Government Exempts Tax on Imported Goods of Shipment and Passenger Luggage for Covid-19

JAKARTA. Restriction on the import goods of shipment and luggage carried by passengers in connection with the handling of Corona Virus Disease 2019 (Covid-19) will get relaxation. This is as stipulated in the Minister of Finance Regulation (Peraturan Menteri Keuangan/PMK) number 34/PMK. 04/2020, which shall be effective from 17 April 2020. 

During this time, the government limits the imported goods of shipment and luggage of passengers that are free from import duty and tax on Import, specifically for goods whose value is no more than USD 3 per shipment for imported shipments and USD 500 per passenger for passenger luggage.

However, especially for goods used for handling Covid-19, the facility also applies to imported goods of shipments and luggage with a value above USD 500.

Even so, the procedures for getting these facilities are different. For the imported goods of shipment and import of the passenger's luggage with a value of not more than USD 500, taxpayers (WP) simply show the Tax ID number (NPWP) when picking up the goods or when showing the Customs Declaration at the airport. 

As for shipments or luggage whose value is above USD 500, must use a Notification of Imported Specialized Goods (Pemberitahuan Impor Barang Khusus/PIBK). 

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In addition to regulating the provision of facilities for the imported goods of shipment and luggage, the regulation also regulates the provision of facilities for the release of goods from bonded zones or bonded warehouses, free zones or special economic zones (KEK) originating from imports, for the purpose of handling Covid-19.

The taxation facilities provided are exemption of Value Added Tax (VAT) or VAT and Sales Tax on Luxury Goods (PPnBM), and is free from collection of Income Tax Article (ITA) 22.

To get the facilities, taxpayer must submit an application to the Minister of Finance, through the Director General of Customs and Excise (DJBC). The application must be accompanied by the identity, NPWP, details of the number and type of goods, as well as an explanation regarding the intended use of the goods then submitted through the DJBC portal or the Indonesian National Single Window (INSW) system.

However, goods still can be issued and used without being subject to import duty and other taxes, even though DJBC has not approved the application yet. On condition that the applicant submits a written guarantee that the items are used for handling Covid-19 pandemic.