Imposition of Safeguard Import Duties on Imports of Clothing Products and Accessories

s Ganda Christian Tobing
s Wulan Clara Kartini
By Ganda Christian Tobing, Wulan Clara Kartini
Ganda Christian Tobing
Wulan Clara Kartini
The Ministry of Finance has issued new provisions concerning the imposition of safeguard import duties on imports of clothing products and clothing accessories. These provisions are stipulated by the Minister of Finance Regulation No. 142 of 2021 concerning the Imposition of Safeguard Import Duties on Imports of Clothing Products and Clothing Accessories (MoF Reg. 142/2021).
 
This regulation has been issued as based on the final investigation report, the surge in the number of imports of clothing products and accessories has posed a serious threat to the domestic industry.
 
Pursuant to this regulation, safeguard import duties shall be imposed on imported goods in the form of clothes and clothing accessories. The amounts of safeguard import duties tariffs are outlined in the regulation from the first year to the third year.
 
As per Article 1 of MoF Reg. 142/2021, 134 HS Codes are subject to safeguard import duties. Safeguard import duties shall be imposed at a tariff of IDR19,260 to IDR63,000 in the first year of the implementation of safeguard import duties.
 
Safeguard import duties are imposed on all clothing products, except headwear and neckwear, under HS Codes 6117.10.10, 6117.10.90, 6214.30.10, 6214.30.90, 6214.40.10, 6214.40.90, 6214.90.10, and 6214.90.90 originating from the countries listed in the Appendix of MoF Reg. 142/2021.
 
For imports of headwear and neckwear, importers are required to submit certificates of origin (CoO) (Surat Keterangan Asal/SKA), therefore, these imports are not subject to safeguard import duties. If the submitted CoO constitutes a preferential CoO, a CoO verification is carried out based on the minister of finance regulations concerning CoO verification on imported goods based on international agreements or treaties. Next, if the CoO used is a non-preferential CoO, a CoO verification is carried out based on the provisions stipulated by the Ministry of Trade.
 
The imposition of safeguard import duties constitutes an additional statutory import duty (most favored nation) or an additional preferential import duty based on the prevailing international goods trade agreement scheme. The additional preferential import duty is granted in the event of imports from countries included in the said international goods trade agreement scheme and fulfills the provisions therein.
 
In the event that the provisions under the international goods trade agreement scheme are not fulfilled or a request for a retroactive check is underway, the imposition of safeguard import duties on imports from countries included in the international goods trade agreement scheme constitutes an additional statutory import duty.
 
The amounts of safeguard import duties are fully applicable to imported goods in the form of clothing and clothing accessories that alternatively satisfy two aspects. First, the import declaration documents have obtained a registration number from the customs office where the customs obligation is settled, in the event that the customs obligation is settled by submitting a customs declaration.
 
Second, the customs tariffs and values are determined by the Customs Office where customs obligations are settled, in the event that customs obligations are settled without submitting a customs declaration. Promulgated on 22 October 2021, this regulation came into effect 21 days thereafter.