New Procedure for Determination of Tobacco Excise Tariffs

The Director General of Customs and Excise (“Director General”) has issued Regulation No. PER-21/BC/2015 (“Amendment”), which amends Regulation No. PER-40/BC/2014 on the Procedures for Determining Excise Tariffs for Tobacco Products(“2014 Regulation”).[1]
 
The Amendment was issued as an implementing provision to Minister of Finance Regulation No. 179/PMK.011/2012 (“PMK 2012”) on Excise Tariffs for Tobacco Products, which was most recently amended by Minister of Finance Regulation No. 198/PMK.010/2015 (“PMK 2015”).[2]
 
The Amendment is of relevance to all producers and importers of tobacco products (“Tobacco Businesses”).
 
Excise Tariffs for Tobacco Products

The Amendment obliges Tobacco Businesses to undergo an excise-tariff determination process before they can either produce or import tobacco products, or modify the packaging design of an already existing brand of tobacco product.[3] The excise is to be imposed upon each stick or gram of tobacco products.[4]
 
Excise tariffs are to be determined based on:[5]