Customs and Excise

Customs and excise are two very important things in regulating the traffic and circulation of goods, both imported, exported and excisable goods. Customs is concerned with the inspection, supervision and control of goods entering or leaving a country. Meanwhile, excise is a state levy on certain goods that have certain characteristics as stated in the Excise Law. Customs and excise have an important role in controlling international trade flows and the circulation of excisable goods.

Customs

Customs regulates and controls goods entering and leaving the customs area to protect national interests. Some goods entering a country can endanger public health, the economy, the environment, or threaten national security. Therefore, customs carries out inspections and supervision of these goods to ensure that the interests of the state and society are protected.

Customs is also tasked with collecting import duties on imported goods and export duties on several export commodities which, apart from being aimed at state revenue, also protect national interests, such as improving people’s welfare, maintaining security and health, and protecting the environment.

Excise

Meanwhile, apart from functioning as a source of income for the state, excise also functions as a means of limiting the use or consumption of excisable goods such as cigarettes and liquor. Goods subject to excise are goods that have certain characteristics stated by excise law, namely:

1. consumption needs to be controlled;
2. its circulation needs to be monitored;
3. its use can have a negative impact on society or the environment; or
4. Its use requires the imposition of state levies for the sake of justice and balance, subject to excise.

Revenue obtained from excise is used to finance state needs, such as infrastructure, health, education, and so on.

In Indonesia, the Directorate General of Customs and Excise (DJBC) is the institution responsible for implementing statutory provisions regarding customs and excise. DJBC carries out inspections and supervision of goods entering and leaving Indonesia and the processing of excisable goods.

In international trade, customs and excise are very important in controlling trade flows. Through customs and excise, the state can protect national interests, improve people’s welfare, and finance state needs. Therefore, good customs and excise regulations are very necessary in international trade.