No change in duties on propylene

No change in duties on propylene

NEW YORK (Reuter): PT Tri Polyta Indonesia said aggregate
duties on propylene and polypropylene will not change as a result
of the tariff package announced by the Indonesian government on
June 3.

However, the company said in a statement released in New York
Wednesday that its propylene imports will become subject to a
tariff. And the effective tariff for polypropylene converters
which have been granted an incentive exemption will double.

Prior to this package, Tri Polyta said, the aggregate duties
on propylene and polypropylene were 25 percent and 40 percent,
respectively.

The propylene duty had consisted of a 5 percent tariff plus a
20 percent surcharge. Polypropylene duty consisted of a 20
percent tariff and a 20 percent surcharge.

With the implementation of this new package on July 1, Tri
Polyta said, the surcharge on both propylene and polypropylene
will be reclassified and rolled into the existing tariffs.

Once the changes become effective on July 1, imports of
propylene by Tri Polyta under the incentive exemption scheme
granted in conjunction with the third train expansion and the
debottlenecking of the first two production trains will be
subject to 50 percent of the tariff, or 12.5 percent.

To date, the company said, it has paid no tariff or surcharge
for imports under this scheme.

Secondly, there will be an impact on the cost of imported
polypropylene for converters who have been granted a similar
incentive exemption scheme, Tri Polyta said. Converters in this
category represent the second largest market for polypropylene
resins in Indonesia, it noted.

These converters will be subject to 50 percent of the revised
tariff of 40 percent, or 20 percent, on imported polypropylene.
Previously, they were exempt from the 20 percent surcharge but
were subject to 50 percent of the 20 percent tariff on their
imports.