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Regulation of the Director General of Customs and Excise Number: PER - 4/BC/2024

REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND TAXATION

NUMBER PER - 4/BC/2024


ON


TECHNICAL INSTRUCTIONS FOR THE ELIMINATION OF DEBT IN THE FIELD OF CUSTOMS AND TAXATION


OF THE DIRECTOR GENERAL OF CUSTOMS AND TAXATION,


Considering:


that in order to implement the provisions of Article 18of the Regulation of the Minister of Finance Number 147 of 2023regarding the Elimination of Receivables in the Field of Customs and Taxes, it is necessary to establish the Regulation of the Director General of Customs and Taxation regarding the Technical Guidelines for the Elimination of Receivables in the Field of Customs and Taxes;



Remember :


  1. Regulation of the Minister of Finance Number 118/PMK.01/2021 regarding the Organization and Procedures of the Ministry of Finance (News of the Republic of Indonesia Year 2021 Number 1031) as last amended several times by Regulation of the Minister of Finance Number 135 of 2023 regarding the Second Amendment to the Regulation of the Minister of Finance Number 118/PMK.01/2021 about the Organization and Working Procedures of the Ministry of Finance (State Gazette of the Republic of Indonesia Year 2023 Number 977);

  2. Regulation of the Minister of Finance Number 147 of 2023 regarding the Elimination of Receivables in the Field of Customs and Taxes (News of the Republic of Indonesia Year 2023 Number 1085);


DECIDED:


Establishes :


REGULATION OF THE DIRECTOR GENERAL OF CUSTOMS AND TAXATION ON TECHNICAL INSTRUCTIONS FOR THE ELIMINATION OF DEBT IN THE FIELD OF CUSTOMS AND TAXATION.




CHAPTER IGENERAL PROVISIONSArticle 1


In this Regulation of the Director General what is meant by:


  1. Customs and Tax Receivables, hereinafter referred to as Receivables, are bills for import duties, export duties, and/or taxes, which have not yet been paid, including anti-dumping duties, countervailing duties, security action duties, retaliatory duties, administrative sanctions in the form of fines, and/or or flowers. 

  2. Write-off is an accounting process to remove the recording of assets in the form of Receivables from the balance sheet without removing the receivables. 

  3. Debt cancellation is a series of activities to remove the right to collect or collection efforts based on various criteria and procedures set. 

  4. Financial reports are accountability reports on the implementation of national income and expenditure budgets in the form of budget realization reports, balance sheets, operational reports, equity change reports, and notes on financial reports. 

  5. The balance sheet is a component of the Financial Statement that describes the financial position of a reporting entity regarding assets, liabilities, and equity on a specific date. 

  6. Notes on the Financial Statement, which is further abbreviated as CaLK, is a component of the Financial Statement that includes an explanation, list of details, and/or analysis of the Financial Statement. 

  7. A minister is a minister who organizes government affairs in the field of finance. 

  8. The Director General is the Director General of Customs and Excise. 

  9. Regional Offices are Regional Offices and Specialized Regional Offices within the Directorate General of Customs and Excise. 

  10. The Service Office is the Main Service Office of Customs and Excise and the Office of Supervision and Service of Customs and Excise within the Directorate General of Customs and Excise. 

  11. The Main Service Office of Customs and Excise, hereinafter referred to as the Main Service Office, is a vertical agency that is under and responsible to the Director General. 

  12. The Customs and Excise Supervision and Service Office, further abbreviated as KPPBC, is a vertical agency that is under and responsible to the head of the Regional Office. 

  13. The Customs and Excise Office is an officer of the Directorate General of Customs and Excise who is appointed in a certain department to carry out certain tasks based on the Customs Law and/or the Tax Law. 

  14. Research Results Report at the Service Office, further abbreviated as LHP, is a report made by the Debt Collection Team at the Service Office, which contains the results of the research on the list of receivables that will be written off. 

  15. Research Results Report at the Regional Office, further abbreviated as LHP-W, is a report made by the write-off team at the Regional Office that contains the results of the research on the list of receivables proposals to be written off. 

  16. Research Results Report at the Head Office, which is further abbreviated as LHP-P, is a report made by the write-off team at the Head Office that contains the results of the research on the proposed list of receivables that will be written off. 

