Indonesia has slapped a safeguard duty, ranging between US$0.44 and
$11.29 per piece, on export of a number of apparel items to the country from
Bangladesh, officials said.
The products include top garments (casual), top garments (formal), bottom
garments, suits, ensembles and dresses, outwear, babies'' garments and
clothing accessories, and headwear and neckwear.
The committee on
safeguards of the
World Trade
Organisation (WTO)
issued notification
on imposition of the
measure on Tuesday.
The safeguard duty
will be implemented
in three stages.
The duty is imposed
after conducting
investigation on
Bangladesh''s apparel export to Indonesia between 2017 and 2019, as its
local industry failed to compete with the imported goods.
As a member of the WTO, Bangladesh can appeal against imposition of the
safeguard duty by February 28.
However, the stakeholders concerned decried the new measure, saying that
the safeguard measure was imposed ''unilaterally'', and it would affect
Bangladesh''s apparel export to Indonesia.
Alongside Bangladesh, the export of apparel items from China, Vietnam and
Singapore are also subject to the safeguard duty now.
However, the products of these three countries have duty-free access to
Indonesia, while Bangladesh''s apparel goods, under HS chapter 61 and 62,
are subject to up to 25 per cent duty there.
In last November, the Bangladesh Trade and Tariff Commission (BTTC) and
the Bangladesh Garment Manufacturers and Exporters Association
(BGMEA) placed their arguments before the Indonesian Safeguards
Committee (KPPI) in a hearing on this issue. In the hearing, Bangladesh
raised objections on several aspects of Indonesia''s safeguard investigation.
The representatives of the country argued that although there was a surge
in Bangladeshi clothing exports to Indonesian market, its rate of growth
actually declined in the latest year.
Bangladesh also argued that the causal link between surge in import and
threat to injury was not established. The KPPI had initiated the
investigation on imposition of safeguard duty against import of apparels to
the country in last September, being requested by the Indonesia Textile
Association.
In fiscal year (FY) 2018-19, Bangladesh exported apparel items worth $30
million to Indonesia, up from $20 million in FY 2017-18 and $14 million in
FY 2016-17. BGMEA President Dr Rubana Huq, in a press statement on
Wednesday, said Bangladesh''s apparel export is much lower than that of
importing textile articles from Indonesia.
In FY 2018-19, Bangladesh imported textile articles worth $187 million
from Indonesia, which included fibres worth $132.59 million. On the other
hand, Bangladesh''s export of garment was $30 million then. She also said
Bangladesh has 4.1 million workers, and at least five people are being
supported by each worker. It means almost 20 million people are directly
dependent on the ready-made garment (RMG) industry.
"Considering this critical issue of livelihood, the duties imposed on
Bangladesh''s export to Indonesia, and the favourable balance of trade that
Indonesia already has with Bangladesh, the safeguard measure should not
be applicable by any means," added Ms Huq. Mohammad Hatem, first vice
president of the Bangladesh Knitwear Manufacturers and Exporters
Association (BKMEA), said imposition of any additional duty on any export
comes as a burden for the industry.
"Though Bangladesh''s apparel export to Indonesia is not very high, the
safeguard duty must have an impact on us," he opined.
Source: The Financial Express, Bangladesh Monday, 01 March 2021