New Provisions on Non-Excisable Tobacco and Alcohol

The Director General of Customs and Excise (“Director General”) has issued Regulation No. PER-35/BC/2014 on Procedures for Exemption from Excise (“2014 Regulation”).

The 2014 Regulation establishes two main provisions. The first sets out types of tobacco products and alcoholic beverages that are exempted from excise. The second provides guidance for producers and manufactures that utilize non-excisable tobacco products or alcoholic beverages as raw materials for producing excisable products - known as a free excise concession or Pelayanan Bebas Cukai (PBCK-1).