Regulation of the Director General of Customs and Excise Number PER-1/BC/2026 Revises Excise Refund for Damaged or Unused Excise Stamps through an Electronic Excise Restitution Mechanism

Introduction

On April 16, 2026, the Ministry of Finance through the Director General of Customs and Excise (Direktur Jenderal Bea dan Cukai, “DJBC”) issued the Regulation of the Director General of Customs and Excise Number PER-1/BC/2026 on the Refund of Excise on Damaged or Unused Excise Stamps (“DJBC Regulation 1/2026”). DJBC Regulation 1/2026 regulates the procedures for the refund of excise on damaged or unused excise stamps and clarifies the submission process for Factory Entrepreneurs and Importers. DJBC Regulation 1/2026 replaces the previous provisions to ensure that the refund mechanism has a clearer basis and aligns with the development of the administrative system. This replacement also improves services for Factory Entrepreneurs (Pengusaha Pabrik) and Importers and supports administrative order in the management of state revenues.

Comparison

DJBC Regulation 1/2026 replaces the Regulation of the Director General of Customs and Excise Number PER-29/BC/2019 on the Refund of Excise on Damaged or Unused Excise Stamps (“DJBC Regulation 29/2019”). The following is a comparison between DJBC Regulation 1/2026 and DJBC Regulation 29/2019:

Key Provisions

Eligibility Requirements for Excise Refund

Article 2 stipulates the time limit and physical condition of the excise stamp as requirements for submitting a refund. Factory Entrepreneurs or Importers may submit an excise refund if they meet the following provisions:

1. The excise stamp was ordered in the current fiscal year or at the latest one preceding fiscal year;

2. The excise stamp has been received by the entrepreneur and has not been affixed to the product packaging; and

3. The excise stamp is returned in an intact sheet condition in accordance with the original format from the printer.

Damage Criteria and Reasons for Excise Stamp Refund

Excise stamps may be submitted for a refund if they meet certain conditions. Excise stamps are deemed damaged if there are physical defects, imperfect printing results, or non-conformity with the order as set forth in Article 3. Provisions regarding the reasons excise stamps are not used are set forth in Article 4. The reasons for unused excise stamps include:

1. A change in retail selling price, excise tariff, or excise stamp design occurs due to government policy or entrepreneur's decision;

2. The time limit for affixing the excise stamp has expired;

3. The entrepreneur ceases the production of excisable goods for the domestic market or discontinues production according to the order;

4. The importer no longer imports excisable goods according to the excise stamp order; or

5. The Excisable Goods Entrepreneur Identification Number (Nomor Pokok Pengusaha Barang Kena Cukai, "NPPBKC") is revoked.

Application Mechanism and Order Matrix Accuracy

Businesses must submit the PBCK-4 document to the Head of the Customs and Excise Office electronically as set forth in Article 5. The application must be submitted separately for damaged and unused excise stamps and must be accompanied by the order origin matrix. The format for the Matrix of Origin CK-1 (Tobacco Products) and CK-1A (Alcoholic Beverages) is set forth in Annex A and Annex B, which contains the following data:

1. Excise stamp series and retail selling price;

2. Excise tariff, either in the form of a percentage or specific value;

3. Product brand as well as the number and date of the initial order document; and

4. Number of pieces of excise stamps and the excise value submitted for refund.

Physical Verification Process and BACK-1 Inspection Evidence

The Head of the Customs and Excise Office may appoint an official to conduct a physical inspection as set forth in Article 6. The verification result is recorded in the Inspection Minutes (Berita Acara Pemeriksaan) (BACK-1) detailing the number of excise stamps that comply with the provisions and those that are rejected. The supervisory office utilizes the inspection results to issue a rejection letter or forward the refund application to the central level.

Rejection Mitigation and Inventory Deletion Procedures

In the event the refund application is rejected, the Customs and Excise Office issues a rejection letter containing the number of excise stamps and the excise value rejected along with the reasons as set forth in Article 7. Rejected excise stamps may be destroyed to prevent misuse. The format of the Minutes of Destruction (Berita Acara Pemusnahan) is set forth in Annex C, which contains the stamp year, excise tariff, number of pieces, and method of destruction witnessed by the company.

Central Level Verification and Issuance of CK-3 Document

The final verification flow at the Head Office level of the Directorate General is set forth in Article 8, Article 9, and Article 10. The Director may appoint a Customs and Excise Official to conduct an examination of the refund application along with the completeness of supporting documents from the relevant Customs and Excise Office. The Director issues the Receipt of Excise Stamp Refund (Tanda Bukti Penerimaan Pengembalian Pita Cukai) (CK-3) at the latest 10 working days after the central-level inspection minutes are issued as set forth in Article 10. The CK-3 serves as the basis for the entrepreneur to exercise the right to an excise refund.

Replacement Cost Obligations and Fund Disbursement

The entrepreneur must settle the Replacement Cost for the provision of excise stamps, with the payment evidenced together with the CK-3 as the basic refund document as set forth in Article 11. The utilization of refund funds is set forth in Article 12 with the following provisions:

1. The funds shall be used primarily to settle or reduce the company's excise debt;

2. If there is no excise debt, the funds shall be used for the settlement of excise deposits on subsequent orders; or

3. The company may submit a cash refund through the state treasury mechanism.

Service Digitalization and Centralized Final Supervision

The entire excise refund process is conducted electronically through the Computerized Service System as set forth in Article 13. The use of physical forms is only permitted under certain conditions, namely if the system experiences a disruption or is not yet available at the relevant office. Customs and Excise Officials at the Head Office conduct final supervision by destroying excise stamps for which a CK-3 has been issued as set forth in Article 14. This action is carried out to prevent the misuse and recirculation of excise stamps.

Technical Operational Guidelines

Operational guidelines for the implementation of excise refunds are set forth in Annex D as referred to in Article 15. The guidelines contain the steps taken by businesses in using the system, including:

1. Filling out the PBCK-4 form and the order matrix according to the product type;

2. Data recording and system-generated validation responses that automatically verify the completeness of document data and the suspension status of the NPPBKC;

3. Physical submission of excise stamps to the service office for sealing and further inspection; and

4. Monitoring the issuance status of the CK-3 or rejection letter through the computer system.
   

Closing

DJBC Regulation 1/2026 obliges Factory Entrepreneurs and Importers to execute the entire excise refund process through the Computerized Service System by ensuring the submitted excise stamps are still within the order time limit of at the latest one preceding fiscal year as set forth in Article 2, and to submit separate applications for damaged and unused excise stamps. The completion of the CK-1 and CK-1A matrix of origin in accordance with Annex A and Annex B must be carried out precisely as it serves as the basis for verification, which is followed by a physical inspection and recording in the Inspection Minutes prior to further processing. Entrepreneurs must also settle the Replacement Cost as set forth in Article 11 before exercising the right to a refund, while the approved funds are prioritized to settle excise debt, then for subsequent deposits, or submitted for a cash refund in accordance with Article 12. With a claim period of up to 10 years, businesses must comply with all operational stages in accordance with Annex D and ensure compliance at every stage to avoid the rejection and destruction of excise stamps that do not meet the provisions.