  17. The List of Proposed Write-Offs, further abbreviated as DUPb, is the list of proposed Receivables to be written off and determined by the head of the Service Office. 

  18. The Service Office Write-Off Proposed List, further abbreviated as DUPt, is a list of receivables proposals to be written off compiled by the Service Office Write-Off Team and set by the head of the Service Office. 

  19. The List of Proposed Write-offs at the Regional Office, further abbreviated as DUPt-W, is the list of proposed Receivables to be written off compiled by the Write-off team at the Regional Office and set by the head of the Regional Office. 

  20. The List of Proposed Debt Collections at the Head Office, further abbreviated as DUPt-P, is the list of proposals for receivables to be written off compiled by the Debt Collection Team at the Head Office and set by the Director General.


Article 2


(1)

Receivables can be written off.

(2)

The elimination as referred to in paragraph (1) consists of:

a.

Write-off; and

b.

Debt cancellation.

(3)

The elimination as referred to in paragraph (1) is done against the Receivables listed in:

a.

determination letter, covering:


1.

Tariff and/or Customs Value Determination Letter (SPTNP);

2.

Customs Determination Letter (SPP);

3.

Administrative Sanction Determination Letter (SPSA);

4.

Tariff and/or Customs Value Redetermination Letter (SPKTNP);

5.

Export Duty Calculation Determination Letter (SPPPK);

6.

Export Duty Recalculation Letter (SPKPBK);

7.

Letter of Notification of Shortage of Payment of Import Duties, Taxes, Administrative Fines, and Import Taxes (SPKPBM); 

8.

Administrative Sanction Notification Letter (SPPSA); and

9.

other determination letters published in accordance with the provisions of legislation in the field of customs and taxation. 

b.

bill of lading, including:

1.

Billing Letter in Taxation (STCK-1);

2.

Substitute Fee Notification and Billing Letter (SPPBP-1); and

3.

other invoices issued in accordance with the provisions of laws and regulations in the field of customs and taxation. 

c.

Director General's decision on objections; and/or 

d.

the decision of the tax court, including:

1.

appeal decision; and

2.

review decision.



CHAPTER IIEXPIRATIONArticle 3


(1)

The right to collect on Receivables listed in the document as referred to in Article 2 paragraph (3), expires after 10 (ten) years since the obligation to pay arose. 

(2)

The expiry period for Receivables in the customs field as referred to in paragraph (1) cannot be calculated in the case of: 

a.

the debtor does not reside in Indonesia;

b.

the debtor obtains a delay for lack of payment of import duties and/or administrative fines for a maximum of 12 (twelve) months; or

c.

who owes a violation in the customs field.

(3)

The postponement as referred to in paragraph (2) letter b is evidenced by the Director General's Decision regarding the approval of the postponement of the customs debt.

(4)

Violation as referred to in paragraph (2) letter c is proven by a court decision that has the force of permanent law.

(5)

The expiration date on Tax Receivables as referred to in paragraph (1) cannot be calculated in the event that there is an acknowledgment of tax debt.

(6)

Acknowledgment of tax debt as referred to in paragraph (5) is evidenced by the Director General's Decision regarding the approval of tax debt installments.

(7)

In the event of circumstances that cause the expiration date of the collection rights as referred to in paragraph (3), paragraph (4), and paragraph (6) not to be taken into account, the right to collect on Receivables as referred to in paragraph (1) shall expire after 10 (ten ) year since the obligation to pay was incurred plus:

a.

the period of suspension listed in the Decision of the Director General regarding the approval of suspension of customs debt as referred to in paragraph (3);

b.

the punishment period for the violation listed in the final court decision as referred to in paragraph (4); or

c.

the period of tax installments listed in the Director General's Decision regarding the approval of tax debt installments as referred to in paragraph (6).

  



CHAPTER IIIDELETING THE BOOKSPart OneDeletion CriteriaArticle 4


(1)

De-booking as referred to in Article 2 paragraph (2) letter a can be done in the event that Receivables do not meet the asset recognition criteria in accordance with the provisions of the laws and regulations governing government accounting standards.

(2)

The write-off as referred to in paragraph (1) is done against Receivables with the following provisions:

a.

the collection rights have expired as referred to in Article 3 paragraph (1); 

b.

