Regarding local legalities and taxes

The legalization of E-cigarettes(HNB Tabak) in Indonesia requires the approval of relevant departments and the collection of 57% consumption tax.

In November 2017, the Indonesian Ministry of Trade signed new regulations. Imported E-cigarettes(HNB tobacco heatsticks supplier) must obtain recommendation letters from the Indonesian Ministry of Health (Menkes), the Indonesian Food and Drug Administration (BPOM) and the Indonesian Ministry of Industry (Kemenperin) before they can be sold in the Indonesian market. Standard Certification (SNI).

From July 1, 2018, according to the Tobacco Excise Tax Regulation No.146/2017 of the Indonesian Ministry of Finance, the tax rate of HPTL tobacco products is 57% of the retail price. HPTL tobacco products include: products containing tobacco extracts (including electronic cigarettes), electronic cigarettes, hookah paste, snuff, chewing tobacco, etc.

Mr Nirwala, director of the Communication and Stakeholder Compliance Department of the Indonesian Customs Administration, said that from 2017 to 2021, Indonesia has been imposing a 57% tariff on e-cigarette products, and this year the tax is calculated on a unit basis, with 2.71 per gram of solid tobacco products. Indonesian rupiah tariff, 4.45 Indonesian rupiah tariff per milliliter of open system e-liquid, and 6.03 Indonesian rupiah tariff per milliliter of closed system e-liquid.

About export duties

The important content of the “Regional Comprehensive Economic Partnership Agreement” (RCEP), which was officially signed on November 15, 2020 and came into effect on January 1 this year, is the “commitment to reduce tariffs to zero within ten years”. According to the data on the website of the Ministry of Commerce at that time, the tariffs of the seven countries that can sell E-cigarettes(HNB herbal heatsticks manufacturer) are 30% in Vietnam, 24% in South Korea, 10% in Indonesia, 5% in Malaysia, 5% in Laos, 3.4% in Japan, and 3% in the Philippines.

About the location of the factory in Indonesia

Garindra Kartasasmita, Secretary-General of the Indonesian Electronic Cigarette Association, once told the media that if the target market is still the United States, the United Kingdom, the Middle East, etc., they can build a factory in Batam Island, Indonesia, which is designated as a free trade zone. Companies can ship all their raw materials here without paying any duties and then the products can be exported easily.

Sources of news: Compilation of information sources such as Comprehensive Gewu and Two Supremes