12 December, 2018
Overview
In a new regulation, the Minister of Finance (MOF) has shifted the authority to issue bonded zone licenses from the Directorate General to the Head of Customs Regional Office. The new regulation provides for the OSS system, a newly-developed system for licensing in Indonesia and it further stipulates that companies that would like to apply for a bonded zone license must have a Business Identification Number (Nomor Induk Berusaha – NIB). Please click here to see our publications on the OSS system.
The above provisions are stipulated under Regulation No. 131/PMK.04/2018 on Bonded Zone (Reg 131) which revokes MOF Regulation No. 147/PMK.04/2011 on Bonded Zone as lastly amended by MOF Regulation No. 120/PMK.04/2013.
Reg 131, which comes into effect on 25 November 2018, also amends several provisions on bonded zone, which are summarized below.
Several Key Changes
| Old Regime | New Regime |
|---|---|
| Directorate General issues Bonded Zone licenses | Head of Customs Regional Office issues Bonded Zone licenses |
| No NIB provision | NIB as a requirement to obtain the Bonded Zone license |
| No provision on taxpayer confirmation | Taxpayer confirmation is required to obtain the Bonded Zone license |
| Licensing application is submitted manually and electronically to customs system | Licensing application is submitted through electronic (INSW) system that is integrated with the OSS system – and manually if the submission cannot be conducted electronically |
| No provision on certain customs treatment | Accommodates certain customs treatment |
| Blacklist for Bonded Zone license – if the company has criminal history in customs | Blacklist for the Bonded Zone license – if the company has criminal history in customs, has been declared bankrupt, has debt arrears in the fields of customs, excise and tax |
| The bonded zone operation must update its bonded zone license if there are changes in its address and tax ID number | The bonded zone operation is no longer required to update its bonded zone license if there are changes in address and tax ID number |
| There is no obligation on report submission | It is required to submit a report on (i) economic effect and (ii) financial report |
| Incoming & Outgoing goods: does not accommodate SEZ and BLC | Accommodate SEZ, and all bonded stockpiling place |
| No clear provisions on type of incoming and outgoing goods | More clear (Article 20 par. (3), 21 par. (3), 23 par. (2)) |
| No tax invoice provision | Tax invoice must state: “PPN tidak dipungut sesuai PP Tempat Penimbunan Berikat” |
| Outgoing goods only covered “Finished Goods”, RM, scrap/waste, capital goods, sample | More “Goods” covered, such as packaging, auxiliary materials |
| Complex procedure to calculate import duty and tax payable | Simplification of calculation. No more condition for “broken goods” |
| No provision on temporary release | Temporary release is allowed |
| Submission of import document (PIB) → taxpayer confirmation is not required | Taxpayer confirmation is not required, accommodate PIB submitted by courier service |
| Warehousing → not cover BLC | Warehousing → cover BLC |
| Few conditions for suspension and revocation | More strict conditions for suspension and revocation |
| No provision on self service | Self service is allowed for certain conditions |
Impact for Applicants
- Applicants for a bonded zone license must be registered in the OSS system and already have a NIB.
- To accommodate the licensing system in Indonesia shifting to the OSS system, the submission of bonded zone application will go through Indonesia National Single Window which has been integrated with the OSS system.
- There are more strict provisions for applicants for bonded zone licenses, i.e., never committed a customs or excise crime that has permanent legal force, have never been declared bankrupt by a court which has permanent legal force and do not have debt arrears in the fields of customs, excise or taxation.
- The holders of a bonded zone license will have more reporting obligations i.e., economic effect report and financial report.
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