The Ministry of Finance has issued a new regulation regarding the exemption of import duties for the import of seedlings and seeds as stated in the Minister of Finance Regulation (PMK) Number 41 of 2024.
This regulation aims to encourage the progress of the agricultural, livestock and fisheries industries in Indonesia and will come into effect on August 3, 2024.
Head of the Public Relations and Customs Extension Sub-Directorate, Encep Dudi Ginanjar, explained that this policy was issued because the use of import duty exemption facilities for seedlings and seeds in recent years has been very minimal.
Data shows that the foreign exchange value for imports of seedlings and seeds in the 2020-2022 period was only around IDR 270 billion with import duties of around IDR 13 billion.
“Although many companies import seeds and seedlings, the utilization of import duty exemption facilities is still not optimal. Previously, this facility has also been regulated in PMK Number 105/PMK.04/2007,” Encep explained, Tuesday (6/8).
According to Encep, the latest PMK regulates several important matters, including recipient subjects, simplification of application procedures, and process efficiency through automation and service promises.
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Import duty exemptions can now be granted to business actors in the agriculture, livestock, fisheries, plantation and forestry sectors.
Applications must be submitted to the Minister of Finance through the Head of the local Customs Office, by utilizing the Directorate General of Customs and Excise Portal (SINSW).
“The application must contain complete information regarding the name and address of the business actor, NPWP, details of the number and type of seeds and seedlings, estimated price, port of entry, and the number and date of the invoice or related document,” he added.
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Once the application is declared complete, the decision regarding the exemption from import duty will be issued within a maximum of 5 working hours if submitted electronically, or 1 working day for manual submission.
This decision is only valid for one import process, with a maximum import or export period of seeds and seedlings of one year from the date of the decision.
Encep emphasized that as a facilitator of trade and industrial assistance, his party will be committed to supporting the implementation of PMK 41 of 2024.
It is hoped that this regulation can provide legal certainty, encourage the development of related sectors, and improve supervision and services with simpler and more efficient procedures.
“We also invite business actors to take full advantage of this import duty exemption facility, so that it can support the development and expansion of the agricultural, livestock and fisheries industries in Indonesia,” concluded Encep. #MIA (RO/Z-10)
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