Export Reference Price for Export Tax is Set
Monday, 17 May 2021
Minister of Finance Sri Mulyani set the amount of Export Reference Price (HPE) which is the basis for calculating export duties for a number of commodities such as wood and leather, cocoa beans, mineral processing products to Crude Palm Oil (CPO) and its derivatives.
In detail, the export reference price is determined by the government in the Minister of Finance Decree (KMK) Number 16/KM.4/2021.
The regulation is a derivative of Government Regulation (PP) Number 55 of 2008 concerning the imposition of export duties on exported goods.
The regulation, it is asserted that the amount of export duty that must be paid by exporters is calculated based on the export duty rate multiplied by the number of units of goods, the export price and the currency exchange rate.
However, if the export duty rate is determined specifically, the amount of the export duty is calculated by multiplying the export duty rate per unit of goods, in a certain currency by the number of goods and the currency exchange rate.
Time Period
In general, there are 392 types of goods whose export prices are set by the government, including nine goods made of leather for which export prices are set, 22 wood products, cocoa beans, and 360 goods from mineral groups.
The amount of export prices for groups of wood products varies depending on the type of product. For goods in the form of wood chips, the export price is set at USD 61 per ton.
Meanwhile, veneer wood is set between USD 400 per m3 to USD 800 per m3. The export price for processed wood ranges from USD 300 per m3 to a maximum of USD 3,500 per m3 for processed ebony wood.
For the leather product group, the export price varies from USD 1.2 per square feet to a maximum of USD 5.3 per square feet for raw sheep hides and skins.
The government also sets an export price for cocoa beans at USD 2,130 per metric ton.
The export reference price for CPO products and their derivatives is set at USD 1,110.68 per metric ton.
In addition, the government also sets an export reference price for 360 types of goods that are classified as mineral products with various levels of refining.
The export reference price is valid for the period from 1 May to 30 May 2021. If that time period has expired, then the export reference price can still be used as long as there is no new reference price issued by the government.
