Directorate General of Customs and Excise Circular Letter on Crude Palm Oil Transport Supervision Optimization

Directorate General of Customs and Excise Circular Letter No. SE-2/BC/2011 on Supervision Optimization of Export and/or Inter-island Transport of Palm Oil, Crude Palm Oil (CPO), and its Derivative Products (“Circular”) has been issued to increase the effectiveness of supervision of exports and inter-island transport of goods. It also aims to prevent illegal trade in palm oil, crude palm oil (CPO) and its derivatives.

Item 1 in conjunction with Item 2 states that the export duty on palm oil, CPO and its derivatives is in accordance with Ministry of Finance Regulation No. 67/PMK.011/2010 on Exported Goods Subjected to Export Duty, and Ministry of Finance Regulation No. 214/PMK.04/2008 on Export Duty Collection.

Item 3 lists several methods of illegal transport of palm oil, CPO, and its derivatives. Such as: direct export without any customs documents; elaborate evasive shipping methods (such as ship-to-ship cargo transfers for the purpose of smuggling); false notification of the amount, type, and pos tarif (HS) to avoid export duty; loading of goods more than 7 days from PEB registration to avoid rising prices and tariffs.

Pursuant to Item 4, the supervision of exports and inter-island transport of palm oil, CPO and its derivative products, will be conducted through: improvement in intelligence (as elaborated on in Item 5); improvement in patrols and suppression activities (as elaborated on in Item 6); and improvement in the handling of violations (as elaborated on in Item 7).

Director of Suppression and Investigation, pursuant to Item 8, will be monitoring and evaluating the implementation of the Circular.

The Circular repeals and replaces provisions on palm oil, CPO, and its derivatives contained in the 7 previous circulars and letters listed in Item 9.

The Circular has been in force since 21 March 2011.