The Directorate General of Customs and Excise (DGCE) has issued a policy concerning procedures for the imposition, collection and remittance of administrative penalties in the form of fines for violations of provisions on foreign exchange export proceeds.

These provisions are stipulated under the Director General of Customs and Excise Regulation concerning amendments to the Director General of Customs and Excise Regulation Number PER-03/BC/2000 concerning Procedures for the Imposition, Collection and Remittance of Administrative Penalties in the Form of Fines for Violations of Provisions on Foreign Exchange Export Proceeds from Natural Resources Concession, Management and/or Processing (PER-11/2021). Enacted on 1 November, this regulation came into force thereafter.

PER-11/2021 revises the former regulation, namely the Director General of Customs and Excise Regulation No. PER-03/BC/2020 concerning Procedures for the Imposition, Collection and Remittance of Administrative Penalties in the Form of Fines for Violations of Provisions on Foreign Exchange Export Proceeds from Natural Resources Concession, Management and/or Processing Activities (PER-03/2020).

This regulation has been issued to render legal certainty in the implementation of customs services and supervision in the export sector, as well as to harmonize the provisions on the supervision of foreign exchange export proceeds and the provisions on non-tax state revenues.

PER-11/2021 covers nine changes. First, amendments to Article 8 of PER-11/2021 which stipulates that the DGCE may request an explanation of supervision results to Bank Indonesia (BI) concerning any violation of Article 3 paragraph (2) and Article 4 of PER-11/2021.

Article 3 paragraph (2) of PER-11/2021 stipulates that Export Proceeds from Natural Resources (Devisa Hasil Ekspor dari Barang Ekspor Sumber Daya Alam/DHE SDA) shall be placed into a special DHE SDA deposit account no later than the end of the third month after the month in which the export declaration is registered.

Article 4 of PER-11/2021, on the other hand, contains provisions on a special DHE SDA deposit account that may be used by exporters that place DHE SDA for payment of export duties and other levies in the fields of exports, loans, imports, profits/dividends and/or other investment purposes.

Second, changes to Article 10 paragraph (1) and paragraph (2) of PER-11/2021. The article stipulates that the Director General of Customs and Excise, who is responsible for policy formulation, standardization, and technical guidelines, evaluation and implementation in the information technology sector, shall distribute the supervision results by BI or the Financial Services Authority (Otoritas Jasa Keuangan/OJK) to the head of the customs office. The head of the customs office shall calculate levies in the form of fines based on the supervision results by BI which indicate violations of Article 3 paragraph (2) and Article 4 of PER-11/2021. Article 3 paragraph (2) and Article 4 of PER-11/2021, on the other hand, cover materials related to the period of placement of DHE SDA into the DHE SDA Special Deposit Account and a special DHE SDA deposit account used for payment purposes.

Further, two paragraphs are added under Article 10 of PER-11/2021, namely paragraph (3) and paragraph (4). As per Article 10 paragraph (3) of PER-11/2021, the head of the customs office imposes administrative penalties in the form of delaying the provision of customs services in the export sector based on supervision results of BI or OJK which indicate a violation of the provisions under Article 3, Article 4 and/or Article 5 of PER-11/2021. Article 3, Article 4 and/or Article 5 of PER-11/2021 pertain to the period of placement of DHE SDA into the DHE SDA Special Deposit Account, DHE SDA special deposit account used for payment purposes and terms of payment through an escrow account.

Further Article 10 paragraph (4) of PER-11/2021 stipulates that the levies in the form of shall be calculated based on the middle rate and BI exchange rates on transactions as stated in the supervision results by BI.

Third, amendments to Article 11 of PER-11/2021. The amendments to the article stipulate that levies in the form of fines are remitted into the state treasury as non-tax state revenue derived from other state rights as per statutory provisions.

Fourth, changes to Article 12 of PER-11/2021. Article 12 paragraph (1) is added with a statement that the head of the customs office acts on behalf of the Minister of Finance and the notification clause is changed into the Notice of Levy (Surat Pemberitahuan Penetapan Pungutan). Article 12 paragraph (2) is also revised in that the Notice of Levy is submitted through a computer system.

Fifth, amendments to Article 13 paragraph (1) and the addition of Article 13 paragraph (4) of PER-11/2021. Article 13 paragraph (1) of PER-11/2021 stipulates that the first notice of collection shall be issued if, within 10 days from the date of the Notice of Levy, the exporter does not settle the liability. Next, the second notice of collection shall be issued after 1 month and the third notice of collection shall be issued after 2 months. In addition, Article 13 paragraph (4) of PER-11/2021 elucidates procedures for the issuance of notices of collection as stipulated in Appendix A of PER-11/2021.

Sixth, amendments to Article 15 paragraph (1) and paragraph (2), deletion of Article 15 paragraph (4) and the addition of three paragraphs, namely Article 15 paragraph (2a), paragraph (5) and paragraph (6) of PER-11/2021. Under Article 15 paragraph (1), in the event that the exporters do not settle their liabilities, the 30-day period clause changes to 1 month and paragraph (2) changes the issuance period of penalties to 3 months as of the issuance date of the third notice of collection. Article 15 paragraph (2a) stipulates that if the issuance date of the second notice of collection, the third notice of collection and state receivables management falls on a date that did not exist in the previous month, the notice of collection or state receivables management shall be issued on the last day of the month concerned.

Next, Article 15 paragraph (5) of PER-11/2021 stipulates that in the event that an exporter settles levies in the form of fines on the notice of collection that has been submitted to the state receivables management, the head of the customs office or the appointed customs and excise official shall undo the delay in the provision of customs services in the export sector. Article 15 paragraph (6) of PER-11/2021, on the other hand, stipulates that the procedures for opening access to the provision of customs services in the export sector are outlined in Appendix B of PER-11/2021.

Seventh, amendments to Article 17 of PER-11/2021. The article states that exporters may settle the collection in the form of fines at a foreign exchange tax payment bank or tax payment post office, foreign currency tax payment bank, other tax payment agencies, or other foreign currency tax payment agencies appointed to receive state revenue remittances.

Eighth, an additional new article, namely Article 18A of PER-11/2021. The article states that the notice of collection as referred to in Article 13 of PER-11/2021 may be rectified. To perform rectifications, exporters shall submit a written request for rectifications to the Minister of Finance through the head of the customs office.

The notice of collection shall be rectified as per statutory provisions on the management of non-tax state revenues. However, only the amount of levies in the form of fines in the notice of collection and/or writing errors may be rectified. Applications for rectifications must be attached by an explanation from the exporter concerning the part of the notice of collection for which rectifications are requested.

Ninth, an additional new article, namely Article 18B of PER-11/2021. Article 18B of PER-11/2021 stipulates that exporters are required to pay levies in the form of fines on the notice of collection at maturity at the latest as per statutory provisions on the management of non-tax state revenues.

Exporters that do not settle levies in the form of fines until maturity are subject to a late penalty of 2% per month of the total levy payable and a fraction of the month shall be calculated as one full month. The due date for payment of levies in the form of late penalties is set one day after the due date. The late penalty is imposed for a maximum period of 24 months.

Collection of Administrative Fines for Violations of Provisions on Foreign Exchange Export Proceeds