The Ministry of Finance issues a new regulation on the procedures for the imposition of import duty rates based on the Asean - Japan Comprehensive Economic Partnership (AJCEP).

Procedures on the imposition of import duty rates based on AJCEP are outlined in the Minister of Finance Regulation No. 71/PMK.04/2021 concerning Procedures for the Imposition of Import Duty Rates on Imported Goods Based on the Agreement on Comprehensive Economic Partnership among Member States of the Association of Southeast Asian Nations and Japan (MoF Reg. 71/2021). Promulgated on 24 June 2021, this regulation takes effect 30 days thereafter.

Formerly, the imposition of import duties on imported goods based on AJCEP was stipulated under the Minister of Finance Regulation No. 229/PMK.04/2017 concerning Procedures for the Imposition of Import Duty Rates on Imported Goods Based on International Treaties or Agreements as amended several times, last amended by the Minister of Finance Regulation No. 124/PMK.04/2019 (MoF Reg. 229/2017 as amended by MoF Reg. 124/2019).

However, to provide more legal certainty in services for customs activities on imported goods from AJCEP member countries, the government has refined the provisions under MoF Reg. 229/2017 as amended by MoF Reg. 124/2019 by issuing MoF Reg. 71/2021. On another note, MoF Reg. 71/2021 has been issued to accommodate the dynamics of the agreement on the comprehensive economic partnership among Asean member states and Japan.

Under MoF Reg. 71/2021 imported goods from AJCEP member states may be subject to preferential rates, the amount of which may differ from the statutory import duty rates (Most Favored Nation/MFN). The amount of the preferential rates is stipulated in a ministerial regulation concerning the stipulation of import duty rates within the framework of AJCEP.

The preferential rates, however, may be enjoyed if the imported goods comply with the rules of origin. Rules of origin refer to special provisions based on international treaties or agreements applied by a country to determine the country of origin of goods.

Imported goods are deemed to meet the rules of origin if three conditions are met, i.e. the origin criteria, the consignment criteria, and procedural provisions. The fulfillment of the rules of origin is evidenced by the submission of a certificate of origin upon importation.

Procedures for the Imposition of Preferential Rates Based on AJCEP