New customs law will not change Bapeksta's role

JAKARTA (JP): The Ministry of Finance's export service facilitating agency (Bapeksta) will continue to administer the provision of import duty exemptions and value added tax (VAT) refunds despite next month's new customs law, an official said yesterday.

The agency's head, M. Tjoek Soeroso, said yesterday exporting companies should not fear that they could no longer use the agency's services next month.

"We will continue to administer the provision of import duty exemptions and drawbacks as well as value-added tax refunds for importers which use imported materials for manufacturing export products," he said.

Soeroso said the new customs law would simplify import procedures which currently require exporters to fill in many documents.

The new law, which comes into effect on April 1, will require exporters to fill in only an import declaration form through an electronic data interchange system.

The system will be on line with the customs office and banks through the electronic data interchange system.

Tjoek said after completing their import declaration forms and submitting them to the customs office, exporters could send a copy to the agency when they submitted their bank guarantees, custom bonds or promissory notes.

Exporters are exempt from duties and VAT on materials imported to make export goods.

As they are required to pay duties and VAT on materials upon their arrival -- if they are not processed in a bonded zone -- they are entitled to a refund on the duties and VAT after they have exported their products.

Companies registered with the export service facilitating agency get their VAT and duties refunds from the agency.

Tjoek said more than 3,000 exporting companies used the agency's services.

He said tax facilities like those administered by his agency helped increase Indonesia's non-oil and gas exports.

The agency administered US$642 million in duty exemptions and VAT refunds for $2.4 billion of imported raw materials in the 1994/1995 fiscal. Exports from the imported materials were worth $10.89 billion.

In fiscal 1995/1996, duty exemptions and VAT refunds for $1.95 billion worth of imported raw materials was $449 million. Exports from these imported materials were worth $12.57 billion. (pwn)