Why Are Customs Duty Fines Multiplying, and How to Calculate Import Duty Fines on Consignments?

Buying goods from abroad has become one of the habits of many people in the digital era. We can easily access marketplaces from various countries, making it easier for us to find and buy goods that are not available in the country.

However, lately, many people who buy or bring in goods from abroad complain about the high tax rates in the context of import or import duties that must be paid. In fact, the value can be multiple times the value of the imported goods due to fines.

So, what are the actual regulations regarding the calculation of customs duties on imported shipments in Indonesia? Here we elaborate. 

Import Duty Payable Consignment Goods

Firstly, it should be understood that any goods originating from outside the customs territory into Indonesia are categorized as imported goods and are liable to import duties and taxes in the context of import.

For the import of such goods, if the customs value is a maximum of US$3, the import duty is exempted. Meanwhile, for goods with a customs value above US$ 3 to US$ 1,500, import duties are charged at a rate of 7.5%. 

Furthermore, for goods with a customs value above US$ 1,500, import duties are imposed at a rate based on the Most Favoured Nation (MFN).

Import Duty Penalties on Imported Consignments

So, why is there a fine? Penalties are imposed when the customs value stated in the shipping documents is lower than the customs value that should be. If the customs value determined is lower, then usually the value of the Import Duty paid is lower than what should be paid.

Referring to Government Regulation Number 39 of 2019 and Minister of Finance Regulation (PMK) Number 99 of 2019, due to the underpayment of Import Duty, a fine is imposed. 

The amount of the fine will depend on the ratio between the underpaid Import Duty and the Import Duty that has been paid. In general, 10 layers of fines apply.

Amount of Import Penalty for Consignment Goods

The lowest amount of fine is 100% of the underpaid Import Duty. While the largest fine can reach 1,000% or 10 times the underpaid Import Duty, here is the list.

No	Underpaid Import Duty Ratio	Fines
1	Up to 50%	100%
2	Above 50% - 100%	125%
3	Above 100% - 150%	150%
4	Di atas 150% - 200%	175%
5	Di atas 200% - 250%	200%
6	Above 250% - 300%	225%
7	Above 300% - 350%	250%
8	Above 350% - 400%	300%
9	Above 400% - 450%	600%
10	Above 450%	1.000%

That's why the fine value can sometimes exceed the customs value or the value of the imported goods being shipped. (ASP/KEN)