In December 2022, the Indonesian Minister of Finance (MOF) issued a new regulation on self-consumed imported goods (barang impor untuk dipakai), i.e., MOF Regulation No. 190/PMK.04/2022, on the Transfer of Self-Consumed Imported Goods (“MOF Regulation 190“), to meet the need for a more dynamic regulatory system in the trade sector.
This regulation is designed to promote trade and economic growth in Indonesia by providing new import facilities, namely: (i) new import mechanisms for digital goods; (ii) new requirements to submit supporting customs documents; (iii) new requirements for non-MITA/AEO importers to obtain a registration number; (iv) new requirements for physical inspection of self-consumed imported goods; (v) new formulae to calculate import duties, excises and taxes; and (iv) new provisions for transferring imported goods that are subject to intellectual property (IP) rights requirements.
The new regulation will give more certainty in relation to trade activities in Indonesia. Indonesian importers and the Indonesian government will also have key roles to ensure the successful implementation of MOF Regulation 190.
In more detail
- Regulations on self-consumed imported goods
Before the issuance of MOF Regulation 190, the MOF issued several regulations on self-consumed imported goods, namely (i) MOF Regulation No. 228/PMK.04/2015 on the Transfer of Self-Consumed Imported Goods (“MOF Regulation 228“) and (ii) Director General of Customs and Excise (DGCE) Regulation No. 16/BC/2016 on the Guidelines and Procedures for the Transfer of Self-Consumed Imported Goods, as lastly amended by DGCE Regulation No. 02/BC/2022 (“DGCE Regulation 16“).
MOF Regulation 190 revokes MOF Regulation 228 and takes effect on 14 January 2023. Thus, the implementing regulation (i.e., DGCE Regulation 16) will need to be amended by the provisions of MOF Regulation 190.
- Overview of MOF Regulation 190
The key provisions of MOF Regulation 190 cover the following matters:
- Import declarations (PIB) and customs supporting documents to transfer self-consumed imported goods
- The mechanism for paying import duties, excises, and taxes, including the mechanism for determining customs values and duty rates and the mechanism for calculating import duties, excises and taxes
- Transfer of prohibited and restricted goods (barang lartas) that are imported for self-consumption
- Submission and amendment of PIB
- Customs inspection, including (i) physical inspection of imported goods, (ii) import document examination and (iii) issuance of approval or rejection for self-consumed imported goods based on the customs inspection
- Transfer of self-consumed imported goods
- Import of intangible goods (e.g., digital goods)
- Other provisions on (i) under-quota importation of goods (impor barang eksep), (ii) importation of excised goods (barang kena cukai), (iii) transfer of several imported goods (pengeluaran sebagian barang impor), (iv) PIB cancellation and (v) submission of responses of PIB (respons atas PIB) to the Customs Office.
- Update on facilities provided for Indonesian importers
We identified new facilities provided in MOF Regulation 190 that Indonesian importers should take into account:
- New import mechanisms for digital goods
This is a significant update because previous regulations did not include provisions for intangible goods (e.g., digital goods). Under MOF Regulation 190, self-consumed imported goods in the form of intangible goods (e.g., software or other digital goods) can be transferred through electronic transmission. These goods will be exempt from the following requirements:
- The transportation and delivery of an inward manifest
- The process of unloading and storing goods in the customs area as well as in a Temporary Storage Area (TPS)
- The submission of a PIB before the transfer of goods
- The completion of formal criteria to register for a PIB
- The conformity examination of the consignee name and the notifying party’s name to obtain a PIB
- The physical inspection of goods
- The transfer of goods from (i) the Indonesian customs area or other places that are treated the same as a TPS or (ii) a Customs storage area (TPP) or other places that are treated the same as a TPPIntangible goods can be imported by submitting a PIB to the Customs Office at the importer’s domicile through the Customs’ computer service system no later than 30 days after the payment date of the transaction.
