Exemptions for Mandatory Registration

Custom service users, such as importers, exporters and freight forwarders are generally required to register themselves with the Directorate General of Customs and Excise. Without registration these custom service users are unable to obtain access to the customs system.

There are however certain exemptions to this requirement. In case the activity is included in the exemptions stated in article 3 of the New Regulation.

Moreover, custom service users are not required to online registration in case:

  1. the data of customs service users is already present on the system of administration in the Directorate General of Taxes; and / or
  2. the data of customs service users is present in institutions that perform data exchange with the Directorate General of Customs and Excise

Registration Procedures

Custom service users must follow the following customs registration procedure:

  1. Obtain a statement letter from the Directorate General of Tax regarding the validity of the Taxpayer Identification Number (NPWP) and the fulfillment of the taxpayers obligations
  2. Fill and submit the electronic application and its supporting documents through:
    1. the Indonesian National Single Window Portal; or
    2. the Directorate General of Customs and Excise Portal.
  3. The submission will be checked by the customs officials within one business day as of the submission.
  4. If the application is accepted and checked by the customs officials, it will be forwarded to the Director General. The Director General will provide its approval or rejection within one business day as of receipt of the application

Blocking and Revocation of Customs Access

The Director General may partially or entirely block customs access. Blocking of access may be imposed to the custom service user in case:

  1. There is an internal recommendation or from relevant institutions to block access;
  2. Data changes have not been notified by the service user;
  3. There has been no customs activity during a consecutive period of 12 months;
  4. The service user did not submit its Annual Income Tax Notification (for the last two years) or its Value-Added Tax Period Notification (for the last three years); and/or
  5. The information provided related to the owners of the imported / exported goods.

Alternatively the Director General may also revoke customs access. Article 17 of the New Regulation specifies the reasons for revocation of access. These include amongst others:

  1. Failures of Service Users to obtain approval on the reasons for which they were blocked (as specified above) within three months of the blocking date;
  2. Based an internal recommendation or from relevant institutions; and/or
  3. upon service users’ own request.

The New Regulation has been in force since December 24, 2016.

This column is provided by PNB Law Firm Jakarta