Indonesia Eases Personal Luggage Restrictions to Boost Trade Facilitation

Recently, the Indonesian government has taken a significant step in promoting national economic development and facilitating foreign trade. According to Trade Ministry Regulation No. 7 of 2024, Indonesia has officially lifted restrictions on personal luggage items for incoming travelers. This move replaces the widely disputed Trade Regulation No. 36 of 2023. The new regulation aims to simplify customs clearance procedures, bringing more convenience to travelers and commercial activities.

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One of the core aspects of this regulatory adjustment is that personal items brought into the country, whether new or used, can now be freely brought in without concerns about previous restrictions or taxation issues. This means that travelers' personal belongings, including clothing, books, electronic devices, and more, are no longer subject to quantity or value limits. However, it is important to note that prohibited items according to airline regulations still cannot be brought on board, and security checks remain stringent.

Specification for commercial product baggage

For commercial products brought in as luggage, the new regulations clearly specify the standards that must be followed. If travelers are carrying goods for commercial purposes, these items will be subject to the usual customs import regulations and duties. This includes:

1. Customs Duties: A standard customs duty of 10% will be applied to commercial goods.

2. Import VAT: An import value-added tax (VAT) of 11% will be charged.

3. Import Income Tax: An import income tax ranging from 2.5% to 7.5% will be levied, depending on the type and value of the goods.

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The new regulations also specifically mention the easing of import policies for certain industrial raw materials. Specifically, raw materials related to the flour industry, cosmetics industry, lubricant products, and samples of textile and footwear products can now enter the Indonesian market more easily. This is a significant benefit for companies in these industries, helping them to access a broader range of resources and optimize their production processes.

In addition to these changes, other provisions remain the same as those in the previous Trade Regulation No. 36. Finished consumer products such as electronic devices, cosmetics, textiles and footwear, bags, toys, and stainless steel products still require relevant quotas and inspection requirements.

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Post time: May-24-2024