Indonesia to scrap textile, vessel duties
Indonesia plans to scrap some import duties on a short-term basis to spur growth in the country's textiles and shipping sectors, according to a report Tuesday by Dow Jones Newswires.
Import duties for machinery used in the textile industry will be scrapped until Dec. 31, and a 5 percent import duty will apply from Jan. 1. The same duty levels will apply to commercial vessels.
'The changes come on the heels of a widening trade deficit with China in recent years, which many businesses say is partly due to cheap textiles from China flooding the Indonesian market since the implementation of the ASEAN-China free trade agreement on Jan 1, 2010,' the report said.
American Shipper in November examined the effect the ASEAN-China free trade agreement is having on the intra-Asia liner trade.