DGCE Releases a Regulation on the Adhesion of Excise Bands
The Directorate General of Customs and Excise (DGCE) has released a regulation on the adhesion of excise bands. These provisions are outlined in the Director General of Customs and Excise Regulation No. PER-15/BC/2020 concerning the Adhesion of Excise Bands (PER-15/BC/2020). Coming into force on 1 January 2021, this regulation has been released to implement the Minister of Finance Regulation No. 68/PMK.04/2018 concerning Excise Payment.
The regulation stipulates that excise bands may be affixed at the factory location for goods subject to excise that are produced in Indonesia, i.e. in the form of tobacco products and beverages containing ethyl alcohol (Minuman Mengandung Etil Alkohol/MMEA) with an ethyl alcohol content of more than 5%.
The adhesion of excise bands for imports of similar goods subject to excise is carried out in the country of origin of the goods subject to excise.
Article 5 of the regulation outlines that excise bands must be firmly affixed to closed retail sales packaging and cover the available retail sales packaging openings. This is intended to keep the excise bands intact and undamaged when the packaged product is opened.
Further, it is also stipulated that the affixed excise bands may not cover the name and location of the factory written on the retail sales packaging.
In the event of the turn of a new fiscal year and/or design changes, excise bands are to be affixed by the manufacturer no later than the 1st of the following month after the turn of the fiscal year and/or the new design.
Next, in the event of any policy changes in terms of tariffs and/or Retail Selling Price (Harga Jual Eceran/HJE), excise bands that have been ordered beforehand must be affixed no later than the 1st of the following month after these changes apply.
As for imported goods subject to excise, excise bands are to be affixed by importers at a temporary storage area or bonded storage area no later than the 1st of the following month after the turn of the fiscal year and/or a new design or changes in tariffs and/or HJE.
In the event that there are excise bands that have not been affixed after the deadline has passed, the Head of the Customs and Excise Office will perform an enumeration to obtain the number, type, and condition of the available excise bands. Next, excise bands that have passed the deadline will be destroyed. Costs incurred as a result of the destruction of excise bands shall be the sole responsibility of the manufacturer or the importer concerned.