Can Imported and Local Goods be Stored in a Bonded Warehouse?

PERTANYAAN

1. In relation to bonded warehouses, there are certain forms of licensing whereby bonded warehouses may combine shipments of products that are produced locally with products stored in bonded warehouses for export. Could this be conducted?
2. Products that we import will be resold or exported to other countries and to local markets (of course, the release of goods to the local market will result in liabilities like imports in general). Could this be conducted?
3. If we already have a factory in Indonesia, we would like to export domestic produced products, along with exported products (not self-produced and are imported products) in one shipment. Is this process feasible?

INTISARI JAWABAN

Bonded warehouses are used to stockpile imported goods which may be accompanied by packaging/repackaging, sorting, kitting, packing, adjustment, and deduction, of certain goods within a certain period to be released again.

So, is it possible to store both local and imported goods in a bonded warehouse?

Please read the review below for a further explanation.

ULASAN LENGKAP

This article is an English translation of Dapatkah Menimbun Barang Impor dan Lokal di Gudang Berikat? which was written by Nafiatul Munawaroh, S.H., M.H and was published on Monday, 19 December 2022.

All legal informations which are available through Klinik hukumonline.com have been prepared for educational purposes only and are general in nature (read the complete Disclaimer). In order to obtain legal advice specific to your case, please consult with Justika Partner Consultant.

What is a Bonded Warehouse?

Before answering your question, we will first explain about the bonded warehouse. Bonded warehouse is a bonded storage place to stockpile imported goods, which may be accompanied by one or more activities in the form of packaging/repackaging, sorting, kitting, packing, adjustment, and deduction, of certain goods within a certain period to be released again.[1]

Entry of goods from outside of customs areas into bonded warehouses shall be subject to suspension of import duty, shall not be subject to collection of import tax (Pajak Dalam Rangka Impor/ "PDRI"), and/or exemption from excise.[2]

In addition, through bonded warehouses, customs, and excise facilities may be granted in the form of facilities for licensing services and/or services for operational activities.[3]

Entry of goods to be stockpiled in bonded warehouses may be conducted from:[4]

1. outside the customs areas;
2. other bonded warehouses;
3. bonded logistics center for goods originating from outside the customs areas;
4. free of goods zone originating from outside the customs areas;
5. special economic zones (Kawasan Ekonomi Khusus/ “KEK”) for goods originating from outside of customs areas; and/or
6. other economic zones determined by the government for goods originating from outside the customs areas.

The forms of bonded warehouses are:[5]

1. bonded warehouse supporting industrial activities, namely bonded warehouses which function to stockpile and provide imported goods to be distributed to:

1. industrial companies in other places within customs areas and/or bonded zones, KEK, free zones, or other economic zones determined by the government in accordance with the provisions of laws and regulations; or
2. Industrial companies which are granted exemption from import duty, are not subject to collection of import tax, and/or return of import duty in accordance with the provisions of laws and regulations.

 

2. bonded warehouse of special distribution centers for duty-free shops, namely bonded warehouses which function to stockpile and distribute imported goods to duty-free shops; or
3. transit bonded warehouse, namely bonded warehouses which function to store and distribute imported goods outside of the customs areas.

Imported goods that are stored in bonded warehouses may be released for:[6]

1. supporting industrial activities in bonded zones, KEK, free zones, other economic zones determined by the government and/or other places within customs areas;
2. being placed in other bonded warehouses and/or duty-free shops;
3. export; and/or
4. supporting industrial activities which are granted exemption from import duty, are not subject to the collection of PDRI/import tax, and/or the return of import duty is based on provisions of laws and regulations in the customs sector.

In relation to the licensing requirements for bonded warehouses, you can read more about it under Regulation of the Director General of Customs and Excise 18/2019.

Can I Store Imported and Local Goods in One Bonded Warehouse?

In response to your first question, can both imported and local goods be stored in a bonded warehouse for export?

If the raw materials of local goods you are referring to are not sourced/originated from import goods, then the said stockpiling mergers cannot be carried out in bonded warehouses. Except, if the manufactured goods originate from imported raw materials and are made into finished goods in one warehouse. For example, assembling raw materials into finished goods. This refers to the definition of a bonded warehouse as a bonded storage area for imported goods which may be accompanied by activities such as kitting.

In response to your second question, regarding imported products in bonded warehouses which will be exported and marketed to the local market, you may utilize the form of ‘bonded warehouse supporting industrial activities’ or ‘bonded warehouse of special distribution centers for duty-free shops’ in accordance with your purposes.

