Import-duty Exemption for Re-import of Exported Goods

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:

  1. In the same quality when re-imported;
  2. For repair;
  3. For further processing/work; or
  4. For testing;

provided the following conditions are satisfied:

  1. The re-importation is performed by the original exporter;
  2. The re-imported goods can be identified as the same goods of that were previously exported;
  3. 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
  4. 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:

  1. Replaced/added parts;
  2. Repair/working cost;
  3. Insurance; and
  4. 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.

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