Customs and Excise entrusted to check all imported goods

JAKARTA (JP): A new finance minister decree on customs clearance of imports empowers the Directorate General of Customs and Excise to inspect all imported goods at customs or designated temporary storage areas.

But decree No. 25/KMK.05/1997, dated Jan. 15, 1997, to be effective April 1, does not specifically terminate the preshipment inspections of imports, which have been in place since mid-1985.

It only stipulates that all imported goods must be inspected by customs officials and approved by an authorized customs official before being cleared from customs areas.

Inspections will cover both document checks and physical inspections, which shall be selective to ensure smooth cargo flows.

Customs is now only allowed to inspect sea cargo imports worth up to US$5,000 and air cargo imports. Inspections of sea cargo imports worth more than $5,000 is carried out at points of loading by the appointed surveyor, state-owned PT Surveyor Indonesia.

To smooth document flows and reduce personal contact, the ruling stipulates that importers shall submit import documents to local customs offices electronically provided that customs offices have been equipped with electronic data interchange facilities.

Importers are allowed to make their own assessments of import duties and taxes due based on the transaction value of their imports.

Goods can be released only after importers have submitted import declarations and paid all import duties and taxes.

If imported goods must be released quickly for good reason, importers may ask the head of a customs office to postpone their tax and duty payments after providing a guarantee.

Importers are required to settle credited duties and taxes within 60 days of submitting their import declarations.

Importers may submit import declarations before the arrival of their goods.

Carriers' duties

Shipping lines and cargo airlines are required to notify local customs offices of the planned arrival of their goods.

These reports must contain the name of the ship or carrier, voyage or flight number, port or airport of loading, destination ports or airports, planned date of arrival and the number of containers or packages to be unloaded.

But this pre-arrival notification requirement does not apply to the planned arrival of imported goods carried over land. Reports for such imports are required upon their arrival.

After goods arrive at their ports or airports of destination, liners or carriers must report the arrival to customs within 24 hours, enclosing bills of lading, lists of passengers and crew and lists of firearms and drugs carried on the flight or voyage.

Incoming goods should be unloaded in a customs area. But they may also be unloaded outside customs areas with an approval from the head of a local customs office.

After unloading goods, shipping lines and airlines are required to report the number of containers or packages unloaded.

Unloaded goods can be cleared directly from customs areas after being inspected by customs and after all duties and taxes have been paid.

Goods with unsettled duties and taxes can be stacked in designated temporary storage areas. With the consent of the head of a local customs office, goods can be transported directly to importer's warehouses.

The decree gives customs officials two years after the release of imports to verify import declarations and make any corrections under the so-called post-entry audit system. (rid)