The government has established new rules for settlement of excisable goods and other goods confiscated for the state, controlled by the state, and belong to the state. These regulations are contained in Minister of Finance Regulation Number 17 of 2024 (PMK 17/2024) which is effective from April 30 2024, or 14 (fourteen) days from the date of promulgation.

Several things that are being considered for changes to previous provisions, namely Minister of Finance Regulation Number 39/PMK.04/2014 (PMK 39/2014), are to further optimize state revenues and provide legal certainty. Apart from that, the government wants to improve the provisions in the administration and settlement of excisable goods and other goods confiscated for the state, those controlled by the state, and those that belong to the state.

Excisable Goods Confiscated and Controlled by the State

Article 2 PMK 17/2024 regulates that excisable goods involved in criminal acts in the excise sector are confiscated to the state. Apart from that, other goods involved in criminal acts in the excise sector can be confiscated to the state. The confiscation of excisable goods and other goods is carried out after obtaining a court decision which has permanent legal force. This is clarified in the addition to Article 2 paragraph (4) which reads as follows:

"Settlement of excisable goods and other goods confiscated for the state is carried out in accordance with the provisions of the laws and regulations governing the management of confiscated state goods."

In contrast to goods confiscated for the state, the criteria for goods controlled by the state consist of:

1. Excisable goods and other goods originating from unknown infringers, and
2. Excisable goods for which the excise obligation has not been settled, the owner of which is unknown.

Goods controlled by the state are determined by the Director or head of the Customs and Excise Office after going through research activities. Later, goods controlled by the state will be stored in Customs Storage Places or other storage places under the supervision of Directorate General of Customs and Excise.

When do excisable goods become state property?

There are 6 (six) conditions under which an item is categorized as state property. These six conditions are:

1. Excisable goods and other goods originating from unknown infringers, whose infringers remain unknown within a period of 14 days from being designated as goods controlled by the state;
2. Excisable goods originating from an unknown owner, whose obligations are not settled within 30 days of being designated as goods controlled by the state;
3. Excisable goods related to decisions to resolve criminal acts in the excise sector for which no investigation has been carried out;
4. Other goods related to the decision to resolve criminal acts in the excise sector which are not investigated as long as it can be proven that the other goods belong to the infringer and have been deterred by customs and excise officials;
5. Excisable goods related to criminal acts in the excise sector for which investigations have been terminated for the benefit of state revenue; And
6. Other goods related to criminal acts in the excise sector for which investigations have been terminated for the benefit of state revenues as long as it can be proven that the other goods belong to the suspect and have been confiscated by investigators.

For these six items, the director or head of the customs and excise office then submits a proposal for the allocation of goods that belong to the state to the Director General of State Assets or an appointed official. These items will be recorded in the state property book.

Apart from specifying six items that are categorized as state property, the new regulation eliminates regulations regarding estimated limits for assessing State Property (BMN) in determining officials who receive data submissions and applications for BMN allocation. This was previously regulated in Article 11 paragraph (1) PMK 39/2014.

customs , excise