Shipping Regulatory Update

Customs regulations for inbound and outbound shipments change from time to time. We have collated important announcements by customs authorities worldwide to help our customers stay up-to-date when shipping with us. Timely understanding and compliance with new requirements such as duty and tax information, tariff descriptions, product-harmonized codes, and customs clearance documentation will avoid costly shipping delays.

  • Customs Regulations for Indonesia Shipments

Current News

Posted on June 28, 2017

Regulatory changes of duty and tax exemption for imports to Taiwan

Effective 1 July 2017, the Customs Administration, Ministry of Finance of Taiwan will exclude frequent importers who enjoyed the duty and tax exemption for shipments with a dutiable value of less than NTD$ 3,000. A frequent shipper is defined as one who imports six shipments or above within six months into Taiwan. The observation periods are fixed for every six months, January-June and July-December. Shipment counts will be reset to zero every January 1 and July 1.

The MINISTRY OF FINANCE Order is hereby given for the promulgation of the definition of the term "frequently imported" stipulated under Paragraph 2, Article 49 of "Customs Act" (promulgation shall be effective from 1 July 2017).

If you have any questions about the regulatory changes, please contact your Sales Representative or our Customer Service Hotline.

 


 

Posted on June 26, 2017

Regulation change on express shipments to South Korea (Effective July 1, 2017)

Effective July 1, 2017, Korea Customs Service (KCS) will apply the formal entry process on any import express shipments to South Korea that have an incomplete consignee address or incomplete telephone number on customs documents, regardless of the declared value. The formal entry process will take at least one day longer for customs clearance than the informal entry process, which is normally applied to express shipments valued less than USD 150 (or USD 200 from the U.S.).

In order to avoid delays for your shipments to South Korea, please include an accurate and complete consignee address and telephone number on your air waybill and/or commercial invoice.

 


 

Posted on April 6, 2017

Indonesia New Regulation for Import Shipments Through Courier Service Companies (Regulation PMK 182/PMK.04/2016)

 A new import regulation, PMK 182/PMK.04/2016, was rolled out in Indonesia in January 2017.  The full implementation of the new regulation at the Customs and Excise Office in Soekarno-Hatta International Airport, Cengkareng, is scheduled on 27th April 2017.

The key changes introduced by the new regulation are as follows:

  1. There are now 3 clearance classifications, based on the value of the shipment:
    1. Shipments with values not exceeding USD 100;
    2. Shipments with values more than USD 100 but not exceeding USD 1,500; and
    3. Shipments with values more than USD 1,500.
  2. Limitation of the exemption value of goods (de minimis) will change from USD 50 to USD 100. If a shipment’s value is greater than USD 100, duty tax will be applied to the full value of the shipment;
  3. Shipments with a value more than USD 100 but not exceeding USD 1,500 can be processed using one of the following methods:
    1. Consignment Note with flat 7.5% import duty (except for textbooks, which attract a 0% import duty); or
    2. Formal entry (PIB) for business entities or simplified formal entry (PIBK) for personal shipments.
  4. Shipments with a value more than USD 1,500 can be processed using PIB for business entities or PIBK for personal shipments.

You may refer to the table below for more detailed information.

In preparation for the new regulation, please download this form and complete it with the required information and send it together with copies of your import documentation to idcs@rpxholding.com and cc database@rpxholding.com.

 

Shipment value

Importer

Import type and duty

Value determination

Supporting document and remarks

Not exceeding USD 100

Personal or Business entity Free By Customs
  • For Controlled Items, licenses or permits from relevant government agencies are required
More than USD 100 but less than USD 1,500 Personal or Business entity Import duty is a flat 7.5%, except for textbooks 0%

Or

By Customs with a flat import duty of 7.5%/td>
  • Documentation for PIBK
    • Tax ID number (NPWP)
  • Documentation for PIB:
    • Importer ID Number (API)
    • ID number (NPWP)
    • Customs ID Number (NIK)
  • All Controlled Items require licenses or permits from relevant government agencies
  • Customer may choose the type of clearance (CN/PIB/PIBK) for their inbound shipment in this category
  • Shipment for personal consignee will be processed using CN clearance type
  • Customer is advised to contact FedEx CS team or Sales team to advise the type of clearance as their clearance default.

PIB for business entity or PIBK for personal:

Import duty is calculated based on the Customs Tariff Book (BTKI) rate.

By importer (self-assessment) and validated by Customs
More than USD 1,500 Personal

PIBK:

Import duty is calculated based on the BTKI rate.

By importer (self -assessment) and validated by Customs
  • Documentation for PIBK:
    • NPWP
  • Documentation for PIB:
    • API
    • NPWP
    • NIK
  • All Controlled Items require licenses or permits from the relevant government agencies
Business entity

PIB:

Import duty is calculated based on the BTKI rate

  • Previous Posts

Stricter regulations on importing certain nicotine products to South Korea (Effective January 1, 2017)

Posted on December 22, 2016

The Ministry of Environment of South Korea will tighten the regulations on importing nicotine products to South Korea, effective January 1, 2017.

