Indonesia Plans To Impose A 22% “protective” Tariff On Aluminum Foil

- Feb 14, 2019-

In a document submitted to the World Trade Organization (WTO) last week, Indonesia said that due to the excessive export of aluminum foil from China, Indonesia's aluminum imports surged, and the country plans to impose a 22% protective tariff on imported aluminum foil. According to WTO rules, the proposed tariff is an interim measure to deal with import surges, which will fall to 18% and 14% in the second and third years, respectively. The Indonesian tax codes for the products involved are 7607.11.00 and 7607.19.00. On October 11, 2018, Indonesia notified the World Trade Organization Safeguards Committee that the country launched a safeguard investigation on aluminum foil on October 9, 2018. Indonesia told the WTO that the Indonesian National Security Council proposed to impose aluminum foil tariffs because of measures taken by Turkey, the European Union and India that led to the export of aluminum foil exported from China to Indonesia. China's aluminum foil production has increased over the past three years, but the domestic market has not digested all the extra production. The global aluminum market was also affected by the 10% tariff imposed by US President Trump in March last year, but Indonesia’s statement to the WTO did not mention the impact of US tariffs.