Indonesia Imposes Protective Tariffs on Imported Cotton Yarn for Three Years

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The Finance Minister recently signed a Finance Minister's Regulation imposing a temporary protective tariff (BMT) on imported cotton yarn products.The policy aims to protect the domestic textile industry from import surges. The products to which the tariffs apply areHS codeCotton yarns 5204, 5205 and 5206.

The tax rate is Rp 7,500/kg in the first year, Rp 7,388/kg in the second year, and Rp 7,277/kg in the third year.Exempted countries include 120 developing member countries of the World Trade Organization WTO (proof of origin is required).

An investigation by the Indonesian Trade Guarantee Commission found that a surge in cotton yarn imports had caused serious damage to the domestic industry. The policy follows recent calls by the domestic textile industry for the Government to take protective measures in response.

# Policy Information