Regulation Update
Import of Weapons For Exhibition and Joint Training is Now Duty Free

Friday, 23 July 2021

Import of Weapons For Exhibition and Joint  Training is Now Duty Free

Imported military equipment for joint training purposes or defense industry exhibitions are now provided duty-free facilities, as stated in the Minister of Finance Regulation (PMK) Number 91/PMK.04/2021. 

This provision is an affirmation as well as an extension of the previous rule, namely PMK Number 191/PMK.04/2016 which has been amended by PMK Number 164/PMK.04/2019.

In the previous regulation, the exemption from import duty was only granted to military equipment that was imported and used by a number of government institutions, without specifically mentioning restrictions on its use.

There are eight government agencies that are entitled to use the import duty facility, Presidential Institution, the Ministry of Defense, the Headquarters of the Indonesian National Armed Forces (TNI), the Headquarters of the Indonesian National Police (Polri), the State Intelligence Agency (BIN), the National Cyber and Crypto Agency (BSSN), the National Narcotics Agency (BNN), and the National Counter-Terrorism Agency (BNPT).

The government also stipulates the types of goods that may be imported using import duty-free facilities by each of these agencies.

In total there are 85 types of goods listed in the attachment to the regulation.  The following are the details:

Presidential Institution   the Ministry of Defense and TNI POLRI BSSN BIN BNPT BNN
1. Official vehicles   1. Special or combat vehicles 1. Special vehicles 1.Crypto machine 1. Weapons 1. Special vehicles 1. Firearms
    2. Weapons 2. Firearms 2. KDC NDA or random key generators 2. Ammunition 2. Firearms 2. Ammunition
    3. Ammunition 3. Ammunition 3. KDC SA or key distribution center pendistribusi kunci 3. Individual combat equipment 3. Ammunition  
    4. Aircraft 4. Aircraft 4. Monitoring tools 4. Communication and nagivation 4. Aircraft  
    5. Heavy equipment 5. Bomb disposal kit 5. Traffic analysis tools 5. Survey and mapping equipment 5. Bomb disposal kit  
    6.Bomb disposal kit 6.Individual combat equipment 6. Code Breaker Super Computer 6. Laboratory equipment 6. Communication and navigation  
    7. Individual combat equipment 7. Radar 7. Counter surveillance 7.Educational equipment 7. Individual combat equipment  
    8. Radar 8.Ship 8. Jammer or device to interrupt the frequency 8. Publication tools 8. Communication and navigation support tools  
    9. Ship 9. Base facility equipment 9. Place or device for controlling electromagnetic waves 9. Chemicals 9. Motor vehicles   
    10. Base facility equipment 10.Communication and navigation 10.  Spare parts for Crypto Equipment 10.  Spare parts for the main tool 10. Counter-surveillance  
    11.Communication and navigation 11.Survey and mapping equipment 11. Crypto analysis equipment spare parts 11. Spare parts for supporting tools 11. Jammer or GSM and CDMA frequency interfering device  
    12. Survey and mapping equipment 12. Medical equipment 12. Spare parts for the main supporting tool   12. Educational equipment  
    13. Medical equipment 13. Laboratory equipment     13. Spare parts for the main tool  
    14. Laboratory equipment 14. Educational equipment     14. Spare parts for supporting tool  
    15. Educational equipment 15. Publication tools        
    16. Publication tools 16. Motor vehicles        
    17. Motor vehicles 17. Vehicles on water        
    18. Vehicles on water 18. Special animals        
    19. Special animals 19.  Lubricating oil        
    20.  Lubricating oil 20. Materials for making driver's license (SIM), vehicle registration certificate (STNK) and vehicle ownership document (BPKB)        
    21. Chemicals 21. Spare parts for the main tool        
    22. Spare parts for the main tool 22. Spare parts for supporting tool        
    23. Spare parts for supporting tool          

 

Facility Submission

Import duty-free facilities are provided after the relevant institution submits an application to the Minister of Defense through the Head of the Customs Office where the goods are imported.

Applications are submitted electronically using the Indonesian National Single Window (NSW) system or submitted in writing by attaching a letter of application and other supporting documents physically or in the form of electronic data.

The application must be accompanied by a letter of a military cooperation agreement with a defense partner country or a principle license from the Commander of the Indonesian National Armed Forces and completed with detailed information regarding the number of goods, the types of goods to be imported, and their customs value.

Then, the Head of the Customs Office can approve or reject the application along with the reasons, a maximum of five hours after the application is received completely and correctly if it is done electronically.

However, if it is submitted in writing, the decision can be submitted a maximum of three days after the application is received completely and correctly.

After the joint military exercise or defense industry exhibition has ended, the equipment may be re-exported or destroyed by burning, crushing, detonating, or other methods.

Supervision

Furthermore, if the application is approved, the Head of the Customs Office will supervise the use of the facility, to ensure that the quantity and types of goods imported are in accordance with the documents submitted.

Supervision is part of the activities of monitoring and evaluating the provision of facilities, which is carried out through an electronic application system or by other mechanisms, based on risk management.

If any abuse is found, the import duty exemption facility will be audited by the Directorate General of Customs and Excise.



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