Explanation of What is KITE ?

Explanation of What is KITE ?

The government issued various policies to encourage industrial development and improve the national economy. One of them is by issuing a policy called KITE (Ease of Import for Export Destinations).

The KITE policy is intended for export-oriented business actors by facilitating the flow of imports of raw materials for the production of finished goods which will later be exported. However, of course, not all export business actors and not all imported raw materials can be subject to this KITE facility.

KITE (Ease of Import for Export Purposes) is a policy of the Minister of Finance of the Republic of Indonesia whose implementation is carried out by the Directorate General of Customs and Excise. KITE itself is defined as the treatment of imported goods or assembled goods that will be exported and can be given Import Duty (BM) relief.

KITE is not given to all companies, but only companies that are export-oriented and have qualified as KITE recipients. Likewise with imported products. Where importation with this facility can only be used to import raw materials as support for its products which later become products that are ready for export.

Thus, imported goods that are processed, assembled, or installed on goods that will later be exported can get Import Duty relief.

This policy is carried out as an effort to support the increase in exports. Where exporters can reduce production costs so that they can increase production capacity which can ultimately increase export volumes.

Provisions related to this policy have been regulated in Article 26 of Law Number 17 of 2006 concerning Amendments to Law No. 10 concerning Customs.

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