The Indonesian Ministry of Finance has issued MoF Regulation Number 41 of 2024 (“PMK-41”) concerning the Exemption of Import Duties on the Import of Seeds and Seedlings for the Development and Expansion of the Agricultural, Livestock, or Fisheries Industries.

PMK-41 revokes MoF Regulation Number 105/PMK.04/2007 concerning the Exemption of Import Duties on the Import of Seeds and Seedlings for the Development and Expansion of the Agricultural, Livestock, or Fisheries Industries. PMK-41 became effective on August 04, 2024.

Basically, PMK-41 `aims to improve supervision and services in providing exemption from import duties on the import of seeds and seedlings.

The main changes in PMK-41 include several key aspects related to the exemption of import duties for the import and export of seeds and seedlings as summarized below:

1. 1. Exemption of Import Duties for Seed and Seedling Imports:
      • The import of seeds and seedlings from outside the customs territory or through Bonded Logistic Centers by business operators for the agricultural, livestock, or fisheries industries, including in the plantation and forestry sectors; and
      • The import of seeds and seedlings through bonded logistics centers by business operators for the agricultural, livestock, or fisheries industries, including in the fields of plantation and forestry.
   2. Exemption of Import Duties for Seed and Seedling Exports from Bonded Zones:
      This exemption also applies to the export of seeds and seedlings originating from outside the customs territory from several bonded warehouses, bonded zones, bonded exhibition venues, bonded auction venues, special economic zones, or free zones.

In addition, PMK-41 provides further clarification on the various procedures involved, including:

• Applications for import duty exemptions,
• Customs notifications and restrictions,
• Utilization and reporting,
• Fulfillment of customs obligations,
• Handling of force majeure situations, and
• Monitoring and evaluation.

These changes aim to facilitate business operators in the relevant sectors and ensure that the process of importing and exporting seeds and seedlings runs smoothly in accordance with the applicable regulations.