According to press release by Indonesian Trade Ministry, the government has decided to impose safeguard duty on imported flat iron and steel. The move is intended to restrict the rising shipments into the domestic market. The duty imposition will remain for three year period starting July 22, 2014 to July 21, 2017.
According to the press statement, a duty of Rp 4.99 million ($424.28) will be charged on the imports of these products into Indonesia during the first year. The second and third year will witness reduced duty structure. The products will be levied Rp 4.31 million ($366.46) and Rp 3.63 million ($308.64) during the second and third year respectively.
Earlier, PT BlueScope Steel Indonesia and PT Sunrise Steel had launched complaints that surging imports of flat iron and steel is making significant losses to domestic industry participants. The investigations revealed that the huge rise in imports of these products has led to considerable decline in market share and business profits of local firms. According to the findings, import volumes of these products surged from 79.28 tons in 2008 to 251.32 tons in 2012.
The ruling is based on the investigation conducted by Indonesian Trade Security Committee (KPPI). The Committee had begun its investigation on Dec 18, 2012.
The imposition of safeguard duty is likely to affect key supplier nations such as Vietnam, Taiwan and South Korea.