Export-Duty Provisions for Certain Export Commodities Reregulated

The government is continuing to improve the nation’s downstream farming, forestry and mining industries, this time through the issuance of Ministry of Finance (“Ministry”) Regulation No. 140/PMK.010/2016 on the Determination of Exported Goods Subject to Export Duty and Export-Duty Tariffs (“2016 Regulation”).The changes which relate to the various types of processed mining products that can be exported are the most important provisions set out under the 2016 Regulation, in addition to the export-duty tariffs for leather and timber products, cocoa beans, oil palm (kelapa sawit), crude palm oil (“CPO”) and their derivative products. Prior to the issuance of the 2016 Regulation, these matters were regulated under Ministry Regulation No. 75/PMK.011/2012 , which was most recently amended by Ministry Regulation No. 136/PMK.010/2015 (“Previous Regulations”). [1] The 2016 Regulation is relevance to various businesses which are currently engaged in, or which are intending to become engaged in, the exportation of goods.Goods Subject to Export Duty and Export-Duty TariffsDetails of the kinds of goods which are now to become subject to export duty are listed in the Appendix to the 2016 Regulation. The export-duty tariff has been set at 25% for leather products, 15% for animal wet blue, 2% to 15% for veneer, 5% for wood in the form of chips or particles, 5% to 10% for processed wood, 5% to 15% for cocoa beans, USD 1 to USD 262 per Metric Ton for CPO and its derivative products, and 60% for processed mineral products. Moreover, the 2016 Regulation also sets out a list of CPO mixtures and their derivative products which will become subject to export duty, including solid or liquid vegetable oil and non-consumable oil mixtures.The 2016 Regulation does not incorporate any substantial changes when compared with the Previous Regulation regarding export-duty tariffs or any of the abovementioned products. The major changes set out under the 2016 Regulation, as mentioned earlier, relate to the criteria for processed mineral products which are now to be subject to export duty, as detailed in the table below: [2]