Stipulation of Import Duty Tariffs for the Comprehensive Economic Partnership Agreement between Indonesia and EFTA States

s R. Herjuno Wahyu Aji
s Fakry
By R. Herjuno Wahyu Aji, Fakry
R. Herjuno Wahyu Aji
Fakry
The Ministry of Finance stipulates the amounts of import duty tariffs in the context of a comprehensive economic partnership agreement between Indonesia and European Free Trade Association (EFTA) states. The policy is outlined in the Minister of Finance of the Republic of Indonesia Regulation No. 152/PMK.010/2021 concerning the Stipulation of Import Duty Tariffs in the Context of Comprehensive Economic Partnership Agreement between the Republic of Indonesia and the EFTA States (MoF Reg. 152/2021).
 
This regulation has been issued to encourage the acceleration of economic recovery and enhance the comprehensive economic cooperation between Indonesia and EFTA states. As per Article 2 paragraph (1) of MoF Reg. 152/2021, the Ministry of Finance stipulates import duty tariffs on imported goods from EFTA states in the context of a comprehensive economic partnership between Indonesia and EFTA states.
 
The amounts of import duty tariffs are listed in the Appendix of MoF Reg. 152/2021. Said appendix provides for 14 amounts of import duty tariffs with different validity periods. The import duty tariffs are valid from 2021 to 2034 onwards. Details of the validity of import duty tariffs are stipulated under Article 2 paragraph (3) of MoF Reg. 152/2021. One example is chevon under HS Code 0204.50.00 which is subject to an import duty of 4% in 2021 and 3% in 2022. Subsequently, the tariff will decrease to 2% in 2023 and to 1% in 2024. From 2025 to 2034 onwards, the import duty tariff shall be 0%.
 
MoF Reg. 152/2021 also stipulates import duty tariffs in the form of Tariff Rate Quota (TRQ). TRQ constitutes a scheme on the imposition of import duty tariffs based on the number of quotas for certain products stipulated under MoF Reg. 152/2021. Import duty tariffs in the form of TRQ are imposed on imported goods using in-quota or out-quota preferential tariffs, with an annual quota of 100 tons as per the first come first served principle.
 
Preferential in-quota tariffs are set for imported goods that do not exceed the TRQ scheme annual quota and obtain a tariff of 50% of the statutory import duty tariff. Preferential out-quota tariffs, on the other hand, are set for imported goods that exceed the TRQ scheme annual quota and obtain a tariff of 60% of the statutory import duty tariff. Next, the quota of imported goods subject to TRQ shall be validated and curtailed through the Indonesia National Single Window System.
 
Import duties are imposed as per ministerial regulations concerning procedures for the imposition of import duty tariffs on imported goods based on the comprehensive economic partnership agreement between Indonesia and EFTA states. In the event that the applied MFN is lower than the import duty tariff listed in the Appendix of MoF Reg. 152/2021, the applicable import duty tariff shall be the applied MFN.
 
Further, the provisions on amounts of import duty tariffs under this regulation apply to three types of goods. First, imported goods whose customs declaration documents have obtained a registration number and date from the customs office as of the effective date of this regulation. Second, imported goods whose import customs declaration documents or goods originating outside the customs area whose customs declaration documents of the entry of goods into bonded storage, free trade zones and free ports, or special economic zones (SEZ) (Kawasan Ekonomi Khusus/KEK). These documents must have obtained a registration number and date from the customs office as of the effective date of this regulation.
 
Third, goods that have not been released to other places within the customs area from bonded storage, free trade zones and free ports, or SEZ. This applies insofar as the import declaration documents or customs declaration documents of the entry of goods from outside the customs area have obtained a registration number and date from the customs office before the effective date of this regulation. MoF Reg. 152/2021 has taken effect as of 1 November 2021.