Indonesia to cut import duty exemption to $3 ??

[dafluff]

No, that's not a typo, starting next year the import duty exemption threshold is going to be $3, down from $75. This is likely done to counter the ever increasing appetite for online shopping from abroad by Indonesians.

This basically ensures anything you import from online sites will now be subject to taxation. However, some good news is that the calculation now no longer includes PPh which is 10% (or 20% if you do not have an NPWP).

https://finance.detik.com/berita-ek...barang-impor-online-mulai-rp-45000-kena-pajak

 

[R Cameron]

That's frustrating. Of course I would selfishly like the limit to be very high, $75 seemed to me like a reasonable compromise. A silver lining, books of any value can be imported with no duty at all: https://finance.detik.com/berita-ek...ng-suka-baca-impor-buku-bakal-bebas-bea-masuk

 

[nd_eric_77]

No, that's not a typo, starting next year the import duty exemption threshold is going to be $3, down from $75. This is likely done to counter the ever increasing appetite for online shopping from abroad by Indonesians.

This basically ensures anything you import from online sites will now be subject to taxation. However, some good news is that the calculation now no longer includes PPh which is 10% (or 20% if you do not have an NPWP).

https://finance.detik.com/berita-ek...barang-impor-online-mulai-rp-45000-kena-pajak

It will be really interesting to see what the knock-on effect is for imported items sold by local vendors on Tokopedia. This is a huge blow to Amazon and Ali-Express. Also, I sincerely hope that this does not signal a reduction in the personal exemption at the airport, as I have a trip to the US planned in June.

 

[El_Goretto]

And considering the ridiculous requirements with SNI for importers, it means the Indonesian market will have pretty much nothing and the few imported stuff it will have will be ridiculously overpriced.

This is taxing the consumers, taking a big chunk of their disposable income and nobody gives a shit.

Importers don't care because they just pass on the cost to the consumers. In fact, it also kills small scale importers, living it to a few large ones who can afford the large import quantities to offset the SNI bs and they can dictate the price on the market.

 

[Jamu]

The article says that the tax is now 17.5% for 'general' goods. Unfortunately, it is not clear to me what is considered to be a general good. Does anyone know? It's obviously not bags, shoes and textiles, which have higher rates. I don't mind paying tax if required, but it is frustrating not to have full transparency on what the tax will be for a given item.

 

[dafluff]

The article says that the tax is now 17.5% for 'general' goods. Unfortunately, it is not clear to me what is considered to be a general good. Does anyone know? It's obviously not bags, shoes and textiles, which have higher rates. I don't mind paying tax if required, but it is frustrating not to have full transparency on what the tax will be for a given item.

I don't know, maybe they just mean any goods that do not otherwise have a specific HS code.

You can browse the DitJen Bea dan Cukai database for specific tax rates on more or less any item (it is very clunky however):

http://www.beacukai.go.id/btki.html

 

[sumyunggai]

The article says that the tax is now 17.5% for 'general' goods. Unfortunately, it is not clear to me what is considered to be a general good. Does anyone know? It's obviously not bags, shoes and textiles, which have higher rates. I don't mind paying tax if required, but it is frustrating not to have full transparency on what the tax will be for a given item.

The current regime is free to $75, then 7.5% import duty, 10% VAT, then 20% (no NPWP) or 10% (NPWP) income tax. This is 29% or 39.75%.

The new system will be 7.5% import duty, 10% VAT and no income tax. This is 18.25%

This applies to EVERYTHING, except bags, shoes and textiles, which will continue to attract income tax but also a higher rate of import duty, so essentially on those you can expect to pay around 50%.

I assume that in the case of an item costing $4 + $4 postage, then this will be assessed as $8.

Note that for importing goods >$75 this is a fairly substantial tax cut (compared to no NPWP and 39.75%) - for example, if you imported an item of electronics from Germany, where VAT is 20%, you'd end up paying less than the Germans (since it would be net of VAT).

 

[Jamu]

The current regime is free to $75, then 7.5% import duty, 10% VAT, then 20% (no NPWP) or 10% (NPWP) income tax. This is 29% or 39.75%.

The new system will be 7.5% import duty, 10% VAT and no income tax. This is 18.25%

This applies to EVERYTHING, except bags, shoes and textiles, which will continue to attract income tax but also a higher rate of import duty, so essentially on those you can expect to pay around 50%.

I assume that in the case of an item costing $4 + $4 postage, then this will be assessed as $8.

Note that for importing goods >$75 this is a fairly substantial tax cut (compared to no NPWP and 39.75%) - for example, if you imported an item of electronics from Germany, where VAT is 20%, you'd end up paying less than the Germans (since it would be net of VAT).

From the article: "Heri mengatakan dengan revisi aturan ini tarif pajak yang akan dikenakan akan turun. Rinciannya, bea masuk tetap 7,5%, pajak pertambahan nilai (PPN) 10% dan Pajak penghasilan (PPh) 0%. Sehingga totalnya turun menjadi 17,5% untuk barang umum," ujar Heru Pambudi di Jakarta, Senin (23/12/2019)." So if you're right that it's actually 18.25% then the Director General of Bea dan Cukai can't do math... that's pretty scary.

As for it applying to EVERYTHING except bags, shoes and textiles, do you have any authority for this? It would be great if actually true...

