What is Temporary Import in Indonesia?

Understanding Temporary Import in Indonesia

Temporary import refers to the process of bringing goods into a country for a limited period without the need to pay full import duties. This is particularly relevant for businesses that require equipment or materials for a short time, such as exhibitions, repairs, or testing.

Regulations Governing Temporary Imports

In Indonesia, the temporary import process is governed by several regulations, primarily under the Directorate General of Customs and Excise (DGCE). The main regulation is the Minister of Finance Regulation No. 203/PMK.04/2017, which outlines the procedures and requirements for temporary imports.

Eligibility for Temporary Import

To qualify for temporary import status, goods must meet specific criteria:

• Purpose: The goods must be imported for a specific purpose, such as exhibitions, trade fairs, or repairs.
• Time Limit: The temporary importation is typically allowed for a maximum of 12 months, with the possibility of extension under certain conditions.
• Re-exportation: Goods must be re-exported after the temporary period or converted to permanent import status.

Required Documentation

When applying for a temporary import permit, importers must provide several documents, including:

• Temporary Import Declaration: A formal declaration detailing the goods being imported.
• Bill of Lading: A document issued by a carrier to acknowledge receipt of cargo for shipment.
• Commercial Invoice: A document that outlines the sale transaction between the buyer and seller.
• Insurance Certificate: Proof of insurance for the goods being temporarily imported.

Applicable HS Codes and Duty Rates

Temporary imports are subject to specific HS codes, which classify the goods for customs purposes. For example:

• [Construction Equipment](/search?q=84294000struction-equipment): This category may include machinery like excavators and bulldozers.
• [Medical Equipment](/search?q=90189000struments-and-appliances): Items such as diagnostic machines or surgical instruments.

The duty rates for temporary imports are generally lower than those for permanent imports, as importers are often only required to pay a fraction of the standard duties. However, it is crucial to check the specific duty rates applicable to the HS code of the imported goods.

Customs Procedures for Temporary Import

1. Application Submission: Importers must submit an application to the DGCE, including all required documentation.
2. Customs Inspection: Customs officials may inspect the goods to verify compliance with regulations.
3. Issuance of Temporary Import Permit: Once approved, a temporary import permit will be issued, allowing the goods to enter the country.
4. Monitoring and Compliance: Importers must ensure that the goods are re-exported within the stipulated time frame and comply with any additional requirements set by customs.

Consequences of Non-Compliance

Failure to comply with the temporary import regulations can result in penalties, including:

• Fines: Financial penalties for late re-exportation or failure to declare goods.
• Seizure of Goods: Customs may seize goods that are not re-exported within the allowed timeframe.
• Legal Action: In severe cases, legal action may be taken against the importer.

Conclusion

Temporary importation can be a beneficial process for businesses looking to utilize goods in Indonesia for a limited time. Understanding the regulations, required documentation, and compliance measures is essential for a smooth import process.

For companies looking to navigate the complexities of importing to Indonesia, including temporary imports, Kickrate offers Importer of Record (IOR) services to ensure compliance with local regulations and facilitate the import process efficiently.