The Government issued the Ministry of Finance Regulation (MoF Regulation) 142/2021 which took effect on 12 November 2021. The regulation imposed Import Duty Safeguard duties on imported fashion products and accessories.
The safeguard duties were imposed following the soaring number of imported apparel and accessories, which led to fears over losses for the domestic apparel industry. This was captured in the Indonesian Trade Security Committee’s final investigation report.
Under the regulation, the Import Duty Safeguard will be valid for 3 years starting 12 November 2021. The range of import duties being charged is between IDR 19,260 up to IDR 63,000 per piece of product for the first year and gradually decreasing for the following years. 134 HS codes will be affected. Exceptions have been made for headwear and neckwear segments which consist of 8 HS codes.
For more information please find the Trade Intelligence Asia Pacific published by PwC here.
Image source: http://unsplash.com
Michaela Merz 