indonesia removes import duty covid-19 medical devices

Indonesia removes import duty for some Covid-19 related medical devices

On 12 July 2021, Indonesia’s Ministry of Finance has just released Regulation No.: 92/PMK.04/2021 which is the third amendment to Regulation No.: 34/PMK.04/2020 concerning the provision of customs facilities and/or excise and taxation on the import of goods for the purposes of handling the Coronavirus pandemic in Indonesia.

Regulation No.: 92/PMK.04/2021 lists various products that can be used in the fight against Covid-19, from Personal Protective Equipment to Oxygen Tanks, from Transportable Baby Incubators to PCR tests.

For those products that are listed, upon importation, they will benefit from 0% import duty, which is normally between 5 and 10% of the Cost of Goods of the Medical Device.

Generally, all imported products are subject to 3 (three) types of tax: the first is Import Duty, the second is Value Added Tax, and the third is Withholding Tax. This new regulation means that importers only need to pay VAT and Withholding Tax on imported COVID-19 related medical devices.

Please note that only registered medical devices may be imported into Indonesia, which means only products that have been issued with a Distribution Approval Number or NIE (Nomor Izin Edar) otherwise known as the Product Approval License from the Ministry of Health via the Online Medical Device Registration platform (hereafter called the Kemenkes system) unless exempted from registration.

Any company wishing to import medical devices and in-vitro diagnostics (IVDs) into Indonesia must have a valid SDAK (Sertifikat Distribusi Alat Kesehatan) or Medical Device Distribution Certificate (MDDC) otherwise known as a distributor license. This is also a requirement in order to register the product in the first place.

To learn more about importing medical devices into Indonesia click here.

To learn more about the Indonesian medical device market click here.

We can register and import your medical device into Indonesia. Contact our sales team to find out more by clicking on the button below.

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