Regulation of the Director General of Customs and Excise Number PER-3/BC/2026 Updating Procedures for Excise Settlement through the Computerized Service System

Introduction

On 29 April 2026, the Director General of Customs and Excise (“DGCE”) issued Regulation of the Director General of Customs and Excise Number PER-3/BC/2026 on the Procedures for Excise Settlement ("DGCE Regulation 3/2026"), which took effect on 1 June 2026. DGCE Regulation 3/2026 regulates the procedures for excise settlement for Factory Entrepreneurs, Storage Area Entrepreneurs, and Importers in fulfilling their excise obligations.

DGCE Regulation 3/2026 replaces the previous provisions by adapting excise settlement procedures to the use of an integrated electronic system in customs and excise services. The use of the Computerized Service System (Sistem Komputer Pelayanan, "SKP") is regulated for document submission, excise tape ordering, inventory recording, settlement monitoring, and collection of Replacement Costs. Furthermore, DGCE Regulation 3/2026 regulates restrictions based on risk management, service blocking for Replacement Cost arrears, and real-time data integration between the excise and customs systems to support the administration and supervision of excise settlement.

Comparison

DGCE Regulation 3/2026 repeals and replaces Regulation of the Director General of Customs and Excise Number PER-24/BC/2018 on the Procedures for Excise Settlement ("DGCE Regulation 24/2018"), as amended several times, most recently by Regulation of the Director General of Customs and Excise Number PER-10/BC/2025 ("DGCE Regulation 10/2025"). The following is a comparison between DGCE Regulation 3/2026 and DGCE Regulation 24/2018 in conjunction with DGCE Regulation 10/2025:

Key Provisions

Objects, Timing, and Methods of Excise Settlement

Article 2 stipulates that excise on local Excisable Goods (Barang Kena Cukai, "BKC") must be settled upon release from the Factory or Storage Area, while excise on imported BKC is settled upon importation for consumption. Furthermore, Article 3 and Article 4 regulate three methods of excise settlement, namely:

1. Cash or periodic payments;

2. Affixing of Excise Tapes; and

3. Affixing of other settlement marks.

Settlement through payment using the CK-1C document applies to:

1. Ethyl Alcohol ("EA"); and

2. Local Beverages Containing Ethyl Alcohol (Minuman Mengandung Etil Alkohol, "MMEA") with an alcohol content of up to 5%.

Meanwhile, the affixing of Excise Tapes applies to:

1. Tobacco Products (Hasil Tembakau, "HT");

2. Imported MMEA; and

3. Local MMEA with an alcohol content above 5% up to 55%.

The procedures for using the CK-1C document follow the technical guidelines set forth in Annex Letter B.

Service Eligibility and Corporate Administrative Requirements

Article 5, Article 6, and Article 17 stipulate the requirements that must be fulfilled by businesses prior to obtaining excise services. Customs and Excise Officials shall process the submission of CK-1C, P3C, or CK-1/CK-1A documents if the company meets the following general requirements:

1. The Excisable Goods Entrepreneur Identification Number (Nomor Pokok Pengusaha Barang Kena Cukai, "NPPBKC") is not under a suspended status;

2. Possesses a valid excise tariff determination decree for the submitted brand;

3. Has no excise debts, excise shortfalls, or administrative fines that have passed their due dates, unless the company has obtained approval for installment payments; and

4. There are no suspected criminal offenses in the excise sector based on the recommendation of the supervisory unit.

Specifically for the submission of P3C and CK-1/CK-1A, there is an additional mandatory requirement to have settled the Replacement Cost billing (SPPBP-1) within the stipulated timeframe.

