Govt. Regulates Mechanism for Preferential Import-Duty Tariff Scheme

In an effort to accelerate Indonesia’s readiness to compete in the upcoming regional free-trade zone, the Minister of Finance (“Minister”) has just issued Regulation No. 205/PMK.04/2015 on Procedures for the Imposition of Import Duty under International Agreement or Treaty Frameworks (“2015 Regulation”).The 2015 Regulation stipulates the procedure for verifying the Rules of Origin of any imported goods in order to decide whether a special import-duty tariff (also known as a “Preferential Tariff”) can be applied according to international agreements or treaties.The 2015 Regulation sets out Rules of Origin verification procedures for seven international-trade agreements that Indonesia is currently a party to (“International Trade Agreements”), namely: