DGCE Revises Provisions on Imported Goods Eligible for KITE Incentives

JAKARTA, DDTCNews - The Directorate General of Customs and Excise (DGCE) re-stipulates the technical provisions on the settlement of imported goods eligible for import facilities for exports (kemudahan impor untuk tujuan ekspor, hereinafter referred to as KITE) using methods other than exports.

The re-stipulation is outlined in the Directorate General of Customs and Excise Regulation No. PER-27/BC/2023. The regulation has been released to further improve services and supervision of the settlement of imported goods eligible for KITE using methods other than exports.

“To improve services and supervision ... it is necessary to re-stipulate the provisions on the technical guidelines for the settlement of imported goods eligible for KITE using methods other than exports,” reads one of the considerations of PER-27/BC/2023, quoted on Thursday (11/1/2024).

KITE is one of the customs incentives provided to companies that fulfil the criteria. There are 3 types of KITE incentives, including Exemption KITE and KITE for Small- and Medium-Scale Industries (Industri Kecil Menengah, hereinafter referred to as IKM).

Exemption KITE refers to the exemption from import duty and VAT or VAT and non-collection of STLGs payable on the imports or admission of Goods and Materials to be processed, assembled or installed on other goods to be exported.

KITE IKM, on the other hand, refers to incentives in the form of the exemption from import duty and VAT or the non-collection of VAT and STLGs payable on the imports and/or admission of goods and materials to be processed, assembled or installed on other goods to be exported and/or supplies of IKM products.

In addition to being exported, the customs obligations of imported goods eligible for KITE incentives may be settled using other methods. Referring to PER-27/BC/2023, the other methods include being destroyed, damaged, supplied, sold, transferred and/or returned.

Each settlement method has its own designation. For example, settlement by destruction may be carried out by KITE Companies for damaged goods and materials, damaged goods in process and/or damaged products, the nature of which cannot be destroyed, re-exported or returned.

Taking effect as of 1 February 2024, PER-27/BC/2023 revokes Article 13, Article 14, Appendix V, and Appendix XIV of P-22/BC/2009 as amended several times, last amended by PER-23/BC/2022. Moreover, Article 12 paragraph (5), Article 21 paragraph (2) and Article 22 paragraph (3) of PER-8/BC/2022 will also be revoked. (rig)