Planning, Locations, and Quota Limits for Initial P3C

Businesses are required to prepare an excise tape requirement plan through the Initial Excise Tape Provision (Penyediaan Pita Cukai Awal, "P3C") document according to the format set forth in Annex Letter C. Prior to submitting the P3C for the first time, number 1 of Annex Letter D requires entrepreneurs to submit a stamped statement letter declaring their willingness to pay the Replacement Costs. Article 9 stipulates that factory entrepreneurs may submit the initial P3C from the 1st to the 10th of each month for the subsequent month's inventory period. Furthermore, Article 10 limits the submission amount to a maximum of 100% of the average orders over the last 6 months. Article 7 regulates the physical provision locations for HT excise tapes as follows:

1. Provision at the Head Office applies to HT factories with order volumes exceeding 250,000 sheets per year; and

2. Provision at the local Customs and Excise Office applies to HT factories with order volumes up to 250,000 sheets per year.

In addition, MMEA importers are required to submit an annual Excise Tape Requirement Plan according to Annex Letter E prior to the P3C submission in January.

Additional P3C Facilities and Head of Office License Procedures

Companies may submit an Additional P3C and Additional P3C with the License of the Head of Office (Tambahan Izin Kepala Kantor, "TIKK") to fulfill additional excise tape requirements. Article 11 stipulates that entrepreneurs may submit an Additional P3C no later than the 20th of the following month with a maximum amount of 50% of the Initial P3C volume. Furthermore, Article 13 regulates the submission of TIKK no later than the 25th of each month if the excise tape requirements remain unfulfilled. In addition, Article 13 paragraph (7) stipulates that the Head of the Customs and Excise Office shall conduct an administrative examination for medium-risk HT Factory Entrepreneurs. Meanwhile, administrative and field examinations are conducted for high-risk HT Factory Entrepreneurs, HT Factory Entrepreneurs who do not yet have a risk profile, and MMEA Factory Entrepreneurs. The results of the said examinations are outlined in an Examination Result Report according to the format set forth in Annex Letter F.

Risk Management, Deadline Adjustments, and Ordering Multiples

Article 15 stipulates that restrictions through the SKP are imposed on every submission for the provision of excise tapes (P3C) based on risk management. At a minimum, the said restrictions are determined based on:

1. The company's risk profile;

2. Production capacity; and

3. History of Excise Tape misuse violations or recommendations from compliance examination results.

Furthermore, Article 16 stipulates that the number of excise tapes submitted using P3C for each type is a minimum of 10 sheets and is subject to multiples of 10. In addition, Article 14 grants authority to the Director General of Customs and Excise to adjust the P3C deadlines under certain conditions, including:

1. The change of the fiscal year;

2. Changes to the excise tape design; or

3. Changes to the excise tariff policy.

Ordering Mechanisms (CK-1/CK-1A), Payments, and Collections

Article 18 stipulates that entrepreneurs carry out the provision of excise tapes using the CK-1 document for HT or CK-1A for MMEA through the SKP. Excise settlement is conducted in cash through Banks, Post Offices, or other Perception Institutions upon document submission. However, companies that have obtained permission for payment deferral may settle the excise by submitting a guarantee to obtain a Guarantee Receipt Proof (Bukti Penerimaan Jaminan, "BPJ"). Furthermore, number 2 of Annex Letter I stipulates that entrepreneurs are required to record a power of attorney on the SKP annually if the collection of excise tapes is carried out by a company proxy. The said recording is conducted prior to the submission of the first order. In addition, entrepreneurs are required to:

1. Match the physical excise tapes with the relevant documents; and

2. Sign a receipt according to the format set forth in Annex Letter I.

Handling of Physical Discrepancies, Quality Defects, and Returns

Article 19 and Article 20 regulate the handling of excise tapes that have incorrect quantities or experience quality defects. In the event of a quantity shortage or production defect, entrepreneurs may submit an application for the addition or replacement of excise tapes, provided that the label and outer paper packaging remain intact and undamaged. Conversely, if there is an excess of excise tapes, entrepreneurs are required to return the said excess in accordance with the procedures set forth in:

1. Annex Letter J for excise tapes that remain in the office inventory; and

2. Annex Letter K for excise tapes that have been handed over to the entrepreneur.

Brand Reaffixing and Record Administration

Article 21 regulates the reaffixing of excise tapes to other brands owned by the same company. Reaffixing may only be conducted if the excise tapes have not been affixed to the packaging, and the target brand meets the conformity criteria with the original excise tapes. For Tobacco Products (HT), the type, tariff, retail selling price, and contents per packaging must be identical. Meanwhile, for MMEA, the tariff, class, and volume/contents per packaging must be identical. Entrepreneurs are required to report the reaffixing through the SKP a maximum of 1 (one) time using the form set forth in Annex Letter L. After the reaffixing is conducted, the company is required to adjust the recording in:

