Page 2 - Newsletter (Changes in The Taxation Provisions of International Trade and Digital Economy)

DDTC Newsletter Vol.01 | No.04 I April 2019 Page 2 of 6

CHANGES IN THE TAXATION PROVISIONS OF INTERNATIONAL TRADE AND
DIGITAL ECONOMY

Changes in Customs Provisions in the Import Duty Policy for Import
Export Sector Products: the Government’s Protection
for Domestic Industries
Indonesia’s export procedure in terms of customs was
initially regulated in 2007, namely through Minister
As a form of the government’s protection for domestic
of Finance Regulation (MoF Regulation) Number
industries, the government has issued two new policies
145/PMK.04/2007 (MoF Regulation No. 145/2007) related to antidumping import duties (Bea Masuk
concerning the Customs Provisions in the Export Sector.
Antidumping/BMAD). The two BMAD regulations impose
This regulation was later amended by MoF Regulation
an ‘extra’ rate on the import duty of goods. The regulations
Number 148/PMK.04/2011 (MoF Regulation No.
were published on 18 March 2019 with a validity period of
148/2011). Furthermore, in order to improve the
up to the next five years.
accuracy of export data and supervision on exports
of shipments using freight forwarding services, the
The recently issued two regulations are Minister of Finance
regulation was later changed to MoF Regulation Number
Regulation (MoF Regulation) Number 24/PMK.010/
145/PMK.04/2014 (MoF Regulation No. 145/2014).
2019 concerning the Imposition of Anti Dumping Import
Duty on the Import of Products of H Section and I Section
Moreover, in 2019, changes were made once again
from the People’s Republic of China (MoF Regulation No.
over the regulation in order to increase exports and to
24/2019) and MoF Regulation Number 25/PMK.010/
improve the supervision of exported goods. The custom
2019 concerning the Imposition of Anti-Dumping Import
provisions in the export sector are now regulated by
Duty on the Import of Flat-rolled Products of Iron or Non-
MoF Regulation Number 21/PMK.04/2019 concerning
alloy Steel from the People’s Republic of China, India,
the Third Amendment to MoF Regulation Number 145/
Russia, Kazakhstan, Belarus, Taiwan, and Thailand (MoF
PMK.04/2007 concerning the Customs Provisions in the
Regulation No. 25/2019).
Export Sector (MoF Regulation No. 21/2019).
Previously, BMAD for these two types of products has
One of the fundamental changes in exports
been stipulated through MoF Regulation Number 242/
customs pertains to the export customs declaration
PMK.010/2015 (MoF Regulation No. 242/2015) for
(pemberitahuan pabean ekspor). In general, the export
I Section and H Section products and MoF Regulation
customs declaration shall be submitted by the Exporter
Number 169/PMK.011/2013 (MoF Regulation No. 169/
or his proxy to the loading Customs Office no later than
2013) for flat-rolled products of iron or non-alloy steel.
before the goods enter the customs area at the loading
However, the validity period of the previous BMAD, both
place. However, there are specific provisions for the
MoF Regulation No. 242/2015 and MoF Regulation No.
deadline for export customs declaration for exports of
169/2013, ended in December 2018.
bulk goods.
The MoF Regulation No. 24/2019 itself was issued due to
Prior to the issuance of MoF Regulation No. 21/2019
the findings of the Indonesian Anti-Dumping Committee’s
in March 2019, the export customs declaration for
investigation (Komite Anti Dumping Indonesia/KADI) that
the export of bulk goods could be carried out before
practices of dumping are still found on H Section and I
the departure of the means of transport. However, the
Section products imported from the People’s Republic
new regulation stipulates that the provisions of export
of China. Therefore, the government decided to re-enact
customs declaration that is to be submitted prior to the
BMAD starting 14 days as of 19 March 2019. Table 2 shows
departure of the means of transport also apply for the
some points of comparison between MoF Regulation
export of Complete Built Up motor vehicles without
No. 24/2019 and the previous MoF Regulation (MoF
containers. Table 1 summarizes the main technical
Regulation No. 242/2015).
changes in export customs based on MoF Regulation No.
21/2019. 12
Furthermore, there is no change of MoF Regulation No.
169/2013 in terms of the imports tariff of flat-rolled
products of iron or non-alloy steels from seven countries
subject to BMAD. The sole change in the new MoF
Regulation is the HS Code imposed with BMAD for these
products. Table 3 shows the change in the HS Code subject
to BMAD based on MoF Regulation No. 25/2019.
1 The previous regulations are MoF Regulation No. 145/2007, MoF Regulation
No. 148/2011, and MoF Regulation No. 145/2014.
2 The current governing regulation is MoF Regulation No. 214/PMK.04/2008 of
2008 concerning the Collection of Export Duties.