Changes Regulation on Bonded Zone
- November 14, 2018
- Posted by: Administrator
- Category: Consultant, Info 1, Tax News
On 21 September, 2018, the Ministry of Finance (MoF) issued regulation No. 131/PMK.04/2018 (“PMK-131”) which replaces the previously released regulation No. 147/PMK.04/2011 and its amendments regarding Bonded Zone and several articles of MoF Regulation No. 226/PMK.04/2014 regarding stockpiling, entering, releasing and transporting of excisable goods. This regulation is effective 60 days from the date it was enacted (enacted on 26 September 2018).
PMK-131 aims to increase investment and exports as well as development of national industry, as a follow-up to Presidential Regulation No. 91 of 2017 on acceleration of doing business in Indonesia.
A Bonded Zone is a place of bonded storage to store imported goods and/or local supplies to be processed or combined, with its output primarily for export purposes. Import of capital goods including spare parts, raw materials including packaging materials, office equipment as well as entry of raw materials from within the country is exempted from duties (import duty, excise, etc.) and import taxes (VAT/LGST, Art. 22 Income Tax).
The key changes in PMK-131 are summarized below:
- Under PMK-131, the MoF delegates its authority for issuing bonded zone licenses to the head of the Regional Customs Office (Kepala Kantor Wilayah – Kanwil) or to the head of Main Customs Office Service (Kepala Kantor Pelayanan Utama – KPU), which was previously delegated to the Director General of Customs and Excise;
- The timeline for granting the bonded zone license is significantly reduced, i.e. from 30 working days from when the application is received by the Customs Authority to a maximum of 6 working days from the Company’s readiness for a field audit as stated in the application;
- The submission procedure is changed from manual to electronic via the Portal of the Indonesia National Single Window (INSW) which is integrated with online single submission (OSS);
- As a consequence of electronic submission, there is a new additional requirement for obtaining the bonded zone license, i.e. the Company should have a “Business ID Number” (Nomor Induk Berusaha – NIB);
- Tolerance on goods adjustment/deviation, e.g. decrease; loss/evaporation, in accordance with the Company’s business, provided there is a valid document issued by a competent authority;
- Simplification for entry / release of bulk goods; and
- Other treatment.To support the ease of doing business and to enhance the Customs services, the Regional Customs Office may add certain treatment/procedures on the following matters
- The new regulation also provides more detailed description of faciliated goods, i.e. the goods can be in the form of: raw materials and/or raw material scrap, auxiliary materials and/or auxiliary material scrap, packaging and packaging aids, finished and semi-finished goods, sample goods, capital goods, office equipment, goods for research and development purposes, scrap from production process, and/or packaging scrap and waste.
MoF Regulation Number 131/PMK.04/2018 became effective on 24 November 2018.