CUSTOMS DUTIES: NORTH KOREA TO INDONESIA

Overview of Customs Duties from North Korea to Indonesia

Trade between North Korea and Indonesia is subject to Indonesia's comprehensive customs regulations and tariff structure. As an importer into Indonesia, exporters must understand the applicable duty rates, tax requirements, and documentation standards. Indonesia maintains a relatively open trade regime with an average Most-Favored-Nation (MFN) applied tariff rate of approximately 8.1%, though specific product categories may face significantly higher rates depending on their classification.

Indonesia's customs framework is designed to protect domestic industries while facilitating legitimate international trade. All imports are subject to both duty and value-added tax (VAT), with extremely low de minimis thresholds. This means that virtually all shipments will incur customs charges, regardless of value. Importers must be prepared for formal clearance procedures, particularly for high-value shipments exceeding $1,500.

General Duty Rates

Product Category	Duty Rate	Notes
Standard Imports (General)	7.5%	Applied to CIF value; baseline rate for unspecified goods
Non-Agricultural Products	8.0%	MFN applied rate average
Agricultural Products	8.7%	MFN applied rate average
Textiles and Textile Materials	15-25%	Recent regulations may apply 25% tariff under simplified structure
Footwear and Shoes	25-30%	Higher end of range for certain shoe categories
Bags	15-20%	Recent regulations may apply 25% tariff under simplified structure
Bicycles	25%	As of February 2025 Finance Minister Regulation
Books (Scientific)	0%	Duty-free; also exempt from VAT and income tax
Cosmetics and Wristwatches	15%	As of February 2025 Finance Minister Regulation
Iron and Steel Products	15%	As of February 2025 Finance Minister Regulation
High-Value Imports (>$1,500)	Varies by HS code - contact our experts	Subject to formal clearance; may reach up to 30%; additional 3-5 days processing

Tax and De Minimis Requirements

Value-Added Tax (VAT): The standard VAT rate for Indonesian imports is 12%, applied to the CIF (Cost, Insurance, and Freight) value of the order. Income tax rates vary between 7.5%, 10%, and 15% depending on whether an Import Identification number (API) or tax ID is provided.

De Minimis Thresholds: As of 2025, Indonesia enforces extremely low de minimis thresholds: duty de minimis is $3 USD (FOB value) and tax de minimis is $0 USD. This means virtually all imports will incur tax charges, and most will incur duty charges. High-value imports exceeding $1,500 require formal customs clearance procedures.

Required Documentation

• Commercial Invoice with detailed product descriptions and HS codes
• Packing List specifying contents and quantities
• Bill of Lading or Airway Bill (proof of shipment)
• Import License (API - Angka Pengenal Importir) for certain product types
• Certificate of Origin (when applicable under trade agreements)
• Product-specific certifications (health, safety, quality standards as required)
• Customs Declaration Form
• Insurance documents (if applicable)

Important Regulations

• Indonesian consumers must register for import licenses for various product types
• Quantity limits apply to certain products; monitoring is required during shipment planning
• All imports are subject to both duty and VAT due to zero tax de minimis threshold
• High-value imports (>$1,500) require formal clearance, adding 3-5 business days to processing time
• Finance Minister Regulation No. 4/2025 simplified import duties into three categories: 0%, 15%, and 25%
• Indonesia enforces strict labeling and marking requirements for imported goods
• Certain product categories face restrictions or prohibitions; verify specific restrictions before export

Trade Agreements

Indonesia is a member of the World Trade Organization (WTO) and maintains at least 15 bilateral and multilateral trade agreements offering zero or significantly discounted duty rates for goods manufactured in participating countries. As a WTO member, Indonesia must comply with the Most-Favored-Nation (MFN) clause, which requires providing any trade concessions granted to one WTO member to all other WTO members equally.

Exporters from North Korea should verify whether any preferential trade agreements apply to their specific products and origin. When applicable, proper Certificate of Origin documentation is essential to claim preferential rates. Bound tariff rates at the WTO average 37.3%, providing Indonesia flexibility in adjusting applied rates within this framework.