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Import duties on security measures or safeguards on clothing and accessory products will take effect tomorrow, Friday (12/11/2021). Thus, garment imports will be officially subject to additional tariffs to protect the domestic industry. The implementation of the BMTP is stated in the Minister of Finance Regulation (PMK) No. 142/2021 concerning the Imposition of BMTP on the Import of Clothing and Accessory Products. Minister of Finance Sri Mulyani signed this regulation on October 21, 2021 and it was officially promulgated the day after.

 

"This Ministerial Regulation comes into force after 21 (twenty one) days from the date of promulgation," reads Article 6 of the PMK.

The PMK consideration section stated that in accordance with the final report on the results of the investigation by the Indonesian Trade Security Committee (KPPI), it was proven that there was a threat of serious losses experienced by the domestic industry due to a surge in the volume of imports of clothing and accessories.

Article 1 specifically describes 134 tariff posts in the category of clothing and accessories subject to additional import duties. The amount of import duty is specific and gradually decreases until the third year of BMTP implementation.

For example, a product with HS code 62149090 is subject to a tariff of IDR 19,800 per piece in the first year and becomes IDR 17,870 per piece in the third year.

Meanwhile, for products with HS code 62043300, the tariff is Rp. 63,000 per piece in the first year and becomes Rp. 56,858 per piece in the last year.

The BMTP at 134 tariff lines is imposed for imports from all countries, except for clothing products and clothing accessories for the headwear and neckwear segments which are produced from countries listed in the attachment to the regulation.

 

There are 122 countries included in the exclusion list, including India, Bangladesh and Vietnam. China is not included in the excluded countries.

Chairman of the Indonesian Textile Association (API) Jemmy Kartiwa positively welcomed the implementation of the BMTP. The imposition of safeguards is expected to increase the market share of domestically produced garment products.

“So far, imported products still dominate. We hope that in the future the share can increase by 20 to 30 percent," said Jemmy.