Following the ratification of the Comprehensive Economic Partnership Agreement between the Republic of Indonesia and European Free Trade Association (EFTA) States (“IE-CEPA”), the MoF issued Regulation No. 152/PMK.010/2021 (“MoF-152/2021”) concerning the import duty tariffs on imports from EFTA States. This MoF regulation became effective on 1 November 2021.

In brief, imports from EFTA countries to Indonesia will be subject to lower import duty tariffs compared to the general (Most-Favored-Nation) tariffs, which differ based on product type and their applicability periods. The appendix of MoF-152 provides the list of the applicable import duty rates for each HS code.

The import duties for some products are subject to a Tariff Rate Quota (TRQ) Scheme. Import duties for goods that are subject to TRQ are implemented as follows:

• Tariff of 50% of the general tariff, for goods qualifying as in-quota;
• Tariff of 60% of the general tariff, for goods categorized as out-quota.

In-quota preference tariff is a preferential import duty tariff in the TRQ scheme which is determined for imported goods that do not exceed the In-quota preference tariff is a preferential import duty tariff in the TRQ scheme which is determined for imported goods that do not exceed the annual quota of the TRQ scheme. Out-quota preferential tariff is a preferential import duty tariff in the TRQ scheme which is determined on imported goods that exceed the annual quota of the TRQ scheme.