Tiffany & Co Sealed: Tax Violations & Underreporting Revealed

Tiffany & Co. Stores in Jakarta Sealed Amid Allegations of Illegal Imports and Tax Evasion

Jakarta – Indonesian Finance Minister Purbaya Yudhi Sadewa revealed new details surrounding the sealing of Tiffany & Co. Stores by the Directorate General of Customs and Excise (DJBC) in Jakarta. The action stems from discovered violations related to imported goods, according to a statement released Friday, February 13, 2026.

Minister Sadewa explained that customs officials uncovered issues with the documentation and payment of import duties. “Customs asked them, how is this? Most of the goods weren’t declared with payment. There was suspicion of smuggling, so they were asked to show the trade documents, everything about the imports, they couldn’t show it. So, the goods likely came from Spain,” Sadewa stated at Wisma Danantara, Jakarta.

The investigation revealed a spectrum of violations, ranging from outright smuggling to under-invoicing – deliberately undervaluing goods to reduce tax liabilities. “Some were completely smuggled, others only paid under the invoiced amount. It was all apparent,” Sadewa added. He indicated that the situation initially appeared to be a matter for the police, but ultimately fell under the jurisdiction of Customs and Tax authorities, with a potential for greater collaboration between the two agencies.

The minister emphasized that the actions taken against Tiffany & Co. Serve as a warning to other businesses to comply with regulations. He also claimed that other companies are now demonstrating increased compliance with tax laws. “Yes, meaning they weren’t paying in full, some paid half, some were under-invoicing. This is a good message to business actors who aren’t entirely fair, which has lowered income from Customs and taxes going forward. They can’t do things like that anymore. Some have expressed remorse and said they want to pay,” Sadewa said.

The sealing of the Tiffany & Co. Stores comes after U.S. Customs and Border Protection (CBP) seized a significant amount of counterfeit Tiffany & Co. Jewelry in Champlain, New York, between December 2024 and January 6, 2025. CBP officers intercepted multiple shipments and seized them for intellectual property rights violations. The seized counterfeit items, including necklaces, rings, and bracelets, had an estimated Manufacturer Suggested Retail Price (MSRP) of nearly $30,000 if genuine.

According to a statement released by CBP, the agency has the authority to detain, seize, forfeit, and destroy imported merchandise that bears an infringing trademark or copyright registered with the United States Patent and Trademark Office or the United States Copyright Office. Champlain Port Director Steve Bronson stated, “CBP continues to play a crucial role in protecting the consumer and businesses from the importation of fraudulent merchandise. I’m proud of the outstanding job our officers and import specialists do in targeting these shipments and identifying these violations.”

The trade in counterfeit and pirated goods is seen as a threat to America’s innovation economy, the competitiveness of U.S. Businesses, and the livelihoods of U.S. Workers, according to CBP officials. Importing counterfeit or pirated merchandise is illegal and can result in fines for individuals, even if they did not intend to import such goods.

While the Indonesian case appears to center on import duty and tax evasion rather than counterfeiting, the global crackdown on illicit trade practices highlights the increasing scrutiny faced by luxury brands and the challenges of maintaining supply chain integrity. The Indonesian government’s actions signal a firm stance against non-compliance and a commitment to protecting its revenue base.