• Customs Recordation, Preventive Measure, Guarantee, Suspension, Monitoring and Evaluation on import and export control of Goods suspected of infringing Intellectual Property Rights
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Customs Recordation, Preventive Measure, Guarantee, Suspension, Monitoring and Evaluation on import and export control of Goods suspected of infringing Intellectual Property Rights

04 September 2018

Minister of Finance Regulation No. 40/PMK.04/2018

Customs and Excise Strictly Eraticate the Distribution of Counterfeit Goods

Minister of Finance has issued Regulation No. 40/PMK.04/2018 regarding Customs Recordation, Preventive Measure, Guarantee, Suspension, Monitoring and Evaluation on import and export control of Goods suspected of infringing Intellectual Property Rights (MFR No. 40/2018).

Below are the key points of the regulation:

  1. Under MFR No. 40/2018, an application for intellectual property recordation at the Customs Office only applies to trademarks and copyrights, which are regulated under Indonesian Trademark Law and Copyright Law respectively. Two important requirements to note: the applicant must be domiciled in Indonesia and appoint an examiner. To simplify the process of customs recordation, the Customs Office has set up an electronic filing system, called CEISA (https://customer.beacukai.go.id/).

The recordation application comprises of two phases: (i) formality examination and (ii) substantive examination. The Customs Office ought to issue a letter of approval or refusal within 30 (thirty) days after the reception of the recordation application. An approved recordation will be valid for 1 (one) year and can be renewal.

  1. With the Customs recordation database, the Customs Office can take a preventive measure against any import and export of goods which are suspected of resulting or originating from infringement of intellectual property rights of the recorded goods. The preventive measure is to timely give a written notice to the right holder of any suspicious goods being shipped to or from Indonesia. The Notice must contain sufficient detail of such potential illegal activities.
  2. Guarantee issued by banks/insurance companies is an obligatory part of the customs suspension request. MFR No. 40/2018 specifies the procedure for handover and claiming of the Guarantee.
  3. The right holder must file a request for customs suspension order to the Commercial Court. In this case, MFR No. 40/2018 provides that the Commercial Court must render its decision within 2 (two) business days as of the filing date. In the event that the Commercial Court issues the suspension order, the Customs Office should enforce such Suspension Order within 10 (ten) working days as of the receipt of the Suspension Order, which can be extended for another 10 (ten) working days.

The purpose of the regulation

“As a form of the government's seriousness, the Ministry of Finance has issued regulations relating to the control of imports and exports of goods which are suspected of or derived from the results of IPR violations. This is done to protect the domestic industry and to create a business for business people who abide by the taxation rules, "said Customs and Excise Public Relations, Robert M.

The controlling mechanism for the import or export of goods suspected of the result of IPR violations will later use the Ex Officio Scheme in which the process is based on the results of recording on the Customs Recording system. The owner or holder of the right to trademark and/or copyright can submit an application for recording IPR data to Customs.

With the enactment of this regulation, it is expected that it will increasingly provide legal certainty for Trademark and Copyright holders. Thus, the potential economic losses that occur due to the non-fulfillment of the state's rights in terms of tax payments can be avoided.

Effective Date

This MFR No. 40/2018 is the implementing regulation of Government Regulation No. 20 of 2017 on Import and Export control for Goods suspected of infringing Intellectual Property Rights ("GR No. 20/2017"). This regulation has come into effect as of June 2018 (60 days after its issuance). MFR No. 40/2018 also entitles the right holder of the recorded goods to appoint an examiner to attend and examine the suspected counterfeit goods during the physical examinations of the Customs Office.

For more information how BDO in Indonesia can help you in planning and navigate this major change, please contact our technical team at:

corsec.helpdesk@bdo.co.id