Page 2 - Newsletter (Regulations on Re-exporting Imported Goods and Temporary Import are Tightened)

DDTC Newsletter Vol.02 | No.02 I August 2019 Page 2 of 5

Regulations on Re-exporting Imported Goods and Temporary
Import are Tightend

New Regulation on Re-Exporting exporting imported goods, this provision also tightened
Imported Goods the former. Presently, the number of type of goods that are
exempted are reduced. These goods are sample or model
products, vehicle or transport facilities that are used
The government has emphasized regulation related to
by foreigner, vehicle or transport facilities that are not
re-exporting imported goods through Minister of Finance
regularly used and imported goods by the government.
Regulation (MoF Reg) No. 102/PMK.04/2019 concerning
Re-Exporting Imported Goods. This PMK revokes the
Time period for temporary import is also being tightened.
former one, which is MoF Reg No. 149/PMK.04/2007.
In the former regulation, the time period for temporary
This new provision is stipulated to ensure law certainty
imports that are exempted from import duty was 3 years.
and improve the supervision and service in export duty
Presently, it is only 1 year with an extension option of
on re-exporting of imported goods.
maximum 3 years. For certain temporary imported goods
that are used for exhibition, seminar or other similar
As has already been regulated in the previous provision,
type of purposes, the time period is only 1 year without
re-exporting imported goods could be performed in case
extension option.
the products are not as ordered, mistakenly sent, or
prohibited to import according to existing regulations.
For temporary imported goods for exhibition of four-
wheel vehicle with minimum 3000 cc engine and two-
However, compared to the previous one, the new
wheel vehicle with minimum 500 cc engine, the time
regulation provides the prohibition provision concerning
period is only 2 months. These types of temporary
re-exporting imported goods in more detail. First, the re-
imports should be stored in particular place under the
exporting activities cannot be performed if the customs
supervision of the Directorate General of Customs and
of such imported goods have not been reported and there
Excise (DGCE) during break times between exhibitions.
have been lawful consequences performed accordingly.
The Number of Jurisdictions
Second, the re-export cannot be executed in case the
customs of such goods have been reported but the audit Exchanging Financial Information
result shows that the amount and type of the goods are
not matched with the report. with Indonesia Increases
Nevertheless, importers that are recognized as authorized The number of jurisdictions that will automatically
economic operator (AEO) or main customs partners and exchange financial data for the purpose of taxation with
low risk importer are immune to this prohibition. DGT continues to increase. This is stated in the Director
General of Taxes Announcement No PENG-05/PJ/2019
Third, imported goods that are potentially harmful to
concerning the List of Participating Jurisdictions and
health and environment and required to be re-exported
Reportable Jurisdictions for the Purpose of Automatic
according to law should be re-exported with approval
Exchange of Financial Account Information (PENG-05/
from Customs Office Head.
PJ/2019).
Importer is required to propose export request to Customs
This announcement, which was signed in Jakarta on 10
Office Head in order to obtain the approval. Afterwards,
July 2019, acts as the implementation provision for of
the Customs Office Head or authorized official review the
Article 16a and 16b of the MoF Reg No. 70/PMK.03/2017
proposal. If it is found that the imported goods do not
concerning Technical Guidelines on Access to Financial
fulfil requirements to be re-exported, the Customs Office
Information for Tax Purposes (MoF Reg No.70/2017), as
Head will issue rejection letter along with the reasons.
lastly amended by MoF Regulation No. 19/PMK.03/2018
Temporary Import Regulation Is (MoF Reg No.19/2018).
Tightened This regulation becomes the follow-up information which
is caused by the increase numbers of jurisdictions that
After revising the regulation concerning re-exporting have signed and/or activated the Multilateral Competent
imported goods through MoF Reg No. 102/2019, Authority Agreement on the Automatic Exchange of
the government also revised regulation concerning Financial Account Information.
temporary import regulation. The previous regulation
As mentioned on the appendix of the Announcement,
concerning this matter, MoF Reg No. 178/PMK.04/2017
there are 98 participating jurisdictions which were
is revised through MoF Reg No. 106/PMK.04/2019.
previously 94 jurisdictions (PENG-04/PJ/2019). It
Similar to the revision of regulation concerning re- means that there are four new jurisdictions joined as