Updates on Entry of Hand-Carry Goods
We issued our Newsflash regarding the new importing provisions for entry of hand-carry goods as regulated under the Minister of Trade (the “MOT”) Regulation No. 36 of 2023 on Import Policies and Regulations as amended by the MOT Regulation No. 3 of 2024 (collectively, “Regulation 36/2023”). Regulation 36/2023 has been effective since March 10, 2024.
Under Regulation 36/2023, returning passengers entering Indonesia (the “Passengers”) may bring certain goods without any import license subject to certain limitations. Please see our Newsflash for more information on such limitations: New Importing Provisions for Entry of Hand-Carry Goods.
On April 29, 2024, the MOT issued Regulation No. 7 of 2024 on the amendment to Regulation 36/2023, which has been effective since May 6, 2024 (the “Regulation 7/2024”). We set out below the key points of Regulation 7/2024, specifically regarding the entry of hand-carry goods.
♦ Purpose for Import of Goods
Regulation 7/2024 clarifies that imports of goods are now permitted for both commercial and non-commercial purposes. In this case, the commercial objective refers to economic activities related to the following:
- Imported goods transactions carried out by importers with the aim of transferring ownership or use of goods to obtain rewards or compensation; or
- Use of imported goods by importers as raw and/or auxiliary materials to support production processes or business activities.
♦ Import of Hand-Carry Goods under Regulation 7/2024
Before Regulation 7/2024, Regulation 36/2023 stipulated certain restrictions on the entry of non-commercial goods consisting of personal belongings of the Passengers. The restrictions were listed comprehensively in Attachment IV to Regulation 36/2023.
Regulation 7/2024 amends Attachment IV of Regulation 36/2023. Specifically regarding the import of hand-carry goods by the Passengers, now there are no limits that have been set in terms of their import types and amounts, with the exception of dangerous goods and goods that are prohibited from being imported.
In addition, Regulation 7/2024 stipulates that all imports of goods belonging to the Passengers sent via postal operators are permitted to be imported in new and/or used condition unless the goods is categorized as goods related to health, safety, and/or the environment as listed in Attachments I and II of Regulation 7/2024.
♦ Current Restrictions on Import of Hand-Carry Goods
Although Regulation 7/2024 no longer regulates the restrictions on the entry of hand-carry goods, Passengers must still take into account the imposition of import duties as described under the Minister of Finance Regulation No. 203/PMK.04/2017 of 2017 dated December 27, 2017 on Provisions for Export and Import of Goods Carried by Passengers and Transportation Crew (“Regulation 203/2017”).
According to Regulation 203/2017, the Passengers are exempted from the import duty if the value of a Passenger’s hand-carry goods imported for personal use is a maximum of free on board (FOB) USD 500 (five hundred United States Dollars) per person for each arrival.
Apart from being granted import duty exemption, excise exemption is granted for the import of the following goods by the Passengers for personal use:
- Maximum of 200 (two hundred) cigarettes, 25 (twenty-five) cigars, or 100 (one hundred) grams sliced tobacco/other tobacco products; and/or
- Maximum of 1 (one) liter of drink containing ethyl alcohol.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or Ayu Nandini Prameswari (aprameswari@aksetlaw.com) for further information.
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