Tiffany & Co Re-opens Stores after $6m Fine
June 11, 26
(IDEX Online) - Tiffany & Co has been allowed to re-open three stores in Indonesia, after paying a $6.1 million fine for alleged import violations.
They were closed in February by customs authorities pending checks on whether the company had paid levies on imported goods.
The Jakarta Customs and Excise Directorate General subsequently conducted an audit and issued a bill for Rp 97.49 billion (USD 6.1 million) for Tiffany & Co's alleged customs violations, including administrative sanctions and unpaid taxes such as import duties, VAT, and income tax.
Tiffany & Co, part of the LVMH conglomerate, paid the fine and agreed to comply with all applicable laws and regulations, but has made no admission of wrongdoing.
Indonesia's finance minister Purbaya Yudhi Sadewa personally oversaw the removal of the customs seal at the Plaza Indonesia store on 8 June.
He has been at the forefront of a very public crackdown on undeclared high-value goods and his presence is seen as a clear warning to other luxury brands.
The Tiffany case is not isolated. Bening Luxury, a Jakarta-based diamond jewelry store, was closed at around the same time and remains closed, also over suspected customs.
We have reached out to Tiffany & Co for comment.
Pic shows finance minister Purbaya Yudhi Sadewa breaks the customs seal at a Tiffany & Co store in Jakarta. Pic courtesy Finance Ministry.