Customs and Excise

Customs is everything related to the supervision of the traffic of goods entering or exiting customs areas and collecting import duties and export duties.

The supervision is carried out by the Customs and Excise Office with rules and technical requirements. Incoming goods traffic in question is Import, which is the activity of entering goods into the customs area. The intended outbound traffic is Export, which is the activity of removing goods from the customs area.

Customs area is the territory of the Republic of Indonesia which includes land, sea and air above it and all certain places in the Exclusive Economic Zone (EEZ) and continental shelf in which the Republic of Indonesia Law no. 17 of 2006. Every process of entering or removing goods from the customs area must fulfill customs obligations such as having to have a Customs Identity Number, Customs Notification.

Customs term

Here are some general terminology related to Customs, namely:

1. Customs is anything related to the supervision of the traffic of goods entering or exiting customs areas and collecting import duties and export duties.
2. Customs area is the territory of the Republic of Indonesia which includes land, waters and air space above it, as well as certain places in the Exclusive Economic Zone and continental shelf where the Law applies.
3. Customs area is an area with certain limits in ports, airports or other places designated for goods traffic which are fully under the supervision of the Directorate General of Customs and Excise.
4. The customs office is an office within the Directorate General of Customs and Excise where customs obligations are fulfilled in accordance with the provisions of the Law.
5. Customs supervision post is a place used by customs and excise officials to supervise the traffic of imported and export goods.
6. Customs obligations are all activities in the customs sector that are carried out to fulfill the provisions in the Law.
7. Customs notification is a statement made by a person in order to carry out customs obligations in the form and conditions stipulated in the Law.
8. Import duties are state levies based on the laws imposed on imported goods.
9. Export duty is a state levy based on the law imposed on export goods.
10. Customs audit is the activity of examining financial statements, books, records and documents that are the basic evidence of bookkeeping, letters relating to business activities including electronic data and letters relating to activities in
11. customs. And / or availability of goods in the context of implementing the provisions of legislation in the customs sector.
12. Tariff is the classification of goods and the imposition of import duties or export duties.

Hoarding places

There are 3 hoardings:

Temporary Stockpiling Site (TPS)

Namely a building or place such as a field in a Customs area that is used to stockpile goods while awaiting loading or expenditure. In each customs area temporary shelters are provided managed by temporary landfill entrepreneurs. At the polling station there are stockpiles, landfills and other places that have the permission of the Head of the Customs and Excise Office.

The time period for stockpiling at the TPS is that if it is piled up in the port area, the maximum time limit is 30 days after landfill. Whereas in the pile outside the port area the maximum time limit for hoarding is 60 days from the date of hoarding. The existence of the maximum landfill is due to preventing protracted landfill so as to cause stagnation or congestion. And as an effort to accelerate the interests of state rights immediately paid off.

And if the stockpile exceeds this limit, then the item will change its status to goods that are not controlled. This means that the landfill is transferred to the Customs Landfill (TPP) and is levied on building leases. The item is in danger of being auctioned if within 60 days the TPP has not been completed.

Bonded Stockpiling Site (TPB)

Namely buildings, places or areas that meet certain requirements in customs areas that are used to hoard, manage, exhibit, and / or provide goods for sale. And get special treatment in the fields of Customs, Excise, Bonded Zone, Bonded Warehousing, Entropot for the purpose of Exhibition or Duty Free Stores.
The purpose of the procurement of Bonded Stockpiling Sites is:

1. To provide facilities to employers in the form of suspension of payment of import duties. As well as being able to carry out all activities included in the landfill originating from outside the Customs area without import duties being collected first.
2. Ensuring the smooth flow of goods in import or export activities and increasing domestic production in the context of National Economic Development and Development.

Customs Stockpiling Site (TPP)

Namely the building or place can be a field provided by the government in a Customs office under the management of DGCE. And it functions to store goods that are declared not controlled, goods controlled by the state and goods that belong to the state under the Customs Law.

The purpose of goods that are not controlled is the goods at the TPS that exceed the time period of hoarding. Then the items on the TPB whose permits have been revoked and within the time limit of 30 of them have not been settled. The purpose of goods that are controlled are goods whose imports are prohibited or restricted, goods or facilities left behind and items left in the Customs Area by unknown owners.

Types of Customs

Import duty
Namely state levies on imported goods that are in accordance with the classification of goods. For example, acrylic yarn compared to woven fabric from cotton is certainly different in size. Import duties are in accordance with Article 12 of the Customs Law, imported goods collected at a tariff based tariff shall be a maximum of 40% of the customs value for import duty calculation.

1. Types of import duty:
2. Anti-dumping import duty
3. Then reward fees
4. And security measure

Export Levy
Namely state levies on goods exported. When viewed from the quantity of goods subject to import duties, it will be more than the items subject to export duties.

Customs Tariff

Export Levy calculation formula Export Duty Rate x Unit of Goods x Export Price x Currency Exchange Rate. The highest export duty rate is set, namely:

1. 60% of the export price, or
2. Certain nominal value equal to 60% as referred to in letter a in the specific export duty tariff.

Excise

The term Customs consists of 2 words, namely customs and excise. Although literally similar to the term but both have different meanings. Customs are from Sanskrit, which means costs. Charges are used as the term for the costs of goods entering or entering a country (import duties and export duties). The collection agency is called Customs. Matters relating to it are called Customs while Excise means levies, but not all goods are subject to excise.

Customs Agency after Indonesian independence, was formed on October 1, 1945 with the name of the Customs and Excise Office. Then in 1948 changed to the Customs and Excise Bureau until 1965. After 1965 until now it changed to the Directorate General of Customs and Excise (DJBC). DJBC is an echelon I unit under the Ministry of Finance led by a Director General.

Excise Tariff

Excise goods made in Indonesia are subject to excise based on the highest tariff, namely:

1. 250% of the base price if the basic price used is the factory selling price, or
2. 55% of the market price if the base price used is the retail selling price.
3. Items that are not collected by excise, namely:

Sliced ​​tobacco made from plant-derived tobacco in Indonesia that is not packaged for retail sales with traditional packaging materials.

1. Drinks containing ethyl alcohol produced by fermentation made by the people in Indonesia are simple for livelihoods and not packaged for retail sales.
2. Excise is also not collected on goods subject to excise, if:
3. Continuously transported or transported further to destinations outside the customs area
4. Exported
5. Entered into a factory or storage area
6. Used as raw material or auxiliary material in the manufacture of finished goods which are goods subject to excise
7. Has been lost or damaged before being released from the factory, storage area or before being granted import approval for use.