Implementation of Indonesia-Australia Comprehensive Economic Partnership Agreement
- July 13, 2020
- Posted by: Administrator
- Category: Tax News
As implementing regulations to ratification of the Comprehensive Economic Partnership Agreement (CEPA) between Indonesia and Australia, the Ministry of Finance has issued two regulations, as follows:
- MoF Regulation No. 81/PMK.010/2020 dated 3 July 2020 concerning import duty tariff in the context of the Comprehensive Economic Partnership Agreement between Indonesia and Australia (“PMK-81/2020”). The effective date of PMK-81/2020 is 5 July 2020. Based on PMK-81/2020, the import duty tariffs on imports from Australia based on the Indonesia-Australia CEPA will be reduced gradually every year, starting from year 2020 up to year 2036 onward.
- MoF Regulation No. 82/PMK.04/2020 dated 3 July 2020 concerning procedures for imposition of import duty tariff based on the Indonesia-Australia Comprehensive Economic Partnership Agreement (“PMK-82/2020”). The effective date of PMK-82/2020 is 5 July 2020.
The salient points of PMK-82/2020 are as follows:
- Import of goods from Australia can use the preferential tariff and/or tariff rate quota (TRQ) scheme based on the Indonesia-Australia CEPA.
- The TRQ scheme is done by applying the quota deduction mechanism automatically by the INSW system, based on a TRQ certificate issued by the Australian issuing agency.
- In order to apply preferential tariff based on the Indonesia-Australia CEPA, the following criteria for origin of goods should be met:
1). Origin Criteria
The goods will be deemed to originate from a member country if the following criteria are met:
- Wholly obtained / wholly produced;
- Produced exclusively; and
- Not wholly obtained or produced, provided that:
- Included in Product Specific Rules (PSR) as listed in Annex 4-C of the Indonesia-Australia CEPA; or
- Listed in Ministerial Declaration (Annex A & B or assembled from materials as listed in Annex A or B) regarding Trade in Information Technology Products as agreed at the WTO Ministerial Conference on 13 December 1996
- Goods other than those stated above in points a, b or c that are stipulated as “originating” based on the Indonesia-Australia CEPA.
2). Consignment criteria
The preferential tariff can be applied if the following consignment criteria are met:
- Direct shipment, meaning the goods are directly shipped from IA_CEPA form issuer to Indonesia; or
- Transshipment, provided that the transshipment is merely due to geographic condition, the goods are not for selling or consumption in the transit country, and there is no production process in transit country.
3). Procedural provisions
- The certificate of origin (IA-CEPA Form) should be issued in English using the prescribed form as stipulated in the agreement, contain a reference number, and be signed by the competent authority (manual or electronic signature) and exporter;
- Issued before or after shipment (as close as possible to shipment date), not later than 3 working days after the shipment. If the IA-CEPA Form is issued retroactively, the maximum deadline is one year after the shipment date and the exporter should tick (✓) box 12 “”Issued Retroactively’”.
- State the origin criteria for each item of goods in the IA-CEPA Form.