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Official accuses Chinese exporters of rerouting through India, Vietnam to evade tariffs
Chinese exporters are shipping goods to Indonesia via India and Vietnam to evade safeguard measures imposed by Jakarta, an official representing the Industry Ministry has claimed.
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Shipping activities are pictured at Tanjung Priok seaport in Jakarta on May 20, 2024. (Antara/Dhemas Reviyanto)
C
hinese exporters are shipping goods to Indonesia via India and Vietnam to evade safeguard measures imposed by Jakarta, an Industry Ministry official has claimed.
Ashady Hanafie, representing the ministry at a public discussion on Tuesday, said ceramics were the product in question.
Ceramic products have been subject to elevated import tariffs in what the government calls a “safeguard measure” for the past three years, according to Finance Ministry Regulation No. 156/2021.
“Initially, we enforced the safeguard [measure] on China, and when it first came into force, [ceramic] imports went down. But after a while, they went back up again,” Ashady was cited by CNN Indonesia as saying at the event hosted by the Institute for Development of Economics and Finance (INDEF) in Jakarta.
“Turns out, [the imports] were diverted, so the shipments did not come directly from China but through India and Vietnam. That’s why we enforced the safeguard on India and Vietnam too,” he added.
He went on to say that the ministry was concerned the same thing would take place with the antidumping duty, which was why Ashady advocated for high antidumping tariffs between 100 and almost 200 percent.
“It’s likely that, when the [antidumping duty] is enforced, the same pattern is going to take place. Because that’s just how it is, businesses will definitely try to find a way so they can still ship in [their goods] here,” said Ashady.
