Indonesian Customs Targets Luxury Watch Boutiques Over Suspected Illegal Imports
Jakarta. The Jakarta Customs Office has stepped up inspections of boutiques and stores selling luxury watches as part of a broader effort to curb illegal imports and tax evasion, an official said on Tuesday.
The move follows recent action by customs authorities to seal three outlets of global jewelry brand Tiffany & Co. over allegations that products were imported without proper declaration to tax authorities.
Siswo Kristiyanto, head of enforcement at the Jakarta regional office of the Directorate General of Customs and Excise, said authorities are tightening supervision of imported luxury goods — particularly high-value watches — to ensure compliance with customs and tax regulations.
According to Siswo, customs officials have obtained data indicating that some watches were shipped from overseas without going through the required customs procedures.
“Our focus is on high-value goods such as luxury watches entering Indonesia’s customs territory, especially those that have not been declared or have been incorrectly declared in import documents,” Siswo told reporters in Jakarta.
Recent inspections were conducted at several retailers selling luxury products. However, Siswo stressed that the authorities did not seal or shut down any stores during the checks.
The inspections were primarily aimed at verifying whether the products being sold match the documentation held by the companies. If certain items cannot be fully verified on site, businesses are asked to provide additional clarification at the customs office.
“Today’s activities did not involve any sealing of stores. We are only ensuring that the items in the shops correspond with the documents. If something cannot yet be verified, we communicate with the business owners and ask them to provide clarification,” Siswo said.
Customs officials have carried out five inspections of luxury boutiques and jewelry stores, including watch retailers, so far this year.
Siswo stressed that imported goods that are not declared or are declared with inaccurate documentation are considered illegal under Indonesia’s 2006 Customs Law and may lead to criminal charges.
However, the customs office currently prioritizes administrative settlements, such as requiring companies to pay outstanding import duties, taxes, and fines to ensure compliance with customs regulations.
“At this stage, we are prioritizing administrative compliance, including the payment of import duties and taxes, so companies can better adhere to customs rules,” Siswo said.
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