As my posting regarding safeguard for cotton other than sewing thread, Indonesia has applied a safeguard regulation since June 11, 2011 until three years later or on June 5, 2014. Now, this year is the last year for this safeguard rule.
However, in fact, according to investigation from government during applying the rule, the importation of cotton yarn other than sewing thread still in increasing trend, which taking detrimental impact to the companies in Indonesia. If the additional duty of safeguard to be removed, the disadvantages impact will be more increased.
Because of that reason, Government necessary to take the rule to be continued. The last result Government issued the new rule of safeguard for cotton yarn other than sewing thread. This rule has been issued on May 28, 2014.
The new amount of additional duty excluding the common duty is different from the last rule. Here the difference of additional duty between the old and new regulation:
On 2011 to 2014:
The first year: IDR 40,687/KGM.
The second year: IDR 38,144/KGM.
The third year: IDR 35,601/KGM.
On 2014 to 2017:
The first year: IDR 28,065/KGM.
The second year: IDR 25,522/KGM.
The third year: IDR 22,979/KGM.
This continuing of this new regulation actually pushed by many companies from Indonesia, which having the yarn cotton product. They worry to competitor from abroad, after they watched even though the additional duty has been applied to importation of cotton yarn, but the increase importation volume still can't be avoided.
For us, this new regulation, of course, will effect to our price offer to buyer, and buyer will always search on finding the lowest price they can.
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