Bonded warehouses supporting industrial activities are used to stockpile goods including raw materials, auxiliary materials, production machines, spare parts, factory equipment, heavy equipment, packaging, and/or packaging aids.[7] In this form of bonded warehouse, stockpiled goods may be released to the outside of customs areas (export), bonded areas, bonded warehouses supporting other industrial activities, industrial companies in other locations within the customs areas, industrial companies in KEK, industrial companies in free zones and/or industrial companies in other economic zones determined by the government.[8]

Also read: Classifications of Raw Materials, Consumer Goods, and Auxiliary Materials

Meanwhile, bonded warehouses of special distribution centers for duty-free shops are used for goods to be traded in duty-free shops.[9] This form of the bonded warehouse allows for the release of stockpiled goods to the outside of customs areas (exports), duty-free shops, and/or other bonded warehouses of special distribution centers for duty-free shops.[10] Meanwhile, a duty-free shop is a bonded storage area for stockpiling imported goods and/or goods from the customs areas to be sold to certain people.[11]

Answering your third question, basically bonded warehouse entrepreneurs (Pengusaha di Gudang Berikat/ “PDGB”) are responsible for the release of goods from bonded warehouses until they are received at their destination or until they are loaded into transportation facilities (means of transportation) that will depart from the customs areas (export).[12]

If the goods to be exported originate from bonded warehouses, as mentioned earlier, bonded warehouses do not stockpile local goods unless the goods in question originate from imported goods, through packaging, kitting and so forth.

According to our research based on Regulation of the Minister of Finance 155/2022, it is not specifically regulated concerning the prohibition on combining local products with imported products which are going to be exported in one transportation.

However, it should be noted that prior to the consolidation of exported goods, physical examinations shall be conducted on:[13]

1. exported goods that are going to be re-imported;
2. exported goods which at the time of import are intended for the re-export;
3. exported goods that obtain import facilities for the purpose of the export exemption, return, and/or export purposes for small and medium industries;
4. exported goods that are subject to export duty;
5. exported goods based on recommendations from the relevant ministries/agencies or internal units of the Director General of Customs and Excise;
6. exported goods if based on the analysis of the supervision unit, there are strong indications of violations of the provisions of the laws and regulations; or
7. exported goods other than those mentioned above which are determined based on risk management.

Authorized exporters or authorized customs service management entrepreneurs (Pengusaha Pengurusan Jasa Kepabeanan/ “PPJK”) are required to prepare and deliver exported goods for inspection, to open every package, or container to be examined, and to witness the examination.[14]

If domestic produced goods to be exported are not classified as exported goods that require physical inspections, then they do not need to be made into a single package/packaging/container.

After carrying out a physical inspection and/or examination of documents, the exported goods are loaded onto transportation facilities outside the customs area after obtaining approval from the customs official and/or through a service computer system.[15]

The dynamic development of regulations is a challenge for you in fulfilling the company's legal obligations. Keep up to date with the latest legal obligations, with the legal compliance monitoring platform from Hukumonline which is based on Artificial Intelligence, Regulatory Compliance System (RCS). Click here to learn more.

These are the answers we can provide, we hope you will find them useful

Legal Basis:

1. Regulation of the Government Number 32 of 2009 on Bonded Storage Area as amended by Regulation of Government Number 85 of 2015 on the Amendment of Regulation of the Government Number 32 of 2009 on Bonded Storage Area;
2. Regulation of the Minister of Finance Number 155/PMK.04/2019 of 2019 on Bonded-Warehouses;
3. Regulation of the Minister of Finance Number 155/PMK.04/2022 of 2022 on Customs Provisions in the Export Sector;
4. Regulation of the Director General of Customs and Excise Number PER-18/BC/2019 of 2019 on the Management of Bonded-Warehouses.

---

[1] Article 1 number 4 Regulation of the Minister of Finance Number 155/PMK.04/2019 of 2019 on Bonded-Warehouses (“Regulation of the Minister of Finance 155/2019”).

[2] Article 7 section (1) Regulation of Government Number 85 of 2015 on the Amendment of Regulation of the Government Number 32 of 2009 on Bonded Storage Area (“Government Regulation 85/2015”).

[3] Article 2 section (4) Regulation of the Minister of Finance 155/2019.

[4] Article 17 section (1) Regulation of the Minister of Finance 155/2019.

[5] Article 4 section (1) Regulation of the Minister of Finance 155/2019.

[6] Article 11 Government Regulation 85/2015.

[7] Article 17 section (5) letter a Regulation of the Minister of Finance 155/2019.

[8] Article 21 section (1) Regulation of the Minister of Finance 155/2019.

[9] Article 17 section (5) letter b Regulation of the Minister of Finance 155/2019.

[10] Article 21 section (3) Regulation of the Minister of Finance 155/2019.

[11] Article 1 number 5 Government Regulation 85/2015.

[12] Article 21 section (9) Regulation of the Minister of Finance 155/2019.

[13] Article 6 section (1), (2), (3), and Article 13 section (2) Regulation of the Minister of Finance Number 155/PMK.04/2022 of 2022 on Customs Provisions in the Export Sector (“Regulation of the Minister of Finance 155/2022”).

[14] Article 13 section (6) Regulation of the Minister of Finance 155/2022.

[15] Article 16 section (1), (2), and (3) Regulation of the Minister of Finance 155/2022.