New regulations issued to speed up exports

New regulations issued to speed up exports

JAKARTA (JP): Minister of Finance Mar'ie Muhammad has raised the maximum value of goods or parcels that can be exported without using the Export Notification Form from Rp 1 million to Rp 10 million (US$4,500).

The new measure, designed to facilitate exports, notably those of small firms, is stipulated in one of three decrees issued by the minister on Monday.

The new ruling, Decree No.87/KMK/1995, stipulates the items included in the goods or parcels worth up to Rp 10 million which can be exported without using the Export Notification Form. They are goods belonging to travelers, persons moving overseas and border-crossers; diplomatic bags; goods for religious, sports and cultural and humanitarian missions, items for surveys, as well as exhibition materials, repair goods and commercial samples.

Decree No.89/KMK/1995 exempts metal boxes and crates classified under the postal tariff of the Harmonized System for packaging export goods, from import duty and other import levies.

In another ruling, Decree No.88/KMK/1995, the finance minister stipulates that companies located in industrial estates can apply for the Private Entrepot Facility for Export even though their plants are still under construction.

Applicants are required only to produce written statements from the management of the industrial estates certifying the location of their plant projects.

The decree says that when their plants have been completed and are ready to begin production, the investors can ask for the local customs and excise duty inspector to make a spot check.

If the spot check concludes that the plants are indeed ready for operation, the inspector will immediately assign customs officers to supervise activities at the Private Entrepot for Export.

Previously, only companies which had started production were allowed to apply for the facility.

The three rulings became effective as of Feb. 14, according to Agus Haryanto, chief of the legal and public relations bureau of the finance ministry. (vin)