Page 7 - Newsletter(Additional Covid-19 Related Tax Incentives and Technical Guidelines for the Appointment of E-Commerce VAT Withholders)

DDTC Newsletter Vol.04 | No.05 I September 2020 Page 7 of 13

Additional Covid-19-Related Tax Incentives and Technical
Guidelines for the Appointment of E-Commerce VAT Withholders

Imposition of BMTP on Imports of In contrast, the examination of Certificate of Origin
Ceramic Tiles from India and Vietnam from a country that does not have trade cooperation
with Indonesia shall be carried out based on the
provisions stipulated by the Minister in charge of
The government has officially imposed Safeguard
Import Duties (Bea Masuk Tindakan Pengamanan/ trade affairs.
BMTP) on imports of ceramic tile products from India
and Vietnam. The imposition of BMTP is outlined in the
Unloading and Storage of Imported
Minister of Finance Regulation No. 111/PMK.010/2020
concerning Amendments to the Minister of Finance Goods
Regulation No. 119/PMK.010/2018 concerning the
Imposition of Safeguard Import Duties on Imports of
The Minister of Finance has issued policies related
Ceramic Tile Products (MoF Reg. 111/2020).
to the unloading and storage of imported goods. The
Under the former provisions, i.e. the Minister of Finance policies of unloading and storage imported goods are
Regulation No. 119/PMK.010/2018 concerning the outlined under the Minister of Finance Regulation No.
Imposition of Safeguard Import Duties on Imports of 108/PMK.04/2020 concerning the Unloading and
Ceramic Tile Products (MoF Reg. 119/2018), India Storage of Imported Goods (MoF Reg. 108/2020). This
and Vietnam were included in the list of countries ministerial regulation comes into force thirty days as
exempted from BMTP on imports of ceramic tile of its promulgation date.
products.
Under this regulation, a carrier is defined as a person
Based on the Indonesian Trade Safeguard Committee’s or its proxy that is responsible for the operation of
evaluations on the domestic industry in December the means of transport carrying goods and/or people.
2019, however, the imposition of BMTP on imports A carrier is authorized to carry out the contract of
of ceramic tiles has not been effective. The ineffective carriage and issue documents for the transportation
imposition of BMTP on imports of ceramic tiles is due of goods. The ministerial regulation outlines two main
to the significant surge in imports of ceramic tiles from issues, i.e. the unloading and storage of imported
India and Vietnam. goods.

For this reason, based on the evaluation results of the The provisions on unloading relate to four aspects.
Indonesian Trade Safeguard Committee and Article First, the unloading of imported goods from means
9.1 of the World Trade Organization Agreement on of transport must be performed in the customs area
Safeguards and Article 90 of Government Regulation or another place after obtaining permission from the
No. 34 of 2011 concerning Antidumping Measures, head of the customs and excise office that supervises
Countervailing Measures, and Trade Safeguard said other place.
Measures (Gov. Reg. 34/2011), the Minister of Trade
Imported goods are unloaded after the carrier submits
has decided to exclude India and Vietnam from the
the inward manifest and obtains the registration
list of countries exempted from BMTP on imports of
number and date. The same applies if the imported
ceramic tile products.
goods are in the form of means of transport.
On another note, valid in seven working days as of 24
In light of the unloading of imported goods, customs
August 2020, this regulation adds provisions related
and excise officials may perform risk-management-
to the examination of Certificate of Origin documents.
based selective supervision. Having carried out the
Certificate of Origin refers to documents that must
supervision, the official concerned will prepare an
be submitted by importers from countries that are
unloading supervision report.
exempted from the imposition of BMTP on imports of
ceramic tile products. Second, unloading at a place other than the customs
area. Unloading at other places may also be carried out
This regulation stipulates that the examination of
if the following requirements are met.
certificates of origin from countries that have trade
cooperation with Indonesia is carried out based on (i) The imported goods are of a special nature
the Minister of Finance Regulation on Examination with due observance of their characteristics,
of Certificate of Origin in the Framework of Imposing size, and/or shape which prevent them from
Import Duty Tariffs on Imported Goods Based on being unloaded in the Customs Zone.
International Agreements.