What You Need to Know About Export Duty Adjustments

What You Need to Know About Export Duty Adjustments

PPN

20 Jun, 2024 09:06 WIB

The Central Bureau of Statistics or Badan Pusat Statistik (BPS) reported that the export value in April 2024 reached USD 19.62 billion, or a decrease of 12.97% compared to the previous month (BPS, 2024). However, exports in April increased by 1.72% compared to the same period of the prior year (BPS, 2024).

 

In further detail, the export value in April 2024 was USD 19.62 billion, consisting of non-oil and gas exports of USD 18.27 billion and oil and gas exports of USD 1.35 billion. Cumulatively, the value of exports from January to April 2024 reached USD 81.92 billion, or a decrease of 5.12% compared to the same period the previous year (BPS, 2024).

 

To improve export performance while supporting the downstream policy of the domestic metal mineral industry and simplifying the provisions regarding the determination of export goods subject to export duties, at the end of May 2024, the government issued Minister of Finance Regulation Number 38 of 2024 concerning the Determination of Export Goods Subject to Export Duty and Export Duty Tariffs.

 

This provision also updates the provisions in Minister of Finance Regulation Number 39 of 2022. In addition, this provision is also a technical guideline for the implementation of Government Regulation Number 55 of 2008 concerning the Imposition of Export Duty on Exported Goods.

 

This provision, among others, regulates five export goods subject to export duties, including leather and wood, cocoa beans, palm oil or crude palm oil (CPO) and its derivative products, mineral metal processing products, and metal mineral products with specific criteria.

 

Export duty tariffs imposed for leather are 15% to 25%. Meanwhile, timber exports are subject to an export duties tariff of 2% to 5%. Compared to the previous provision, the export duty tariff on timber exports has decreased, whereas in the prior provision, timber exports were subject to export duties of 2% to 15%. The details of export duty tariffs on leather and timber exports are as follows:

The provision stipulates that exports of cocoa beans are subject to export duty tariffs of 0% to 15%. The imposition of export duty on cocoa beans is only imposed for exports with HS Codes 1801.00.10 and 1801.00.09. The details of export duty tariffs on cocoa exports can be seen in the following table:

 

More complex tariffs are imposed on exports of palm oil, CPO, and its derivative products. Seventeen reference prices are used as benchmarks for the imposition of export duty tariffs on exports of oil palm, CPO, and their derivative products. The reference prices range from USD 680 per ton to USD 1,430 per ton, with the following details:

 

Meanwhile, exports of metal mineral processing products are subject to export duties at a tariff of 5% to 7.5%. Compared to the previous provision, the rules related to export duty are much more straightforward. In the prior provision, ten types of metal mineral processing products were subject to export duties. Whereas in this provision, there are only four concentrate exports subject to export duty, with the following details:

 

To conclude the provision, the government regulates that exports of metal mineral products with specific criteria are subject to export duty at a tariff of 10%. There are no changes in the types of metal and mineral products subject to export duty if compared to the previous provision. The details of metallic mineral products subject to export duty are as follows:

Above is the explanation of the export of goods subject to export duty and its tariffs. If you need further explanation, Ideatax is ready to help.

 

Related provisions

  • Government Regulation Number 55 of 2008 on the Imposition of Export Duty on Exported Goods
  • Minister of Finance Regulation Number 39/PMK.010/2022 on Determination of Export Goods Subject to Export Duty and Export Duty Tariffs
  • Minister of Finance Regulation Number 38 of 2024 on Determination of Export Goods Subject to Export Duty and Ex