Page 3 - Newsletter(Electronic Trial Proceedings of the Tax Court)

DDTC Newsletter Vol.03 | No.11 I June 2020 Page 3 of 11

Electronic Trial Proceedings of the Tax Court

Dominica, Ecuador, Kazakhstan, Liberia, and Oman, have (including gordynes) and blinds, curtains or bed nets
just joined. made of synthetic fibers, cotton, and other textiles.

Referring to Article 1 paragraph 6 of the Minister The imposition of BMTP on these products is outlined in
of Finance Regulation Number 70/PMK.03/2017 the Minister of Finance Regulation No. 54/PMK.010/2020
(MoF Reg. 70/2017) as amended by the Minister of concerning the Imposition of Safeguard Import Duties
Finance Regulation Number 19/PMK.03/2018 (MoF on Imports of Curtain Products (Including Gordynes),
Reg. 19/2018), a participating jurisdiction is a foreign Blinds, Bed Nets, and Other Furniture Items (MoF Reg.
jurisdiction that is bound with the Indonesian government 54/2020). The BMTP tariffs are charged in three periods
under international agreements with the obligation to as listed in Table 1.
deliver financial information on an automatic basis.
Table 1 BMTP Provisions on the Imports of Curtain Products
Further, the appendix of the announcement also indicates
(Including Gordynes), Blinds,
that there are 85 reportable jurisdictions. This implies Bed Nets, and Other Furniture Items
that three jurisdictions, Dominica, Ecuador, and Turkey,
Imposition Period BMTP Tariff
have just joined.
Period I (27 May 2020 - 8 November 2020) Rp41,083/Kg
As per Article 1 paragraph 7 of MoF Reg. 70/2017 as
Period II (9 November 2020- 8 November 2021) Rp34,961/Kg
amended by MoF Reg. 19/2018, a reportable jurisdiction
is defined as a participating jurisdiction which is the Period III (9 November 2021 - 8 November 2022) Rp28,839/Kg
destination for the Indonesian Government in carrying
Source: MoF Reg. 54/2020.
out the obligation of delivering financial information on
an automatic basis.
Under MoF Reg. 54/2020, BMTP on imports of curtain
products (including gordynes), blinds, bed nets is
Imposition of BMTP on the Import of targeting imports from all countries except 124 countries
listed in the appendix of MoF Reg. 54/2020. Excluded
Textiles and Textile Products countries include Armenia, Bangladesh, Congo, Pakistan,
Lesotho, Mexico, and Ukraine.
The government imposes safeguard import duties (Bea
Masuk Tindakan Pengamanan/BMTP) on imports of Second, fabric products. The imposition of BMTP on the
imports of fabric is outlined in the Minister of Finance
textiles and textile products (Tekstil dan Produk Tekstil/
TPT). Imports of textiles and textile products (TPT) Regulation No. 55/PMK.010/2020 concerning the
Imposition of Safeguard Import Duties on Imports of
are subject to BMTP because based on the final report
on the investigation results by the Indonesian Trade Fabric Products (MoF Reg. 55/2020). BMTP on imports
Security Committee (Komite Pengamanan Perdagangan of fabric products is imposed on 107 HS Codes with
Indonesia/KPPI), there are threats of injuries or serious BMTP tariffs ranging from Rp1,718 per meter to Rp7,142
per meter depending on the type of fabric and the import
losses to the domestic industry due to the surge in TPT
imports. period. In further detail, BMTP tariffs on imported fabric
products can be seen in Table 2.
Imports of TPT were formerly subject to temporary
safeguard import duties (Bea Masuk Tindakan The imposition of BMTP on imports of fabric products
is targeting imports from all countries. Fabric products
Pengamanan Sementara/BMTPS) as at that time, the
KPPI was still in the investigation stage. The imposition produced by 122 countried listed in the attachment
of MoF Reg. 55/2020 are exempted from the BMTP
of BMTPS was set forth in the Minister of Finance
Regulation in force for 200 days as of 9 November 2019, imposition. Excluded countries include Argentina, Chile,
Ghana, India, Thailand, Vietnam, and Zimbabwe.
which has now expired.
Third, yarn products (other than sewing thread) from
The final report of the KPPI’s investigation results and the
expiration of the regulation imposing BMTPS have urged synthetic and artificial staple fibers included in HS
Codes 5509.22.00, 5509.32.00, 5509.51.00, 5509.53.00,
the government to set a new regulation as the legal basis
for the imposition of BMTP on TPT imports. In further 5510.12.00, and 5510.90.00. Referring to BTKI, the
products referred to in the HS Codes include ply yarns
detail, there are three types of TPT of which the imports
are subject to BMTP. (folded) or twisted into cord yarns purely made of
synthetic staple and a mixture of artificial staple, cotton,
First, curtain products (including gordynes), blinds, or other yarns.
bed nets, and other furniture items included in the HS
Codes 6303.12.00, 6303.19.90, 6303.91.00, 6303.92.00, The imposition of BMTP on the yarn products is
outlined in the Minister of Finance Regulation No. 56/
6303.99.00. Based on the Indonesian Customs Tariff
Book (Buku Tarif Kepabeanan Indonesia/BTKI), the PMK.010/2020 concerning the Imposition of Safeguard
Import Dutdies on Imports of Yarn Products (Other Than
products included in the HS Codes comprise curtains