The Ministry of Finance has revised Regulation of the Minister of Finance Number 177/PMK.04/2016 regarding Exemption from Import Duty and Non-Collection of Value Added Tax or Value Added Tax and Luxury Goods Sales Tax on the Import of Goods and/or Materials, and/or Machineries Conducted by Small and Medium Industries for the Purpose of Export by issuing Regulation of the Minister of Finance Number 110/PMK.04/2019.
Through the revision, the government amends provisions on the granting of import facility for export for small and medium industries. Business entities intending to receive the import facility for export must meet the determined requirements.
The business entities must be small industries or medium industries conducting goods and/or material processing, assembly, and/or installation activities for export. In addition, the business entities must have conducted the activities for not less than 2 years or have an export sale contract for those activities for less than 2 years. The business entities must have also fulfilled the minimum export realization of 25% of the annual sale yields for the last 2 years.