Recommendations for Vietnamese businesses before Indonesia's decision to extend safeguard tax on EPS plastic beads

(PLVN) - Indonesia has decided to extend the safeguard measures on imported EPS plastic products from December 23, 2024 to December 22, 2027. This will affect many exporting enterprises, including Vietnam. In this situation, enterprises need to proactively adjust their export and production strategies to adapt to new requirements from the Indonesian market.

December 3, 2024 09:37

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(PLVN) - Indonesia has decided to extend the safeguard measures on imported EPS plastic products from December 23, 2024 to December 22, 2027. This will affect many exporting enterprises, including Vietnam. In this situation, enterprises need to proactively adjust their export and production strategies to adapt to new requirements from the Indonesian market.

News from the Department of Trade Defense ( Ministry of Industry and Trade ) said that Indonesia extended its self-defense measures on imported EPS plastic beads, in which Vietnam is not on the list of excluded developing countries.

Previously, on July 22, 2024, according to the Department of Trade Remedies (Ministry of Industry and Trade), the Indonesian Self-Defense Committee (KPPI) announced the initiation of an investigation to extend the self-defense measure on EPS plastic pellets (HS code 39.3.11.10).

On January 24, 2024, the Indonesian Self-Defense Committee announced the extension of safeguard measures on imported EPS resins, in which Vietnam is not on the list of excluded developing countries.

Based on the investigation, the Indonesian Self-Defense Committee believes that the Indonesian domestic industry is still adjusting and the necessary self-defense measures are extended to remedy the damage.

Although there was a decline in imports both in absolute and relative terms during the investigation period (2021 - 2023), the Indonesian domestic industry could not recover the injury, as shown by a 3% decrease in domestic sales and a 9% decrease in profits during the investigation period.

The safeguard tax is expected to continue to be applied for another 3 years, effective from December 23, 2024 to December 22, 2027, in the form of an absolute tax. The specific tax rates are as follows: First year (December 23, 2024 - December 22, 2025): 2,352,478 rupiah/MT; second year (December 23, 2025 - December 22, 2026): 2,328,473 rupiah/MT; third year (December 23, 2026 - December 22, 2027): 2,304,468 rupiah/MT

The Trade Defense Department recommends that businesses and relevant associations continue to monitor the situation to make appropriate adjustments to production and export activities to the Indonesian market.

Source: https://baophapluat.vn/khuyen-nghi-doanh-nghiep-viet-nam-truoc-quyet-dinh-cua-indonesia-ve-gia-han-thue-tu-ve-voi-hat-nhua-eps-post533679.html