Import-duty Exemption for Re-import of Exported Goods
- January 11, 2022
- Posted by: Administrator
- Category: Tax News
The Minister of Finance issued Regulation No. 175/PMK.04/2021 concerning Import Duty Exemptions for Re-Import of Exported Goods (“PMK-175/2021”) on 3 December 2021. This MoF Regulation became effective on 4 February 2022.
In brief, PMK-175/2021 provides more details compared to the previous MoF Regulation. Exported goods may be re-imported with customs duty exemption for the following goods:
- In the same quality when re-imported;
- For repair;
- For further processing/work; or
- For testing;
provided the following conditions are satisfied:
- The re-importation is performed by the original exporter;
- The re-imported goods can be identified as the same goods of that were previously exported;
- The re-importation is performed within 2 (two) years since the Export Declaration or Proof of Export date. An extension to that period is available provided that supporting documents such as contract, agreement, or similar documents are available; and
- Supporting documents demonstrate that the goods origin is within the Indonesian Customs Territory.
For repaired/processed re-imported goods, the following components do not enjoy the customs duty exemption:
- Replaced/added parts;
- Repair/working cost;
- Insurance; and
- Freight/transportation cost.
PMK-175/2021 provides confirmation that the re-importation can be performed through a different customs office from the customs office of export. A physical inspection by the customs office is normally performed for the re-imported goods.