Page 10 - Newsletter (New Regulation on Stamp Duty and Tax Cluster in Job Creation Law)

DDTC Newsletter Vol.04 | No.09 I November 2020 Page 10 of 12

New Regulation on Stamp Duty and Tax Cluster in

Job Creation Law

of the following types, merbau, white meranti, and Imposition of Import Duty Tariffs on Imported Goods
yellow meranti, with a cross-sectional area of more Based on the Agreement Establishing the ASEAN-
2
2
than 10,000 mm to 15,000 mm . Products of this type Australia-New Zealand Free Trade Area (MoF Reg.
are subject to a 15% export duty tariff. 168/2020).
More concise details on the amount of export duty Second, the procedures for the imposition of
tariffs and descriptions of the types of exported goods preferential tariffs based on the AKFTA scheme
in the form of timber subject to export duties are listed are outlined in the Minister of Finance Regulation
in Attachment II letter A of MoF Reg. 166/2020. The No. 169/PMK.04/2020 concerning Procedures for
regulation will take effect as of 23 October 2020. the Imposition of Import Duty Tariffs on Imported
Goods Based on the Agreement on Trade in Goods
under the Framework Agreement on Comprehensive
Procedures for the Imposition Economic Cooperation Among the Governments of the
Member Countries of the Association of South East
of Import Duty Tariffs Based on Asian Nations and the Republic of Korea (MoF Reg.
AANZFTA, AKFTA, AIFTA, and ACFTA 169/2020 ).

Third, the procedures for the imposition of preferential
The government has issued four new regulations
rates based on the AIFTA scheme are outlined in the
regarding the procedures for the imposition of import
Minister of Finance Regulation No. 170/PMK.04/2020
duty tariffs based on international agreements.
concerning Procedures for the Imposition of Import
All of these regulations have been issued to provide Duty Tariffs on Imported Goods Based on the
more legal certainty in customs services for imported Agreement on Trade in Goods under the Framework
goods from the ASEAN-Australia-New Zealand Free Agreement on Comprehensive Economic Cooperation
Trade Area (AANZFTA), ASEAN-Korea Free Trade Between the Association of South East Asian Nations
and the Republic of India (MoF Reg. 170/2020).
Area (AKFTA), ASEAN-India Free Trade Area (AIFTA),
and the ASEAN-China Free Trade Area (ACFTA)
Fourth, the procedures for the imposition of
countries. The four regulations have also been issued
preferential tariffs based on the ACFTA scheme are
to accommodate the dynamics in said agreements.
outlined in the Minister of Finance Regulation No.
Import duties on imported goods based on international 171/PMK.04/2020 concerning Procedures for the
agreements were formerly regulated under the Imposition of Import Duty Tariffs on Imported Goods
Based on the Agreement on Trade in Goods under the
Minister of Finance Regulation No. 229/PMK.04/2017
Framework Agreement on Comprehensive Economic
concerning Procedures for the Imposition of Import
Cooperation Between the Association of South East
Duty Tariffs on Imported Goods Based on International
Asian Nations and the People’s Republic of China (MoF
Agreements as last amended by the Minister of
Reg. 171/2020).
Finance Regulation No. 124/PMK.04/2019 (MoF Reg.
229/2017 as amended by MoF Reg. 124/2019). Based
The four regulations were all enacted on 27 October
on the regulations, imported goods from member
2020 and took effect 7 days thereafter. Similar to
countries of international agreements are entitled to
the provisions under the previous regulation, the
preferential tariffs, the amount of which may differ
four regulations outline that imported goods may be
from statutory import duty tariffs (Most Favored
subject to preferential tariffs, the amount of which
Nation/MFN)
may differ from MFN.
The preferential tariffs are imposed through several
The amounts of the preferential tariffs are stipulated
schemes, including based on AANZFTA, AKFTA, AIFTA,
in the Minister of Finance Regulations concerning the
and ACFTA. However, the procedures for the imposition
determination of import duty tariffs in the framework
of preferential tariffs based on the AANZFTA, AKFTA,
of AANZFTA, AKFTA, AIFTA, and ACFTA. However,
AIFTA, and ACFTA schemes are currently regulated in
preferential tariffs on imported goods may be obtained
separate Minister of Finance Regulations.
if rules of origin are met.
First, the procedures for the imposition of preferential
Rules of origin refer to special provisions based on
tariffs based on the AANZFTA scheme are outlined
international agreements applied by a country to
in the Minister of Finance Regulation No. 168/
determine the origin country of goods. To comply with
PMK.04/2020 concerning Procedures for the
rules of origin, imported goods must meet the following