The government revised the provisions on the issuance, suspension, and revocation of the Excise Goods Operator Identification Number (NPPKBC) by issuing Minister of Finance Regulation (PMK) Number 68 of 2023.
Previously, the provisions regarding this matter were regulated in PMK Number 66/PMK.04 /2018 which was considered to provide less legal certainty for taxpayers or entrepreneurs.
Considering that NPPKBC is an important thing for business actors. Because this applies as a license for factory entrepreneurs, storage place entrepreneurs, importers of excisable goods, distributors, or entrepreneurs at retail sales in carrying out their business activities.
NPPBKC can be granted to individuals or companies domiciled in Indonesia by submitting an application to the Minister of Finance through the Head of the Customs and Excise Office which oversees the location of the business activity.
With the new regulation, a number of provisions regarding the making of NPPBKC are changed. Among them, regarding the requirements for obtaining it.
Mandatory Disclosure of Business Processes
In the previous regulation, there were only four conditions that must be met, while in the new regulation, there are five conditions that must be met by business actors to obtain an NPPBKC.
These five conditions include:
- Have a business license from the relevant agency
- Submit an application to obtain NPPBKC
- Submit excisable goods operator registration data
- Submit a stamped statement
- Delivering exposure to the company's business processes.
In the previous regulation, business actors who wanted to obtain NPPBKC were not required to submit a presentation of the company's business processes.
The presentation of the company's business processes must be submitted by the owner or person in charge of the company to the Head of the Customs and Excise Office or a designated Customs and Excise official.
Submission of the presentation may be made until the issuance of the decision to approve or reject the NPPBKC. However, specifically for tobacco factory business actors in the place of concentration of Excisable Goods (BKC) industry activities, it is completed according to the rules on the concentration of BKC industry activities.
Research and Assessment
The addition of this requirement results in minor changes to the research and assessment mechanism in the NPPBKC application process. The intended change is that in conducting research and assessment, DGCE will also look at the company's business processes.
In general, the research and assessment are conducted to ensure that the NPPBKC applicant has fulfilled all the requirements set forth. These include the domicile of the applicant or its representative, having a business license, submitting excisable goods operator registration data, submitting a stamped statement letter, and submitting a business process presentation.
The decision on the research and assessment, whether approved or not, must be issued by DGCE within a maximum of three working days after the business process presentation is completed.
If approved, DGCE will then provide a decision letter granting NPPBKC and NPPBKC charter. The NPPBKC decision and NPPBKC charter are valid and given to all factory locations, storage areas, importer's business premises, distributor's business premises, or retail sales premises that are under the supervision of one customs and excise office.
Both the decision to grant NPPBKC and the NPPBKC charter must contain a number which is an identification mark or identity of the BKC entrepreneur and is signed by the head of the customs and excise office on behalf of the Minister of Finance.
The number consists of a Taxpayer Identification Number and the Identity Number of the Place of Business Activities (NITKU), which is an identity number given to the location of the BKC entrepreneur's business activities consisting of the code of the supervising customs and excise office, the code of the type of business and the code of the type of excisable goods.
NPPBKC Validity Period
The provisions regarding the validity period of NPPBKC are not changed. Thus, it still refers to the old provisions, namely Article 23 of PMK No. 66/PMK.04/2018.
The regulation states that the validity period of NPPBKC for factory entrepreneurs, storage place entrepreneurs, or importers is valid as long as they run their businesses.
Meanwhile, NPPBKC for distributors or entrepreneurs at the retail sale is only valid for five years from the time of issuance and can be extended by submitting an application to the Minister of Finance through DGCE no later than two months before the validity period expires.
In addition to submitting an application, distributors or entrepreneurs at retail sales must submit a copy of the business license. Then, after receiving the application, DGCE gives a receipt to the applicant.
Upon the request for an extension, DGCE will conduct research and assessment and then make a decision on whether it can be extended or not.
If the validity period has passed, the company cannot apply for an extension. However, the company can apply for a new NPPBKC.
Waiting for an Extension, Business Halted
In the new regulation, the government prohibits distributors or entrepreneurs at retail sales who request an extension from carrying out their business activities, if a decision on the extension application has not been issued.
