Apparel / Textiles & Accessories

Recently, the Indonesian Ministry of Finance issued an announcement to impose safeguard tax on imported clothing and apparel accessories, involving products under 134 tax codes. On February 23, 2021, the WTO Safeguard Measures Committee issued the safeguard measures notification submitted by Indonesia. The Indonesian investigation agency made a positive final ruling on the safeguard measures of imported clothing and apparel accessories, and suggested that the Indonesian government impose a three-year safeguard tax on the products involved. Compared with the final ruling proposal, the tax rates of the products involved under the 126 tax codes under the formal taxation measures have been reduced to varying degrees at each stage.

u3000u3000In response to the application of the Indonesian Textile Association, Indonesia officially launched a safeguard investigation on this case on October 1, 2020. The investigation period of the case is from 2017 to 2019, and the amount involved is approximately US$450 million. The main companies involved in the case are concentrated in Guangdong, Zhejiang, Jiangsu, Gansu and Shandong.