Good news!We solemnly congratulate the Zhongyin Industrial Park and Batang Industrial Park in Indonesia on being awarded the qualification of the Great Bonded Zone

On September 2, 2024, the China-Indonesia Twin Park Batang Industrial Park was awarded the PKB qualification for the Dabao Free Trade Zone, which is the fourth license approved by the Central Java Province and the only Chinese-funded park to receive this honor.

What is a bonded area(Kawasan Berikat/KB)？

According to Perdirjen Bea Cukai No. PER-19/BC/2018 regulations, a bonded zone refers to a bonded storage area used to store imported goods and local raw materials for the purpose of producing and exporting goods. Simply put, it is mainly aimed at export-oriented industries. Bonded zones are generally located near ports, as their main purpose is to increase Indonesia’s exports. Bonded zones can be divided into three types:

1. Penyelenggara Kawasan Berikat
2. Pengusaha Kawasan Berikat
3. Pengusaha Dalam Kawasan Berikat

Free Trade Zone Facilities and Incentive Measures

After obtaining a bonded zone license, enterprises are exempt from customs duties, import taxes (PPh 22), value-added tax (PPN), and luxury tax (PPnBM). These policies aim to enable enterprises to reduce the cost of importing raw materials and capital goods, with the hope that they can export products at more competitive prices in the global market.

According to the source of goods entering the bonded zone, the following discounts are given to materials/goods:

Not all goods are eligible for bonded zone discounts. According to PMK No.131 Tahun 2018, the following goods are eligible for bonded preferential policies:

1) Raw materials, auxiliary materials, samples; Capital goods;
2) Packaging and packaging auxiliary materials;
3) Fuel and office equipment;
4) Finished and semi-finished products of assembly production;
5) Goods that are temporarily exported and re-enter the bonded zone;
6) Re entered raw products;

Notse:

a. Pajak Penjualan atas Barang Mewah (PPnBM) → is a tax levied on goods classified as luxury goods.

b. Barang Kena Pajak (BKP) → is a commodity subject to value-added tax laws.

c. Tempat Lain Dalam Daerah Pabean (TLDPP) → is another part of the Indonesian customs area.

d. Barang Kena Cukai (BKC) → is a certain product that requires control over its distribution and use due to its negative impact on the community or environment, resulting in additional costs. For example, cigarettes and alcoholic beverages.

*The above popular science is sourced from Shanhaitu Technology