The debtor is a private person, in the case of:

1.

has died and has no inheritance or wealth;

2.

bankruptcy; and/or

3.

cannot be found;

c.

The debtor is a legal entity, in the case of:  

1.

has been dissolved or liquidated;

2.

bankruptcy; and/or

3.

cannot be found; or 

d.

the right to collect cannot be exercised due to certain conditions in relation to changes in policy and/or based on considerations set by the Minister.

(3)

Fulfillment of the criteria for elimination as referred to in paragraph (2), includes:


a.

in the event that the debtor is a private person who has passed away and has no inheritance or wealth as referred to in paragraph (2) letter b number 1, evidenced by documents in the form of:

1.

death certificate from an authorized institution and/or official;

2.

the heir's statement from the authorized agency and/or official; and 

3.

an authentic deed made by a notary stating that the heirs of the debtor have no inheritance or wealth;

b.

in the event that the debtor is a legal entity that has been dissolved or liquidated as referred to in paragraph (2) letter c number 1, evidenced by documents in the form of:

1.

a court decision on dissolution or liquidation that has had permanent legal force; and/or 

2.

the announcement of the minister in charge of government affairs in the field of law and human rights in the National Gazette of the Republic of Indonesia regarding the liquidation or the plan for the distribution of wealth resulting from the liquidation; 

c.

in the event that the debtor is a private person declared bankrupt as referred to in paragraph (2) letter b number 2 or a legal entity declared bankrupt as referred to in paragraph (2) letter c number 2, evidenced by a document in the form of a court decision regarding bankruptcy that has been have permanent legal force;

d.

in the event that the debtor is a private person who cannot be found as referred to in paragraph (2) letter b number 3 or a legal entity that cannot be found as referred to in paragraph (2) letter c number 3, evidenced by a document in the form of:

1.

proof of domicile from an authorized agency and/or official;

2.

information from the Tax Service Office regarding the status of the taxpayer; and/or

3.

other supporting evidence; or 

e.

in the event that the right to collect cannot be exercised due to certain conditions in relation to a change in policy and/or based on considerations set by the Minister as referred to in paragraph (2) letter d, evidenced by the Minister's Decision.

(4)

The write-off of Receivables as referred to in paragraph (2) letter a, letter b, and letter c, can be done after active billing has been done.

(5)

Active collection as referred to in paragraph (4) in the form of delivery or notification of forced letters.



The Second Partof the Deletion ResearchArticle 5


(1)

The Head of the Service Office conducts research on Receivables that meet the write-off criteria as referred to in Article 4 paragraph (3).

(2)

Research as referred to in paragraph (1) is carried out on every document that will be proposed for cancellation.

(3)

The results of the research as referred to in paragraph (2) are set forth in the DUPb using the sample format as listed in Appendix letter A which is an integral part of this Director General's Regulation.

 



Part Three ofthe Cancellation SubmissionArticle 6


(1)

 The Head of the Service Office submits the DUPb as referred to in Article 5 paragraph (3) to the director within the Directorate General of Customs and Excise who manages the reception. 

(2)

In the case of sending DUPb as referred to in paragraph (1) done by the head of KPPBC, DUPb is transmitted to the head of the Regional Office.

(3)

The director within the Directorate General of Customs and Excise who manages the reception recapitulates and validates data on DUPb as referred to in paragraph (1).

(4)

The results of data recapitulation and validation as referred to in paragraph (3) are submitted to the Secretary of the Directorate General of Customs and Excise.

(5)

The Secretary of the Directorate General of Customs and Excise performs De-booking on the Balance Sheet based on the results of recapitulation and data validation as referred to in paragraph (4).

(6)

Receivables that have been written off as referred to in paragraph (5) are recorded extracomptably and adequately disclosed in CaLK in accordance with the provisions of the legislation governing government accounting standards.

(7)

Receivables that have been written off as referred to in paragraph (5) remain managed until the write-off is done.

(8)

The Deregistration Submission as referred to in paragraph (1) is done with the following provisions:

a.

Receivables that meet the write-off criteria up to June 30 are submitted to be written off in the semester Financial Report; or

b.

Receivables that meet the write-off criteria until December 31 are submitted to be written off in the annual Financial Statement.



