- April 12, 2019
- Posted by: Administrator
- Category: Consultant, Info 1, Tax News
The Government, through the Minister of Finance (“MoF”), has issued a Regulation Number 22/PMK.04/2019 (“PMK 22”) regarding the provisions concerning Export of Palm Oil, Crude Palm Oil (CPO), and its Derivative Products. PMK 22 is aimed to increase the accuracy of data in order to accelerate services and customs supervision in the export of Palm Oil, Crude Palm Oil (CPO), and its Derivative Products.
PMK 22, which became effective starting from 8 March 2019, stipulates that the export of palm oil, CPO, and its derivative products is subject to export duty and levy in accordance with:
- The regulations concerning determination of export goods subjected to export duties and export duty tariffs; and
- The regulations concerning service rates for public service agencies of the Palm Oil Plantation Fund Management Agency (BPDP-KS) at the Ministry of Finance.
PMK 22 also stipulates that a Customs and Excise officer can conduct a physical inspection on the palm oil, CPO, and its derivative products before or after the export declaration form (“PEB”) is filed. The application for physical check can be done in bulk or non-bulk. In both ways, the exporter is required to file an application for loading goods for export of palm oil, CPO, and its derivatives before submitting the PEB. Based on the application, the Customs and Excise officer will conduct a physical inspection. Afterward, the exporter can file a PEB based on the result of the inspection.
The physical inspection based on the application covers the quantity and type of goods. The inspection will be done at:
- The loading place or stockpile area within the customs territory; or
- The Exporter’s warehouse or other place used by the Exporter to store export goods.
In the case that the physical inspection is carried out based on the application filed by an exporter of CPO and its derivative products, the inspection shall be carried out through testing by the laboratory of the Directorate General of Customs and Excise (“DGCE”). The results are set forth in the form of an Examination Report (LHP). Based on the LHP, the exporter shall prepare PEB and pay the export duty and levy accordingly. The PEB can be confirmed after the payment has been fulfilled. If the payment cannot be found by the Service Computer System (SKP), the exporter shall attach the proof of payment of levies as Customs Complementary Documents.
If the exporter does not submit a physical inspection application, the exporter shall submit PEB to the Head of Customs Office accompanied by the Customs Complementary Document in the form of :
- packing list, and
- results of laboratory testing carried out by:
- laboratory of the DGCE; or
- other laboratory that has been registered at the Customs Office, by the Exporter.
The pre-PEB physical inspection is not applicable for exporters certified as AEO (Authorized Economic Operator). For an AEO certified exporter, the result of laboratory testing shall be submitted to the Document Examining Officer no later than 14 (fourteen) days from the date of PEB. The laboratory testing can be done by the laboratory of the DGCE or other laboratories that have been registered at the Customs Office by the Exporter. If the test results are not delivered within the 14 days period, the next submission of PEB will not be served until the obligation is fulfilled.
In the case that the testing will be done by laboratories other than the Laboratory of the DGCE, the exporter should submit the list of laboratories for testing to the Head of Customs Office by attaching documents in the form of accreditation certificates and standard testing methods. The Head of Customs Office shall provide approval or rejection based on the recommendation from the Head of Customs and Excise Laboratory Hall no later than 14 (fourteen) days from the date of receipt of the properly completed application.
PEB regarding export of palm oil, CPO, and its derivative products that had already received a registration number when Minister of Finance Regulation Number 22/PMK.04/2019 came into force can still be completed in accordance with:
- the provisions concerning customs procedures in the export sector as stipulated in MoF Regulation Number 145/PMK.04/2007 concerning Customs Provisions in the Export Sector as most recently amended by MoF Regulation Number 21/PMK.04/2019; and
- the provisions regarding collection of export duty as stipulated in MoF Regulation Number 214/PMK.04/2008 concerning Collection of Export Levy as most recently amended by MoF Regulation Number 86/PMK.04/2016.