Directorate General of Customs and Excise


The Directorate General of Customs and Excise is an Indonesian government agency under Ministry of Finance that serves the community in the field of customs and excise.
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History

Dutch colonial era

The establishment of official customs and excise administration in Indonesia began during the colonialization period of the Netherlands, specifically upon the entry of VOC to the country.
The officers were often called ‘douane’, while the official name of the administration was, loosely translated as the Department of Import Duty and Export Duty and Excise.
The administration's main objectives were to collectinvoer-rechten (import duty), uitvoer-rechten (export duty), andaccijnzen.
This Bureau is headed by a Chief Inspector who doubles as an advisor to the Director of Finance for trade and shipping domiciled in Batavia. At that time the Customs Bureau was headed by a civilian officer appointed directly from the Netherlands.
Several Heads of the Customs and Excise Office of the Netherlands Indies period were as follows:
HeadEra
G.F. De Bruyn Kops1933
S.M. Van Der Zee1939
K.H. Dronkers1946
G.Van Der Pol1949

The history of the first duty and excise tax collections in Indonesia began in the Dutch colonial era in 1886 against kerosene based on the Ordonnantie van December 27, 1886, Stbl. 1886 Number 249. issued by the government of the Dutch East Indies.

Japanese colonial era

During the colonialization period of Japan, the Japanese Occupation Army passed Law no. 13 on the opening of government offices in Java and Madura. In article 1, paragraph 2 of the law states:
"Customs and excise duty offices in regions and branches shall not be taken care of temporarily".
The department's functions of collecting import duty and export duty were eliminated, leaving only the function of collecting excise.
The Customs and Excise, Tax Branch was made into an institution with the joint name led by Chogo assisted by several native employees, namely Soetikno Slamet and H.A. Pandelaki.

Post-independence

Shortly after Indonesia proclaimed independence, the organization of the Ministry of Finance was formed and the Customs and Excise was established to be part of the Tax Office.
On 1 October 1946, Sjafruddin Prawiranegara, minister of finance at the time, decide to overhaul organizational structure of the Ministry of Finance.
Customs and Excise is released from the Tax Office and becomes standalone office as the Customs and Excise Office and appoints Mr. R.A. Kartadjoemena as Chief of Customs and Excise Officer.
That date is considered as the date of birth of the Directorate General of Customs and Excise.

Duties

The Directorate General of Customs and Excise is divided into several branches in different regions across Indonesia.
The directorate reports directly to the Ministry of Finance.

Main task

To carry out the main task of Ministry of Finance in the field of customs and excise, based on the policy determined by Minister, and secure government policy related with the traffic of goods entering and leaving Customs Territory and Customs and Excise levies as well as other state levies based on the prevailing government regulations and laws.

Purpose

To carry out the main task, Directorate General of Customs and Excise has the function of:
  • Formulating the technical policy in the field of customs and excise, in accordance with the policy determined by Minister and the prevailing government regulations and laws.
  • Planning, implementing, controlling, evaluating, and securing technical operation of government policy which related with the control of traffic of goods entering and leaving customs territory, in accordance with the policy determined by Minister and based on the prevailing government regulations and laws.
  • Planning, implementing, controlling, evaluating and securing technical operation in the field of import duty and excise levy also other levies which are under the responsibility of Directorate General based on the prevailing government regulations and laws.
  • Planning, developing and counseling in services, permits, facilities, procedures and supervision in the field of customs and excise based on the prevailing government regulations and laws.
  • Prevention on breach of government regulations and laws of customs and excise and enforcement in the field of customs and excise and also investigation of criminal act of customs and excise in accordance with the prevailing government regulations and laws.

Vision and Mission

The vision of the DJBC's is to be "the leading customs and excise institution globally" and has three missions:
  • To facilitate trade and industry
  • To protect the border and the community from smuggling and illegal trade
  • To optimize state revenue in the field of customs and excise

Other functions

Since DJBC is the agency that regulates the entry of goods in the territory of Indonesia, DJBC's duty is also to enforce export and import regulations issued by other ministries or government agencies, such as:
  1. Ministry of Trade
  2. Fish Quarantine and Inspection Agency
  3. Animal Quarantine of Indonesian Agricultural Quarantine Agency (IAQA)
  4. Plant Quarantine of Indonesian Agricultural Quarantine Agency (IAQA)
  5. National Agency of Drug and Food Control
  6. Ministry of Health
  7. Nuclear Energy Regulatory Agency
  8. Bank Indonesia
  9. Ministry of Environment and Forestry
  10. Directorate General of Resource and Equipment Post and Informatics
  11. Ministry of Agriculture
  12. Ministry of Industry
  13. Indonesian National Police
  14. Ministry of Energy and Mineral Resources
  15. Directorate General of Taxes

