Government lowers duties on temporarily imported goods

Government lowers duties on temporarily imported goods

JAKARTA (JP): The government issued new rulings yesterday
slashing or eliminating duties on temporarily imported goods, on
goods in transit and on temporary stock holdings.

The Ministry of Finance stated in decree No. 574/KMK.05/1999,
effective Oct. 1, that the government would exempt or reduce
import duties on goods that are imported temporarily.

Temporary importation covers goods staying in the country for
up to 12 months, although this time limit can be extended twice.

The goods, exempt from duties under the new ruling on
temporary importation, include those used for exhibitions,
models, competitions, seminars, public shows, research and
education.

The temporarily imported goods, subject to reductions in
duties, are those used in production or domestic transportation.

Importers of duty-exempted goods must provide the government
-- the Directorate General of Customs and Excise -- bank
guarantees; while importers of the goods subject to duty
reductions are required to pay 2 percent interest a month on the
unpaid duties and provide bank guarantees.

The government will return the guarantees to the importers
whenever the imported goods have been exported, sent to bonded
zones or to the Batam export processing area in Riau.

On goods in transit, the government -- through finance
minister decree No. 575/KMK.05/1996 -- reaffirms that it does not
impose any duties on them. The government only requires the
carriers of the goods to report to the customs office. This
ruling is effective Oct. 1.

The government, through finance ministry decree No.
573/KMK.05/1996, effective Oct. 1, noted that inbound or outbound
goods may be stocked in temporary holdings for up to 30 days if
the holdings were inside harbor areas, and for up to 60 days if
the holdings were outside harbor areas. (rid)