Regulation Update
Imported Cigarette Wrapping Paper Subject to Safeguard Duty

Tuesday, 23 November 2021

Imported Cigarette Wrapping Paper Subject to Safeguard Duty

The government will collect additional import duties as a safeguard measure against imports of cigarette wrapping paper and non-porous plug wrap paper for two years from November 2021 to November 2023.

Cigarette wrapping paper or tobacco wrapping paper is a type of paper used to wrap tobacco in the manufacture of cigarettes.

While non-porous plug wrap paper is paper used to coat cigarette filters, with a maximum porosity value of 12 cm.

Both types of paper will be subject to safeguard measure import duty (BMTP) of IDR 4,000,000 per ton in the first year and IDR 3,961,950 per ton in the second year.

This is regulated in the Regulation of the Minister of Finance (PMK) Number 157/ PMK.010/2021, which was issued on 8 November 2021 and took effect 21 days after.

In detail, the types of papers subject to BMTP consist of three tariff posts ex 4813.20.00, ex 4813.90.10, and ex 4813.90.90.

Read: Saving the Cigarette Industry, Excise Tape Payment Maturity Relaxed to 90 Days

Based on The Investigation

The imposition of BMTP was a request from domestic paper producers represented by the Indonesian Pulp and Paper Association (APKI), which admitted that they were disturbed by the existence of imports.

APKI revealed that the number of imports of the two products from 2016 to 2019 had increased by 54.7% from 5,201 tons to 8,024 tons. Based on the request, the Indonesian Trade Safeguard Committee (KPPI) conducted research and approved it.



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