Regulation of the Director-General of Customs and Excise No. PER-6/BC/2022 on Revocation of Regulation of the Director-General of Customs and Excise No. PER-04/BC/2020 of 2020 on Procedures for the Granting of Additional Incentives to Companies Enjoying Relaxed Facilities for Import and Export Purposes in Order to Mitigate the Impact of the Corona Virus Disease 2019 (COVID-19) Disaster
Enforcement Date: 13 July 2022
- The Director-General of Customs and Excise (“Director-General”) previously issued Regulation No. PER-04/BC/2020 of 2020 (“Regulation 4/2020”), which addressed procedures for the granting of additional incentives for companies that were already receiving Export-Oriented Import Facilities (Kemudahan Impor Tujuan Ekspor Pembebasan – “KITE”) in the form of exemptions (“KITE Pembebasan”) or KITE for Small- and Medium-Scale Industries (KITE Industri Kecil Menengah – “KITE IKM”).
- However, the Minister of Finance (“Minister”) has now revoked said additional incentives through the issuance of Regulation No. 96/PMK.04/2022 (“Regulation 96/2022”) after completing an evaluation of the various companies that have been enjoying said facilities, most of which are now making a strong recovery after the pandemic downturn.
- As a follow-up to this decision of the Minister and in order to ensure improved legal certainty in relation to the administration of customs-and-excise procedures, the Director-General has issued this Regulation, which ultimately declares that Regulation 4/2020 is now considered revoked and invalid. As a result, the various provisions that originally addressed the granting of additional incentives to the aforementioned companies receiving KITE Pembebasan and KITE IKM have also now been simultaneously declared invalid.
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