Get password
   
Search Product
Please select
 
Services
Product Categories
Message Board
Partners




Co-Funded

more details..

Parliament Passes Law on Customs and Excise


Sunday October 29, 2006

On Wednesday, 18 October, Parliament passed the new Law on Customs and Excise, which slashes red tape and imposes stiffer sanctions on smugglers, reports ’s Trade and Investment News. 

The legislation, which amends and updates the previous Law passed in 1995, is also designed to ensure adequate supplies of strategic goods on the domestic market through the imposition of export duties. 

It envisages the development of a fully computerized customs-clearance system in line with a World Trade Organization (WTO) agreement that ratified in 1994 but was allowed to delay implementing until 2000. 

The revision is part of the Government's efforts to improve 's business and investment climate by overhauling taxation, investment, and customs and excise statutes. 
 
 

Key provisions in the new Law include: 
 

·         The customs office must determine within 30 days the duties to be imposed on a shipment of goods that has been declared by either an importer or exporter. It must also rule within 60 days on any objection to the duties filed by an importer or exporter. 
 

·         Exemptions or lower duties may be permitted for the importation of capital goods and raw materials for "pioneering" industries, or for components of assembled products to be exported from designated bonded zones. 
 

·         Duty, arrears of duty and fines can be paid off by interest-free installments. 
 

·          Export duties of up to 40% of a shipment's value may be imposed on certain products to ensure security of supply and stabilize prices on the domestic market in circumstances where a sudden increase in the product's price occurs on the global market. 
 

·         Smuggling will be punishable by up to 20 years in prison and a fine of up to Rp100 billion ($10.8 million). Penalties in the case of customs officials involved in smuggling will be increased by a third. 
 

·         As an incentive, anyone reporting or found playing a role in the prevention of smuggling shall be entitled to up to 50% of the fines imposed, or up to 50% of the proceeds of the smuggled goods at auction.