Indonesia: Official Release Of Final Tax Rate Of Clothing Safeguard Measures

Recently, the Ministry of finance of Indonesia issued an announcement on the implementation of safeguard measures tax on imported products of clothing and accessories, involving 134 products under the tax code. On February 23, 2021, the WTO Committee on safeguard measures issued a notice of safeguard measures submitted by Indonesia. The Indonesian investigation authorities made a positive final determination on the safeguard measures of imported clothing and accessories, and suggested that the Indonesian government should levy safeguard measures tax on the products involved in the case for a period of three years. Compared with the final determination proposal, the tax rates of the products involved in the case under 126 tax codes under the formal tax measures decreased to varying degrees in each stage.

At the application of the Indonesian textile association, Indonesia officially launched the safeguard measures investigation on October 1, 2020. The investigation period is from 2017 to 2019, and the amount involved is about 450 million US dollars. The main enterprises involved are concentrated in Guangdong, Zhejiang, Jiangsu, Gansu and Shandong.