RI lifts import duty on Chinese stearic acid

RI lifts import duty on Chinese stearic acid

The Jakarta Post, Jakarta

Indonesia has lifted the import duty on stearic acid from China
as part of the Southeast Asian free trade agreement with the
country, the Ministry of Finance announced on Friday.

Ministry spokesman Marwanto Harjowiyono said in a press
release the import duty was now set at zero percent for 2005 and
2006.

"The new import duty is effective as of Jan. 1," he said.

Indonesia previously imposed a 5 percent import tariff on the
product, although it does not import stearic acid from China.

China has lowered its import duty on Indonesian stearic acid
to 5 percent from 16 percent, also effective as of Jan. 1.

The finance ministry said the new import duty was the result
of the inclusion of stearic acid as one of the commodities in a
new trade liberalization agreement -- known as the Early Harvest
Program -- signed last September by China and the Association of
Southeast Asian Nations.

Stearic acid is a palm oil derivative used in the production
of goods such as detergents and cosmetics.

According to data from the Indonesian Association of Oleo
Chemical Producers, Indonesia supplies 60 percent of China's
annual stearic acid demand of 500,000 metric tons.