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  • Jan 19th, 2018
  • Comments Off on 20 tariff lines: Indonesia cuts duty to zero percent
Indonesia is said to have reduced duty to zero percent on 20 tariff lines after successful negotiations with government of Pakistan, a senior official of FBR told Business Recorder. Indonesia is the biggest economy of ASEAN region with GDP of around $859 billion in 2015. It is also fourth world's largest population of 255 million with per capita income $11,100 (ppp) which makes it a lucrative consumer market.

The Indonesian President is scheduled to visit Pakistan during the third week of current month. He will also address the joint sitting of the Parliament. Sources said the customs authorities are mainly responsible for issuance and implementation of statutory regulatory orders (SROs) on Free Trade Agreements (FTAs) and Preferential Trade Agreement and other bilateral agreements involving changes in tariff lines and customs duty structure. The FBR is well ware of such recent developments on changes in duty structure on imports and exports with other countries.

The items on which tariff has been reduced to zero are as follows (i) mangoes; (ii) broken rice - of a kind used for animal feed; (iii) broken rice - other; (iv) un-denatured ethyl alcohol of an alcoholic strength by volume of 80% or higher; (v) Ethyl alcohol and other spirits, de-natured, of any strength - other; (vi) tobacco, not stemmed/stripped - Virginia type, flue-cured; (vii) tobacco, partly or wholly stemmed/ stripped - Virginia type, flue-cured; (viii) articles of apparel and clothing accessories, of leather or of composition leather - articles of apparel; (ix) single yarn of uncombed fibres - measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number); (x) single yarn, of combed fibres - measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number); (xi) woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200 g/m2-denim;( xii) woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing more than 200 g/m2-Denim; (xiii) T-shirts, singles and other vests, knitted or crocheted, of cotton - for women or girls; (xiv) T-shirts, singles and other vests, knitted or crocheted - for men or boys, of other textile materials; (xv) T-shirts, singles and other vests, knitted or crocheted, of other textile materials - for women or girls; (xvi) jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or crocheted - of cotton; (xvii) trousers, bib and brace overalls, breaches and shorts - other; ( xvii)) trousers bib and brace overalls, breeches and shorts - of cotton; (xix) other bed linen, printed - of cotton and; (xx) toilet linen and kitchen linen, of terry towelling or similar terry fabrics, of cotton.

In 2016, Pakistan had suggested to impose Non-Tariff Measures (NTMs) on Indonesia on a reciprocal basis aimed at making import of palm oil more restrictive like Jakarta did with Islamabad. There was understanding amongst stakeholders that "in view of unacceptable trade deficit, Pakistan should use her status as 4th largest importer of Indonesian palm oil, as a leverage to seek a waiver from most restrictive NTMs to get market access," sources added.

Copyright Business Recorder, 2018


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