Second Amendment on Bonded Zones

Last year, the Minister of Finance (“Minister”) issued Regulation No. 147/PMK.04/2011 on Bonded Zones (“Regulation”), as amended by Minister Regulation No. 255/PMK.04/2011 (“First Amendment”), which made significant changes to the location of bonded zones, the license validity period for bonded zone licenses, transfers from bonded zones to non-bonded zones (local deliveries), the calculation of tax and import duties on local deliveries, the transfer of capital goods, and sub-contracts. These changes took effect on 1 January 2012.