Customs Regulations

Every imported item is subject to import duties and is subject to import tax (PDRI) in accordance with the provisions of customs regulations. Know the calculation of import duties and examples of calculating import levies on goods in 2023.

As technology develops, distance is no longer an obstacle for someone to buy goods from wherever they come from, whether domestic or even other countries.

With the online shop trend, shopping no longer requires you to come directly to the shop or visit the seller’s location.

Just via a computer or gadget, you can shop anywhere and at any time as long as you are connected to the internet network.

But remember, even if it is online shopping, there will still be payment of a levy if it is imported.

There will be import duties, excise or PDRI in the form of VAT, PnBM and PPh.

Of course, not only for individuals, online transactions also make it easier for business people to meet their needs for products and raw materials to run their business.

If goods needed for business must be imported from abroad, you should also know the provisions for import duties, excise and taxes in the context of imports.

Understanding Import Duties, Export Duties, Excise and Taxes in the Context of Imports

(1). Import duty

Import duties are state levies on imported goods.

Types of Import Duties

As explained above, Import Duty is a levy on imported goods by the Directorate General of Customs and Excise (DJBC) of the Indonesian Ministry of Finance.

The rules regarding Import Duty on imported goods are contained in Law (UU) Number 17 of 2006 concerning Amendments to Law No. 10/1995 concerning Customs.

The following are the types of import duties on imported goods based on CHAPTER IV of the Customs Law:

1. Safeguard Measures Import Duty (BMTP)

Types of Safeguard Measures Import Duty (BMTP), namely the imposition of import duties on imported goods, where most of these types of goods are imported.

BMPT aims to protect domestic industry from similar goods that experience serious losses.

2. Anti-Dumping Import Duties (BMAD)

Meanwhile, Anti-Dumping Import Duty or BMAD is imposed on imported goods that are designated as dumped goods.

Dumped goods are goods whose price is cheaper than similar goods in the country.

BMAD aims to protect domestic industry so that it does not become less competitive.

3. Retaliatory Import Duty (BMP)

This type of retaliatory import duty or BMP is the imposition of import duty on imported goods originating from countries that treat Indonesian export goods in a discriminatory manner.

4. Compulsory Import Duty (BMI)

This type of Compulsory Import Duty or BMI is imposed on imported goods, which are found to have subsidies from the government in the exporting country.

In this way, the imposition of Compulsory Import Duty or BMI aims to protect domestic industry from the same goods.

(2). Export Duty

Export duties are the imposition of state levies based on the Customs Law on exported goods.

Goods subject to export duties include:

Leather, Wood, Cocoa beans, Palm oil (CPO and its derivatives), Metal mineral processing products, Metal mineral products with certain criteria

(3). Excise

The definition of excise is a state levy on certain goods which have their own properties and characteristics.

So the types of goods that are related to the imposition of this levy are known as excisable goods.

Excisable goods mean certain goods that are consumed in nature but require control and monitoring of their distribution because of the effects that arise and require excise levies.

Types of goods subject to excise include:

• Ethanol or ethyl alcohol
• Drinks with ethyl alcohol content
• Tobacco products (such as cigars, cigarettes, cigarettes, sliced tobacco leaves, and other tobacco products)

(4). Taxes on Imports or PDRI

The definition of Tax on Imports (PDRI) is a tax imposed on imported goods which is collected by the government through the Directorate General of Customs and Excise (DJBC).

This PDRI is calculated excluding import duties and excise.

PDRI consists of several types of taxes, namely:

• Value Added Tax (VAT)
• Income Tax Article 22 (PPh 22)
• Sales Tax on Luxury Goods (PPnBM)
• The PDRI calculation is based on the PDRI tariff times the value of imported goods.