The Directorate General of Customs and Excise (Indonesian: Direktorat Jenderal Bea dan Cukai abbreviated Bea Cukai or DJBC) is an Indonesian government agency under Ministry of Finance that serves the community in the field of customs and excise. The Directorate General of Customs and Excise has the duty to organize the formulation and implementation of policies in the field of supervision, law enforcement, service and optimization of state revenue in the field of customs and excise in accordance with the provisions of legislation. The directorate also carry out some basic tasks of the Ministry of Finance in the field of customs and excise, in accordance with policies established by the Minister and securing government policies relating to the traffic of goods entering or leaving the Customs Area and the collection of import duties and excise and other state levies based on legislation apply.
During the Dutch colonial era, a government institutions called the Import and Export Customs and Excise Service (Dutch: De Dienst der Invoer en Uitvoerrechten en Accijnzen) was created for duty and excise tax collections in the territory of the Dutch East Indies. The present organization was created on 1 October 1946, at the midst of the Indonesian National Revolution. Originally, the agency was named the Customs and Excise Office, before changing into its present name.
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.
History
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 (De Dienst der Invoer en Uitvoerrechten en Accijnzen (I.U & A)), 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 (excise).[1]
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 are as follows: G.F. De Bruyn Kops (1933), S.M. Van Der Zee (1939), K.H. Dronkers (1946), and G.Van Der Pol (1949).[2]
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.[2]
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.[1] The Customs and Excise, Tax Branch was made into an institution with the joint name Gunseikanbu Zaimubu Shuzeika led by Chogo assisted by several native employees, namely Soetikno Slamet and H.A. Pandelaki. 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.[2]
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.[2]
Task and Functions
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
A patrol boat belonging to the Custom and Excise during a patrol
To carry out the main task, Directorate General of Customs and Excise has the function of:[3]
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
DJBC envision itselves 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; and
to optimize state revenue in the field of customs and excise.[4]
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,[5] such as:
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.[8]
Equipment
Customs Tactical Unit (CTU) officers on exercise missionPersonnel of the Indonesia Customs and Excise during a firing practice
The customs officers are trained in the use of firearms.[9] Customs Tactical Unit (CTU) officers are also trained in the use of rifles.
Indonesia Customs and Excise 28m-class Fast Patrol Boat with wooden hull during marine patrol operation
Customs Clearance
Customs Clearance Process
Exporter and Importer is required to provide Customs declaration to the Customs, the documents is pemberitahuan ekspor barang (PEB) for exporter and pemberitahuan impor barang (PIB) for importer.
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 (DJBC) officer will then check customs declaration and the customs duties. If customs declaration is complied with regulation, they will issue customs release letter (surat pemberitahuan pengeluaran barang /SPPB) 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 (SPPB)
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 (Mitra Utama /MITA), for exporter/importer with excellent track record, for importers of this type of goods expenditure is done automatically (automation system) 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 (PCA) 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.
