In order to reduce smuggling or illegal imports, including textiles and clothing, Indonesia and China have agreed to co-operate, to verify certificates of origin of exports (SKA) from either side, said Deputy Trade Minister, Mahendra Siregar.
The Association of Indonesia Textile Industries (API) had discussions with the minister to find a mechanism to commence the verification process.
Both countries increased their co-operation so as to improve their country's market security, said Siregar.
Continuing Siregar said, “No sooner is a SKA issued, the recipient receives it electronically and starts monitoring, thus, making verifying of certificates a lot easier.”
Meanwhile, from January – February 2010, according to the Director, Export and Import Facilities of the Directorate General of Foreign Trade, Ahmad Syafrie, Indonesia has issued nearly 2,000 Form E SKAs for China in one month. While in January the SKAs Form E totalled to 1,997, while in February it was 1,999.
Indonesia's exports utilising SKAs Form E received a free import duty facility in January touching US $467 million and in February it was US $449 million.
According to the National Bureau of Statistics data, Indonesia's non-oil and gas exports to China reached almost US $2 billion, during January – February 2010.
Of its total non-oil and gas exports in 2010, Indonesia's export market share in China increased to 10.9 percent from 6.8 percent.
ALCHEMPro News Desk - India
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