Safeguard Measures for Cotton Yarn Importation.

In Indonesia, safeguard measures for cotton yarn other than sewing thread do by giving additional duty to the yarn imported from another country beside commonly duty applied to. This regulations release after the importation value and quantity highly increase in big amount and this taking effect to the industries in Indonesia were disturbed in the market share. In the other hand the yarn industries report to Trade Ministry concerning this condition and ask them to apply the additional duty for safeguard measures.

This condition is dilemma. The additional duty of the safeguard is a benefit for yarn industries, of course, this will taking effect to the market share for another country will decrease and the opportunity will comes to local yarn industries. Contrary, for manufacturer industry that its row material is decided by importing from another country, this is will be an additional production charges that will inflict to the higher price to offer to buyer. In the other hand buyer will reconsider to compare with others suppliers in different countries if the price is too higher for their customers.  

The rule has been applied since 6^Th in June 2011 and the validity of this rule will apply for three years onward since this rule is stated. Indonesia's government stated IDR 40,687 for each one kilogram to be an additional duty beside the common one on the first year. For the second year they stated IDR 38,144 for each kilogram, and the last year IDR 35.601 per kilogram to be going applied. I think those additional charges are big enough to limit the importation of the cotton yarn.

However, the additional duty of the safeguard didn't apply to all country in the word. There are 105 counties stated to be exception from this additional duty, those are Albania, Angola, Antigua and Barbuda,  Argentina, Armenia, Bahrain, Bangladesh, Barbados, Belize, Benin, Bolivia, Botswana, Brazil, Brunei Darussalam, Egypt, El Salvador, Fiji, Former Yugoslav Republic of Macedonia, Gabon, Georgia, Ghana, Grenada, Guatemala, Guinea, Guinea Bissau, Guyana, Haiti, Honduras, Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, Central African Republic, Chad, Chile, Colombia, Congo, Costa Rica, Cote d'Ivoire, Croatia, Cuba, Democratic Republic of Congo, Djibouti, Dominica, Dominican Republic, Ecuador, Jamaica, Jordan, Kenya, Korea - Republic of, Kuwait, Kirghiz Republic, Lesotho, Macao - China, Madagascar, Malawi, Maldives, Mali, Mauritania, Mauritius, Mexico, Moldova, Mongolia, Morocco, Mozambique, Myanmar, Namibia, Nepal, Nicaragua, Niger, Solomon Islands, South Africa, Sri Lanka, Suriname, Swaziland, Nigeria, Oman, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Qatar, Rwanda, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Saudi Arabia, Sierra Leone, Tanzania, The Gambia, Togo, Tonga, Trinidad and Tobago, Tunisia, Uganda, Ukraine, United Arab Emirates, Uruguay, Venezuela, Vietnam, Zambia, and Zimbabwe.

The HS codes of the goods that are applied additional duty of safeguard measures consisting from number 5205.11.0000 till 5206.45.0000. When the goods came to Indonesia and importer submitted the importation data then the customs will automatically checked by their system according to data submitted by importer to customs system. System will check the HS code of the goods whether there are any regulations to be applied to or not. The goods under HS code range number from 5205.11.0000 to 5206.45.0000 will be checked by customs according to status given by system, the status system of the goods usually in yellow line or red line. In case yellow line is given to an importation the customs are checking the shipping documents only, then finally after additional duty paid up the customs will approve the goods to be shipped out to shipper and the customs process was finished. In order to the customs given the red line, this means that the goods should be checked in both checking documents and physically checking, then finally the goods are allowed to be picked up based on customs approval.

For especially manufacturer in Indonesia that has an order which is the materials would be imported from another country has to check the HS code and the rules to be applied to, for example this additional duty for safeguard measures rule. So that all charges of the importation can be added to the price offer to their buyer, this way will protects their benefits to be lost. 

Additional duty for safeguard is not only apply to the cotton yarn other than sewing thread, this is also has applied to some commodities for instance cotton fabric, so that the importer should consults or check with customs regarding any goods will be imported, or at least they have to check to the web provided by customs.