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INDONESIA: Maximum Daily Duty-Free E-Commerce Import Entitlement Cut to US$3

The total permitted daily duty free per allowance for e-commerce imports was reduced to US$3 (from $75) as of 1 January this year. According to the Customs and Excise Office, the move is intended to help protect the domestic production of such items as clothing, footwear and bags. In line with this, all items valued above the new threshold are liable for import duty – ranging from 15%-25% for clothing, 25%-30% for footwear and 15%-20% for bags, depending on country of origin. All other such items will be pay an import tax of 7.5%. In addition, all such imports are subject to VAT at a rate of 10%.

The move is also said to be intended to curtail many of the duty-evading tactics currently employed by less scrupulous traders, with some such businesses known to have sought to avoid duty payments by establishing faux online platforms for the import of loose items for direct delivery to individual customers in order to qualify for the former $75 daily duty-exempt threshold. The government is also planning to monitor e-commerce operators via its National Single Window online system, while additionally requiring overseas-based online businesses to establish a permanent physical presence in the country.

Content provided by Picture: HKTDC Research
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