Page 3 - Newsletter (Taxation Provisions on Imports of Consigned Goods & the Simplification of Customs Registration)

DDTC Newsletter Vol.03 | No.02 I January 2020 Page 3 of 9

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

Table 1 - The Comparison of Taxable Goods Subject to Import Duty Facilities (continued)

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

l temporary imported goods in accordance with statutory
-
provisions concerning temporary imports.
m goods used for: 1. upstream oil and gas business activities
including exploration and exploitation; or 2. geothermal
implementation activities for indirect use which include -
Preliminary Survey and Exploration Assignment (Penugasan
Survei Pendahuluan dan Eksplorasi/PSPE), exploration,
exploitation, and utilization.
n deleted. -
o goods that were formerly exported but then re-imported in the
-
same quality of export.
p goods that have been exported for the purpose of repairing,
-
hardening, and testing that are then re-imported.
q medicines imported using the government budget intended for
-
public interest.
r human therapy materials, blood grouping and tissue materials
imported using the government budget intended for public -
interest.
s goods and materials to be processed, assembled, or installed
-
on other goods entitled to import facilities for export purposes.
t goods and materials or machinery imported by small and
medium industries or consortia for small and medium -
industries using import facilities for export purposes.

Tax, Customs, and Excise Provisions Consigned goods are goods sent through the Postal
on Imports of Consigned Goods Service Organized in accordance with statutory postal
regulations. Postal service organizer refers to a business
The Ministry of Finance has lowered the maximum (de entity that organizes the post. Furthermore, the Law of the
Republic of Indonesia Number 38 Year 2009 concerning
minimis) threshold on the customs value of imports
Postal defines postal services as written communication
of consigned goods for use entitled to import duty
services and/or electronic mail, packages, logistics,
exemptions. The reduction is aimed at protecting the
financial transactions, and agencies for public use.
national interests concerning the increase in the volume
of imports of goods through the mechanism of imports of
In addition to obtaining import duty exemptions, MoF
consigned goods and promoting the growth of domestic
Reg. 199/2019 stipulates that imported consigned goods
industries. This policy is contained in the Minister of
for private use with a customs value of a maximum of FOB
Finance of the Republic of Indonesia Regulation Number
USD3 are exempt from income tax. The consigned goods
199/PMK.010/2019 concerning Customs, Excise, and
are, however, still subject to Value Added Tax (VAT) and
Tax Provisions on the Imports of Consigned goods (MoF
Sales Tax on Luxury Goods (SLTGs).
Reg. 199/2019).
Furthermore, in the event that the consigned goods
Through this regulation, the Ministry of Finance reduces
exceed the specified customs value threshold, the
the maximum threshold of the customs value entitled
consigned goods shall be subject to import duties
to VAT exemptions to FOB USD3 (three United States
and taxes on imports on the entire customs value of
dollars). Under the previous regulation, the Minister
said goods. In contrast, imported consignment goods
of Finance Regulation of the Republic of Indonesia
for personal use in the form of letters, postcards, and
Number 112/PMK.04/2018 concerning Amendments
documents are exempt from import duties and not
to the Minister of Finance Regulation Number 182/
imposed with any taxes on imports.
PMK.04/2016 concerning Provisions for Imports of
Consigned Goods (MoF Reg. 112/2018), the maximum MoF Reg. 199/2019 also stipulates the maximum
threshold was set at FOB USD75 (75 US dollars). threshold of excisable consigned goods (barang kena
cukai/BKC) entitled to excise exemptions. Exemptions