Following the results of Indonesia’s investigation on the safeguard measure against the importation of fructose syrup, with ASEAN Harmonized Tariff Nomenclature (AHTN) 1702.60.20, Indonesia is set to apply trade safeguard measures against the importation of said product.
Acting on the request of PT. Associated British Budi (ABB) to conduct a safeguard investigation, the Indonesian Trade Safeguard Committee (KPPI) presented that the fructose syrup production of the applicant was 54% of the total domestic production.
However, ABB argued that the Indonesian market was flooded with cheap imports of fructose syrup from China, citing an increase on its importation from 2015-2018 based on the data from the Indonesian Central Bureau of Statistics (BPS).
KPPI submitted a notification to the World Trade Organization (WTO) Committee on Safeguards last 13 November 2019 and they requested all interested Parties to submit comments through a formal letter by 15 December 2019.
KPPI reported that during the investigation period, the importation of fructose syrup had absolutely increased and battered the applicant’s market share. This caused the applicant to suffer serious losses as the increase in the import share had dominated the local market. It had also decreased all performance indicators namely, domestic sales, production, productivity, use capacity, operating profit/loss, and manpower.
KPPI recommended to impose safeguard import duty (BMTP) on imports of “fructose syrup, in dry condition, contains fructose more than 50% by weight, excluding invert sugar”. BMTP’s imposition was proposed for three years, with the following details:
| Period | BMTP |
| Tariff Ad valorem | |
| 1st Year | 24% |
| 2nd Year | 22% |
| 3rd Year | 20% |
The Philippines is among the WTO Member Countries that are not exempted from the BMTP, hence the safeguard duty on fructose syrup applies.
For more information, please contact the Market Officer for Indonesia, Mary Fatima Barrameda (MaryFatimaBarrameda@dti.gov.ph and MID@dti.gov.ph). ♦
Date of release: 29 September 2020
