November 2018     12 Nov 2018

New Customs Regulation: Customs Value for Consignment Goods or E-commerce

 

A.     Background

The Minister of Finance (MoF) has issued Regulation Number 112/PMK.04/2018 regarding provisions on imported consignment goods. This regulation is applied as an update of the previous regulation (MoF Regulation No. 182/PMK.04/2016). This regulation is valid from 10 October 2018.

 

The issuance of this regulation is related to:

1)    Some input from several associations of Small and Medium Industries, the Ministry of Industry, the Indonesian Logistics Forwarder Association (ALFI), and retail entrepreneurs or offline distributors in order to create fair business competition for domestic industry players, both offline and online retailers.

2)    An adjustment to “de minimis value” is also a recommendation from the World Customs Organization (WCO), as the results of studies on e-commerce development show that the practices of under-declaration, under-valuation, misdeclaration, and splitting of shipments are increasingly prevalent.

 

B.      Matters stipulated in 112/PMK.04/2018

1)    Goods which are imported for personal use can receive exemption from import duty with maximum customs value of FOB USD 75.00 (seventy-five United States Dollars). The import duty exemption is granted for:

a.    One consignee per 1 (one) day; or

b.    More than 1 (one) delivery within 1 (one) day, as long as the customs value of the entire shipment is not exceeding FOB USD 75.00.

2)    In the case that the customs value exceeds the limit of FOB USD 75.00, the import duty and import taxes will be charged on the entire customs value of the shipment.

 

 

 

CHANGES

 

112/PMK.04/2018

182/PMK.04/2016

Maximum Import Duty (FOB)

USD 75.00

USD 100.00

Period for Import Duty Calculation

Per Consignee, Per Day

Per Shipment

 

Case illustration:

1)    Erick has an imported consignment of goods which is split into four shipments in the same day, as follows:

·         Shipment A: FOB USD 30.00

·         Shipment B: FOB USD 20.00

·         Shipment C: FOB USD 10.00

·         Shipment D: FOB USD 25.00

Based on MoF Regulation 112/PMK.04/2018, Erick will receive import duty exemption for shipments A (USD 30.00), B (USD 20.00), and D (USD 25.00), and he should pay import duty on the rest of the shipment (shipment C at USD 10.00).

2)   Alan got an imported consignment of goods in Monday morning with customs value in one package shipment FOB USD 80.00. Based on MoF Regulation 112/PMK.04/2018, Alan should pay the import duty for his consignment goods. But if in Monday evening he got an imported consigment of goods with customs value FOB USD 50.00, this shipment would receive import duty exemption.

 

Notes:

1.    The registered postal operator (PT. Pos Indonesia) should pay the Import Duty within 60 days from the stipulation date of the Decision Letter on Payment of Import Duty, Excise, and/or Taxes (SPPBMCP).

2.    Courier Services (DHL, Fedex, etc.) should pay the Import Duty within three days from the stipulation date of the SPPBMCP.

3.  Consignment goods that are subject to excise will receive exemption from import duty, excise, and taxes in the framework of import (PDRI) for each person and per shipment, at a maximum of:

-  40 cigarettes,

-  10 cigars, or

-  40 grams of sliced tobacco, and

-  350 ml of beverage containing ethyl alcohol.

 

4. Determination of Import Duty Tariff

Customs Value

Import Duty Tariff

Permit Documents

Assessment

Business entity

Non Business Entity / Individual

≤ FOB USD 75

Exempted

Consignment Note

Consignment Note

Official Assessment

FOB

USD 75 - 1,500

7.50%

Consignment Note

Consignment Note

Official Assessment

PIB*

PIBK*

Self Assessment

> FOB

USD 1,500

Tariff according to HS Code

PIB*

PIBK*

Self Assessment

*) PIB = Import Declaration; PIBK = Special Import Declaration.

Import of passenger / transfer goods (personal effects) or goods that obtain the exemption for recipients other than business entities such as goods needed by representatives of foreign countries, international organizations, foundations, and other non-business entities are settled using PIBK.

 

  1. Conclusion

This new regulation is one of the government’s efforts to encourage the growth of domestic industry. To provide opportunities for stakeholders by making an adjustment to customs tariff and or values, the maximum customs value, which was FOB USD 100.00 per shipment, in the new regulation is decreased to FOB USD 75.00 per day.

 

SF consulting Customs Team 


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