The decision was announced in the Finance Ministerial Regulation No, 142/PMK.010/2021, which will be valid for three years starting November 12, 2021.
The government made the decision in response to the final report of the Indonesian Trade Safeguarding Committee, which stated that a surge in imports of garments and accessories poses the threat of serious losses to the domestic industry.
“The imposition of safeguard duties is part of the government’s effort to remedy the threat,” the Directorate General of Customs and Excise at the Finance Ministry said in a statement accessed from here on Tuesday.
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Safeguard duties are state levies that can be imposed on imported goods in case of an absolute or relative surge in the import of goods detrimental to similar domestic products or which could cause heavy losses to the domestic industry, it added.
The safeguard duties are in the form of a general surcharge or preferential plus surcharge based on the prevailing international trade agreement, it said.
Under the new regulation, the government has imposed safeguard duties on 134 items of garments and accessories.
The safeguard duties will range from Rp19,260 to Rp63,000 per item for the first year and will decline gradually, as per the regulation.
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The products subject to safeguard duties comprise upper casual dress, upper formal dress, lower dress, suit, ensemble, gown, outerwear, baby clothes and accessories, headwear, and neckwear, it said.
The safeguard duties will apply to imports of garments and accessories from all countries, except 8 items of headwear and neckwear produced in 122 countries, as stipulated in the appendix to the regulation, the directorate general said.
It expressed the hope the policy will have a positive impact on the recovery of the domestic industry and prevent a surge in the imports of garments and accessories.
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