The import duty rate for work clothes imported into Indonesia varies depending on the specific HS code and material composition, but generally ranges between 5% and 20% of the CIF (Cost, Insurance, Freight) value. Here’s a detailed breakdown:
Key Determinants of Import Duty:
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HS Code Classification:
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Chapter 61/62 (Knitted/Woven Apparel) are most common for workwear.
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Examples:
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Cotton work shirts (HS 6205.20.90): 15%
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Synthetic safety jackets (HS 6211.33.00): 15%
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Flame-resistant coveralls (HS 6211.32.00): 10%
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ASEAN-China Free Trade Agreement (ACFTA):
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If your Chinese supplier provides a Form E Certificate of Origin, duties may be reduced to 0–5% (e.g., cotton workwear often drops to 5%).
asean china free trade area’s
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Additional Costs (Beyond Import Duty):
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Value-Added Tax (VAT): 11% of (CIF value + Import Duty).
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Income Tax (PPh 22 Impor):
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2.5% for importers with an API-U license.
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7.5% for non-API holders.
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Calculation Example:
Assume a shipment of work clothes with:
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CIF Value: $10,000
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Import Duty: 15% ($1,500)
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VAT: 11% × ($10,000 + $1,500) = $1,265
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PPh 22: 2.5% × $10,000 = $250
✅ Total Taxes/Duties: $1,500 + $1,265 + $250 = $3,015 (~30.15% of CIF value).
Critical Steps to Minimize Costs:
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Verify HS Codes: Use Indonesia’s official BTKI 2022 Tariff Book or consult a customs broker.
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Claim ACFTA Benefits: Ensure your Form E is correctly filed.
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Avoid Misdeclaration: Under-invoicing or incorrect HS codes may trigger penalties (up to 100% of evaded duties).
Resources:
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Indonesian Customs (Bea Cukai): Tariff Lookup Tool
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ASEAN Trade in Goods Agreement (ATIGA): Duty Reduction Schedules
Tip: Always request a binding tariff ruling from Indonesian customs for high-value shipments. Work with a local PPJK (customs broker) to ensure compliance and optimize duties. Duty rates can change – verify current rates via the National Single Window (INSW).
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