Indonesia Customs Regulations

Indonesia customs regulations are complex, but various duty saving opportunities may be leveraged by companies that have an in-depth understanding of Customs rules and practices. Nowadays Indonesia Customs regulates that bonded zone company, bonded warehouse companies, and companies that entitled by Customs to receive the exemption or refund of import duties for export (KITE) should manage inventories using Information System. The adoptions of Information System for managing inventories require efficient migration solutions.

Bonded Zone and Bonded Warehouse

A bonded zone company processes industrial goods and materials for export while a bonded warehouse company trades industrial goods and materials. The benefits of operating as a bonded zone or bonded warehouse company include, but are not limited to: a) suspension of import duty on imported goods or materials, b) exemption from excise for goods, c) exemption from VAT, STLG and income tax (Article 22), d) exemption of VAT and STLG.

Temporary Admission

Certain goods which are imported but will be re-exported within one year are entitled to be temporarily admitted into Indonesia (KITE). Import duty and taxes are not collected on the initial importation of the goods. The importer must obtain a guarantee equal to the amount of duty and taxes that would otherwise be owed upon the importation of the goods. If the goods are not re-exported within the specified time frame, the importer must pay the full amount of import duty and taxes owed, plus penalty.

IT for Managing Inventories

IndonesiaCore® provides a specific solution for companies to manage inventories. For bonded zone and bonded warehouse companies there is iCore IT Inventory System software bundled with training packages, quick setups and data migration, and supervisions. There is also iKite IT Inventory System software that developed specifically for companies that entitled by Customs to receive the exemption or refund of import duties for export (KITE).

Benefits of Using iCore / iKite

iCore or iKite developed specifically for complying IT Inventory System regulation that Customs specified for bonded zone companies, bonded warehouse companies, and companies that entitled by Customs to receive the exemption or refund of import duties for export (KITE). The benefits of using iCore or iKite are: a) optimizing inventory management in your company, relationships with customers and employees (inventory management, customer relationship management, and human capital management), b) complying with the rules of the Directorate General of Customs and Excise (DGCE) and generate reports according to the format requested in the regulation of Directorate General of Customs, c) provide real time access to employees and inspectors of the Directorate General of Customs, d) multi-users, simple, and easy to use (user friendly), e) high level of security, f) affordable investment with high quality and comprehensive after sales: training, supervisions, free updates for specific packages.