What Are Customs Inspections in the Import Sector?

THE government has issued the Minister of Finance Regulation (MoF Reg.) No. 185/PMK.04/2022 concerning Customs Inspections in the Import Sector. Effective as of 11 January 2023, this MoF Reg. replaces MoF Reg. No.139/PMK.04/2007 as amended by MoF Reg. No.225/PMK.04/2015.

The regulations have been replaced to simplify provisions on customs inspections. Moreover, the regulations have also been replaced to further improve the smooth traffic of goods and expedite the implementation of customs inspections in the import sector

Customs inspections of imported goods are among the matters regulated under the Customs Law. Basically, customs inspections are carried out within the customs area by customs and excise officials selectively by considering the risks inherent to goods and importers.

Referring to MoF Reg. No. 185/PMK.04/2022, a customs inspection is carried out after the importer or customs broker (PPJK) submits the import declaration or complementary customs documents. As such, what is a customs inspection in the import sector?

Definitions

A customs inspection is an inspection carried out to fulfil customs obligations. A customs inspection aims to obtain data and proper assessment of the submitted import declaration or complementary customs documents.

There are various types of customs inspections. In respect of imported goods, customs inspections include document verification and goods physical inspection.

Document verification is an activity carried out by customs and excise officials and/or the service computer system (SKP) to ensure that the customs declaration is prepared completely and correctly.

Document verification by the SKP includes the completeness and correctness of the completion of the import declaration; and fulfilment of the provisions on prohibitions and/or restrictions.

However, if the fulfilment of provisions on prohibitions and/or restrictions has been verified by the Indonesian National Single Window System (SINSW), the SKP will not verify compliance with the provisions on prohibitions and/or restrictions.

On the other hand, document verification by document examiner officials is a follow-up to the results of document verification by the SKP based on data on the SKP and/or complementary customs documents.

Document verification by document examiner officials includes: the accuracy of the declaration of rates and/or the reasonableness of the customs value; and the fulfilment of the provisions on prohibitions or restrictions, if non-conformity in the declaration is found.

Document examiner officials may conduct document verification assisted by a modified application system based on artificial intelligence. The AI-assisted document verification remains the result of verification by customs and excise officials.

Further, a goods physical inspection is an inspection of goods that aims to obtain data and proper assessment of the submitted declaration or documents.

A goods physical inspection is carried out by physical inspector officials at the customs office where the import declaration is submitted or the customs office whose working area covers the storage of imported goods.

A goods physical inspection is carried out by unpacking goods and/or using a scanner. The technique used in the physical inspection depends on the type of imported goods, the risk of imported goods and the status of the importer.

A goods physical inspection has 4 objectives. First, inspecting the conformity of the quantity and/or types of goods. Second, obtaining complete information on the specifications of the description of the declared goods.

Third, obtaining information on the country of origin of the goods and/or part of the goods. Fourth, inspecting the possibility of goods that are not declared in the customs declaration. (rig)