Effective! Major adjustment of Indonesian import tariffs, involving 8 categories of goods including textiles, shoes and clothing丨PDAEXSEA-熊猫出海

Effective! Major adjustment of Indonesian import tariffs, involving 8 categories of goods including textiles, shoes and clothing丨PDAEXSEA

Indonesia Tariffs 2025-03-10 08:45:26 Page view：46

The Indonesian government recently formally simplified the import tariff rules for goods transportation through the Minister of Finance Regulation (PMK) No. 4 of 2025, which came into effect on March 5, 2025.

The regulation changes the import tariff system for the transportation of various goods, including bags, shoes and cosmetics, and provides convenience for pilgrims and winners of international competition prizes. PDAEXSEA summarizes the key points as follows:

1. Redefine transport goods

- Cargo consignments are now divided into two types: "Trade Packages" (resulting from a transaction between a seller and a buyer) and "Personal Packages" (sent to non-commercial entities).

2. Consignment note (CN) submission:

- Unless the postal operator requires confirmation with the sender or recipient, the CN must be submitted within one day of the shipment's arrival.

3. Duty assessment based on payee type:

- Commercial entities are subject to a "self-assessment" scheme, which means they must calculate import duties themselves and may face penalties for payment discrepancies.

- Individual consignees are subject to an "official assessment" scheme, where the duty value is determined by customs officials and they are not subject to penalties.

4. Additional Import Tariff (BMT) Exemption:

- Shipments with a free on board (FOB) value of $3 to $1,500 are exempt from BMT, including pilgrims' cargo and prizes for international competitions.

5. Changes in non-commodity tariff rates:

- Items with a FOB value of USD 3 to 1,500 are subject to an import duty of 7.5% but are exempt from BMT and income tax (PPh). VAT (PPN) still applies as currently provided.

6. Simplify tariff rates for specific goods:

- The government has simplified import duty rates for certain goods, reducing them from eight categories to three:

- 0%: scientific books.

- 15%: watches, cosmetics, steel.

- 25%: luggage, textiles, footwear, bicycles.

- These goods are exempt from BMT, but still subject to VAT. Income tax (PPh) is 5%, with the exception of scientific books, which are exempt from VAT and PPh.

7. Benefits for Pilgrims:

- Goods shipped by pilgrims are exempt from import duties, BMT, VAT and income tax, with a maximum FOB value of $1,500 per shipment, limited to two shipments.

Exceeding this limit will incur an import duty of 7.5%, but will still be exempt from BMT and income tax, and VAT will be levied as required.

8. Reduction of prizes for international competitions:

- Prizes such as medals, trophies, emblems and similar items are exempt from import duties, BMT, VAT and income tax, limited to one per international competition or award category.

Motor vehicles, taxable goods and lottery/gambling prizes are not included in this fiscal relief.

9. Changes in Export Regulations:

- Exporters and postal operators must submit a CN to customs for goods weighing less than 30 kg, while goods over 30 kg must use the export notification document.

- The new regulation simplifies the consolidation of export goods by introducing the Shipped Goods Consolidation Notification Document (PKBK).

- Other changes include facilitation of export verification, clarification of duty exemptions for re-imported goods, and adjustments to the export bans and restrictions (lartas) regulations.

The Indonesian government passed PMK Act No. 4 of 2025, which not only improved the efficiency of customs services, but also set clear rules and boundaries for the import and export of transported goods.

For individuals, pilgrims can transport goods back to their country within the prescribed range without worrying about various taxes and fees. The FOB tax exemption of up to US$1,500 per batch of goods and the limit of two batches of goods fully take into account their actual needs.

For individuals who receive international competition prizes, medals, trophies and other symbols of honor can also enter the country without burden and exempt from various taxes and fees, which fully affirms their efforts and achievements.

For enterprises, on the one hand, under the self-declaration mode, Commercial Entities must strengthen customs audits to ensure that the import tariffs calculated by themselves are accurate and avoid fines due to payment differences. This requires the company's financial and customs teams to be more professional and treat each declaration rigorously and meticulously.

On the other hand, under the new policy, the tariff rates of different goods are reorganized and simplified. Luggage, textiles and other commodities have clear 25% and 15% grades, and scientific books enjoy VAT and PPh (income tax) exemptions. Enterprises can optimize procurement and sales strategies based on these adjustments, re-evaluate costs, and find a more advantageous position in the market.

I believe that with the implementation of this policy, Indonesia's trade pattern will usher in a new situation, and individuals and enterprises will also usher in new opportunities and challenges in the process of adapting to the new regulations.

PDAEXSEA, a one-stop cross-border enterprise service platform, is tailored for Chinese enterprises to go overseas solutions and supporting landing services, helping Chinese enterprises to "fall into fewer pits" when going overseas.

For more information about services related to enterprises going overseas to Indonesia, please consult PDAEXSEA professional consultants.

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