CHAPTER IVELIMINATIONPart OneElimination CriteriaArticle 7


(1)

Debt cancellation as referred to in Article 2 paragraph (2) letter b is carried out against:


a.

Receivables whose collection rights have expired as referred to in Article 3 paragraph (1); and/or

b.

the state's right to collect cannot be exercised due to certain conditions in relation to policy changes and/or based on considerations set by the Minister.

(2)

Fulfillment of the cancellation criteria as referred to in paragraph (1), includes: 

a.

in the case of Receivables whose collection rights have expired as referred to in paragraph (1) letter a, evidenced by documents in the form of:


1.

letter of determination, letter of invoice, Director General's Decision on objection, and/or decision of the tax judicial body as referred to in Article 2 paragraph (3); and/or

2.

documents published in the context of collection implementation in accordance with the provisions of the laws and regulations governing debt collection in the field of customs and taxes; and/or 

b.

in the case that the state's right to collect cannot be exercised due to certain conditions in relation to policy changes and/or based on considerations set by the Minister as referred to in paragraph (1) letter b, evidenced by the Minister's Decision.



Part Two ofthe Debt Removal TeamArticle 8


(1)

In the framework of the submission of the Receivables proposal to be carried out Debt Collection as referred to in Article 7 paragraph (1), a Debt Collection Team was formed.

(2)

The Debris Removal Team as referred to in paragraph (1) is designated by: 

a.

head of the Service Office;

b.

the head of the Regional Office; and

c.

Director General.

(3)

The Debt Removal Team as referred to in paragraph (1) has at least the following members:


a.

Customs and Excise agents accompanied by representatives from the unit that manages reception and the unit that manages supervision for the Service Office;

b.

representatives from the unit that manages reception and the unit that manages supervision for the Regional Office; and

c.

representatives from the echelon II unit that manages reception and the echelon II unit that performs supervision for the head office of the Directorate General of Customs and Excise.

(4)

The elimination team as referred to in paragraph (1) is led by at least the Customs and Excise Office at the level of echelon III unit, which has the following structure:


a.

leader;

b.

deputy head;

c.

secretary; and

d.

member.



Part ThreeResearch and Filing of DeclassificationArticle 9


(1)

The Debt Collection Team at the Service Office as referred to in Article 8 paragraph (2) letter a has the task of:


a.

carry out research on the fulfillment of the criteria for Debt Cancellation as referred to in Article 7 paragraph (2);

b.

compile a review paper using the sample format as listed in Appendix letter B which is an integral part of this Director General's Regulation;

c.

pour the research results as referred to in letter a into the LHP using the example format as listed in Appendix letter C which is an integral part of this Director General's Regulation; and 

d.

compile DUPt using the example format as listed in Appendix letter E which is an integral part of this Director General's Regulation.

(2)

The Head of the Service Office submits a DUPt as referred to in paragraph (1) letter d to:


a.

head of Regional Office, in the case of DUPt organized by KPPBC; or

b.

Director General up director within the Directorate General of Customs and Excise who manages the reception, in the case of DUPt organized by the Main Service Office, 

equipped with supporting documents.

(3)

Supporting documents as referred to in paragraph (2) consist of:

a.

letter of determination, letter of invoice, Director General's Decision on objection, and/or decision of the tax judicial body as referred to in Article 2 paragraph (3);

b.

documents in the framework of collection implementation in accordance with the provisions of the laws and regulations governing debt collection in the field of customs and taxes;

c.

LHP; and

d.

Decision of the Minister as referred to in Article 7 paragraph (2) letter b if any.



Article 10


(1)

The deregistration team at the Regional Office as referred to in Article 8 paragraph (2) letter b has the duty to:


a.

conduct research on:

1.

fulfillment of the Debt Cancellation criteria as referred to in Article 7 paragraph (2);

2.

LHP; and

3.

DUPt;

b.

compile a review paper using the sample format as listed in Appendix letter B which is an integral part of this Director General's Regulation;

c.

pour the research results as referred to in letter a into LHP-W using the example format as listed in Appendix letter D which is an integral part of this Director General's Regulation; and

d.

compile DUPt-W using the example format as listed in Appendix letter E which is an integral part of this Director General's Regulation, in case the research results as referred to in letter a are declared appropriate.

