Indonesia has taken steps to protect its domestic textile sector from a surge in cotton imports, aiming to support local producers and stabilize the industry.
Indonesia will begin imposing safeguard duties on imported cotton woven fabrics from January 10 in a bid to shield its domestic textile industry from a surge in imports.
The safeguard duty, locally known as Bea Masuk Tindakan Pengamanan (BMTP), will be applied for three years under a declining tariff scheme. In the first year, duties will range from 3,000 to 3,300 IDR (0.18–0.20 USD) per meter, depending on tariff classification. The rate will fall to 2,800–3,100 IDR per meter in the second year and further to 2,600–2,900 IDR per meter in the third year.
The regulation states that safeguard measures may be applied when a spike in imports poses a serious threat of injury to domestic producers. An investigation by the Indonesian Trade Safeguard Committee (KPPI) found that rising imports of cotton woven fabrics had caused serious harm to the local textile industry.
The BMTP will be imposed in addition to existing import duties, including most-favored-nation rates and preferential tariffs under international trade agreements.
However, its government has granted exemptions for imports originating from 122 developing countries that are WTO members, including Malaysia, Thailand, the Philippines, as well as several countries in Africa and Latin America.
News Courtesy : Vietnam plus