On 1 March 2021, the Directorate General of Customs (“DGC”) issued DGC Regulation No. PER-05/BC/2021 (“PER-05”) concerning the Guidelines for Temporary Import and Export of Motor Vehicles through Cross Border Control Posts.

This DGC Regulation is an implementing guideline of Ministry of Finance (MoF) regulation number PMK-52/PMK.04/2019 (“PMK-52”) concerning the Temporary Import and Export of Motor Vehicles through Cross Border Control Posts which regulates motor vehicles traffic at cross-borders and simplifies the temporary import and temporary export process using a single document.

The important points of PER-05 can be summarized as follows:

• Exporters and importers are required to submit an export/import customs declaration of motor vehicles in the form of Vehicle Declaration to the Head of the Customs Office or appointed Customs and Excise Officer electronically through Service Computer System (SKP) of the Directorate General of Customs.
• The Head of Customs Office or appointed Customs and Excise Officer shall verify the Vehicle Declaration documents and perform a physical check on the motor vehicles.
• The physical check is intended to:
  1. ensure the physical conformity of the Motor Vehicle with the data and information contained in the Vehicle Declaration;
  2. ensure that Motor Vehicles have a minimum fuel capacity when imported as much as 3/4 (three quarters) of the normal fuel tank capacity; and
  3. obtain complete Motor Vehicle data of classification and determination of customs value.

• The Head of the Customs Office or appointed Customs and Excise Officer can issue the Temporary Import/Export Permit of Motor Vehicles no later than 30 (thirty) days from the date of approval.
• The exporter and importer can apply for extension of the Temporary Import Permit before the expiration date and obtain an extension for a period no longer than 30 (thirty) days from the expiration of the previous Temporary Permit.
• If the application for the extension of the Temporary Permit of Motor Vehicle period is not approved, the Head of the Customs Office or the appointed Customs and Excise Officer at the Cross Border Control Post of the entry point issues a rejection letter.
• Motor Vehicles that have received rejection are required to be re-imported or re-exported before the Temporary Permit period ends.
• Delay in export/import and re-export/re-import may result in an administrative penalty of 100% (one hundred percent) of the customs duty that should have been paid.

This regulation is effective since 01 April 2021.