Indonesia's Import Duties on Goods From Abroad vs. Singapore, Malaysia

TEMPO.CO, Jakarta - The Indonesian Customs and Excise Office has recently come under public scrutiny following various viral cases related to import duties and taxes on goods hand-carried by passengers from abroad, where the levied import fees surpass the value of the goods.

Indonesia's regulations on import duties and taxes have elicited criticism, with people taking to the internet to report that the duties exceed the prices of the products they purchased. What about in neighboring countries, such as Malaysia and Singapore?

Indonesia

Indonesia’s regulation on import duties and taxes is valid based on the type of goods, either for personal use or non-personal use. Non-personal use encompasses items beyond personal belongings, with quantities, types, and nature exceeding reasonable personal use, including entrusted items.

According to the Customs and Excise Directorate General page, personal items valued at less than US$500 or approximately Rp8 million per individual are exempt from import duty. Goods exceeding this value will incur a 10 percent import fee, an 11 percent VAT, and a 0.5-10 percent PPh with an NPWP, or a 1-20 percent PPh without an NPWP.

The Trade Ministry in a release on May 7 explained that all customs fees will be reduced by the dollar exchange rate for regular passengers.

Malaysia

Malaysia's regulations on import duties and taxes categorize goods as either subject to or exempt from import duties. These goods are then further categorized based on a 5 percent or 10 percent sales tax rate or a specific amount.

According to the customs.gov.my page, certain items are exempt from import duties/taxes for travelers entering Malaysia, including a maximum of three new clothing items and a single pair of shoes or sandals.

Additionally, goods carried by passengers will be subject to a 10 percent import duty and a 10 percent tax, or a 5 percent import duty and a 10 percent tax, depending on the category of goods.

Singapore

Citing from customs.gov.sg, all goods brought to Singapore are subject to Goods & Services Tax (GST), calculated based on the goods' value, which may include Costs, Insurance, and Freight (CIF), as well as other fees and applicable duties and/or excise duties.

However, travelers can benefit from GST relief on imported goods if two conditions are met: the goods are new and for personal use.

The relief amount depends on the duration spent outside Singapore. Travelers will be required to pay GST on the value of goods exceeding the granted GST import relief. Tourists spending more than 48 hours are eligible for relief up to S$500 or approximately Rp5.9 million, while those spending less than 48 hours receive a relief of S$100 or about Rp1.2 million.

For instance, if a Singaporean traveler purchases a bag worth S$2,000 while traveling abroad for more than 48 hours, the amount of GST payable is (S$2,000 – 500) multiplied by the applicable GST rate. The current GST rate in Singapore stands at nine percent.

MILA NOVITA

Editor’s Choice: List of 7 Countries That Do Not Have Military Forces

Click here to get the latest news updates from Tempo on Google News