New MoF Regulation Regarding Procedure for Submission of Application and Determination of Origin of Goods to be Imported Before Delivery of Customs Declaration

Date of Post

March 4, 2021

Written by

lemonadecares

The MoF issued regulation No. 7/PMK.04/2022 regarding customs issue. The Director General of  Customs and Excise (Director General) may determine the origin of goods on goods to be imported in Preference-Scheme or Non-Preference Scheme before Customs Declaration is submitted. 

To obtain the determination of the origin of goods, the applicant shall apply for Determination of Origin of Goods Before Import (PKBSI) to the Director General through the  Director of Customs and Excise International Cooperation (Director).  

The application for PKBSI shall fulfill the following provisions:  

  1. the applicant has an identification number to be able to carry out customs activities, b. an applicant is not submitting Import Customs Declaration on the goods the application for determination of the origin of goods of which is submitted,  
  2. goods the application for determination of the origin of goods of which is submitted, are not in the process of filing or the process of objection or appeal, and others as stipulated in this regulation.  

PKBSI applicants include (a) importer, (b) exporter, (c) operator/entrepreneur of Bonded  Stockpiling Area and others as stipulated in this regulation. 

Application for PKBSI shall be submitted electronically through the application system managed by the Directorate General of Customs and Excise. If the application system cannot be implemented yet or experiences problems, the application may be submitted in writing. Application for PKBSI shall be submitted for 1 (one) type of goods with the same type and specifications through a production process with the composition of raw materials, including the same originating and non-originating materials and/or goods. 

The Director shall research the application and attached documents to fulfill the provisions as referred to in Article 3 paragraph (2) of this regulation. The Director may submit a  request for additional data, samples of goods for identification purposes, and/or other information.  

Read More:  Carbon Tax Confirmed to Take Effect From 1 July 2022

Based on the research result, the Director on behalf of the Director General shall grant approval or rejection on the application for PKBSI no later than (a) 30 (thirty) working days, for Authorized  Economic Operators or Customs Main Partners, and (b) 40 (forty) working days, for other applicants. Amendment may be carried out to PKBSI that has been issued based on the application of the applicant concerned. The amendment may be carried out if: (a) it is submitted for the same type of goods as referred to in Article 4 paragraph (4) of this regulation, and (b) there are new data and/or documents which according to the applicant may result in different PKBSI result.

PKBSI that has been issued or amended PKBSI shall be valid for 3 (three) years as from the date of  issuance. PKBSI is not valid if: (a) the conditions of origin of goods on imported goods are different  from the conditions of origin of goods as set out in PKBSI, (b) it is used by a different party from the  applicant as set out in PKBSI, and/or (c) the Customs and Excise Official has reasons for not  referring to PKBSI based on real evidence or objective and measurable data. 

The Director on behalf of the Director General may revoke PKBSI, if: (a) the data notified in the  application submitted by the applicant is inaccurate and incorrect based on: (i) information on  document examination result at the time of release of goods from the customs area, and/or (ii) )  finding of the Customs and Excise Official after the process of release of goods from the customs  area, (b) there is a change to Rules of Origin in Preference Scheme or Non-Preference Scheme that  may affect PKBSI result, and/or (c) there are other considerations based on international practice  and references related to Rules of Origin. 

Read More:  Additional Guidelines on CFC Rules

The Director carries out monitoring and/or evaluation on the implementation and utilization of  PKBSI. The Heads of the Regional Offices of the Directorate General of Customs and Excise carry out  monitoring and/or evaluation on the utilization of PKBSI in the vertical unit under their supervision  to be reported to the Director. The Heads of Customs and Excise Main Service Offices carry out  monitoring and/or evaluation on the utilization of PKBSI to be reported to the Director. 

This regulation comes into effect on 9 February 2022.

Tags:

Table of Contents

Related Articles

An Update on VAT Invoicing

An Update on VAT Invoicing

On 31 March 2022, the DGT issued Regulation No. PER-03/PJ/2022 (“PER-03”) regarding the VAT Invoice arrangements which became effective on 1 April 2022. PER-03 mainly serves as a compilation of several previous regulations related to VAT Invoicing with several...

read more
Tax treatment of Fintech activities

Tax treatment of Fintech activities

On 30 March 2022, the MoF also issued Regulation No. 69/PMK.03/2022 (“PMK-69”) stipulating the Income Tax treatment of interest income in peer-to-peer (P2P) lending, as well as the VAT treatment of Financial Technology (“Fintech”) activities. Fintech is an activity...

read more
Share This