Indonesia imposes safeguard duties on imports of cotton woven fabrics

A probe by the Indonesian Trade Safeguard Committee found that rising imports of cotton woven fabrics had caused serious harm to the domestic textile industry.

As a member of the World Trade Organization, Indonesia said the use of trade safeguard instruments was necessary to maintain fair competition.

The safeguard duty will be applied for three years under a declining tariff scheme. In the first year, duties will range from Rp 3,000 to Rp 3,300 per metre, depending on tariff classification.

The rate will fall to Rp 2,800-Rp 3,100 per metre in the second year and further to Rp 2,600-Rp 2,900 per metre in the third year, a domestic media outlet reported.

The safeguard duty will be imposed in addition to existing import duties, including most-favoured-nation rates and preferential tariffs under international trade agreements.

However, exemptions have been granted for imports originating from 122 developing countries that are WTO members.

ALCHEMPro News Desk (DS)