Indonesia Imposes Three-Year Safeguard Tariff on Imported Cotton Yarn

The Minister of Finance recently signed a regulation imposing a temporary safeguard tariff (BMT) on imported cotton yarn products. This policy aims to protect the domestic textile industry from the impact of import surges. The tariff applies to cotton yarn under HS codes 5204, 5205, and 5206. The rate is IDR 7,500/kg in the first year, IDR 7,388/kg in the second year, and IDR 7,277/kg in the third year. Exemptions apply to 120 developing member countries of the World Trade Organization (WTO) (subject to certificate of origin). The Indonesian Trade Safeguards Committee has found that the surge in cotton yarn imports has caused serious injury to the domestic industry.

The Minister of Finance recently signed a regulation imposing a temporary safeguard tariff (BMT) on imported cotton yarn products. This policy aims to protect the domestic textile industry from the impact of import surges. The tariff applies to cotton yarn under HS codes 5204, 5205, and 5206. The rate is IDR 7,500/kg in the first year, IDR 7,388/kg in the second year, and IDR 7,277/kg in the third year. Exemptions apply to 120 developing member countries of the World Trade Organization (WTO) (subject to certificate of origin). The Indonesian Trade Safeguards Committee has found that the surge in cotton yarn imports has caused serious injury to the domestic industry. This policy follows recent calls from the domestic textile industry for the government to take protective measures.