This Law regulates or stipulates procedures or provisions that shall be met by any person who imports or exports goods. In case that the person who imports or exports goods does not comply with provisions and procedures stipulated by virtue of this Law, he/she shall be subject to a penalty of this article with an accumulated punishment in the form of imprisonment and fine.

Not complying with this LawEmeans fully incompliance with the procedures and the provisions as stipulated by this law. Therefore, if a person who imports or exports goods, entirely or partly, comply with the procedures and the provisions of this law, he/she is not regarded as committing the crime which is punishable based on this article.

Article 103

Letter a

Self explanatory.

Letter b

The evasion of the Import Duty payment and other charges occurs not only in case of the declarant, that has already lodged the Customs Declaration and paid the Import Duty, without paying the shortage, but also in case any person does not lodge the Customs Declaration and doest not pay the Import Duty and other charges as well.

Other state charges incurred on the import goods are, among others, excise on Goods Subject to the Excise and value added tax.

Letter c

Self explanatory.

Letter d

The provision of the crime herein related to the condition that any person found storing, keeping, possesing, purchasing, selling, exchanging, obtaining or providing goods as result of a crime as referred to in Article 102.

If such goods found as result of the examination of the book or intelligent information, the investigator may confiscate the good based on the authority as referred to in Article 112 Paragraph (2) clause k.

Any person who has been found storing, possessing, keeping, purchasing, selling, exchanging, obtaining or giving goods as a result of a crime on which the offender can not be located, may be prosecuted with criminal charged under this article. However, whenever such a person obtains goods with good/positive intention, he may not be prosecuted. In case the person who commits the crime is identified, both may be prosecuted.

Article 104

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.

Article 105

Self explanatory.

Article 106

Self explanatory.

Article 107

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 mentioned under Article 103 (c).

Article 108

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.

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.

Article 109

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.

Article 110

Self explanatory.

Article 111

Expiration of the lawsuit of a Customs crime is intended to provide legal certainty for the business community and the law enforcers.

Article 112

Self explanatory.

Article 113

Self explanatory.

Article 114

Paragraph (1)

The imposition of administrative penalty which is calculated based on the percentage of import duty is regarded to be fair and just due to the fact that such a fine is proportional with the magnitude of violation that causes the loss in the State revenue.

However, in the era of economy globalization, the general policy in tariff is directive to reduce the tariff rate, thus the tariffs rate of import duty of certain goods will reach zero percent. Therefore, the imposition of the aforementioned administrative penalty could not be applied proportionally, while the violation of not fulfilling a certain provision still has to be penalized. Hence, the violation against the customs regulation conducted on imported goods of which final tariff rate is zero will be charged with the administrative penalty based on the quantity quoted in rupiah.

Paragraph (2)

The determination of the amount of an administrative penalty and its interest which are stipalted by a government regulation is aimed at the anticipation of the fluctuation of the currency.

Article 115

Self explanatory.

Article 116

Letter a

Although the provisions of the previous Customs legislation have been revoked by the enactment of this law, in order to accomodate the settlement of states claims to the debtor, and vice versa ,of the excess payment of import duty or other charges due on which the implementation is still based on the previous Customs legislation. Therefore, this Customs Law stipulates that the expiration date of the previous legislation is on April 1, 1997.

Letter b

Self explanatory.

Article 117

Self explanatory.

Article 118

Self explanatory.