(2)

The Head of the Regional Office returns the DUPt as referred to in paragraph (1) letter a number 3 accompanied by the reason for the return, in the event that the research results as referred to in paragraph (1) letter a are found to be inappropriate or supporting documents are still required.

(3)

The Head of the Regional Office submits the DUPt-W as referred to in paragraph (1) letter d accompanied by supporting documents to the Director General up to the director within the Directorate General of Customs and Excise who manages the reception, in the event that the research results as referred to in paragraph (1) letter a are stated suitable

(4)

Supporting documents as referred to in paragraph (3) consist of:


a.

LHP;

b.

DUPt;

c.

LHP-W;

d.

letter of determination, letter of invoice, Director General's Decision on objection, and/or decision of the tax judicial body as referred to in Article 2 paragraph (3);

e.

documents in the framework of collection implementation in accordance with the provisions of the laws and regulations governing debt collection in the field of customs and taxes; and

f.

Decision of the Minister as referred to in Article 7 paragraph (2) letter b if any.



Article 11


(1)

The debt elimination team at the Head Office as referred to in Article 8 paragraph (2) letter c has the task of:


a.

conduct research on:

1.

fulfillment of the Debt Cancellation criteria as referred to in Article 7 paragraph (2);

2.

LHP;

3.

DUPt;

4.

LHP-W; and

5.

DUPt-W;

b.

compile review papers compile review papers using the example format as listed in Appendix letter B which is an integral part of this Director General's Regulation;

c.

pour the research results as referred to in letter a into LHP-P using the example format as listed in Appendix letter D which is an integral part of this Director General's Regulation; and

d.

compile DUPt-P by using the sample format as listed in Appendix letter E which is an integral part of this Director General's Regulation, in case the research results as referred to in letter a are declared appropriate.

(2)

The director within the Directorate General of Customs and Excise who manages the receipt on behalf of the Director General returns:

a.

DUPt-W as referred to in paragraph (1) letter a number 5, when the proposal is presented by the head of the Regional Office; or

b.

DUPt as referred to in paragraph (1) letter a number 3, when the proposal is presented by the head of the Main Service Office,

accompanied by the reason for return, in the case that the research results as referred to in paragraph (1) letter a are declared unsuitable or supporting documents are still required.

(3)

The Director General submits DUPt-P as referred to in paragraph (1) letter d to the Minister accompanied by supporting documents, in case the results of the research as referred to in paragraph (1) letter a are declared appropriate.

(4)

Supporting documents as referred to in paragraph (3) consist of:


a.

LHP;

b.

DUPt;

c.

LHP-W;

d.

DUPt-W; 

e.

LHP-P;

f.

letter of determination, letter of invoice, Director General's Decision on objection, and/or decision of the tax judicial body as referred to in Article 2 paragraph (3);

g.

documents in the framework of collection implementation in accordance with the provisions of the laws and regulations governing debt collection in the field of customs and taxes;

h.

Decision of the Minister as referred to in Article 7 paragraph (2) letter b if any.



Article 12


(1)

The submission of the Debt Cancellation proposal is done 1 (one) time in 1 (one) budget year with the provisions:


a.

DUPt submitted by the head of KPPBC as referred to in Article 9 paragraph (2) letter a is submitted no later than March 31;

b.

DUPt submitted by the head of the Main Service Office as referred to in Article 9 paragraph (2) letter b shall be submitted no later than June 30;

c.

DUPt-W submitted by the head of the Regional Office as referred to in Article 10 paragraph (3) shall be submitted no later than June 30; and

d.

DUPt-P as referred to in Article 11 paragraph (3) shall be submitted to the Minister no later than December 31.

(2)

Submission of the cancellation proposal as referred to in paragraph (1) can be submitted through the mail application system used by the Directorate General of Customs and Excise.



Article 13


Based on the DUPt-P as referred to in Article 11 paragraph (3), the Minister's Decree on Deregistration was published.




Article 14


(1)

The Head of the Service Office deletes the Receivables data on the Receivables record based on the Minister's Decision as referred to in Article 13.

(2)

The write-off of accounts receivable as referred to in paragraph (1) is expressed in CaLK during the period in which the write-off of accounts receivable occurs.



