Compliance examination of excisable goods (BKC) entrepreneurs is an examination carried out by Directorate General of Customs and Excise (DGCE) to test the compliance of excisable goods entrepreneurs and users of excise facilities in implementing excise regulations. In addition to testing the compliance of BKC entrepreneurs, examination is carried out for various other purposes.

The audit was carried out to provide recommendations in formulating policies in the field of excise and to handle compliance issues with BKC entrepreneurs. In addition, another purpose of the examination is to get a real picture of the compliance conditions of BKC entrepreneurs in the field and/or carry out other activities required for BKC entrepreneur compliance based on the applicable provisions.

According to the provisions in DGCE regulation PER-10/BC/2023 dated 29 May 2023, BKC entrepreneur compliance examination can be carried out by DGCE Facility Customs Headquarters, Regional Offices Main Customs Service Office (KPU) or Local Customs and Excise Supervision and Service Office (KPPBC).

As for applicable subjects for the compliance examination are as following:

1. Manufacturers of Ethyl Alcohol or Ethanol (EA);
2. Manufacturers of Beverages Containing Ethyl Alcohol (MMEA);
3. Tobacco Products Manufacturers (HT);
4. EA Importer;
5. MMEA importers and/or exporters;
6. HT importer and/or exporter;
7. Storage place entrepreneur;
8. Distributor;
9. Retail sales place entrepreneur;
10. Final goods entrepreneur; and/or
11. People associated with BKC entrepreneur compliance.

BKC entrepreneur compliance examination by DGCE can be carried out regularly and/or can also be implemented closed and/or open at any time.

BKC entrepreneur compliance examination can be administrative examination and field examination. Administrative examinations are carried out on related documents, including excise documents, excise complementary documents and/or other company documents.

While field examination is carried out on BKC, finished goods and other goods related to BKC, person related to BKC employer’s compliance, transportation facilities, and/or stockpiling fields, stockpiling/storage rooms and business rooms.

The compliance examination process consists of various activities carried out depending on the type of examination. In general, the activities carried out by the examiner include:

• Collection of data and information;
• Document classification and document research;
• Examination of excise documents, complementary excise documents, and other related documents;
• BKC Enumeration;
• Examination of compliance with permits in the field of excise;
• Examination of the fulfillment of the implementation of facilities in the field of excise;
• Examination of transport;
• Analysis of the results of examination with statutory regulations in the field of excise;
• Analysis of the occurrence of non-compliance allegations with laws and regulations in the field of excise;
• Analysis of the implementation of laws and regulations in the field of excise by BKC entrepreneurs; and/or
• Field examination in the form of physical examination of BKC, office space, warehouse, stockpiling yard, and other places related to BKC.

Recommendations are the results of the BKC entrepreneur compliance examination, among others in the form of:

• Fulfillment of provisions in the field of excise by BKC entrepreneurs in the matter that there are provisions that have not been fulfilled;
• Issuance of excise bills in the matter that there is a potential shortage of excise payments;
• Revocation of the provision of facilities in the field of excise;
• Administrative sanctions in the matter of violations found in the field of excise;
• Freezing and/or revocation of BKC entrepreneur permits;
• Prosecution in the matter of allegations of administrative violations or criminal acts in the field of excise;
• Policy changes in excise sector;
• Changes in the profile of BKC entrepreneurs; and/or
• Other actions related to compliance with BKC employers;

If the examination activities above result recommendation regarding administrative sanctions due to violations in the excise sector, then the Sub-Directorate of Potential and Compliance of Entrepreneurs of Customs and Excise and units that have duties and functions in the field of customs and excise at the Regional Office will receive premiums as inventors in accordance with laws and regulations governing premiums.

customs , excise