The government revises the provisions on bonded areas. Changes to these provisions are intended to further improve the competitiveness of domestic industries and maintain the investment climate and as a form of implementation of job creation and national economic recovery, changes are imperative.
Changes to the provisions on bonded zones are outlined in the Minister of Finance Regulation No. 65/PMK.04/2021 concerning the Amendment to the Minister of Finance Regulation No. 131/PMK.04/2018 concerning Bonded Zones (MoF Reg. 65/2021).
Broadly speaking, the changes under MoF Reg. 65/2021 pertain to the obligations of bonded zone entrepreneurs and entrepreneurs in bonded zones that also act as operators in bonded zones (Penyelenggara Di Kawasan Berikat/PDKB); affirmation of customs, excise, and tax treatment in bonded zones; as well as suspension and revocation of license as bonded zone operators, bonded zone entrepreneurs, and/or PDKB.
The revised obligations of bonded zone and PDKB entrepreneurs include the requirement to submit a report on stocktake results (stock opname) no later than two months after the implementation of the stocktake (stock opname). The report on stocktake results is submitted to the Head of the Tax Office where the Periodic Value Added Tax Returns are filed.
Next, in terms of affirmation of customs, excise, and tax treatment, there is the additional Article 20 paragraph (3a) under MoF Reg. 65/2021. The Article states that goods entitled to facilities in bonded zones include raw materials, auxiliary materials, and/or packaging and packaging tools belonging to non-resident tax subjects which are intended to be exported after being processed or assembled in the bonded zones.
These facilities, however, are granted insofar as the goods remain in the bonded zones until exported. Release of said goods prior to export is only permitted for the delivery between bonded zones and/or temporary release.
On another note, it is also affirmed that the entry of goods into bonded zones does not constitute a supply of taxable goods, the entry is not subject to Value Added Tax (VAT) or VAT and Sales Tax on Luxury Goods (STLGs), and no tax invoice is prepared. Provisions on the entry and release of goods in bonded zones are also confirmed.
Through MoF Reg. 65/2021, the Ministry of Finance also asserts that the license as bonded zone operators, bonded zone entrepreneurs, and PDKB may be suspended based on one of the following two things:
First, if based on research, audits, and/or audit results conducted by the Directorate General of Customs and Excise (DGCE), bonded zone operators, bonded zone entrepreneurs, and/or PDKB carry out activities that deviate from the granted license and/or show an inability to organize and/or manage bonded zones.
Second, if there are recommendations from the Directorate General of Taxes (DGT), in the event that the bonded zone operators, bonded zone entrepreneurs, and/or PDKB violate the statutory provisions in the field of taxation based on sufficient preliminary evidence.
Further, the provisions related to the use of corporate guarantees in bonded zones have also been amended. These changes are outlined in Article 51 paragraph (1) of MoF Reg. 65/2021 which confirms that only bonded zone entrepreneurs or PDKB with a low-risk profile may use corporate guarantees as collateral. This differs from the previous regulation which only stated that bonded zone entrepreneurs and PDKB could use corporate guarantees as collateral, without mentioning the risk profile.