Indonesia considers extending global safeguard duties on imported garment products
VOV.VN - The Indonesian Trade Safeguard Committee (KPPI) is investigating the possibility of extending its safeguard tariffs on a range of imported textile products, including clothing and accessories, that may impact Vietnamese exports into this market.
KPPI has asked relevant parties to submit written and electronic requests to the KPPI no later than November 15 for consideration.
The committee revealed that it will hold a hearing in order to provide related parties with an opportunity to present their opinions and evidence on November 21.
The investigation was launched after the Indonesian Ministry of Finance issued a decision on October 22, 2021, imposing global safeguard duties on imported garment products. The tax period is three years with duty rates falling gradually each year.
Specifically, the highest tax rate in the first, second, and third year stood at about US$4.43, US$4.21, and US$4 per product. respectively.
Vietnam, a significant exporter of garments and textiles to Indonesia, with exports reaching approximately US$800 million annually, could be directly impacted by these safeguard measures. If extended, the tariffs may raise costs for Vietnamese products, thus reducing Vietnam's competitiveness in the Indonesian market.
Vietnamese businesses have been advised to stay proactive by monitoring developments and considering alternative export strategies.
