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Research by Country/Region January 21, 2018  
INDONESIA: CUSTOMS, TAXES, and DOCUMENTATION REQUIREMENTS: IT PRODUCTS and SERVICES IMPORTS

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A. Is this country a member of the Information Technology Agreement?

B. Customs documentation requirements for IT products

C. Software: duties and taxes, updates, licenses, electronically delivered

D. IT services: tax treatment and other regulations

E. Refurbished, used, or repaired computer equipment imports


A. IS THIS COUNTRY A MEMBER OF THE INFORMATION TECHNOLOGY AGREEMENT?
YES. However, Indonesia will not eliminate its tariffs fully on certain products until 2005. See its tariff elimination schedule on the WTO web site here.
Signatories to the Information Technology Agreement (ITA) have eliminated their import duties on a wide range of information technology products, including software and computer hardware. For more information on the ITA, and exact tariff elimination schedules of signatories, click here.
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B. CUSTOMS DOCUMENTATION REQUIREMENTS FOR IT PRODUCTS

What are the documentation requirements for the physical import of software? For other information technology products?
The documentation required to be presented to customs, for all IT product imports, includes
--Commercial Invoice with detailed price per item (if there are more than one/ different items)
--Packing List, and
--Bill of Lading or Airway Bill.

All documentation must be original copies.
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C. SOFTWARE: DUTIES and TAXES, UPDATES, LICENSES, ELECTRONICALLY DELIVERED

DUTIES AND TAXES ON SOFTWARE IMPORTS

Are duties assessed on the intellectual property of the software or on the medium on which is it presented?
Duties and taxes will be assessed based on physical goods. The customs does not take intellectual property rights into account when calculating import duties and taxes.

Are taxes assessed on the intellectual property of the software or on the medium on which is it presented?
Duties and taxes will be assessed based on physical goods. The customs does not take intellectual property rights into account when calculating import duties and taxes.

The method of calculating cost on duties and taxes is as follows: Value of Commercial Invoice + charges based on INCOTERMS 2000 (eg. CFR, CIF, FOB, etc) = Y x import tariff based on HS code = Z.

Customs will charge Z amount of duties and taxes of imported software.

Is customized software treated differently than packaged software?
No.
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IMPORTS OF SOFTWARE UPDATES

What are the customs duties and tax implications for software sold with updates when the full sales price, including cost of updates, is shown on the original commercial invoice? Are duties and taxes paid on that amount? What happens when the updates are sent at a later date? Are duties/taxes applied again? If so, based on what value? How should information presented on the commercial invoice for the original and subsequent shipments to avoid paying duties/taxes more than once on a single sale?
Duties and taxes will again be imposed on any updated software.
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SOFTWARE LICENSES: CUSTOMS CLASSIFICATION, IMPORT DUTIES, TAXES, OTHER

Are software licenses classified in Harmonized System 4907?
Yes.

Are import duties/taxes applied? If so, on what cost/price base are they levied?
Yes. The method of calculating cost on duties and taxes is as follows: Value of Commercial Invoice + charges based on INCOTERMS 2000 (eg. CFR, CIF, FOB, etc) = Y x import tariff based on HS code = Z.

Customs will charge Z amount of duties and taxes.

Are withholding or other additional taxes applied on software licenses? If yes, how?
No.

If a U.S. license agreement is included in the packaging or is part of the installation/registration of shrink-wrapped software imported from the United States, would that agreement be binding on consumers in your market?
No.
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SOFTWARE DELIVERED OVER THE INTERNET/ELECTRONICALLY DELIVERED SOFTWARE

Are taxes applied to software delivered to the end-user over the Internet? If so, on what value?
Taxes will not be levied on software delivered to the end-user over the Internet.

Would the situation be different if this software were instead delivered to a distributor who has a license to produce (replicate) and sell the software?
A 10% sales tax/ valued added tax will be imposed on a distributor.

What are the documentation requirements for the electronically delivered import of digitized products (i.e. software, movie downloads) over the Internet or other networks?
No documentation is required for such transactions.

Must an electronically delivered software import be accompanied by a physical shipment of the same product?
No.
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D. IT SERVICES: TAX TREATMENT AND OTHER REGULATIONS

Are services (i.e. training, set-up, etc) relating to the sale of software taxed? If so, at what rate and based on what value?
No.

Are U.S. IT solution providers permitted to send personnel into the country to set up hardware/software-related systems?
Yes.

Are special visa, work permits, and/or professional certification by an accredited body required?
No.
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E. REFURBISHED, USED, OR REPAIRED COMPUTER EQUIPMENT IMPORTS

1. REFURBISHED COMPUTER EQUIPMENT
Is the import of refurbished computer hardware, parts, and accessories (including toner cartridges) permitted?
Yes.

If so, what are the documentation requirements?
Requirements are the same as for new equipment-- Commercial Invoice with detailed price per item (if there are more than one/ different items), Packing List, Bill of Lading or Airway Bill. All documentation must be original copies.

Is special labeling required?
No.

What value should be shown on the invoice?
It depends on buyer’s request. The seller is advised to discuss this matter prior to shipment.

How are duties and taxes assessed?
Same as for new equipment.
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2. USED COMPUTER EQUIPMENT
Is the import of used computer hardware, parts, and accessories (including toner cartridges) permitted?
Same as for refurbished equipment. See answers above.
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3. REPAIRED COMPUTER EQUIPMENT
Are duties and taxes assessed on the re-import of repaired computer equipment?
Yes. The method of calculating duties and taxes is as follows: value of Commercial Invoice (repaired value) + charges based on INCOTERMS 2000 (eg. CFR, CIF, FOB, etc) = Y x import tariff based on HS code = Z. Customs will charge Z amount of duties and taxes.

How should the commercial invoice appear?
The commercial invoice should show the cost of repair.
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RESPONSE INFORMATION

This response was prepared by the U.S. Department of Commerce/Commercial Service in Jakarta, Indonesia, in March 2003. For further clarification please contact:
Kalung Riang
Commercial Specialist
U.S. Embassy, Jakarta
kalung.riang@mail.doc.gov

Special Notes: The above information is intended to serve only as unofficial guidance. In seeking to obtain government rulings in specific cases, it will often be necessary to refer to special laws, separate regulations and announcements, and case-by-case decisions by the government. Beyond the general guidelines shown above, legal counsel should be retained at an early stage of consummation of a major procurement contract, and before entering into any legal commitments.

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