KITE Gives Duties Exemption for Small Industry

Jakarta, InfoPublik -  SMEs can now annul import duties and other taxesby applying  SME Import for Export Purposes Facility (KITE IKM) at local Customs office.

"To apply for this facility, SMEs can directly register to customs office along with the stipulated requirements," said Customs and Excise Director General Heru Pambudi in a written statement received on Tuesday (31/1).

He explained that the main requirement to get KITE facility refers to Law No. 20/2008 on SMEs and Ministry of Industry Regulation Number 11/ 2014.

For small industry, to be eligible to access KITE facility, their total assets must worth between Rp 50 million toRp 500 million, with annual revenues of between Rp 300 million to Rp 2.5 billion. For Medium industry the total assets must worth between Rp 500 million to Rp 10 billion with annual revenues of between Rp 2.5 billion to Rp 5 billion.

Other requirements are stipulated in the Finance Ministerial Regulation (PMK) Number 177/2016 on Exemptions from Custom Duties and import tax.

In this Ministerial Regulation, SMEs are exempted from import duties and import taxes for raw materials, auxiliary materials, as well as machineries that support production. These goods are exempted from customs duties, value-added tax (PPN) and luxury tax (PPnBM). It is expected that this measure will improve efficiency.

He added that an application for KITE facility will take no more than 14 working days. To get this facility SMEs must be committed to export 75% of its products so that it can give added value to the volume and value of Indonesian exports.

"They must export at least 75%, or 3 out of  4 products," Heru said. Furthermore, SMEs should also be willing to operate a custom module specifically created for KITE (Export Purposes Facility), and already have a business location for at least  two years.

For administrative requirements , business owner must submit several documents including a tax identification number (NPWP), annual tax forms (SPT), letter of production plan, and a notarized public statement. (Translator: Sugiarti)