Page 6 - Newsletter (Taxation Provisions on Imports of Consigned Goods & the Simplification of Customs Registration)

DDTC Newsletter Vol.03 | No.02 I January 2020 Page 6 of 9

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

Data C refers to Data B of which the customs liabilities unloading is performed, in an emergency, or a congestion
have been settled by the payment of import duties and/ in the TPS of another customs office.
or taxes on imports. This also means that Data C is data
on imported CBU motor vehicles which have received In addition, this regulation sets forth the taxation aspect
customs clearance, but are transferred. Promulgated on in the event of a relocation of the storage of imported
27 December 2019, this regulation is to come into force goods from the origin TPS to the destination TPS in one
60 days thereafter. supervision area of the Customs Office/overbrengen
(Pemindahan Lokasi Penimbunan/PLP). In terms of PLP,
Taxation Aspect for Transit and the TPS entrepreneur is responsible for import duty and/
Transhipment or excise, administrative penalties in the form of fines,
as well as tax on import, in the event that a payment
obligation occurs as the goods transported do not reach
The government has issued new tax provisions for
the destination TPS.
import and export in terms of taxation aspects of transit
(angkut terus) and transhipment (angkut lanjut). This is There are conditions in which the destination TPS
outlined in the Minister of Finance Regulation No. 216/ entrepreneur is responsible for the taxation aspects as
PMK.04/2019 concerning Transit or Transhipment of stated above. First, the destination TPS entrepreneur
Imported or Exported Goods (MoF Reg. 216/2019). has submitted a PLP application to the Customs and
Goods for transit are goods transported using means Excise Official who handles the manifest administration
of transport through the Customs Office without prior by specifying the reason for the PLP application. Second,
unloading. In contrast, transhipment or goods for the destination TPS entrepreneur has carried out PLP
transhipment are goods that are transported using on imported goods which are subject to to physical
means of transport through the Customs Office with examination of goods for customs examination and/or
prior unloading. quarantine examination in another TPS in one Customs
Area without the approval of the Head of Customs Office,
This new regulation subsequently revokes Minister
but a notification in the form of electronic data has been
of Finance Regulation Number 102/PMK.04/2010
submitted to the Customs Office.
concerning Amendments to the Minister of Finance
Regulation Number 90/PMK.04/2007 concerning the This regulation does not regulate the outward manifest of
Outward manifest of Imported Goods or Exported Goods goods from the Customs Area or other places in the Free
from the Customs Area to be Transited or Transhipped Trade Zone that will be transited or transpshipped and to
and the Outward manifest of Imported Goods from the be transported to the TPS in another Customs Area in the
Customs Area to be Transported to Temporary Storage Free Trade Zone, other Free Trade Zones, or other places
Areas in Other Customs Areas and Article 17 of the in the customs area. MoF Reg. 216/2019 states that the
Minister of Finance Regulation Number 23/PMK.04/2015 outward manifest of this type of goods shall be regulated
concerning the Customs Areas and Temporary Storage through the legislation concerning the procedures for the
Areas (MoF Reg. 23/2015). inward manifest and outward manifest of goods to and
from areas designated as free trade zones and free ports
In general, MoF Reg. 216/2019 stipulates the inward
and excise exemptions.
manifest of goods into the Customs Area and the outward
Import Duty Exemption on Imports
manifest of goods from the Customs Area or other
places in the Free Trade Zone. Taking effect 30 days as
of 31 December 2019, the regulation stipulates that for Upstream Oil and Gas Business
the party responsible for aspects of taxation in transit Activities
and transhipment are Temporary Storage Area (Tempat
Penimbunan Sementara/TPS) entrepreneurs. In other
The Indonesian government has issued a policy related
words, TPS entrepreneurs are responsible for paying
to import duties on imports for upstream oil and gas
import duties, excise, and taxes on imported goods.
business activities. This is set forth in the Minister
In the event of the outward manifest of imported goods of Finance Regulation Number 217/PMK.04/2019
to be transported to the TPS at another customs office concerning Exemption of Import Duties and Non-Taxation
that is also located in the Customs Area, the payment of on Imports of Goods for Upstream Oil and Gas Business
taxes and customs and excise is conducted by the TPS Activities (MoF Reg 217/2019).
entrepreneur at the original Customs Office. The TPS
entrepreneur in the customs office of origin shall be the The provision is re-stipulated to increase national oil
party responsible for the taxation aspects if the imported and gas production and to provide fiscal incentives in
goods are of special characteristics thus storage is the form of import duty exemptions and non-taxation
unfeasible in the Customs Area and the TPS where the on imports for upstream oil and gas business activities.