Starting 2020, Shipments Over US $ 3 Will Be Subject To Import Duty

Delivery of goods illustration. (Photo: Directorate General of Customs and Excise)

JAKARTA - The Directorate General of Customs and Excise (DJBC) changed the rules regarding the import of consignments via e-commerce and Pos Indonesia to create fair treatment in taxation so as to protect domestic small and medium industries (IKM) in the midst of the onslaught of imported products.

"This consideration is taken from the input of several IKM associations, the Ministry of Industry, forwarder associations (ALFI), and retailers or offline distributors," said Director General of Customs and Excise Heru Pambudi in Jakarta, Monday 23 December.

Heru explained that currently e-commerce activities through shipments in the country reached 49.69 million packages, an increase of 254 percent compared to 2018, which was 19.57 million packages, and an increase of 814 percent compared to 2017 which was only 6.1 million packages. .

Therefore, Heru said that his party made an adjustment to the value of exemption or de minimis on shipments from US $ 75 to US $ 3 per shipment or consignment note for import duty.

"Meanwhile, tax levies in the context of imports are enforced normally or there is no lower threshold (de minimis)," he said.

The government has also rationalized the total tariff from 27.5 percent to 37.5 percent consisting of 7.5 percent Import Duty, 10 percent VAT, and 10 percent PPh with NPWP or 20 percent PPh without NPWP, now to 17.5 percent consisting of on 7.5 percent Import Duty, 10 percent VAT, and 0 percent PPh.

Heru said that in this new regulation the government specifically differentiates tariffs on bags, shoes and garment products because it is known that many of these goods craft centers have gone bankrupt due to being flooded by products from abroad.

The three commodities are subject to de minimis value for import duties starting at US $ 3, then the rest are given a normal rate (MFN), namely for bags of 15 percent to 20 percent, shoes 25 percent to 30 percent, and textile products 15 percent to 25 percent, respectively. - 10 percent VAT and 7.5 percent PPh 10 percent respectively.

He said the de minimis value adjustment of US $ 3 had taken into account the import value which was often announced in the Consignment Note (CN) import notification, which was US $ 3.8 per CN.

"So if the total is indeed higher because it is intended to protect our brothers in Tanggulangin, Cibaduyut, Cihampelas, and so on," he said.

Heru admitted that this policy will involve a marketplace platform to synergize in order to create transparency, namely through the e-commerce transaction data flow scheme to the Customs and Excise system online.

"This is expected to be able to eliminate the practice of under invoice and reduce miss declaration in the notification of consignments," said Heru.

He emphasized that in compiling this rule change, BKF, Tax and Customs had involved various parties to create inclusive regulations and uphold fairness in doing business.

He said that the amendment to the regulation is currently in the process of being sent to the Ministry of Law and Human Rights (Kemenkumham) so that it can be promulgated so that it can take effect 30 days after the legislative process is complete.

"But because this is the end of the year maybe the time taken will be longer but I hope it won't be delayed," he said.