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)