New Procedures for the Procurement and Ordering of Excise Labels

The Director General of Customs and Excise (“Director General”) has issued Regulation No. PER-24/BC/2015 on the Procurement and Ordering of Excise labels (“2015 Regulation”).The 2015 Regulation sets out a new procedure for producers and/or importers of tobacco and alcoholic-beverage products [1] who are looking to procure and order excise labels. Previously, this matter was regulated under Regulation No. P-49/BC/2011 , and most recently amended by Regulation No. PER-08/BC/2014 (“2011 Regulation”).The 2015 Regulation is of relevance to businesses and importers of tobacco products and alcoholic beverages who are seeking to procure and order excise labels for their range of products.PROCUREMENT AND ORDERING OF EXCISE LABELSAs a general rule, producers and/or importers of alcoholic beverages or tobacco products (together referred to as “Business”) are obliged pay excise before they are allowed to sell their products in Indonesia. Under the 2015 Regulation, a Business must undergo a two-step procedure involving the purchase of excise labels from the Director General of Customs and Excise (“Director General”).Firstly, a Business must submit an excise-label procurement application to the Director General’s office. Secondly, if the procurement request is approved, then the Business must submit an excise-label order application to the Director General.In order to be considered eligible for the procurement and ordering of excise labels, a Business must fulfill the following requirements: [2]