1. The Excise Tape Inventory Book; or

2. The Excise Inventory Records of the Centralized Customs Accounting and Processing System ("CSCK-3").

In addition, Article 21 paragraph (8) stipulates that violations of the reaffixing provisions may impact the assessment of the company's compliance level.

Inventory Audits through the Counting of Remaining Excise Tapes

Article 22 regulates the physical counting of remaining excise tapes under certain conditions, namely:

1. The end of the fiscal year;

2. Changes in excise policy;

3. Changes in the factory class; or

4. Revocation of the Excisable Goods Entrepreneur Identification Number.

Customs and Excise Officials shall conduct a physical count of the remaining excise tapes and compare the counting results with the balance in the system. The said results are outlined in Minutes of Counting according to the format set forth in Annex Letter M. Furthermore, the remaining excise tapes that have been counted must be handed back to the Head Office in accordance with the handover procedures set forth in Annex Letter N.

Replacement Cost Sanctions, Service Blocking, and Document Amendments

Article 23 regulates the imposition of Replacement Costs through the SPPBP-1 for excise tapes whose orders are not realized. The SPPBP-1 format is outlined in Annex Letter O. Furthermore, Article 24 regulates the blocking of P3C and CK services in the subsequent period if entrepreneurs fail to settle the Replacement Cost billing within a period of 30 days. In addition, Article 27 and Article 28 regulate data amendments and document cancellations through:

1. Amendment Notes according to the format set forth in Annex Letter P; or

2. Cancellation Notes according to the format set forth in Annex Letter Q.

Services for document amendments or cancellations are processed within a maximum of 3 working days. In addition, Article 28 paragraph (2) stipulates that the system cancels the CK-1 or CK-1A documents if payment is not made by the billing code deadline.

Transitional Provisions

Article 30 regulates the transitional period for SKP implementation. In the event the SKP at a regional office has not fully operated when DGCE Regulation 3/2026 takes effect, companies may still implement the excise settlement procedures based on DGCE Regulation 24/2018. However, service offices and businesses are required to fully implement the SKP no later than 30 (thirty) days from the date DGCE Regulation 3/2026 takes effect.

Closing

DGCE Regulation 3/2026 updates the procedures for excise settlement through the implementation of the Computerized Service System, which is integrated with the customs system and must be fully implemented no later than 30 (thirty) days from the effective date of DGCE Regulation 3/2026. DGCE Regulation 3/2026 regulates the procedures for excise settlement on local and imported Excisable Goods through payments, affixing of Excise Tapes, or other settlement marks, including the use of CK-1C, CK-1, and CK-1A documents. In addition, DGCE Regulation 3/2026 also regulates the administrative and compliance requirements for companies prior to obtaining excise services, the preparation of Initial P3C and Additional P3C, order quota limits, locations for the provision of excise tapes, as well as ordering restrictions based on the company's risk profile, production capacity, and history of violations. Further regulations also cover the procedures for the ordering, payment, collection, replacement, return, and reaffixing of excise tapes, including recording obligations in the company's inventory administration and document submissions through the SKP. On the other hand, Customs and Excise Officials may conduct a physical count of the remaining excise tapes under certain conditions, such as the end of the fiscal year, changes in excise policies, changes in factory classes, or the revocation of the Excisable Goods Entrepreneur Identification Number. DGCE Regulation 3/2026 also regulates the imposition of Replacement Costs through SPPBP-1, blocking of P3C and CK services for Replacement Cost arrears, as well as document amendments and cancellations through Amendment Notes and Cancellation Notes. With these provisions in place, companies need to ensure the accuracy of settlements, administrative compliance, and recording of excise tape inventories to ensure the continued availability of excise ordering and settlement services.