Indonesia's tariff commitments for imported goods under RCEP
In the RCEP Agreement, Indonesia's tariff commitments are set out in Chapter 2 - Trade in Goods and Annex I - the section on Indonesia's Tariff Schedule for RCEP Parties. Specifically:
- Chapter 2 - Trade in Goods: This chapter contains the specific rules governing trade in goods within the RCEP region, most importantly including commitments on import tariffs, such as tariff reduction principles and national treatment obligations, as well as commitments relating to non-tariff measures, including internal taxes and charges, import and export restrictions, and import licensing.
- Annex I - Indonesia's tariff commitments for RCEP Parties: This includes six separate and independent tariff reduction schedules for each country or group of countries within RCEP, including one schedule for ASEAN and separate schedules for Australia, the Republic of Korea, Japan, New Zealand, and China.
In addition to the separate tariff schedules for each partner or group of partners, Annex I of Indonesia's RCEP Schedule also contains a Sub-Annex listing certain groups of goods subject to differentiated preferential tariff commitments that must comply with additional rules of origin, in addition to the general rules of origin.
Indonesia's Sub-Annex lists certain products, approximately 100 tariff lines subject to differentiated tariff treatment, that are required to comply with additional rules of origin and the implementation schedule for those additional rules of origin.
Principles for Determining the Applicable Preferential Tariff Rate
When RCEP goods are imported into Indonesia, the preferential tariff rate applicable to a specific shipment shall be determined as follows:
(i). For goods listed in the Sub-Annex to Indonesia's Annex I
Depending on whether the goods satisfy the specific conditions relating to the applicable additional rules of origin, the preferential tariff rate for the imported goods shall be determined according to:
- The preferential tariff schedule that Indonesia grants to the exporting RCEP country; or
- The preferential tariff schedule that Indonesia grants to the RCEP country having the largest share in the value of the originating materials used in the goods.
In both of the above cases, the exporter must possess sufficient supporting documents proving that the goods fully satisfy the specific origin conditions required in order to enjoy preferential tariff treatment under the relevant case.
(ii). For goods not listed in the Sub-Annex to Indonesia's Annex I
The preferential tariff rate for the goods shall be determined in accordance with the preferential tariff schedule that Indonesia grants to the exporting RCEP country, based on the general RCEP rules of origin applicable to the goods.
For both cases (i) and (ii) above, if the Indonesian importer does not have sufficient supporting documents required to claim preferential tariff treatment under the rules applicable to each case, the importer may still request that RCEP preferential tariff treatment be applied to goods qualifying as originating goods at one of the following two rates:
- The highest tariff rate among the tariff rates that Indonesia applies to the RCEP exporting countries contributing originating materials used in the production of the goods, with the Indonesian importer being required to provide evidence of those sources of originating materials; or
- The highest preferential tariff rate that Indonesia grants for those goods to any RCEP member country.
Source: Center for WTO and International Trade - VCCI
Indonesia’s tariff commitment schedule under the RCEP is attached below:
Chapter 2 RCEP - Trade in Goods
Tariff commitment schedule for ASEAN (English) (Excel)
Tariff commitment schedule for Australia (English) (Excel)
Tariff commitment schedule for Korean (English) (Excel)
Tariff commitment schedule for Japan (English) (Excel)
Tariff commitment schedule for New Zealand (English) (Excel)
