Page 2 - Newsletter (Taxation Provisions on Imports of Consigned Goods & the Simplification of Customs Registration)

DDTC Newsletter Vol.03 | No.02 I January 2020 Page 2 of 9

Taxation Provisions on Imports of Consigned Goods &
the Simplification of Customs Registration

Import Duty Exemptions for the exported goods in the same quality are imposed with VAT
Imports of Luxury Goods or SLTGs.

Third, the non-imposition of VAT or SLTGs facility may
The government has revised the provisions on import duty
be provided for goods used for upstream oil and gas
exemptions on the imports of taxable luxury goods which
business activities including exploitation and exploration
have been imposed with VAT and Sales Tax on Luxury
and geothermal operations for indirect utilization which
Goods (SLTGs). The policy is outlined in the Minister
include Preliminary Survey and Exploration Assignment
of Finance Regulation Number 198/PMK.010/2019
(Penugasan Survei Pendahuluan dan Eksplorasi/PSPE),
concerning the Seventh Amendments to the Minister of
exploration, exploitation, and utilization, provided that
Finance Decree Number 231/KMK.03/2001 concerning
the requirements are met.
the Imposition of Value Added Tax and Sales Tax on
Luxury Goods on Imports of Taxable Goods that are Some of the requirements to obtain exemptions for the
Exempt from Import Duties (MoF Reg. 198/2019). The types of taxable goods in point m above are the goods
regulation has come into force as of 31 December 2019. cannot be produced domestically, the goods are already
produced domestically but have not met the required
Broadly speaking, there are three differences from the
specifications, or the goods are already produced
previous regulation. First, the addition of taxable goods
domestically but the quantity is insufficient to meet
(barang kena pajak/BKP) which are exempt from import
industrial needs. To obtain this fiscal facility, the taxpayer
duties. A comparison of TG entitled to this facility can be
must submit an application to the Director General of
seen in Table 1. Second, the re-importation of formerly
Customs and Excise together with an application to
obtain import duty exemptions.
Table 1 - The Comparison of Taxable Goods Subject to Import Duty Facilities

No. MoF Reg. 198/2019 MoF Decree 231/2001

a goods belonging to representatives of foreign countries and goods belonging to representatives of foreign countries and
their officials who serve in Indonesia based on the principle of their officials who serve in Indonesia based on the principle of
reciprocity. reciprocity.
b goods for the purposes of international bodies that are goods for the purposes of international bodies that are
recognized and registered with the Indonesian Government and recognized and registered with the Indonesian Government and
its officials who work in Indonesia and do not hold Indonesian its officials who work in Indonesia and do not hold Indonesian
passports. passports.
c consigned goods given as gifts for public worship, charity, social, consigned goods given as gifts for public worship, charity, social,
cultural, or goods for natural disaster management purposes. or cultural purposes.
d goods for museums, zoos, and other similar places that are open goods for museums, zoos, and other similar places which are
to the public, and goods for nature conservation. open to the public.
e goods for scientific research and development purposes. goods for scientific research and development purposes.
f goods for the special needs of blind and other disabled people. goods for the special needs of blind and other disabled people.
g casket or other packaging containing a corpse or ashes. casket or other packaging containing a corpse or ashes.
h cargo load of Indonesian workers who work abroad, students cargo load of Indonesian workers who work abroad, students
studying abroad, Civil Servants, members of the Indonesian studying abroad, Civil Servants, members of the Indonesian
National Army, or members of the Indonesian National Police National Army, or members of the Indonesian National Police
who have served abroad for at least 1 (one) year, provided that who have served abroad for at least 1 (one) year, provided that
these goods are not traded and received a recommendation these goods are not traded and received a recommendation
from the local Republic of Indonesia Representative. from the local Republic of Indonesia Representative.
i personal goods of passengers, crew of transport facilities, personal goods of passengers, crew of transport facilities,
border crossers, and consignment goods up to a certain border crossers, and consignment goods up to a certain
threshold in accordance with the Customs legislation. threshold in accordance with the Customs legislation.
j goods imported by the central government or regional goods imported by the Central Government or Regional
governments which are intended for the public interest. Government intended for public use.
k military equipment including parts intended for national military equipment including parts intended for national
defense and security purposes. defense and security purposes.