Having a KITE Exemption facility is a significant opportunity for manufacturing companies to reduce import costs and increase export competitiveness. However, this opportunity comes with significant responsibilities: every step from raw material input, usage, production process, to waste disposal must be recorded accurately, transparently, and auditable at any time.
This is where the real challenge arises. Without a robust IT inventory system, companies risk losing their KITE facility, facing audit findings, and even experiencing costly operational disruptions. Conversely, with an optimized system, the entire process becomes more efficient, accurate, and ready to support accelerated exports.
IT inventory optimization is no longer an option—it's the foundation for maintaining KITE Exemption facilities and ensuring the smooth running of a company's production.
What is the KITE Facility?
KITE orEase of Import for Export Purposesis a facility from the Directorate General of Customs and Excise (DJBC) which is given to companies that import raw materials to be processed, assembled or installed, and then the final results are exported.
The goal is clear:encourage national exports through reducing the burden of import costs.
KITE Facility Types
Customs provides two main forms of facilities:
The main difference between KITE IKM and KITE Exemption lies in the recipient of the facility and the purpose of the delivery of production results.
KITE Liberation
KITE Exemption is intended for general industrial companies, providing exemption from import duty and deferral of VAT/PPnBM for imports of raw or auxiliary materials to be processed for export destination.
KITE SKM
KITE IKM specifically forSmall and Medium Industries (SMEs). In addition to wider import facilities (raw materials, auxiliary materials, packaging, machines, sample goods), KITE IKM production results can be intended for export.or local delivery.
TableKey Differences
The main differences between KITE IKM and KITE Exemption lie in the recipients of the facility and the flexibility of the product's destination. Here are the details of the differences:
Feature | KITE Liberation | KITE SKM |
Facility Recipients | Industrial companies in general | Small and Medium Industries (SMEs) |
Local Sales | Mandatory for export | Allowed, maximum 50% of export realization |
Imported Goods | Raw materials and auxiliary materials | Raw materials, auxiliary materials, packaging materials, machines, and sample goods |
Use of IT Inventory | There must be an IT Inventory | No need for IT Inventory |
Why is IT Inventory So Important in KITE Exemption?
To obtain the KITE Exemption facility, each company is required to provide a transparent, accurate, and real-time report related to the flow of raw materials and production results. This report must show that all raw materials are actually used in the production of export goods.
According to DJBC, the KITE IT Inventory system must at least be able to record the following activities:
1. Transaction Activity
- Import of imported raw materials
- Work in progress (WIP)
- Release of manufactured goods
- Adjustment
- Stock opname (physical enumeration)
2. Mandatory Reports
The KITE Inventory Exemption IT System must be able to produce the following Mutation Reports:
- Raw Material Entry Report per Customs Document.
- Raw Material Usage Report
- Report on the Use of Goods in Process for Subcontracting
- Production Income Report
- Production Expenditure Report
- Raw Material Mutation Report
- Production Results Mutation Report
- Waste/Scraps Solution Report
All these reports must be available for retrieval at any time, in a format that meets DJBC audit requirements.
Therefore, the IT Inventory system is not just an additional feature, butoperational obligationsfor KITE Exemption facility holders.
How Does Odoo from Fujicon Support IT Inventory KITE Liberation?
PT Fujicon Priangan Perdana has developed a system based module and flow.Odoo ERP Which fully supports the need for KITE Exemption, including:
- Tracking of raw material imports per customs document
- Recording of raw material consumption per production batch
- Automatic WIP monitoring
- Mutation of goods from production to export
- Waste & scrap management according to Customs regulations
- KITE reports that can be exported at any time according to audit format
With full integration starting fromInventory, Manufacturing, Purchasing, Accounting hingga Export Document, companies can:
- Reduce manual administrative burden
- Avoiding reporting errors
- Speed up the audit process
- Ensure full compliance with DJBC
Conclusion
KITE Exemption provides a significant opportunity for exporting companies to reduce production costs. However, to maintain this facility, companies must have an accurate and accountable record-keeping system.
Here it isIT Inventory is the backbone of KITE compliance.
With implementation experience in various manufacturing companies,Fujicon Priangan Perdana through Odoo ERP has provided a complete solution that supports the KITE Exemption process from upstream to downstream.
If your company is or will be using the KITE Exemption facility, ensure your system is capable of meeting Customs standards.
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