Indonesia may lose GSP facility

Rabu, 07 Maret 2012 | 09:34

Indonesia may lose the facility of Generalized System of Preferences (GSP) if the US decides to accommodate a petition from the International Intellectual Property Alliance (IIPA).IIPA said Indonesia was not serious in handling intellectual property rights, especially of products made in the US. It proposed, then that the US government revokes or limits the Indonesia’s rights under GSP

Similar proposal was made not only. IIPA also noted cases of intellectual property rights piracy by other trade partners.

GSP is a program from US government to exempt import duties on 3,400 products for 129 countries, including Indonesia. Last year, about 10.3% the Indonesia’s exports to the US which reached US$19 billion in total were under GSP facility.

Ni Made Ayu Martini, Indonesia’s Trading Attaché for US, said the US government is now deliberating IIPA’s proposal.

“The US government will look at the issue and consider the impacts if GSP is revoked. We will lobby to keep the GSP facility,” she said in Jakarta last week.

IIPA said in its official site that the market in Indonesia is dominated by pirated products which are distributed online or in physical markets. The situation hasn’t improved from previous years, the organization said.

Export prospects

Indonesia has not fully used the GSP facility from the US government, said Marideth Sandler from Sandler Trade LLC, a GSP consultancy firm.

The commodities from Indonesia can obtain the GSP facility by complying four requirements, she said.

First, the products are included in the list of those that meet the requirements of GSP. Second, they have to be directly exported from Indonesia or other countries using through bill of landing documents to an address in the US.

Third, the products should be made in Indonesia or, if using imported raw materials, must have local content of at least 35% of the total price paid by US importers.

Fourth, the US importers have to request for exemption from import duties for these products by writing A before the tariff codes on US custom forms. (T03/msw)

By Raydion, Hadijah Alaydrus