Indonesia - Safeguard measures on tobacco paper

30/11/2020 12:00 - 731 Views

On October 26, 2020, the Indonesian Self-Defense Commission (KPPI) announced the initiation of a global safeguard investigation of a number of tobacco-coated paper products classified under HS codes: 4813.20.00, 4813.90. 10, 4813.90.90.

Some general information about the case is as follows:

1. Date in notice of initiation of investigation: October 26, 2020

2. Plaintiff: Indonesian Pulp and Paper Association

3. Investigated goods: a number of tobacco-coated paper products are classified under HS codes: 4813.20.00, 4813.90.10, 4813.90.90.

4. Self-defense investigation phase:

On June 23, 2023, Indonesia initiated a review of safeguard tax after 2 years of application.

On September 6, 2023, Indonesia issued the review results and decided to extend the safeguard measure for another 3 years with the following tax rates:

First year (November 30, 2023 – November 29, 2024): Rp. 3,923,900/Ton
Second year (November 30, 2024 – November 29, 2025): Rp. 3,885,850/Ton
Third year (November 30, 2025 – November 29, 2026): Rp. 3,847,800/Ton

Schedule of investigation:

Timeline (D/M/Y)	Events
26/10/2020	Initiation of an investigation
09/11/2021	Decision to impose global safeguard tax for 02 years (from November 30, 2021) with the tax rate: - 1st Year: 4,000,000 Rp/ton (equivalent to about 282 USD/ton) - 2nd Year: 3,961,950 Rp/ton (equivalent to about 279 USD/ton)
23/06/2023	Initiation of the sunset review
06/09/2023	Notice of final results of sunset review, continuing the safeguard measure