The Director General of Customs and Excise (“DGCE”) has issued a regulation No. PER-02/BC/2019 regarding the monitoring and evaluation procedure for companies enjoying facilities (“Users”) of Bonded Stock Piling (“TPB”) and the Import Facility for Export Purpose (“KITE”). This PER-02 became effective from 13 February 2019. PER-02 is aimed to increase the DGCE’s monitoring and evaluation of the facilities to ensure that the facilities are granted to the proper Users. The key points of PER-02 are summarized as follows:

1. Monitoring and Evaluation of TPB

• Types of TPB Monitoring:
  1. General Monitoring
     Monitoring conducted by the Customs Service Office having jurisdiction over the TPB and conducted at least once a month.
  2. Special Monitoring
     Monitoring conducted by the DCGE, regional office or main customs services office (“KPU”).
  3. Self-Monitoring
     The Company should report self-monitoring reports to DGCE, at least 4 (four) times in a year.
• Types of TPB Evaluation:
  1. Micro TPB evaluation
     Conducted by Micro TPB team at the Customs Service Office having jurisdiction over the TPB and conducted every 6 (Six) months.
  2. Macro TPB evaluation
     Conducted by the macro TPB team in Regional Customs Office or KPU or DGCE and conducted every 6 (Six) months.
• Coverage of TPB Monitoring and Evaluation;
  1. Required licenses;
  2. Procedures for entering and releasing goods;
  3. Procedures for unloading, piling, processing, recording and other customs activities;
  4. Existence, responsibility, nature of business and auditability (ERNA);
  5. IT Inventory and Closed-Circuit Television (CCTV); and
  6. Other procedures.

2. Monitoring and Evaluation of KITE

• Types of KITE Monitoring:
  1. General Monitoring
     Monitoring conducted by the Customs Service Office having jurisdiction over the KITE’s user and conducted at least once a month.
  2. Special Monitoring; and
     Monitoring conducted by the DGCE, regional office or main customs service office (“KPU”) and conducted at least once in every 6 (Six) months.
  3. Self-Monitoring
     The Company should submit self-monitoring reports to DGCE, at least 4 (Four) times in a year.
• Types of KITE Evaluation:
  1. Micro KITE evaluation
     Conducted by Micro KITE team at the regional office or KPU and conducted every 6 (Six) months.
  2. Macro KITE evaluation
     Conducted by the macro KITE team in Regional Customs Office or KPU or DGCE and conducted at least once a year.
• Coverage of KITE Monitoring and Evaluation:
  1. Required licenses;
  2. Import and export and/or goods movements in the form of sub-contract;
  3. IT Inventory;
  4. Guarantee;
  5. Conversion or bill of material;
  6. Export realization report; and
  7. Other responsibilities.