Page 3 - Newsletter (Government Launched Temporary Safeguard Import Duty)

DDTC Newsletter Vol.02 | No.09 I November 2019 Page 3 of 6

Government Launched Temporary Safeguard Import Duty

With respect to goods that have entered the Bonded In more detail, the imposition of BMTP on imported
Warehouse, the government underlines that such goods aluminum foil products takes the form of additional
are not to be transferred for two years, except for goods general import duties (Most Favored Nation) or
in the form of piled goods packaging which will be additional preference import duty. The preference import
transported to the distribution destination company. duty is employed if a country has trade cooperation with
Indonesia and meets the applicable provisions.
A Bonded Warehouse is a Bonded Storage to stockpile
imported goods, with one or more activities, i.e. packaging, Furthermore, importers originating from countries
repackaging, sorting, kitting, packing, adjusting, cutting, exempted from the imposition of this BMTP or countries
for certain goods within a certain period to be discharged with international trade cooperation with Indonesia are
later. required to submit Certificate of Origin documents. BMTP
is fully applicable to imported aluminum foil products of
Safeguard Import Duty for Imports of which the import customs declarations documents have
Aluminum Foil Products received a registration number from the Customs Office
of the port of entry as of 7 November 2019.

The Ministry of Finance has imposed safeguard import Temporary Safeguard Import Duty for
duty (be masuk tindakan pengamanan/BMTP) on imports
of aluminum foil products. The imposition of the BMTP Imports of Yarn Products (Other Than
resulted from an investigation by the Indonesian Trade Sewing Thread) from Synthetic and
Safeguard Committee (Komite Pengamanan Perdagangan
Indonesia/KPPI) showing the threat of serious losses Artificial Staple Fibers
to the domestic industry due to a surge in imports of
aluminum foil products. The government has imposed temporary safeguard
import duty (bea masuk tindakan pengamanan
The provisions of BTMP imposition on the imports of sementara/BMTPS) on imports of yarn products other
aluminum foil products are contained in Minister of than sewing thread from synthetic and artificial staple
Finance Regulation No. 153/PMK.010/2019 (MoF Reg fibers. The imposition of BMTPS is due to the investigation
No. 153/2019) concerning the Imposition of Safeguard results by the Indonesian Trade Safeguard Committee
Import Duty on Imports of Aluminum Foil Products. The (Komite Pengamanan Perdagangan Indonesia/KPPI) that
regulation was promulgated on 24 October 2019 and will indicates the threat of serious losses to the domestic
enter into force in 14 days from the date of promulgation. industry due to the uprise in product imports.
This policy, nonetheless, will only be valid for two years
since the effective date of the regulation. The provisions of BMTPS imposition are contained in the
Minister of Finance Regulation No. 161/2019 (MoF Reg.
Under this regulation, BMTP is imposed on imported No. 161/2019) concerning the Imposition of Temporary
goods in the form of aluminum foil products that are not Safeguard Import Duty on Imports of Yarn Products
printed or are not placed on paper, cardboard, plastic, or (Other Than Sewing Thread) from Synthetic and Artificial
similar bases. Moreover, the thickness of the aluminum Staple Fibers. The regulation was promulgated on 6
foil product should not exceed 0.2 mm, is rolled but not November 2019 and entered into force three days after
further processed, and the aluminum content is 97.5% or the date of promulgation. Further, this BMTPS policy is
higher of its weight. only valid for 200 days since 9 November 2019.

Furthermore, this regulation’s two-year validity period BMTPS imposition targets imported products in the
is divided into two. In the first period, BMTP tariff is form of yarn products other than sewing threads from
imposed at 6% and will be valid for one year since the synthetic and artificial staple fibers included in HS
effective date of this Minister Regulation. In the second code 5509.22.00, 5509.32.00, 5509.51.00, 5509.53.00,
period, the BMTP tariff is imposed at 4% and will be valid 5510.12.00, and 5510.90.00. Descriptions pertaining to
for one year since the end of the first period. the types of products based on the HS code are indicated
in Table 1.
Subsequently, this BMTP regulation is imposed on
imports from all countries, except for aluminum foil BMTPS tariff is imposed at Rp1,405.00/kg. Moreover,
products produced by 124 countries listed in the BMTPS is imposed on imports from all countries, except
appendix to this MoF Regulation. Countries exempted for yarn products other than sewing threads from
from the imposition of BMTP include the Philippines, synthetic and artificial staple fibers produced by 121
Qatar, Saudi Arabia, Maldives, Malaysia, Singapore, and countries listed in the attachment to the regulation.
Hong Kong. Excluded countries among others include Brazil, Brunei
Darussalam, and Malaysia.