Imposition of Safeguard Measure Import Duty on Ceramics Extended

The government has extended the imposition of safeguard measure import duty (BMTP) on imports of ceramic tile products for three years.

This is as stipulated in Number 156/PMK.010/2021, which was issued on 8 November 2021 and is valid seven days thereafter.

The BMTP was imposed on seven tariff posts for ceramic tile products, namely 6907.21.91, 6907.21.92, 6907.21.93, 6907.21.94, 6907.22.91, 6907.22.92, 6907.22.93, 6907.22.94, 6907.23.91, 6907.23.92, 6907.23.93, and 6907.23.94.

This is because the BMTP that has previously been imposed from 2018 until 2021 is considered to have not been able to encourage the domestic ceramics industry, due to the flood of similar imported products.

Based on Investigation

The extension of the BMTP was carried out at the request of domestic ceramic producers who are members of the Indonesian Ceramic Industry Association (ASAKI).

In response to this request, the Indonesian Trade Safeguard Committee (KPPI) conducted an investigation, the results of which stated that the existence of imported ceramic products had threatened domestic production.

This refers to data from Statistics Indonesia (BPS), during the 2016–2020 period, there was an increase in the number of imports by 5.17%, from 1.07 million tons in 2016 to 1.33 million tons in 2020.

Lower Rates

However, despite being extended, the BMTP rate, which will be valid for three years from November 2021 to November 2024, is lower than before.

The rates to be charged are 17% in the first year, 15% in the second year and 13% in the third year. Previously, the rate to be imposed was 23% in the first year, 21% in the second year and 19% in the third year.

Read: Government Bears Import Duty for 33 Industries

Fewer Exemptions

The imposition of BMTP is exempted from imports of ceramic products originating from countries exempted by the government, namely 123 countries.

The number of excluded countries is less than the previous number of 125 countries. Two countries that are no longer exempted are Vietnam and India.

In order not to be subject to BMTP, every import of ceramic products from excluded countries must be accompanied by a Certificate of Origin (SKA).