Updates on Bonded Storage-Area Provisions

The government has issued Regulation No. 85 of 2015 (“Amendment”), which amends Regulation No. 32 of 2009 on Bonded Storage Areas (“2009 Regulation”). [1] The Amendment aims to turn Indonesia into a center for national and international logistics distribution that will be able to offer cheap and efficient logistics distribution, as well as support the growth of domestic industries.In order to achieve these objectives, the Amendment redefines provisions on export and import activities, classifies new types of bonded storage areas, deals with tax/duty/excise-duty exemptions, and also tackles duty-free shopping.The Amendment is of relevance to businesses seeking to establish bonded storage areas, or which are intending to store their imported goods in a bonded storage area, as well as to exporters and importers of goods in general.Storage and Unloading of GoodsBonded storage areas are broadly defined as buildings, locations or areas that satisfy the necessary requirements for the storage of goods and which are not required to pay customs fees. [2] Goods can be stored in or extracted from a bonded storage area, provided that their origin and destination encompass one of the following: [3]