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Understanding Indonesian Customs
Customs duties in Indonesia vary between 0% to 170%, although most imported items will attract duties in the range of 0% to 15%. Various customs facilities are available, including duty exemptions and preferential duties for most imported goods of ASEAN Origin. Therefore ASEAN origin certification is a critical.
Indonesia imposes import restrictions on certain products including alcoholic drinks, ammunition, and hazardous waste. A Special Importer Identification Number (NPIK) also needs to be obtained to import certain items, including textile products, shoes, and electronic goods.
The Directorate General of Customs and Excise is responsible for enforcing customs and related laws, and for collecting customs duties and other taxes on imported goods.
Companies often regard Customs matters as low key management issues, with little or no monitoring being conducted until it's too late. Duty and tax liabilities can build up alarmingly quickly, with significant additional exposure to administrative penalties of up to 500%.
In addition, we forecast more aggressive and better targeted Customs audits (sometimes in the form of joint audits with Tax authorities) as part of concerted action by the Indonesian Government to increase revenues. Larger companies, and especially multi-national corporations, are at particular risk of increased Customs scrutiny.
Services Offered
Our professional services focus on both savings and strategic opportunities as well as risk management. Among other things, we provide assistance in the following areas:
- Cross-border valuation of goods
- Customs Audit Management
- Luxury Sales Tax issues
- Tariff Classification
- Deferral of payment of import taxes (Bonded Zone, Bonded Warehouse, Export Facilities/KITE)
- Anti-dumping and anti-countervailing measures
- Duty Drawbacks & Exemptions
- Dispute resolution
- Import Licensing Requirements
- Customs and Excise risk management
- Identification and management of exposures/customs compliance reviews
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