Indonesia extends safeguard duty for VN's plastic pellets
Indonesia extends safeguard duty for VN's plastic pellets
Indonesia has extended safeguard measures on expanded polystyrene (EPS) plastic pellets imported from Việt Nam for another three years, according to the Trade Remedies Authority under the Ministry of Industry and Trade.
EPS plastic pellets are often used for thermal insulation or in the production of protective packaging. — Photo moit.gov.vn |
The extension is the result of an investigation conducted by the Indonesian Safeguards Committee (KPPI) on imported EPS plastic pellets (HS code 39.3.11.10) into Indonesia from 2021 to 2023, which was started on July 22.
Việt Nam is not among the developing countries excluded from the measures.
The safeguard duty will be effective from December 23, 2024, to December 22, 2027, in the form of an absolute tax.
For the first year (from December 23, 2024 to December 22, 2025), the tax rate will be 2,352,478 Indonesian rupiahs (US$147.6) per metric tonne (MT).
For the second year (from December 23, 2025 to December 22, 2026), the rate will be 2,328,473 Indonesian rupiahs per metric tonne.
For the third year (from December 23, 2026 to December 22, 2027), the rate will be 2,304,468 Indonesian rupiahs per metric tonne.
According to Indonesia’s statistics, in 2023, imports from Taiwan (China) accounted for 47 per cent of total imports into the country, followed by China at 38 per cent, and Việt Nam at 13 per cent.
KPPI’s investigation showed that although there was a decline in the absolute and relative import volume during the investigation period, Indonesia's domestic revenue still dropped by 3 per cent, leading to a 9 per cent reduction in profits.
The committee concluded that imports threatened Indonesia’s domestic industry, so safeguard measures are necessary to address the damages and help the economy adjust.
EPS plastic pellets are used in foam blocks or sheets for soundproofing and thermal insulation in homes, and in protective packaging for electronics, refrigeration equipment, ceramics and glassware.
