Page 5 - Newsletter (Taxation Provisions on Imports of Consigned Goods & the Simplification of Customs Registration)

DDTC Newsletter Vol.03 | No.02 I January 2020 Page 5 of 9

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

through Minister of Finance of the Republic of Indonesia liabilities may be carried out through transfer, re-export,
Regulation Number 200/PMK.04/2019 concerning or desctruction.
the Exemptions of Import Duty and Excise Duty on
Custom Clearance for CBU Motor
the Imports of Goods for the Purpose of Scientific
Research and Development (MoF Reg. 200/2019). These
exemptions are also provided for the imports of goods Vehicle Imports
through bonded storage, special economic zones, free
The Ministry of Finance has released a regulation
trade zones, and the alienation of imported goods.
corcening the outward manifest of imported goods in the
form of completely built up/CBU motor vehicles. Under
The imports of goods entitled to these exemptions may
this regulation, imports customs clearance for CBU
be performed by universities, ministries/government
motor vehicles can only be issued after customs liabilities
agencies, or business entities. For business entities in
and taxes on imports (Pajak Dalam Rangka Impor/PDRI)
particular, however, the equipment and/or materials for
are settled. This is outlined in the Minister of Finance
use in the production process are not subject to these
Regulation No. 202/PMK.06/2019 concerning the
customs exemptions.
Outward Manifest of Imported Completely Built Up Motor
To obtain these exemptions, goods imported by a business Vehicles for Use (MoF Reg. 202/2019). The regulation is
entity must meet the following requirements: (i) the intended to provide legal certainty and effectiveness.
imported goods have not been produced domestically, (ii)
Further, six types of motor vehicles are covered in this
the imported goods are already produced domestically
regulation. First, tractor head or Motor Vehicle under HS
but have not met the required specifications, or (iii) the
Code 8701.20. Second, buses or four-wheeled or more
imported goods are already produced domestically but
motor vehicles for 10 or more passengers including the
with an insufficient quantity to meet the needs.
driver. Third, passenger cars or four-wheeled or more
Furthermore, to obtain this exemption, universities, motorized vehicles for passengers below 10 people
ministries/institutions and business entities must including the driver. Fourth, delivery vans or four-wheeled
submit applications to the Minister through the Head of or more motorized vehicles for the transportation of
the Prime Customs and Excise Office or the Head of the goods.
Customs and Excise Office of the Customs and Excise
Fifth, motor vehicles for special purposes other than
where the goods are imported. The application must
those designed for the transportation of people or goods,
be signed by officials ranking as low as the Dean level
for instance, tow trucks, crane lorries, fire engines,
(for Higher Education), echelon II level or small leaders
concrete mixer lorries, road sweeper lorries, and spray
(for Ministries/Institutions), or directors (for business
lorries. Sixth, motorcycles or motor vehicles under HS
entities).
Code 87.11. Referring to the Indonesian Customs Tariff
In addition to the signature, the request must also be Book, these types of vehicles are motorcycles (including
accompanied by a recommendation from the relevant pedal motorcycles/mopeds) and bicycles equipped with
authority as well as the documents for the acquisition auxiliary motor, with or without side cars.
of goods in the form of a photocopy of the statement of
Moreover, the obligation to submit customs import
grant or a photocopy of the purchase document. If the
declaration applies both to CBU motor vehicles that
application is approved, the Head of the Customs and
are required to pay import duties and/or PDRI as well
Excise Office will issue a Minister of Finance Decree
as those entitled to PDRI exemptions, relief, or deferal.
concerning the exemptions. The imports of goods
The data to be supplied by the importer in the import
entitled to these exemptions should not be later than
declaration application includes the category, type,
one year as of the promulgation date of the Minister of
brand, year of manufacture, chassis number, engine
Finance Decree.
number, and cylinder capacity. Furthermore, the DGCE
The regulation also stipulates that imported goods for will submit data on motor vehicles imports to the
science and research may be given tax facilities. Said Indonesian National Police (POLRI).
facilities include the non-imposition of VAT or STLGs
The data sent is referred to as Data A, B, and C. In further
and exemptions from Article 22 Income Tax. In the event
detail, Data A is data on motor vehicles of which the
that the imported goods are motor vehicles, the motor
customs liabilities have been settled by the payment
vehicles import declaration will not be issued.
of import duties and/or taxes on imports. Additionally,
Moreover, imported goods that are not used in accordance Data B is defined as data on motor vehicles, during the
with the purpose of the exemptions provision will be imports of which, the payment of import duties are
subject to administrative penalties and customs liabilities exempted, waived, or deferred and/or exempt from taxes
must be settled. The settlement of these customs on imports.