Import Duty Facility on Import of Aircraft Components by MRO & Petrochemicals

The Government recently  issued Minister of Finance (MoF) Regulation Number 50 of 2026 (“MoFR-50/2026”), which constitutes the third amendment to MoF Regulation Number 26/PMK.010/2022 concerning the Stipulation of the Goods Classification System and the Imposition of Import Duty Tariffs on Imported Goods.

MoFR-50/2026 introduces import duty reduction (up to 0%) on aircraft components for the Maintenance, Repair, and Overhaul – “MRO”) industry.

In addition, the new regulation also stipulates that LPG raw materials for the petrochemical industry have a special tariff heading.

Below are the key changes as stipulated in MoFR-50/2026.

Business Implications & Action Items

• Ensure LPG raw material imports are reclassified from HS 2711 to heading 98.45 to enjoy the 0% tariff facility, drastically cutting the Cost of Goods Sold (COGS).
• Must immediately obtain the “Valid Certificate of Industrial Verification” from the Ministry of Industry. Failure to verify or unauthorized transfer of goods will cause the classification to revert to the standard HS 2711 tariff.
• Given that the 0% import duty incentive for LPG is only valid for six months from the regulation’s issuance, companies need to accelerate raw material import schedules within this specific window period.

MoFR-50/2026 became effective from 28 July 2026 (seven days after its enactment on 21 July 2026).