This provision is fairly new because it was not regulated in the previous regulation. If violated, the company will be subject to penalty in accordance with the provisions stipulated in the law.
Obligations After The Issuance of NPPBKC
Companies that have obtained NPPBKC are obliged to carry out several provisions, such as installing a name sign, installing a charter, or photocopy of NPPBKC at their place of business. Installation must be done not more than one month after obtaining NPPBKC.
In addition, the company is also required to provide various facilities if requested by the Head of the Customs and Excise Office, such as rooms, places, and work facilities for Customs and Excise officials.
Other facilities that must be provided are Closed Circuit Television (CCTV) which can be accessed online and in real time by DGCE. Also, they must provide measuring instruments used to determine the amount of materials or goods.
These facilities must be available a maximum of six months after the request is submitted by DGCE. Meanwhile, the provision of CCTV and measuring instruments is a new thing, because it is not contained in the previous regulation.
NPPBKC Data Change
Companies can make changes to the data contained in the NPPBKC, such as location or place of business, type of business activity, type of excisable goods, name or form of legal entity, company owner, and Tax ID Number.
In addition, the company is obliged to notify DGCE if there are changes related to the layout of the place of business and excisable goods, the person in charge of the company, the machinery used, as well as the distributor who directly provides excisable goods from the factory entrepreneurs specifically for tobacco product factory entrepreneurs.
Suspension and Revocation of NPPBKC
DJBC can freeze the NPPBKC that has been granted based on several things, such as:
- There is sufficient preliminary evidence that the BKC Entrepreneur has committed a criminal offense in the excise sector
- There is sufficient evidence that the licensing requirements are no longer fulfilled
- Entrepreneurs of Excisable Goods are under the supervision of a curator regarding debt
- BKC Entrepreneurs do not provide the facilities and infrastructure requested by the Head of the Tax Office;
- Ethyl alcohol Factory Entrepreneurs produce goods that are not BKC in an integrated manner or Factory Entrepreneurs other than ethyl alcohol produce goods that are not BKC without approval
- BKC Entrepreneurs carry out activities in places other than those stated in the decision to grant NPPBKC without approval; and/or
- BKC Entrepreneurs submit data that is incorrect or does not match the actual data.
Regarding a suspension that is conducted due to initial evidence of a crime in the excise sector, it can be carried out a maximum of up to permanent legal force or a maximum of 60 days from the suspension if it is found not to be proven.
Meanwhile, a suspension that is conducted because the company is proven not to meet the requirements can be carried out no later than 90 days after the suspension or until the NPPBKC is revoked.
Then the suspension which is conducted because the company is under the supervision of the curator is carried out until the judge's decision regarding bankruptcy is issued.
The suspension that is carried out because the company does not provide the facilities requested by DGCE is valid for a maximum of 90 days from the time it is suspended or the NPPBKC is revoked.
The suspension of ethyl alcohol plants that produce other BKCs is carried out until the company is approved to produce other BKCs or until the NPPBKC is revoked.
The suspension of a business that operates in a place other than that mentioned in the NPPBKC decision is carried out until the business is approved to operate in another place or until the NPPBKC is revoked.
The suspension due to the entrepreneur submitting incorrect data is carried out until the entrepreneur corrects the data or until the NPPBKC is revoked.
Revocation of NPPBKC
In addition, DGCE can also revoke NPPBKC for several reasons, such as:
- Entrepreneur's request
- The entrepreneur is declared bankrupt
- Provisions regarding business location are not fulfilled
- The entrepreneur is convicted of a criminal offense
- Not installing the NPPBKC charter
- Transferring the NPPBKC
- Not carrying out activities in the excise sector for one year
- After 90 days of suspension due to failure to fulfill license requirements
- After 90 days since the suspension for not providing the facilities requested by DGCE
- Continuing to produce goods other than approved BKC even though it has been suspended.
- After 30 days since the suspension for submitting incorrect data.
Monitoring and Evaluation
To ensure that companies implement the provisions related to NPPBKC, DGCE will conduct services and supervision based on risk management.
Risk management is applied by referring to the risk profile and database of BKC entrepreneurs. Based on the risk profile, DGCE will then determine the category and profile of entrepreneurs in stages. If the entrepreneur commits a violation, the risk profile will increase. (ASP/KEN)