Gov’t Provides Eases on Imported Goods Needed for Tackling Covid-19 Outbreak
Ministry of Finance’s Directorate General of Customs and Excise has announced it will provide eases for import of goods needed to tackle covid-19 outbreak.
The eases are in the forms of exemption from import duty and excise, not subject to Value Added Tax (PPN) and/or Sales Tax on Luxury Goods (PPnBM), exemption from Import income tax (PPh) 22, and the exclusion of import trading system for scheme D for individuals/private entities for commercial purposes.
The goods are items recommended by the National Disaster Mitigation Agency (BNPB) as well as those stated by Minister of Finance Sri Mulyani Indrawati such as medical equipment, personal protective equipment (PPE), masks, and hand sanitizer.
This import facility may be used by Central Government, regional governments, public service agencies (BLU) in scheme A, foundations or non-profit institutions in scheme B, and individuals/private parties in scheme C.
The procedures to use the facility for scheme A are as follows:
First, the Central Government, regional governments, and the BLU shall submit a request for an exception recommendation to the BNPB for imported goods subject to the provisions of import trading systems.
Second, the BNPB shall issue a letter of recommendation for the exclusion of import trading systems.
Third, ministries/institutions shall submit an application to customs and excise regional office of imports in accordance with Regulation of Minister of Finance Number 171/PMK.04 of 2019.
Fourth is the issuance of Decision of Minister of Finance for Exemption (SKMK Pembebasan).
The four steps are carried out prior to the arrival of the goods.
Fifth, once the goods arrive, the Goods Import Notification (PIB) shall be submitted by filling in the number and date of the SKMK, the number and date of the BNPB recommendation in the event that the provisions of the import trading system are imposed.
Sixth, goods are removed from the port of entry.
As for scheme B, the procedures are as follows:
First, foundations or non-profit institution shall submit an application for recommendation import duty and/or excise exemption as well as an exemption to the BNPB for imported goods subject to the provisions of the import trading systems.
Second, the BNPB shall issue a letter of recommendation for exemption from import duty and/or excise as well as an exception to the provisions of the import trade systems.
Third, the foundation or non-profit institution shall submit an application to Director of Customs Facilities in accordance with Regulation of Minister of Finance Number 70/ PMK.04 of 2012.
The fourth to sixth steps in scheme A also apply to this scheme.
As for scheme C, it applies to individuals/private entities that import non-commercial purposes by means of proving a gift certificate that the goods are grants to government agencies through the BNPB or foundations/non-profit institutions.
If the goods are granted to the BNPB as the Government, the BNPB will submit an application in accordance with scheme A. If the goods are granted to foundations/non-profit institutions, they shall submit an application with comply to scheme B.
Next, issuance of the SKMK exemption. Those are the conditions that must be fulfilled prior to the arrival of the goods.
Upon the arrival of the goods, the Goods Import Notification document (PIB) shall be submitted by filling in number and date of the SKMK, the number and date of recommendation of the BNPB in the event that the provisions of import trading systems are imposed, with the BNPB or foundations/non-profit institutions as the name of goods owner.
The goods may be removed from the port of entry by submitting reports on imports and distribution to the BNPB on the note that the goods are granted to the BNPB.
As for scheme D, given that individual/private party imports goods for commercial purposes, they may not obtain fiscal facilities and must pay import duties, excise and/or import tax (PDRI). However, the import trade systems may be processed through the BNPB.
For more information, please contact Directorate General of Customs and Excise’s call center at 1500225 or via bit.ly/bravobc. (Ministry of Finance/EN)
Reviewed by: M. Ersan Pamungkas