CHAPTER VMONITORING AND EVALUATIONArticle 15


(1)

In order to guarantee the effectiveness of the Receivables elimination activities as referred to in Article 2 paragraph (1), a monitoring and evaluation process is carried out. 

(2)

Monitoring and evaluation as referred to in paragraph (1) is carried out at least 1 (one) time in 1 (one) year by:

a.

director within the Directorate General of Customs and Excise who manages the reception;

b.

the head of the Regional Office; or

c.

head of the Service Office.

(3)

Monitoring and evaluation as referred to in paragraph (2) is carried out against:


a.

implementation of rules related to the elimination of receivables, in the form of:

1.

the filing period of Receivables that will be written off or written off; and/or

2.

documents submitted for cancellation are compared with the amount of receivables approved for cancellation; and

b.

application system used in the Receivables elimination process, in the form of:

1.

completeness of features on the application; and/or

2.

obstacles that occur in the implementation of Receivables Elimination through the application system.

(4)

Based on the results of monitoring and evaluation as referred to in paragraph (3) can be used for: 

a.

input on applicable policies; and/or

b.

improve the implementation of debt write-off.



Article 16


(1)

Monitoring and evaluation as referred to in Article 15 is done through the treasury application system used by the Directorate General of Customs and Excise.

(2)

In the event that the application system as referred to in paragraph (1) experiences operational disruptions or cannot be implemented yet, monitoring and evaluation is done manually based on the Accounts Receivable record.



CHAPTER VINEWS OF TRACKING EVENTSArticle 17


(1)

In the case of determination letters, billing letters, Decisions of the Director General regarding objections, and/or decisions of the tax judicial body as referred to in Article 2 paragraph (3), and/or documents published in the context of collection implementation in accordance with the provisions of the laws and regulations governing regarding debt collection in the field of customs and taxes was not found, a search was made on physical documents and digital documents.

(2)

Physical documents and digital documents that cannot be found as referred to in paragraph (1) can be caused by:


a.

the occurrence of things beyond the control of the head of the Service Office such as natural disasters, fire or theft; or

b.

other reasons that cause physical documents and digital documents cannot be found.

(3)

In the event that physical documents and digital documents are not found which is due to circumstances beyond control as referred to in paragraph (2) letter a, it is proven by:


a.

affidavit or incident report from an authorized agency and/or official; and

b.

statement letter from the head of the Service Office.

(4)

In the event that physical documents and digital documents are not found due to other reasons as referred to in paragraph (2) letter b, physical documents and digital documents are searched at the document storage location.

(5)

The results of the document search as referred to in paragraph (1) are set out in the document search event report.

(6)

The document search event news as referred to in paragraph (5) is compiled using the example format as listed in Appendix letter F which is an integral part of this Regulation of the Director General.

(7)

The document search event news as referred to in paragraph (5) can be used as a substitute for a determination letter, bill letter, Decision of the Director General regarding objections, and/or the decision of the tax judicial body as referred to in Article 2 paragraph (3), and/or published documents in the framework of collection implementation in accordance with the provisions of the laws and regulations governing debt collection in the field of customs and taxes.



CHAPTER VIITRANSITIONAL PROVISIONSArticle 18


At the time this Director's Regulation comes into force:


a.

to the proposal for the elimination of Receivables that has been submitted by the Head of the Service Office before the entry into force of this Director General's Regulation and the Minister's Decree on the elimination of Receivables has not been published, the settlement process is carried out based on the Director General's Regulation Number 42/BC/2012 regarding the Guidelines for the Implementation of the Elimination and Determination of the Amount of the Elimination of Import Customs Receivables and/or Taxes; and

b.

the provisions as referred to in Article 4 paragraph (4) do not apply to the write-off of receivables that have expired before the implementation of this Regulation of the Director General.



CHAPTER VIIICLOSING PROVISIONSArticle 19

At the time this Regulation of the Director General comes into force, the Regulation of the Director General of Customs and Taxation NumberPER-42/BC/2012regarding the Guidelines for the Implementation of the Elimination and Determination of the Amount of the Elimination of Import Duty and/or Tax Receivables is revoked and declared invalid.




Article 20


This Regulation of the Director General comes into effect from the date set.






Done at Jakarta


on March 28, 2024


DIRECTOR GENERAL OF CUSTOMS AND TAXATION,



Electronically signed



ASKOLANI

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