What is Export Duty?

Customs Export is a duty imposed on goods transported by transport out of an area of customs. Exported goods subject to export duties in Indonesia are leather and wood, cocoa beans, palm oil, crude palm oil (CPO), and their derivative products, metal mineral processing products, and metal mineral products with certain criteria. The export goods subject to export duties shall be determined by the Minister after obtaining the consideration and / or recommendations of the minister in charge of trade and / or the minister / head of the non departmental government agency / head of the relevant technical body.

Export Duty Calculation

Export duties can be calculated in several ways, namely:

If the export duty is determined based on a percentage of the export price ( ad valorem ), the applicable formula is:

export duty x export price x unit number of goods x currency exchange rates

If the export duty is specifically set, the applicable formula is:

exit tax rate per unit of goods in certain currency units x number of units of goods x currency exchange rates

The highest export tax is set:

  1. 60% of the export price, in the case that the export duty is set based on a percentage based on a percentage of the export price ( ad valorem)
  2. Certain nominal value which is equivalent to 60% as intended in the above point in the case of export duty tariffs are specifically determined.

Destination Export Duty

Based on Government Regulation of the Republic of Indonesia Number 55 Year 2008 Regarding the Imposition of Export Levy on Exported Goods, export duty is imposed for the purpose of:

  1. Guaranteeing the fulfillment of domestic needs.
  2. Protect the preservation of natural resources.
  3. Anticipating a fairly drastic price increase of certain export commodities in the international market.
  4. Maintaining the stability of prices of certain commodities in the country.

 

Leave a Comment