On 6 June 2011, the Minister of Finance issued Decree Number 87/PMK.011/2011 which imposes a safeguard measure for a period of 3 (three) years on cotton yarn other than sewing thread (HS 5205 and 5206).
The Decree is based on the proposal by KPPI after concluding its safeguards investigation, which examined the period of 2007 – 2009.
Based on the Decree of the Minister, the imported product will be imposed with certain amount of the specific duty which will be progressively liberalized in the second year and third years as shown in the table below.
Nevertheless, there are some specific cotton yarn other than sewing thread which are excluded (HS 5205.27.00.000, HS 5205.33.00.00, HS 5205. 34.00.00, HS 5205.46.00, HS 5205.28.00.00, HS 5206.33.00.00, HS 5206.34.00.00, and HS 5206.44.00.00. Besides there is also a list of developing countries which are excluded because they exported less than 3% of the total imports (de minimis), i.e. South Korea, Brazil, Cambodia, and Vietnam.