The government has accelerated the imposition of a 0% import duty on a number of import products from ASEAN countries, China, and Hong Kong, all of which are part of a free trade agreement.
This certainty is contained in the Minister of Finance Regulation (PMK) Number 93/PMK.010/222 which was issued and took effect on 2 June 2022. The regulation revised the previous provision, PMK Number 49/PMK.010/222 on the determination of import duty rates in the framework of the ASEAN-Hong Kong, China free trade agreement.
Several products, such as cinematographic sound reproducers with HS Code 8519.89.10 and parts and accessories for machines with HS Code 8473.40.00 will be subject to an import duty rate of 0% starting in 2022.
Under the old provisions, the import duty rate for the two products was set at 5% starting in 2022 and only reduced to 0% in 2028 for machine accessory products.
In other words, the newly released regulation will speed up the determination of the 0% import duty rate.
Meanwhile, the import duty rate for cinematographic sound reproducers was previously set at 10% in 2022 and will be reduced to 9.5% from 2024 to 2029 and then lowered to 5% from 2030 onwards.
In addition to setting import duty rates for those two products, the latest regulation also changes the tariff plan scheme for other solar water heaters with HS Code 8419.12.00.
In the previous scheme, the import duty rate for solar water heaters was set at 5% from 2022 to 2027 and only reduced to 0% starting in 2028. However, in the latest regulation the imposition of the 0% tariff will be accelerated to starting in 2027.
Evaluation Result
The adjustment in the tariff plan for the aforementioned products is the outcome of an evaluation of the free trade agreement's implementation between ASEAN countries, China, and Hong Kong.
An established rate is also a form of providing facilities from countries bound by the agreement and creating legal certainty for business actors.
Overall, the free trade cooperation agreement between ASEAN countries, China and Hong Kong regulate the imposition of import duties on 11,414 products. Thus, the changes made constitute only a minor part of the agreements reached by these countries.