 

[rabbit_39]

Import duty is not necessarily 7.5%? I thought it depends on the HS code of the item being imported.

http://www.beacukai.go.id/btki.html

 

[Balifrog]

I wonder how they can really apply this, considering the huge numbers of parcels arriving every day.

 

[sumyunggai]

From the article: "Heri mengatakan dengan revisi aturan ini tarif pajak yang akan dikenakan akan turun. Rinciannya, bea masuk tetap 7,5%, pajak pertambahan nilai (PPN) 10% dan Pajak penghasilan (PPh) 0%. Sehingga totalnya turun menjadi 17,5% untuk barang umum," ujar Heru Pambudi di Jakarta, Senin (23/12/2019)." So if you're right that it's actually 18.25% then the Director General of Bea dan Cukai can't do math... that's pretty scary.

As for it applying to EVERYTHING except bags, shoes and textiles, do you have any authority for this? It would be great if actually true...

It's definitely 18.25%, not 17.5%, because you apply BM first.

this is clarified here.


Unfortunately I do not have anything official about the new tariff, and I find the Indonesian media to be unreliable, so would not 100% bet on anything.

 

[sumyunggai]

Import duty is not necessarily 7.5%? I thought it depends on the HS code of the item being imported.

http://www.beacukai.go.id/btki.html

see my link above; essentially below $1500 they don't apply the HS codes, it's just always 7.5%

 

[jstar]

Yep, normally sales tax (VAT, GST, ...) is calculated over the total of item value, shipping costs*, insurance and the import duty. Do keep in mind I say 'normally'.

* they don't want people to get creative by applying higher transportation costs and lower sales prices, to avoid paying taxes.

 

[Jamu]

Does anyone know what the shippers (DHL, Fedex etc) are charging as an admin fee for handling the customs? In Singapore it is typically the Sing dollar equivalent of around Rp 250k per shipment and you have no choice - the shipper automatically pays the duties and you have to repay them, plus the admin fee, in order to get your stuff. Of course, in Singapore VAT kicks in when the value exceeds S$400. In Indonesia, it would be brutal to pay 250k on an import worth, let's say, a hundred US dollars or less, in addition to the customs duties and VAT..

 

[jstar]

Besides others I've used DHL (eBay USA, small item like $40+$20) and TNT (from the Netherlands, that item was €450) and never again:

TNT charged 420K for their own administration while the customs part was 380K.

DHL charged almost three times the customs amount: 200K. All administration etc.

So now I'd use them only for important documents (probate etc.).

NB: With AliExpress, up till now, I paid 10-12K to the Indonesian Pos. Independent of item value. No reason to complain, but now it might change.

 

[Jamu]

Besides others I've used DHL (eBay USA, small item like $40+$20) and TNT (from the Netherlands, that item was €450) and never again:

TNT charged 420K for their own administration while the customs part was 380K.

DHL charged almost three times the customs amount: 200K. All administration etc.

So now I'd use them only for important documents (probate etc.).

NB: With AliExpress, up till now, I paid 10-12K to the Indonesian Pos. Independent of item value. No reason to complain, but now it might change.

Good information to note, and what I was afraid of. Unfortunately, many of the companies that I would buy from are in Europe or the US and offer limited choices for shipment, usually amongst DHL, Fedex, UPS and TNT. Given the outrageous carrier charges for 'admin', it still doesn't make much sense to order stuff from abroad (even with the lower fees from the Indo government), unless one is making a big order, eg maybe 500 USD or more...

 

[jstar]

The 15 bars of Milka chocolate ? (270 grams each) that we sent via the mail* have just arrived in South Jakarta. It seems Pos Indonesia did not charge anything (she only gave a tip).

*Approx one month ago from Europe

 

[sumyunggai]

Does anyone know what the shippers (DHL, Fedex etc) are charging as an admin fee for handling the customs? In Singapore it is typically the Sing dollar equivalent of around Rp 250k per shipment and you have no choice - the shipper automatically pays the duties and you have to repay them, plus the admin fee, in order to get your stuff. Of course, in Singapore VAT kicks in when the value exceeds S$400. In Indonesia, it would be brutal to pay 250k on an import worth, let's say, a hundred US dollars or less, in addition to the customs duties and VAT..

AliExpress always come via Kantor Pos and the demand is always 20,000rp from the postman.

If you order from Amazon then they pre-calculate customs fees etc. and there is nothing to pay.

 

[Balifrog]

AliExpress always come via Kantor Pos and the demand is always 20,000rp from the postman.

If you order from Amazon then they pre-calculate customs fees etc. and there is nothing to pay.

Same for me (Bali).

Ordered many times from AliExpress, just paid 20,000 for the postman (with receipt)

I have at present 2 orders under way, lets see what happens !

Made 2 orders from Amazon (books), arrived same, and did not pay any tax.

I also made last year 3 orders from Ebay France, never paid any tax, just the 20K. Here also I have one on the way, lets see what happens.

 

[Jamu]

Sounds like a key takeaway is to ask the seller (other than Amazon or AliExpress vendor) to send via their local postal system (with tracking) so that it goes through Pos Indonesia when it arrives here, thereby avoiding the huge admin fees charged by DHL, Fedex, UPS, TNT etc..

Btw, good news Balifrog, books are completely exempt from customs duties and taxes now.