Indonesia To Impose Safeguard Duties On Cotton Fabric Imports
Indonesia will begin imposing safeguard duties on imported cotton woven fabrics from January 10, aiming to protect its domestic textile industry from a surge in imports.
The safeguard duty, known locally as Bea Masuk Tindakan Pengamanan (BMTP), will be enforced for a three-year period under a gradually declining tariff structure. In the first year, duties will range between IDR 3000 and IDR 3300 (US$ 0.18–0.20) per metre, depending on tariff classification. The rate will decrease to IDR 2800–3100 per metre in the second year and further to IDR 2600–2900 per metre in the third year.
According to the regulation, safeguard measures may be applied when a surge in imports poses a serious threat of injury to domestic producers. An investigation conducted by the Indonesian Trade Safeguard Committee (KPPI) concluded that increasing imports of cotton woven fabrics had caused significant harm to the local textile industry.
The BMTP will be levied in addition to existing import duties, including most-favoured-nation (MFN) rates and preferential tariffs under international trade agreements.
Indonesia stated that, as a member of the World Trade Organisation (WTO), the use of safeguard instruments is necessary to ensure fair competition in the domestic market.
However, the government has granted exemptions for imports originating from 122 WTO-member developing countries, including Malaysia, Thailand and the Philippines, as well as several nations in Africa and Latin America.
