No change in duties on propylene<\/p>\n
NEW YORK (Reuter): PT Tri Polyta Indonesia said aggregate
\nduties on propylene and polypropylene will not change as a result
\nof the tariff package announced by the Indonesian government on
\nJune 3.<\/p>\n
However, the company said in a statement released in New York
\nWednesday that its propylene imports will become subject to a
\ntariff. And the effective tariff for polypropylene converters
\nwhich have been granted an incentive exemption will double.<\/p>\n
Prior to this package, Tri Polyta said, the aggregate duties
\non propylene and polypropylene were 25 percent and 40 percent,
\nrespectively.<\/p>\n
The propylene duty had consisted of a 5 percent tariff plus a
\n20 percent surcharge. Polypropylene duty consisted of a 20
\npercent tariff and a 20 percent surcharge.<\/p>\n
With the implementation of this new package on July 1, Tri
\nPolyta said, the surcharge on both propylene and polypropylene
\nwill be reclassified and rolled into the existing tariffs.<\/p>\n
Once the changes become effective on July 1, imports of
\npropylene by Tri Polyta under the incentive exemption scheme
\ngranted in conjunction with the third train expansion and the
\ndebottlenecking of the first two production trains will be
\nsubject to 50 percent of the tariff, or 12.5 percent.<\/p>\n
To date, the company said, it has paid no tariff or surcharge
\nfor imports under this scheme.<\/p>\n
Secondly, there will be an impact on the cost of imported
\npolypropylene for converters who have been granted a similar
\nincentive exemption scheme, Tri Polyta said. Converters in this
\ncategory represent the second largest market for polypropylene
\nresins in Indonesia, it noted.<\/p>\n
These converters will be subject to 50 percent of the revised
\ntariff of 40 percent, or 20 percent, on imported polypropylene.
\nPreviously, they were exempt from the 20 percent surcharge but
\nwere subject to 50 percent of the 20 percent tariff on their
\nimports.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/no-change-in-duties-on-propylene-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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