The PIB should at least contain the following information:
- The Customs office at the importer’s domicile
- Type of PIB
- Type of importation done by the importer
- Type of payment
- Data on the sender
- Data of the importer or the customs service provider (PPJK), if the importer authorizes the PPJK to carry out customs arrangements
- Data on the transaction
- Data on the currency
- Data on the Basic Value For Calculating Import Duty (NDPBM)
- Data on Free on Board (FOB)
- Data on the value of Cost, Insurance and Freight (CIF)
- Import duty rates (post-tariff) and explanation of the classification of goods
- Country of origin
- Types of payable levies, i.e., import duties, excises, value-added tax, income tax and/or sales tax on luxury goods
- New requirements to submit supporting customs documents
Under MOF Regulation 190, the importer may submit supporting customs documents, which can be either hard copies or electronic copies, to the Customs Office.
Hard copies of documents should include (i) written documents that are typed or printed and signed by an individual authorized to issue the document and (ii) electronic document printouts. Electronic document printouts (i.e., can be transmitted via compact disk and flash disk) must (i) include a statement that the document is an electronic document or (ii) be stamped with the words “Electronic Document Printout.” Printouts of electronic documents must comply with the prevailing laws and regulations on electronic information and transactions, and corporate documents.
- New requirements to obtain a registration number for non-MITA/AEO importers
According to MOF Regulation 190, a PIB that has been submitted by an importer other than the main partner of customs (MITA) or authorized economic operator (AEO) must meet the formal criteria in order to obtain a registration number (Nopen) for self-consumed imported goods. The criteria are as follows:
- The importer has paid all import duties, excises and/or taxes.
- The importer has completed the requirements of prohibited and restricted goods (barang lartas) (if the imported goods are classified as prohibited and restricted goods).
- The self-consumed imported goods are partly or wholly stored in a TPS or other places that are treated the same as a TPS.
- The importer has obtained an inward manifest number and date, or other transport customs declarations.
- New requirements for physical inspection of self-consumed imported goods
Generally, self-consumed imported goods can be physically inspected in (i) a TPS or other places treated the same as a TPS or (ii) a TPP or other places that function as a TPP.
MOF Regulation 190 sets out the following conditions for goods to be inspected in other places that are treated the same as a TPS:
- The importer is a MITA and/or an AEO.
- The goods are inspected by other institutions (joint inspection).
- The physical inspection requires special facilities that are not available at the TPS.
- Approval is obtained for the imported goods to be stored in other places that are treated the same as a TPS.
- New formulae to calculate import duties, excises and taxes
Adjustments are also made to calculate import duties, excises and taxes in MOF Regulation 190. Import duties and excises are calculated for every type of imported goods. The payable amount of import duties and excises is rounded up to the nearest thousand Indonesian Rupiah (IDR) for each levy in one PIB.
As for import taxes, calculations should be in line with the Indonesian tax harmonization law. Import taxes are calculated for every type of imported goods. The payable amount of import taxes is rounded down to the nearest one Indonesian Rupiah (IDR) for each levy in one PIB.
- New provisions on transferring imported goods that are subject to IP rights requirements
According to MOF Regulation 190, goods that are subject to IP rights requirements and whose transfer is ordered suspended by the Indonesian Commercial Court can be partially transferred from the storage area. These goods will be deemed as imported goods that are not subject to IP rights requirements.
To carry out the transfer of goods, the importer or the PPJK should submit an application to the Head of the Customs Office or the appointed Customs officials. The application should at least contain the following information:
- Identity of the applicant (importer or PPJK)
- Number and date of the PIB application
- Description of goods stated in the PIB
- Number and date of the suspension order from the Indonesian Commercial Court
- New import mechanisms for digital goods
- Key takeaways
The issuance of MOF Regulation 190 provides more certainty on trade activities in Indonesia by setting guidelines for the importation of self-consumed goods as well as the importation of digital goods. The regulation may boost efficiency in the importation and customs inspection of self-consumed goods.
Indonesian importers’ compliance with the provisions of MOF Regulation 190 will also significantly impact import activities in Indonesia. The participation of importers and the Indonesian government (i.e., the MOF and the Customs Office) would also impact trade and market access in Indonesia, consequently boosting the country’s economic growth.
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