The Director General of Customs and Excise (“DGCE”) previously issued Regulation No. PER-04/BC/2020 (“PER-04/2020”) which stipulated the procedures for the granting of additional incentives for companies that were receiving the Import Facility for Export Purpose (“Kemudahan Impor Tujuan Ekspor Pembebasan – KITE”) of  KITE – Exemption (“KITE Pembebasan”) or KITE for Small and Medium-Scale Industries (KITE Industri Kecil Menengah – “KITE IKM”) as follow-up to Minister of Finance Regulation No. 31/PMK.04/2020 (“PMK-31”).

However, the Minister of Finance has now revoked the above regulations through Minister of Finance Regulation No. 96/PMK.04/2022 (“PMK-96”) after completing an evaluation on various companies that have been enjoying these facilities and considering that most of these are now making a strong recovery after the pandemic downturn.

As a follow-up, in order to ensure legal certainty, the DGCE has issued Regulation No. PER-6/BC/2022 (“PER-6/2022”) which revokes PER-04/2022 and thus, the additional incentives for KITE as stipulated in PMK-31 and PER-04 are no longer effective since 13 July 2022.