World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Indonesia 2:

Report by the Secretariat: MEASURES DIRECTLY AFFECTING IMPORTS: Tariffs

As noted in the report by Secretariat, in year 2010/11, tariffs range from zero to 150%. The majority of lines (71% or 8,042) carry a rate greater than 5% but less than 10%, while 12.8% of total lines have a tariff rate greater than zero but less than 5%. This is a major change from 2006/07, when 65% of all lines were within the 10 15% range, and 10.4% of lines at 25 30%.

In reality, the Indonesian exporters are still experiencing problems to export paper products due to high tariff imposed by India. Does this policy still exist and if it does, could India please provide further explanation? Does India also have a program to reduce high tariff? (WT/TPR/S/249, Page 44, Para 30)

Reply: Paper products, in general, attract basic customs duty of 10% only. Newsprint and light weight coated paper for printing of magazines are fully exempt from this duty. Newsprint is also exempt from additional custom duty and special additional duty (SAD) of 4%.

Indonesia 3:

Report by the Secretariat: MEASURES DIRECTLY AFFECTING IMPORTS: Tariffs

Preferential rates are granted for certain articles under GSTP, regional (SAFTA, APTA, MERCOSUR, and ASEAN), and bilateral agreements (Singapore, Korea, Rep. of Chile, and Sri Lanka). Under the GSTP, India has granted tariff concession to 12 countries on a limited number of products. With regard to differences in applied tariff, the Indonesian tire producers were still subject to 10% of tariff, while the same products imported from some other countries enjoyed benefit from lower tariffs.

Could India please explain the reason of implementing different treatments under the policy? (Referred to document WT/TPR/S/249, Page 49, Para 41)

Reply: The basic customs duty on tyres is currently 10%. Since free trade agreements or preferential trade agreements are negotiated bilaterally on the principle of reciprocity, the coverage of products and extent of tariff reductions committed under each may vary.

Indonesia 4:

Report by the Secretariat: MEASURES DIRECTLY AFFECTING IMPORTS: Technical Regulations and Standards

Para 106 stated "Fees under the Foreign Manufacturers Certification Scheme, in place since 1999, are: Rs 1,000 for the application, US$300 for processing, US$2,000 for marking, and a unit rate fee, which varies according to the product"; and further in the foot note 123 stated that "The renewal application fee is Rs 500, the license fee is Rs 1,000 per year, and there is a minimum annual marking fee of US$2,000 and a marking fee based on production marked during the preceding operative year of license payable in U.S. dollars less the amount already paid on quarterly basis.

Based on the above mentioned figures, Indonesia would like to seek further clarification from India to ensure that the scheme would not create burdensome to particular industries. (WT/TPR/S/249, Page 69, Para 106)