CUSTOMS DUTIES: AFGHANISTAN TO INDONESIA

Overview of Customs Duties: Afghanistan to Indonesia

Trade between Afghanistan and Indonesia is governed by Indonesia's customs regulations and tariff structure. As a member of the World Trade Organization (WTO), Indonesia applies Most-Favored-Nation (MFN) tariff rates to imports from Afghanistan. Understanding the applicable duties, taxes, and documentation requirements is essential for successful cross-border commerce. Indonesia maintains a relatively open trade regime with an average MFN applied tariff rate of approximately 8.1%, though rates vary significantly by product category and HS code classification.

General Duty Rates

Product Category	Standard Duty Rate	Notes
General Non-Agricultural Products	8.0%	Applied to CIF value; average rate
Agricultural Products	8.7%	Applied to CIF value; average rate
Footwear/Shoes	25-30%	Higher protective tariff
Textile Materials	15-25%	Varies by specific textile type
Bags	15-20%	Recently standardized to 25% under 2025 regulations
Books (Scientific)	0%	Duty-free; also exempt from VAT and income tax
Iron/Steel Products	15%	Subject to 2025 tariff simplification
Bicycles	25%	Recently standardized under 2025 regulations
Other Product Categories	Varies by HS code	Contact our experts for specific rates

Important Note on Valuation: Duties are applied to the CIF (Cost, Insurance, and Freight) value of the order. Additionally, a standard Value-Added Tax (VAT) of 12% applies to most imports. An income tax rate of 7.5-15% may also apply depending on whether an Import Identification number (API) or tax ID is provided.

De Minimis Thresholds

As of 2025, Indonesia enforces strict de minimis thresholds for duty-free imports:

• Tax De Minimis: $0 USD (all imports subject to VAT)
• Duty De Minimis: $3 USD (based on FOB value)

Imports valued below $3 USD (FOB) are duty-free but still subject to VAT. This significantly impacts e-commerce and small shipments, as most goods will incur both duties and taxes.

Required Documentation

• Commercial invoice with detailed product descriptions and values
• Packing list specifying contents and weights
• Bill of lading or airway bill for shipping documentation
• Certificate of origin (required for trade agreement benefits)
• Import license (for certain restricted product categories)
• Product-specific certifications (as applicable)
• Customs declaration form
• Import Identification number (API) or tax ID (if applicable)

Important Regulations

• Quantity Limitations: Indonesia enforces quantity limits on certain products, requiring careful monitoring when exporting goods.
• Import Licensing Requirements: Indonesian importers must obtain import licenses for various product types before goods can clear customs.
• Formal Clearance: Imports valued higher than $1,500 USD are subject to formal clearance procedures, which require an additional 3-5 days for processing.
• Tariff Simplification (2025): Finance Minister Regulation No. 4/2025 simplified import duties into three categories: 0%, 15%, and 25%, affecting books, steel, textiles, footwear, bags, and bicycles.
• VAT on Digital Services: If sales in digital/electronic services exceed 600 million IDR with traffic from at least 12,000 Indonesian users annually, VAT collection obligations apply.
• Prohibited and Restricted Items: Verify that your goods are not on Indonesia's prohibited or restricted import list before shipment.

Trade Agreements

Indonesia is a member of the World Trade Organization (WTO) and maintains at least 15 trade agreements offering zero or highly discounted duty rates for goods manufactured in participating countries. As an WTO member, Indonesia adheres to the Most-Favored-Nation (MFN) clause, ensuring that concessions granted to one WTO member are extended to all other members. Afghanistan's status under these agreements should be verified to determine eligibility for preferential tariff treatment. Exporters should obtain a Certificate of Origin to claim any applicable tariff reductions under bilateral or multilateral trade agreements.