Procedures for Determining Tariffs, Customs Values, and Administrative Sanctions

With a view to increasing the level of legal certainty for users of Customs services, the Minister of Finance has issued Regulation No. 51/PMK.04/2008 which sets out the procedures for determining tariffs, customs values, administrative sanctions, and the determinations of the Director General of Customs and other customs officials.

Generally determinations are to be made within 30 days of the notification of import being registered. However, if the determination is not made within this time period and any tariffs paid by the importer are less than that amount finally determined then the importer must make up any shortfall. It is important to note that any shortfall that arises because of the failure of Customs to meet the 30-day limit then the importer may not be subject to administrative sanctions.

Where a shortfall in the payment of tariffs arises and this is not because of any failure on the part of Customs, then the importer is subject to administrative sanctions ranging between 100% and 1000% of the shortfall.

Where sanctions are to be imposed then the relevant Customs official must provide notification of the sanctions to be imposed by way of a Determination of Administrative Sanctions Letter (SPSA).

Once an SPSA letter is issued and sent, the person who is the recipient of that letter has 7 days to pay, lodge an objection, or commence an appeal. If none of these responses are made then the Head of the relevant Customs office is to issue a warning letter. If after a further 21 days there is still no response then a demand letter is to be sent requesting immediate payment of the outstanding tariffs.

This Regulation has been in force since 11 April 2008.