REPUBLIKA.CO.ID, JAKARTA -- Indonesia's export products will now attract a preferential tariff that will be 50 percent lower than non-preferential rates prevailing in Uzbekistan, and will be in the form of a single size custom duty.
This was conveyed by the Uzbekistan government through a diplomatic note sent to the Indonesian government.
"The implementation of preferential tariff for Indonesian products in Uzbekistan market is good news for Indonesia's efforts to diversify its export market by entering non-traditional destinations," Trade Minister Thomas Lembong said in a written statement received by Antara here on Wednesday.
The Uzbekistan government finally declared that Indonesia's export products will be eligible for preferential tariff which will be 50 percent lower than non-preferential rates prevailing in Uzbekistan.
Indonesian exporters can simply use the Certificate of Origin (SKA) form B to avail of the preferential tariff.
"The success of and the effectiveness with which the trade agreement has been implemented has significantly boosted the bilateral trade volume. We should strive to achieve a higher target," Lembong said.
Director General of International Trade Cooperation Bachrul Chairi stated that there is still room to enhance the trade volume between Indonesia and Uzbekistan.
Currently, Indonesian export commodities to Uzbekistan do not include major export commodities such as crude palm oil (CPO), rubber and coffee.
According to Bachrul, there exists an opportunity to increase the export of these products as Indonesia is one of the largest producer countries of palm oil and rubber in Southeast Asia.
"Considering the potential of Uzbekistan and Indonesia, it would be a good move to boost economic and trade relations between the two countries in the Central Asian region," Bachrul said.
The governments of Indonesia and Uzbekistan signed a trade agreement in 2009, wherein they agreed to accord a preferential tariff as the Most Favored Nation (MFN) on a reciprocal basis in accordance with Article 2 of the trade agreement.
On April 10-11, 2015, the governments of Indonesia and Uzbekistan had a Technical Experts Meeting (TEM) in Uzbekistan to discuss the settlement of the issue. Uzbekistan approved the use of SKA form B as a document for the Indonesian export products included in the MNF tariff list to get preferential tariff.
The total trade value of Indonesia and Uzbekistan in 2014 amounted to US$13.6 million. Indonesia's exports to Uzbekistan in 2014 reached US$8.7 million, while the import was valued at US$4.7 million.
The value of Indonesian exports to Uzbekistan in January-August 2015 was recorded at US$3.9 million and the import was worth US$4.6 million.
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