The GOVERNMENT imposes additional import duties for the import of clothing products and accessories for the next three years, effective from November 12, 2021. This policy is referred to as a safeguard measure or BMTP.The imposition of additional import duties applies to imports of clothing that fall into the 134 Harmonized System (HS) code. The umbrella regulation is Minister of Finance Regulation (PMK) Number 142/PMK.010/21, which was signed on October 21, 2021 and promulgated the following day. The provisions for imposing additional import duties for clothing and accessories are declared to be effective 21 days after PMK 142/2021 is promulgated.
The list of clothes and accessories that are subject to additional import duties are:
casual tops, formal tops such as suits, blazers, cardigans, shirts and knitwear, bottoms, coats, jackets, jerseys, ensembles and dresses, baby wear, headwear and neckwear
The amount of additional import duty is set differently for each category of goods and the period of implementation of the import.
In the consideration of PMK 142/2021, additional import duties were imposed because the presence of imported clothing was considered a threat to the domestic industry, referring to the results of an investigation by the Indonesian Trade Security Committee.
The investigation was carried out at the request of the Indonesian Textile Association representing 278 domestic companies. The production of the companies that are members of this association covers 54.86 percent of the total national textile production.
They considered that the presence of imported clothing coming from various countries had reduced the volume of sales and domestic production.
PMK Exception Number 142/2021 provides an exception for the import of headwear and neckwear products originating from 122 countries, with the list of countries of origin listed in the attachment of the PMK.
In order to avoid being subject to additional import duties on the import of these goods, the importer must submit a Certificate of Origin.
Previously, the Ministry of Finance has issued safeguard policies for imported textile products and textile products, including through PMK Number 54/PMK.010/2020, PMK Number 55/PMK.010/2020, and PMK Number 56/PMK.010/ 2020.
PMK Number 54/2020 regulates safeguards for imported products such as curtains, blinds, and mosquito nets. The PMK Number 55/2020 is for 107 HS codes for fabrics, while PMK Number 56/2020 is for threads other than sewing thread and synthetic and artificial staple fiber.