Govt Exempts Import Duties and Import Tax on Goods for COVID-19

TEMPO.CO, Jakarta - The government exempted import duties and import taxes on goods for COVID-19 response to all parties, including the central government, regional governments, individuals, legal entities, and non-legal entities.

"With customs and tax facilities, this is very helpful in providing goods for domestic needs," Director General of Customs and Excise Heru Pambudi said in a press statement on Sunday.

This facility was stipulated in Minister of Finance Regulation number 34 / PMK.04 / 2020 concerning Provision of Customs and Excise and Taxation Facilities on Imports of Goods Needed for COVID-19 Response.

The new regulation was born in accordance with Article 9 and Article 10 of a government regulation in lieu of law (Perppu) 1 of 2020 which gave the minister of finance the authority to provide customs facilities for the import of goods needed in handling the pandemic of the SARS-CoV-2 virus.

The regulation, which was issued April 17, 2020, is an extension of the previous regulation for the provision of fiscal facilities based on Minister of Finance Regulation (PMK) 70 in 2012 and PMK 171 in 2019.

However, he continued, the two schemes were still unable to solve problems in the field.

With this latest regulation, imports of goods for handling COVID-19 such as imports of goods by the private sector that are used alone or imports of goods through individuals (shipment) and passenger luggage, are now facilitated.

The facilities provided are exemption from import duty and / or excise, are not subject to Value Added Tax (VAT) and Sales Tax on Luxury Goods (PPnBM).

In addition, the exemption from collecting income tax (PPh) article 22 on the import of goods for the purpose of handling COVID-19 both for commercial and non-commercial purposes.

Heru added that in this latest PMK there were 73 types of goods that were provided facilities in the customs and taxation facilities.

As for imported goods that are provided with facilities, namely shipments originating from abroad, goods through bonded logistics centers (PLB), or goods released from bonded zones / bonded warehouses.

Then, the free zone or special economic zone, and companies receiving export-import facilities (KITE).

To get this convenience, submissions are made electronically through the Indonesia National Single Window (INSW) portal or submitted in writing to the Head of the Customs Office where the goods are imported.

The submission is excluded for importing shipments and luggage of passengers whose value does not exceed the cost of the goods only on board or does not include ship costs (free on board / FOB) 500 US dollars, so there is no need to submit an application.

The application, he said, was enough to be completed with the shipping document or consignment note (CN) for the shipment or Customs Declaration for passengers' luggage from abroad.

Even so, for shipment items, the facility is provided after the Postal Operator or recipient of the goods submits the Taxpayer Identification Number (NPWP) in the consignment note.

Whereas if the value of the shipment or passenger luggage value exceeds 500 US dollars Free on Board (FOB), the exemption facility can still be provided as long as the application has been submitted and approved by the Minister of Finance through the Head of the Customs Office.

The import documents used for shipments or passenger luggage that exceed 500 US dollars Free on Board (FOB), he said, use the Notification of Imported Special Goods (PIBK).

If the type of imported goods provided by the facility is subject to the provisions of the import trade system, Heru continued, for convenience it is sufficient to attach a letter of recommendation for import trade exemptions from the National Disaster Mitigation Agency (BNPB) at the time of import or release of goods.

However, if the imported goods do not exceed the amount stipulated by the trade system or the relevant ministry or agency and / or BNPB, there is no need to attach a recommendation letter on the exclusion of the import trade system from BNPB.

Heru explained that the term of the facility is valid until the end of the COVID-19 pandemic handling period that is set by the BNPB.

ANTARA