Imports of Ceramic Tiles from India and Vietnam Are Now Subject to Safeguard Duty

The Indonesian government removed India and Vietnam from the list of countries that are exempt from the imposition of safeguard duty on imports of ceramic tile products. Thus, import duty on ceramic tile imports from the two countries no longer use the general import duty or the Most Favored Nation (MFN).

This is as stated in the Regulation of the Minister of Finance (PMK) number 111 / PMK.010 / 2020 which revised PMK number 119 / PMK.010 / 2018, concerning Imposition of the imposition of Safeguard Duty on the Import of Ceramic Tile Products.

The regulation was issued referring to the evaluation results of the Indonesian Trade Safeguard Committee (KPPI), in December 2019. The evaluation concluded that the imposition of Safeguard Measures Import Duty (Bea Masuk Tindakan Pengamanan/BMTP) on importing ceramic tiles has not been effective in suppressing imports.

This can be seen from the increasing number of ceramic tile imports, especially from the two countries. Thus, in order to protect domestic industry the government excluded India and Vietnam from the list.

Therefore, now there are only 123 countries that are exempted from the imposition of import duties on safeguard measure on imports of ceramic tile products.

With the exclusion of India and Vietnam from the list, imports of ceramic tiles from the two countries will be subject to safeguard measures import duty, the amount of which is higher than the general import duty.

The safeguard measures import duty tariff will be imposed for three years, with different tariff rates. In the first year, starting 1 September 2020 it is 23%. Meanwhile, in the second year the applicable tariff is 21% and in the third year is 19%.

Additional Terms

In addition to reducing the list of exempted countries, the latest regulation also adds other provisions regarding the conditions for goods that is subject to safeguard measures import duty.

Previously, the safeguard measures import duty was only imposed on imported goods that had obtained a registration number on the import notification document.

Now, goods whose customs duties do not go through the submission of a customs notification, can be subject to this import duty as long as the tariff and customs value have been determined.

In addition, in the latest provision, the government also regulates customs treatment for imported goods that enter through the Bonded Storage (TPB).  For these goods, the safeguard import duty will be suspended.

Whereas for imported goods entering into and from free trade areas and free ports, Bonded Storage or Special Economic Zones (KEK) refers to the rules related to the procedures for the entry and or release of goods from and to these places.