On 26 November 2020, the Ministry of Finance (“MoF”) issued Regulation No. PMK-188/Pmk.04/2020 (“PMK-188”) which acts as the DGCE Facilities for Handling the Covid-19.

The main points of PMK-188 are summarized as follows:

• The meaning of Vaccine is a vaccine, vaccine raw materials and equipment needed in vaccine production, as well as equipment for the implementation of vaccination in the context of handling the Coronavirus Disease 2019 (COVID-19) pandemic

• No	Granting of Facilities	Import (Bonded Logistics Center)	Outgoing (Other places within the customs area)
  1	Exemption from import duty and/or excise;	√	√
  2	Excluded from obligation to pay taxes in the context of import		√
  3	Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods is not collected	√
  4	Excluded from the obligation to settle Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods		√
  5	Exempted from collection of Article 22 Income Tax on imports	√	√

• Import Duty included antidumping import duty, countervailing import duty, safeguard import duty, and/or retaliatory import duty.
• The facilities can be used only for:
  1. Central Government;
  2. Regional Governments;
  3. legal entities or non-legal entities that receive an assignment or appointment from the Ministry of Health.
• There are several steps to be granted the facilities by the Directorate General of Customs and Excise, as follows:
  1. Apply to the Minister through the Head of Customs and Excise Office at place of entry or release of the goods, with minimum requirements:
     • Details of the quantity and type of goods for which customs and/or excise as well taxation facilities are requested, along with the estimated customs value;
     • Permit from the related technical agency, in the event that the imported goods are prohibited and/or restricted good;
     • Business Registration Number or Taxpayer ID Number (NPWP);
     • Letter of assignment or appointment from the Ministry of Health; and
     • Recommendation to be given customs and/or excise as well as taxation facilities from the Ministry of Health
  2. The recomendation letter should contain at least the following information:
     • Identity of the applicant;
     • Details of the number and type of goods and the estimated customs value;
     • A statement that the vaccine that is to be imported or released from the place as mentioned in Article 2 paragraph (3) will be used in order to handle the Coronavirus Disease 2019 (COVID-19) pandemic
  3. The application and recomendation letter from the Ministry of Health can submitted electronically to the Portal of the Directorate General of Customs and Excise through the Indonesian National Single Window (INSW) system.
  4. The application will be reviewed and checked by the Head of the Customs and Excise Office for the fulfillment of the requirements to receive customs and/or excise as well taxation facilities.
  5. The Head of the Customs and Excise Office on behalf of the Minister shall approval or rejection of the request as mentioned in Article 3 paragraph (1) within a maximum period of:
     • 3 (three) working hours after the application is received completely and correctly, for applications that are submitted electronically; or
     • 3 (three) working days after the application is received completely and correctly, for applications that are submitted in writing.

Administrative Penalties

Penalties arising from the misuse of the facilities provided are as follows:

1. Must pay import duties, excise, and/or import taxes that are due;
2. Subject to administrative penalty in the form of a fine of at least 100% (one hundred percent) or at most 500% (five hundred percent) of the import duty that should be paid in accordance with the provisions of the laws and regulations in the field of customs; and
3. May be subject to penalties in accordance with the provisions of the laws and regulations in the field of excise and/or in the taxation sector

This regulation became effective on 26 November 2020.