Organisation

The organisation structure of Directorate General of Customs and Excise comprises the following components:

Logo of Directorate General of Customs and Excise

Design

  • A pentagon with the image of sea, mountain, and sky inside it;
  • A staff with 8 spiral at the under-part;
  • Wings consisting of 30 small-sized feathers and 10 large-sized feathers;
  • Rice tassel in amount of 24 forming a circle.

Meaning

  • Pentagon represents Pancasila as the foundation of the Republic of Indonesia;
  • Sea, mountain and sky represent the jurisdiction of the Customs Law and Excise Law.
  • Staff represents international trade of the Republic of Indonesia from/to 8 directions of wind
  • Wings represent the Finance Day of the Republic of Indonesia on 30 October and represent the Directorate General of Customs and Excise as part of the Ministry of Finance in Customs and Excise sector.
  • Rice tassel circle represents the purpose of Directorate General of Customs and Excise that is the prosperity and welfare of Indonesia.

Equipment

Firearms

The customs officers are trained in the use of firearms.
Customs Tactical Unit officers are also trained in the use of rifles.
ModelOriginType
Pindad P3AIndonesia

Fleet

Customs Marine Patrol unit operates various arrays of ships, with six main categories:
  • Fast Patrol Boat 60
  • Fast Patrol Boat 38
  • Fast Patrol Boat 28 with aluminium hull
  • Fast Patrol Boat 28 with wooden hull
  • Special boat class
  • speedboat with 15m length or less

Others

Customs unit in airport and land border operates x-rays device, CCTV and K9 unit to assist them in checking potential smuggling, especially drugs.
From 1970-2000, DJBC operated several aircraft to support marine patrol. Among those are Beechraft King Air, Piper Twin Comanche and Piper Navajo. The last aircraft was grounded in 2002. Efforts had been made to revive DJBC's aerial surveillance capability to support intelligence and enforcement team at industrial sites, land border and coastal areas using UAV.

Customs Clearance

Customs Clearance Process

  • Exporter and Importer is required to provide Customs declaration to the Customs, the documents is pemberitahuan ekspor barang for exporter and pemberitahuan impor barang for importer.
  • Documents for Customs declaration includes: invoice, packing list, document issued by carrier, Certificate of origin if available, and import/export permit if required.
  • Customs duties in Indonesia is based on self assessment. Exporter/importer themselves will then submit customs declaration and paid the customs based on their own assessment.
  • Directorate General of Customs and Excise officer will then check customs declaration and the customs duties. If customs declaration is complied with regulation, they will issue customs release letter to the exporter/importer, if not then customs declaration will be rejected and exporter/importer may revise and re-submit customs declaration.
  • Exported/Imported goods cannot leave customs area before receiving customs release letter
  • All above processes are using online system to minimize interaction between exporter/importer and DJBC officer.

Channeling

DJBC is also implement automated channel system based on importer/exporter profile, commodity type of goods, track record and information contained in the DJBC intelligence. There are 4 channel:
  • Special priority channel, also named Main Customs Partner, for exporter/importer with excellent track record, for importers of this type of goods expenditure is done automatically which is a priority in terms of service, in terms of supervision then exporter/importer of this type will be subject to Post Clearance Audit system and occasionally randomly by a computer system will be set for physical inspection. Exporters/Importers are required to apply for this channel and approved by DJBC to be able to use this channel.
  • Green channel, this channel is intended for exporter/importer with a good track record and the export/import commodities are low risk. Physical inspection of goods may be carried out if selected as random sampling by the system or customs intelligence indicates requirement for further inspection of the goods.
  • Yellow channel, this channel is for exporter/importer with a good track record and export/import commodities are medium risk. Physical inspection of goods may be carried out if selected as random sampling by the system or customs intelligence indicates requirement for further inspection of the goods.
  • Red channel, is a channel imposed to new exporter/importer, existing exporter/importer with certain records, high risk exporter/importer because of poor track records, certain types of commodities, or customs brokerage with poor track record. This channel will undergo intensive supervision and physical inspection of goods.