Safeguard Import Duties on Cotton Fabric Products Reimposed

The Ministry of Finance (“Kemenkeu”) has once again imposed Safeguard Import Duties (Bea Masuk Tindakan Pengaman – “BMTP”) on the importation of woven cotton fabric products. This regulation updates the previous regulation on the import of woven cotton fabric products, as regulated under Regulation of the Minister of Finance No. 58/PMK.011/2011 on the Imposition of BMTP on Imports of Products in the Form of Woven Fabrics of Cotton, Bleached and Unbleached (“Permenkeu 58/2011”).

“Substantively, the BMTP is designed to provide protection for the cotton woven fabric industry, which is currently facing pressure from increasing import volumes,” said Nirwala Dwi Heryanto, the Director of Communication and Guidance for Excise Service User, to Hukumonline.

Referring to the previous regulation, the BMTP on imports of these fabric products will be imposed for a period of three years, with the imposition divided into three separate periods. More specifically, there are five fabric segments subject to BMTP, namely: woven fabrics of cotton; woven fabrics of synthetic and artificial filament yarn; woven fabrics of synthetic and artificial staple fibers; tulle and other net fabrics; lace; embroidered fabrics; and knitted or crocheted fabrics.

“It is currently in the plenary process for harmonization,” he added.