  • All importers of undiluted nicotine or solutions containing more than 1% nicotine into South Korea must submit Specifications of Chemical Materials to the Korea Chemicals Management Association. Violators will receive a fine of no more than 10 million South Korean Won (KRW).

  • If the accumulated weight of imported nicotine from January 1 of each year exceeds 100kg, importers must submit a Toxic Hazard Importation Declaration to the Ministry of Environment of South Korea. Violators will receive a fine of no more than 30 million KRW or no more than one year of imprisonment.

  • All products containing more than 1% nicotine can only be transported on vehicles approved by the Ministry of Environment of South Korea with a proper warning sticker attached on the exterior of the vehicle. Nicotine products are prohibited to be mixed with other non-toxic products during transport. A fine of no more than 50 million KRW or no more than three years of imprisonment will be imposed for the violation on these regulations.

FedEx Express is unable to transport any shipments in South Korea containing products with more than 1% nicotine. Customers who import such nicotine products need to pick up their shipments at the FedEx facility at Incheon Airport with their own transportation arrangement that meets the Ministry of Environment of South Korea requirements.

De Minimis Tax Exemption Provision on imports into the Philippines (Effective on October 26, 2016)

Posted on November 8, 2016

De Minimis Tax Exemption Provision on imports into the Philippines

On October 26, 2016, the Philippines Bureau of Customs will implement a new De Minimis Tax Exemption Provision to increase the threshold from Php 10 to Php 10,000.

Importations into the Philippines with a Free on Board (FOB) or Free Carrier (FCA) value of Php 10,000 (or approx. USD200) or less will not be subject to duties and taxes.

For full details about the Customs memorandum, please visit http://customs.gov.ph/wp-content/uploads/2016/10/CAO-2-2016-ONAR-DE-MINIMIS.pdf

Should you have any question, please call your local FedEx Customer Service team.

 

IATA Changes to the Provisions for the Transport of Lithium Batteries (April 1, 2016)

Posted on March 21, 2016

Effective April 1, 2016, the International Air Transport Association (IATA) will make the following changes to the provisions for the transport of lithium batteries.

  1. All stand-alone lithium ion batteries (UN3480, P. I. 965) must be shipped at a state of charge (SoC) not exceeding 30% of their rated design capacity.

     - Stand-alone lithium ion batteries (UN3480, P. I. 965, Section II), at an SoC greater than 30% are not permitted.  
     - Stand-alone lithium ion batteries (UN3480, P. I. 965, Section IA and IB) (acceptable to dangerous goods locations only), at an SoC greater than 30% may only be shipped with written approvals by the State of Origin and the State of the Operator.
  2. Stand-alone lithium ion batteries (UN 3480, PI 965, Section IA, IB and Section II) are forbidden as cargo on passenger aircraft.
  3. Only one package of stand-alone lithium ion batteries (UN 3480 PI 965, Section II) and stand-alone lithium metal batteries (UN 3090 PI 968, Section II) may be included in any overpack or single consignment. There is also a limit of 8 cells or 2 batteries per overpack.
     - When the package is placed in an overpack, the lithium battery handling label and Cargo Aircraft Only label required by this packing instruction must either be clearly visible or the label must be affixed on the outside of the overpack, and the overpack must be marked with the word “Overpack”
  4. Packages prepared according to Section II of PI 965 and PI 968 must be offered to the operator separately from other cargo and must not be loaded into a unit load device (ULD) before being offered to the operator.

Due to airline restrictions and government regulations, some countries are not available as origins or destinations for certain lithium battery shipments. Please contact Customer Service for information on these service limitations.

This prohibition impacts all FedEx Express international services including FedEx International Priority (IP), FedEx International Economy (IE), FedEx International Economy Freight (IEF), FedEx International Priority Freight (IPFS), FedEx International Premium, FedEx International Express Freight (IXF) and FedEx International Airport to Airport (ATA).

This restriction generally does not apply to lithium-ion and lithium-metal batteries packed with equipment or contained in equipment.

Further information regarding IATA regulations on lithium batteries can be found here.

If a shipment inadvertently is transported to a prohibited destination country, it will become “undeliverable” and will be returned to the shipper/sender when possible, following standard procedure. The shipper will be charged for:

       -  transportation to the destination country
       -  transportation from the destination country
       -  any customs duties & taxes FedEx has already been assessed by destination customs for the shipment.

Prohibition of the Import of Used Information Technology Products to Vietnam (Effective December 15, 2015)

Posted on December 7, 2015

The Ministry of Information and Communications of Vietnam will prohibit the import of used Information Technology (IT) products to Vietnam effective December 15, 2015. This prohibition applies to used IT products such as laptops, tablets, mobile phones, speakers, flash disk drives and digital cameras, as well as liquid-crystal display and light emitting diode screens. The ban will also apply to used components and accessories of these products.

Exceptions apply when a shipment has an import license from the Ministry of Information and Communications of Vietnam. The import license may be issued when used IT items are imported to Vietnam for science research or study, or for recycling processing or repair purposes for foreign traders.

  • Local Regulatory Update

New Duty Excise and Tax Payment Process

Posted on Jun 14, 2016

On January 1st 2016, the Indonesian Customs Office introduced a new Customs, Excise and Tax payment process for formal entry shipments ("PIB" entry type).  Starting May 1st 2016, the Indonesian Customs Office added informal entry shipments ("PIBK" entry type) to the new payment process.

The new process replaces the Customs, Excise and Tax Receipt letter or "Surat Setoran Pabean Cukai dan Pajak" (SSPCP) and State Revenue Transaction Number form or "Nomor Transaksi Penerimaan Negara" (NTPN) with a single State Revenue Receipt or "Bukti Penerimaan Negara" (BPN) as proof of payment for duty, excise and tax.  Instead of receiving an SSPCP and NTPN in hard copy, customers will now receive a soft copy of the BPN from the Bank where the payment is made.

Customers will also receive a soft copy of the Customs Release Note or "Surat Persetujuan Pengeluaran Barang" (SPPB) and Customs Declaration Form (PIB/K) without Customs and Bank stamps. Customers may refer to the Customs Declaration (PIB/K) and BPN for duty and tax details.

Comparison table: 

Old system documentation

New system documentation

  • Hardcopy of SSPCP
  • Hardcopy of NTPN
  • Hardcopy of SPPB
  • Hardcopy of PIB/K Form
  • Hardcopy of invoice
  • Softcopy of BPN
  • Softcopy of SPPB
  • Softcopy of PIB/K Form
  • e-invoice

To ensure data accuracy and to expedite the shipment clearance process, we encourage customers to update their details such as a copy of their Tax ID number or NPWP, Importer Registration number and other import related documents, with our Customer Service team.

 

New Regulations on the Importation of Forestry Products into Indonesia

Posted on May 3,2016

The Indonesia Ministry of Trade implemented a new regulation, 97/M-DAG/PER/11/2015, on importing forestry products. This regulation requires the consignees in Indonesia to be registered as importing companies with an importers’ registration number, namely the API (Angka Pengenal Impor), and import approval, namely PI (Persetujuan Impor). The PI is a special license from the Indonesia Ministry of Trade to import forestry products into the country.

To avoid customs delays we encourage our customers to comply with this regulation before shipping forestry products into Indonesia. Customers can obtain the license electronically through the Ministry of Trade website at http://inatrade.kemendag.go.id

Forestry products include but are not limited to:

1. Wood products such as fuel logs, veneer, plywood, particleboard, fiberboard, etc.
2. Wood boxes, packing, frames, barrels
3. Parts of carpentry tools made of wood
4. Tableware, kitchenware made of wood
5. Wooden furniture
6. Jewelry boxes, marquetry, statuettes, and other ornaments made of wood
7. Wood pulp
8. Paper used for writing, printing or other graphic purposes
9. Toilet paper, tissue, paper towels, table napkins, table cloths, articles of apparel or clothing made of paper, etc.
10. Kraft paper, paperboard, greaseproof paper, cigarette paper, wallpaper
11. Carbon paper, other self-copy paper, stationary paper
12. Original engravings, prints and lithographs, framed or not framed

Shipment Value Assessment Process by Indonesian Customs

Posted on September 21, 2015

Not providing the actual transaction value for a shipment to Indonesia may lead to the Indonesian Bureau of Customs assessing a higher value as the import value of a shipment, resulting in higher import duties and taxes.

When processing clearance approval for import shipments, the Indonesian Bureau of Customs follows the Valuation Ruling guideline as defined in Article VII of the General Agreement on Tariffs and Trade from the World Trade Organization (WTO). This ruling specifically requires the value on the invoice to be the actual transaction value, defined as the price paid when acquired or the price payable upon exportation to Indonesia. If Customs cannot establish the value as the actual transaction value, Customs will utilize other methods as defined in the Valuation Ruling guideline to establish what Customs believes to be the right value, including comparing against historical information on the value of identical or similar shipment content.

In order to support the declared value on your shipment as the transaction value when shipping into Indonesia, customers are advised to provide proof of the transaction or payment as a supporting document in addition to the Commercial Invoice.

As a reminder, all non-document imports into Indonesia are subject to valuation by the Indonesian Bureau of Customs regardless of the purpose of the shipment.

For more information please call our local customer service team.

Subscribe to FedEx email