ASIATODAY.ID, JAKARTA – The Indonesian Ministry of Trade through the Directorate General of Foreign Trade facilitated the verification of the anti-subsidy investigation carried out by the United States Department of Commerce (USDOC) on 19-21 February 2024 in Jakarta. Director of Trade Security at the
Directorate General of Foreign Trade, Natan Kambuno, said that verification is an important stage in the process of investigating trade remedies. By being cooperative, the opportunity for Indonesia to maintain and improve the performance of mattress exports to the US is increasingly open.
“During the verification process, USDOC asked for a more in-depth explanation and clarification of the data and information that had been submitted by the Indonesian Government in the questionnaire. The results of the verification in question will be one of the determining factors for the final outcome of this anti-subsidy investigation,” said Natan in a written statement, in Jakarta, Tuesday, February 28, 2024.
Previously, USDOC began conducting an anti-subsidy investigation on August 17 2023. Since the investigation began, the Indonesian Government has always been cooperative, providing responses to the initial questionnaire as well as additional questionnaires submitted by the authorities.
In the questionnaire, USDOC asked for an explanation of several Indonesian Government policy programs which were considered to provide subsidies to the Indonesian mattress industry. The results of the Preliminary determination were published on December 26 2023.
Natan said that based on the results of the interim investigation, the authorities found that the amount of subsidies received by Indonesian mattress exporters was recorded at less than 1 percent ad valorem or de minimis.
Under the provisions of the World Trade Organization (WTO), anti-subsidy investigations must be stopped if the Authority finds that the subsidy amount is less than 1 percent ad valorem.
“The results of the investigation so far are quite positive for Indonesia. We hope that these positive results can continue until the final investigation, so that Indonesian mattresses can continue to be exported to the United States without the application of additional import duties,” said Natan.
This investigative verification is a series of anti-subsidy investigations into the export of Indonesian mattress products to the US.
This activity was attended by representatives of related ministries and institutions, namely the Ministry of Finance, Ministry of Industry, Ministry of Investment/Investment Coordinating Agency (BKPM), Indonesian Export Financing Institute (LPEI), Bogor Regency Regional Revenue Management Agency, as well as legal representatives.
Over the last five years (2019-2023) Indonesian mattress exports to the United States (US) with tariff post numbers/HS 940421 and 940429 have increased with a trend of 11.17 percent and reached a record high with a value of $365.52 million in 2021.
However , in 2023 this performance will decrease to $303.77 million or down 8.93 percent from 2022 which was recorded at $333.56 million. (ATN)
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