Bangladeshi garments attract safeguard duty in Indonesia

06 Dec '21

1 min read

Pic: Parichart Thongmee | Dreamstime.com

With effect from November 12, 2021, the southeast Asian nation of Indonesia has imposed a safeguard duty for a period of three years, on almost all clothing items entering the country from several nations, including Bangladesh. However, the duty will decrease every year, according to a notification by the Indonesian ministry of finance submitted to the World Trade Organisation (WTO).

The duty for the current year ranges between $1.33 and $4.34 per piece, which will decline to $1.26 and $4.12 per piece in the second year, which will further reduce to between $1.20 and $3.91 per piece in the third year, according to media reports in Bangladesh.

This safeguard duty is in addition to the up to 25 per cent duty that Bangladeshi garments attract in Indonesia.

The imposition of safeguard duty is based on the findings of an investigation announced in February this year, which showed evidence that the increased volume of clothing and accessories imports has “caused a threat of serious injury” to the garment industry in Indonesia.

However, the decision would hardly have any effect on Bangladesh’s apparel exports to Indonesia, which are around $30 million annually.

Fibre2Fashion News Desk (RKS)

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