Almost all types of imported goods will be subject to various types of import taxes. However, there are also imported goods that are subject to Value Added Tax (VAT) free from import duty (BM) levies, even VAT and Import PPh free.
How come?
That’s because there is a Minister of Finance Regulation (PMK) Number 199 of 2019 concerning Customs, Excise, and Tax Provisions on Imported Shipments. Through this policy, imported goods worth USD3 will not be subject to Import Duties and Article 22 Income Tax.
However, this exemption from import duties does not apply to textiles, shoes, and bags. The latest import provisions regarding consignments regulated in the Minister of Finance Regulation number PMK 199/PMK.010/2019 have been in effect as of January 30, 2020.
In this rule, Customs and Excise adjusts the value of the Import Duty exemption on the shipment, which was previously USD75 to USD3 per shipment, only to be free from Import Duty.
In accordance with PMK 199/2019, the provisions are:
• Import value is less than USD3 per shipment or equivalent to Rp.43,500 (exchange rate of Rp.14,500 per US dollar) => Free of Import Duty, but subject to 10% VAT
• Import value more than USD3 to USD1500 per shipment => 7.5% Import Duty and 10% VAT
• Import value is more than USD1500 per shipment => Import Duty, VAT and PDRI are imposed
The recipient of the shipment of goods valued at more than USD 1500 must submit a PIB (Notice on Imported Goods) to Customs to calculate the amount of tax to be paid.
