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Not All Goods Require a License When Entering Indonesia
When you’re importing goods into Indonesia, these are known as dutiable goods. The goods will be subject to the Indonesia custom duty rate.
What Are the Taxes Involved?
Any goods that are imported into Indonesia by a commercial entity or private individual will be subject to import duties and taxes. These taxes will be calculated upon the completed shipping value based on cost, freight, and insurance.
Some products will have their duties calculated based on the unit of measure. Aside from the customs duty rate that these goods will be subject to, they will also be imposed with sales taxes. Some goods could even be subject to STLG and excise fees.
What Is the Custom Duty Rate in Indonesia?
The rate that you pay will vary depending on the products imported. Rates can range between 0-40%. The average duty rate is generally 10.89%.
Some products can be imported duty-free. This includes electronic products, books, and laptops. for example. Some products will be subject to higher customs tariffs. These products include alcoholic drinks, cars, luxury cars, and luxury goods. Luxury cars, for example, can be taxed up to 150-200%
In Indonesia, the customs duty rate on dutiable goods is based on the ad valorem system. The country uses a system called the Nomenclature of the Harmonized System. Preferential tariff treatments are granted to certain products from developing countries. This is based on the Global System of Trade Preferences (GSTP) framework. The preferential margin is generally within the 10% range and there is GSTP for 31 tariff positions.
Documents You Need to Import Your Goods
To import your goods into the country, you will need the following documents:
- Packing list
- Airway Bill
- Receipt for payment of import duties
- Product HS Codes
- Insurance policy
- Power of attorney document (this should be submitted by your Customs Broker)
Paying for Your Custom Duty Rate
To pay the customs duty rate for your dutiable goods, Indonesia uses a single administrative document. This is part of its effort to improve the payment systems. The one administrative document system is applicable for all taxes that are associated with one import type. The system is the exchanging electronic data (EDI) system that will allow payments to be done via electronic transfer. This means import taxes must be paid to a local exchange bank only.