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Indonesia: Govt relaxes fines for underpayment of import/export duties

The government has relaxed fines imposed on exporters and importers who fail to pay import and export duties to the government or who do not pay the full amount due.

The lower fines, which went into effect on Monday, are stipulated in Finance Ministry Regulation (PMK) No. 99/2019 on procedures for the enforcement of customs fines.

“Under the new regulation, the fine for underpayment above 450 percent is 1,000 percent,” said Customs and Excise Office spokesman Deni Surjantoro in Jakarta on Tuesday, as quoted by kontan.co.id, adding that, in the past, that high a fine was already imposed on companies found to have been underpaying by 100 percent.

PMK No 99/2019 is a derivative regulation to Government Regulation (PP) No. 39/2019, which is an amendment of PP No. 29/2008 on administrative punishment in the customs sector.

Under the new regulation, the government has 10 punishment levels; previously it used to be five.

The five levels under the old regulation were a fine of 100 percent for up to 25 percent by underpayment, 200 percent for underpayment by 25-50 percent, 400 percent for underpayment by 50-75 percent and 1,000 percent for underpayment by 75-100 percent.

The new regulation also states that the fine is imposed starting from underpayment by 50 percent.

Under the new regulation, a 100 percent fine is due for 50 percent underpayment, 125 percent for 50-100 percent underpayment, 150 percent for 100-150 percent underpayment, 175 percent for 150-200 percent underpayment, 200 percent for 200-250 percent underpayment, 225 percent for 250-300 percent underpayment, 250 percent for 300-350 percent underpayment, 300 percent for 350-400 percent underpayment, 600 percent for 500-450 percent underpayment and 1,000 percent for underpayment to the tune of 450 percent. (bbn)

Source: https://www.thejakartapost.com/news/2019/07/17/govt-relaxes-fines-for-underpayment-of-importexport-duties.html