Importing heavy equipment to Indonesia is very important for the construction, manufacturing, and infrastructure development industries of the country. However, these processes are not without financial strain, mainly attributed to import duties and taxes. Fortunately, Indonesia’s government can offer import duty exemptions, which reduces the costs that can be associated with importing equipment. Knowing the procedure, the rules, and all other requirements of the exemptions will benefit businesses and individuals. This information article is useful for detailed navigation of this system.

Major Laws and Rules on Exemptions to Import Duty

Major laws administer the exemptions of import duties in Indonesia; few laws that are trying to be fair and square between economic growth and also character that is abiding by the national standards. These laws and regulations define the process, eligibility criteria, and how to apply for these exemptions.

1. Law No. 10 of 1995, amended by Law No. 17 of 2006

This law stipulates the legal provisions regarding customs and excise in Indonesia. These include import duty, tax, and exemption in customs, keeping with international trade practice.

2. Minister of Finance Regulation No. 96/PMK.04/2023

It offers a few special customs provisions; the exemptions in respect of import having a Free on Board value of not exceeding USD 3. It essentially covers minor imports but is a precedent for general exemption.

3. Minister of Finance Regulation No. 199/PMK.010/2019

This regulation is also an amendment where the threshold, conditions, as well as exemptions were reviewed, with special attention towards the importers of heavy equipment into the country, to determine who shall be exempt and what benefits one gets.

These rules are made exemption-friendly yet compliant to encourage people to invest as well as other economic activities.

Who is Eligible to Be Exempt from Import Duties?

The eligibility of imported duty-free varies. It applies to certain specific persons and industries. There is the eligibility in the form of:

1. Returning Indonesian Citizens

Any Indonesian citizens living abroad for over and returning home one year can claim exemptions, including specific heavy machinery. This allows citizens to bring back valuable assets freely.

2. Foreign Citizen

The long-term stay permits KITAS or KITAP holders- foreigners to enjoy exemption from duty on the imports for their personal use. This shows commitment on their part for staying in the country.

3. Business

Companies importing heavy equipment for operational purposes, such as construction, manufacturing, or infrastructure projects, are eligible for exemptions. The equipment must be intended for internal use only, rather than for resale or commercial distribution.

Requirements for Import Duty Exemptions

To claim import duty exemptions, applicants must meet specific requirements and provide detailed documentation. Failing to meet these criteria can result in delays or denial of exemptions. Here are the primary requirements:

1. Documentation

Application should provide proof of his eligibility, (KITAS for individual or copy of business license for company etc.) and along with supporting papers like invoice copy, shipping documents/manifest, customs import permit).

2. Non-commercial use

The shipment should be without any intention for direct sale or otherwise for commercial selling.

3. Declaration

The following details must feature in the clear declaration: adequate descriptive about cargo, value including its usage to be made, under which head these goods are categorized.

How Nusantara Logistik Simplifies the Process

Customs regulations and the import duty exemptions claims can be pretty overwhelming. Nusantara Logistik is here to make the whole process easier for you, more efficient, and in compliance.

1. Preparation of Documents

All necessary documents will be prepared according to the requirements set by regulatory standards, thus less likely to get any errors and delay.

2. Coordination with Customs

Our team addresses all communications involving customs authorities for declaration submission and handling inquiries, resulting in smooth clearances.

3. Efficient Transport Solutions

The company offers reliable and efficient transport services from Nusantara Logistik for heavy equipment, with punctual delivery through robust logistics networks.