Minister of Finance Regulation (PMK) Number 96 of 2023

Understand the following so that importers are free from sanctions , Based on the Minister of Finance Regulation (PMK) Number 96 of 2023 concerning Customs, Excise and Tax Provisions on Import and Export of Consignment Goods, importers can submit notifications of data from consignment goods and individually calculate import duty and tax in the context of import (PDRI). However, for the application of this self-assessment, there are consequences for importers, namely the existence of administrative sanctions in the form of fines when importers make mistakes in the notification of customs value which causes a shortage of import duty payments.

According to Customs data, most of the shipment goods come from Trading Organisers Through Electronic Systems (PPMSE) or through e-commerce, with a percentage reaching up to 90%. As a result of the high flow of consignments, there is an opportunity for the practice of under invoicing.

Getting to Know the Practice of Under Invoicing

Under invoicing is an offence that involves undervaluing the actual value of a transaction. This is often done in international trade, where exporters or importers deliberately declare a lower price of goods in official documents to reduce tax or duty obligations that must be paid. Some of the reasons why under invoicing is practised include:

Tax Avoidance: by declaring a lower price, the parties involved can reduce the amount of tax they have to pay to the government.
Customs Avoidance: the parties involved can reduce the customs duties payable by declaring a lower price for the imported or exported goods.
Increasing Profits: by reducing the declared price, exporters or importers can increase their profits by reducing the costs associated with taxes and customs duties.

While the practice of under invoicing may seem beneficial to the parties involved in the transaction, it is a form of lawlessness and can result in serious sanctions if discovered by the authorities. For example, the imposition of fines, confiscation of goods, or criminal prosecution of under invoicing offenders. In addition, such actions can also damage a company’s reputation and trade relationships with trading partners.

Customs applies selective customs inspection of consignments based on risk management. Customs inspection is a physical examination of the goods as well as an examination of the documents. Physical inspection of goods is carried out by customs officials and there is a witness, namely the postal operator concerned. Document research is carried out by customs officials and the service computer system (SKP).

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If the customs inspection has been completed, a determination of the customs tariff and value will be issued based on the results of the customs inspection conducted by the customs official or SKP. If in the results of the determination it is known that there is a deficiency in the payment of import duties, then the importer is obliged to make repayment of the deficiency in the payment of import duties. This was conveyed directly by the Head of the Subdirectorate of Public Relations and Customs Counseling.

Minister of Finance Regulation (PMK) Number 96 of 2023
Minister of Finance Regulation (PMK) Number 96 of 2023

The deficiency in the payment of import duties is caused by an error in the notification of the customs value of consignments of goods resulting from trade transactions. If the importer objects to the determination, the importer can submit an application for objection submitted to the Director General for the imposition of administrative sanctions in the form of fines. The submission of this objection can be done in writing through electronic means, namely on the portal of the Directorate General of Customs and Excise.

Things to Pay Attention to in order to Avoid Sanctions

  1. Thoroughness

The importer or consignee is required to ensure that all data received by the seller or consignor is accurate and complete including the value, description, and quantity of goods.

  1. Proactive

Importers are advised to check the position of their consignments regularly when they arrive in Indonesia.

  1. Rechecking

Importers are required to confirm the correctness of the data listed before the postal operator sends the documents for the delivery agreement of the goods to customs.

The responsibility to remain compliant with the payment of import duties and taxes lies with the importer or consignee. The postal operator as the power of attorney of the importer and has responsibility in the customs process, including the payment of fines if there are errors in the notification.

The imposition of this fine aims to create healthy and fair competition for importers as well as local industries and MSMEs. So that the practice of under invoicing can be minimised which is a mode of violation of import activities of trade consignments. The practice of under invoicing is something that causes losses in state revenue because imported goods can circulate but at a lower price.

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