Definition of Bonded Zones and Provided Facilities

In the manufacturing industry, there is an area known as bonded zones. This is closely related to customs and excise tax because it handles various types of materials and products to be imported and exported. Well, what is the meaning of bonded zones and what are the facilities provided? Here are the reviews below!

Definition of Bonded Zone

Based on government regulation number 30 of 1996, bonded zones are buildings, places, and areas that have certain boundaries where activities that take place in them are industrial activities. There are various types of activities that often take place in bonded zones and provide benefits to the surrounding community.

Some of these include the processing of goods and materials, design and construction activities, engineering, sorting, initial and final inspection, and packaging of imported and exported goods and materials.

According to government regulation number 22 of 1986, the bonded zone is an area with certain boundaries in the customs area or an agency that supervises, collects, and manages customs with special provisions in force.

Bonded Zone Facilities

There are various main activities that take place in bonded zones namely processing or processing raw materials, raw materials, intermediate goods, and goods with a higher value for their use.

This is clearly different from the free trade area where free trade zones always refer to the rules that exist within Indonesian jurisdiction. Clearly, both bonded zones and free trade areas are given special treatment in the aspect of taxation.

The facilities provided in this area include industrial companies whose products are marketing for export activities or resale to other bonded areas. For manufacturing industry companies with the aim of export, they will get customs and tax facilities as follows:

1. Suspension of import duties and the absence of Value Added Tax levies

2. The elimination of levies on Sales Tax on Luxury Goods

3. Exemption of excise on the import of goods or materials to be processed and the import of excisable goods for further processing

4. Ease in imported machines

5. Workers in a Voltage Status entering the white list can risk collateral in the form of a Payable Letter to the Customs and Excise Service Office

In this way, bonded zones as labor-intensive industrial zones can absorb a lot of labor and become an industry with the largest contribution of foreign exchange.

These are some of the things related to the bonded area and the facilities offered. In Indonesia, one of the special locations for bonded zones with a variety of the best world-class facilities in it is Karawang New Industry City (KNIC).

KNIC itself is located in West Java with a concept as a world-class integrated industrial city hence the presence of world-class infrastructure is clearly visible in this place. It does not only aim to support the performance of a manufacturing company, but KNIC is also present to support the acceleration of regional economic growth.

That is not only that this region is present to trigger the emergence of Multiplier Effects that are useful for socio-economic developments in Karawang and other areas in the West Java region.


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