• Customs: Bonded Logistics Center
Newsletter:

Customs: Bonded Logistics Center

16 January 2018

As part of the second economic stimulus package aimed at boosting the country's economy, the Indonesian government issued Government Regulation (GR) No. 85 of 2015 which amends GR No. 32 of 2009 and introduces the concept of Bonded Logistics Center (BLC) as a new type of Bonded Stockpiling Areas. 

Since 2016, more than 50 BLCs have been inaugurated in order to prepare Indonesia to become Southeast Asia’s main logistics hub. These additional BLCs are important to reduce high logistic costs that have made business in Indonesia less competitive.

BLCs are governed under Ministry of Finance (MoF) Regulation No. 272/PMK.04/2015 dated 31 December 2015 and Directorate General of Customs and Excise Regulation No. PER-01/BC/2016 dated 29 January 2016.

Requirements

In general, a BLC includes areas within the Indonesian customs area which are designated for temporary storage with maximum three years.

Temporary storage in BLC include imported goods, goods to be exported, or goods for certain purposes, where limited additional activities are performed and where the goods are not consumed. A BLC area is administered by a developer and may consist of several companies that utilize the BLC facility in that area. 

Areas intended to become Bonded Logistics Center must fulfill several requirements, as follow:

  • Have a transit area for goods that have registered for customs notification;
  • Have clear demarcations;
  • Located in an area that has direct access to a public road and can be accessed by container transport vehicle;
  • Have an area allocated for physical examination of imported goods, and good to be exported; and
  • Have an area for storage, loading and unloading, importation and extraction of goods to and from overseas, or other locations in Indonesia.

Facilities

Tax and customs facilities on traffic of goods to a BLC are shown as follows:

BLC facility

Taxes on imports

VAT/LST on local delivery

VAT/

LST/Art 22 Inc Tax

Import Duty

Excise

Import from overseas

NC

P

E

-

Delivery of goods from overseas via:

 

 

 

 

- Other Bonded Stockpiling Area

NC

P

E

NC

- Other Special Zones

NC

P

E

NC

- Other places within Indonesian Customs Area

NC

P

E

NC

Delivery of goods from another BLC

NC

P

E

NC

Delivery of goods from other places within Customs Area

-

-

-

NC

NC = Not Collected  

VAT = Value Added Tax                        

LST = Luxury-goods Sales Tax

P = Postponed

E = Exempted                

 

 

“BDO INDONESIA PROVIDES A FULL SPECTRUM OF TAX AND BUSINESS ADVISORY SERVICES TO LOCAL ENTERPRISES, PUBLIC-LISTED COMPANIES, MULTI-NATIONAL COMPANIES AND INDIVIDUALS.”

 

For more information on how PT BDO Bisnis Solusi Indonesia can help you in planning and navigate these major changes, please contact our experts:

Irwan Kusumanto

Head of Tax BDO Indonesia

ikusumanto@bdo.co.id

 

 

Irwan Kusumanto , Head of Tax |