The government included Vietnam and Malaysia in the list of countries subject to security measures (BMTP) on imports of fabric products in line with the release of Minister of Finance Regulation No. 78/PMK.010/21.
Referring to PMK 78/2021, the government said the decision was taken because based on the results of the evaluation of the Indonesian Trade Security Committee (KPPI), imports of fabric products from Vietnam and Malaysia jumped sharply.
"Based on the results of KPPI's evaluation of the Domestic Industry in November 2019 to September 2020, the imposition of BMTP on imported fabrics has not been effective because imports of fabric from Vietnam and Malaysia have increased quite significantly," reads one of the considerations of PMK 78/2021.
In response to this, the Minister of Trade removed Vietnam and Malaysia from the list of countries exempted from imposition of BMTP on imports of fabric products. Thus, now imports of fabric products from Vietnam and Malaysia are subject to BMTP.
This provision revises the list of countries that are exempt from the imposition of BMTP on fabric products previously stipulated in the PMK. No.55/2020. In the PMK, BMTP is imposed on imports of fabric products from all countries except the countries listed in the attachment.
In PMK 78/2021, the Ministry of Industry also proposes changes to the units of goods used in import and export customs notifications for the textile and textile product sector. This is done to support the ease of collecting BMTP and customs administration.
Currently, if imports from countries in the international trade agreement scheme do not meet the provisions or are requesting a retroactive check, the imposition of BMTP on the imported fabric is in addition to the general import duty.
BMTP is an additional levy that can be imposed on imported goods in the event of a surge in the number of imported goods, both absolute and relative to similar domestically produced goods or goods that are directly competitive.
BMTP can be imposed if based on the results of the KPPI investigation, the surge in imported goods can cause serious losses to the domestic industry that produces goods similar to those goods and/or goods that are directly competitive.
BMTP is applied for several years taking into account the length of time required by the affected producers/industry to improve. For example, the imposition of BMTP on imports of fabric products is carried out from 27 May 2020 to 8 November 2022.