Some products still protected at start of AFTA<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The government said that import tariffs on some chemical and
\nplastic products would remain above five percent next year
\ndespite the implementation of the ASEAN Free Trade Area (AFTA).<\/p>\n
Director general of regional cooperation at the Ministry of
\nTrade and Industry Budi Darmadi said on Saturday that the import
\ntariffs on these products would be lowered to between zero
\npercent and 5 percent in line with AFTA requirements in 2003.<\/p>\n
\"The ASEAN (Association of Southeast Asian Nations)
\nministerial meeting has agreed with the government's proposal to
\ndelay imposing a lower tariff on 66 items, particularly on
\nchemical and plastic products,\" Budi told The Jakarta Post.<\/p>\n
He did not provide details on the 66 items.<\/p>\n
Leaders of six original ASEAN member countries agreed in 1998
\nto implement the AFTA scheme by lowering tariffs to between zero
\npercent and 5 percent starting next year, but with some
\nflexibility.<\/p>\n
Under this agreement, ASEAN countries are allowed to delay
\nreducing import tariffs for some products until 2003.<\/p>\n
Local chemical players earlier asserted that they were not yet
\nready to compete in the AFTA era due to weak technology
\ncapabilities, limited financing abilities and huge debts.<\/p>\n
A. Azis Pane, compartment chairman of chemical industry at the
\nIndonesian Chamber of Commerce and Industry (KADIN), urged the
\ngovernment to restructure debts plaguing the industry to help
\nthem compete with the foreign players.<\/p>\n
Elsewhere, Budi said that the government would continue to
\nreduce import tariffs on some 700 items in the so-called
\nInclusion List to between zero percent and five percent next
\nyear.<\/p>\n
A government official earlier said that Indonesia had reduced
\n90 percent of the tariffs in the Inclusion List to the AFTA-
\nagreed level.<\/p>\n
Data from the ASEAN secretariat showed that Indonesia
\nregistered about 7,286 tariff lines under the AFTA scheme which
\nconsisted of 7,192 items in the Inclusion List.<\/p>\n
ASEAN comprises Indonesia, Malaysia, Singapore, Philippines,
\nThailand, Vietnam, Laos, Cambodia, Brunei Darussalam, and
\nMyanmar.<\/p>\n
Budi also said that many local companies were unaware of the
\ncertificate of origin or the so-called Form D.<\/p>\n
He said that local exporters must obtain the Form D to allow
\ntheir products to enter the ASEAN market at the low tariff
\nlevels.<\/p>\n
\"It (the certificate) is very important because the low (zero
\npercent to 5 percent) import duty facility can only be enjoyed by
\nfilling in the Form D which is issued by authorized officials in
\nthe respective ASEAN countries,\" he said.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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