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)