The Ministry of Maritime Affairs and Fisheries (KKP) is ready to facilitate fish processing units (UPI) who want to get a 0% tariff on tuna-skipjack-cob exports to Japan. This policy is part of the agreement to amend the Indonesia-Japan Economic Partnership Agreement (IJEPA).
“Thank God, the changes to the agreement accommodate Indonesia’s interests, such as the elimination of 4 tariff posts for processed tuna and skipjack products,” explained Acting Director General of Strengthening the Competitiveness of Marine and Fishery Products (PDS), Machmud
Machmud explained that before the change to the agreement, exports of canned tuna and skipjack tuna and other non-canned preparations from Indonesia to Sakura Country were subject to an export tariff of 9.6%. Meanwhile, in the Japanese market, canned tuna products and other processed products from Indonesia are in third place, the top fish exporter with a value of USD 30.28 million.
In addition, the compound annual growth rate (CAGR) is 13.82%, superior to Thailand and the Philippines, with CAGRs of 12.12% and 6.31% respectively.
“Of course, with a 0% tariff, Indonesia’s skipjack tuna exports can be more competitive and we are optimistic that Indonesia can become number one in Japan,” he explained.
Procedures for Getting 0% Tariff
KKP is preparing a Circular Letter from the Minister of Maritime Affairs and Fisheries regarding the ratification of IJEPA. The circular will contain procedures for applying for a 0% registration number for processed tuna and skipjack tuna products other than cans with the Japanese harmonized system (HS) codes 1604.14.091 and 1604.14.099.
“Fish Processing Units (UPI) that export products with the HS code mentioned in the IJEPA protocol must be registered with the KKP,” explained Machmud.
Meanwhile, Director of Marketing at the Directorate General of PDS, Erwin Dwiyana, explained the flow of the UPI registration process within the IJEPA framework. Starting from UPI sending documents in the form of forms, business permits include Business Identification Number (NIB), standard certificates, Processing Feasibility Certificates (SKP) and Hazard Analysis Critical Control Points (HACCP), as well as Standard Operating Procedures (SOP) for sorting raw materials and traceability documents, up to integrity pacts.
The file is then verified by the Directorate General of PDS and followed up with an inspection of the applicant’s Fish Processing Unit (UPI) either physically or online. After the verification and inspection process is declared complete and appropriate, the KKP will submit a notification to the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF) via a Diplomatic Note in the form of a list of UPIs interested in utilizing the IJEPA preferential rates in question.
For information, the IJEPA amendment protocol has been signed on August 8 2024 by the Minister of Trade of the Republic of Indonesia and the Minister of Foreign Affairs of Japan. Skipjack tuna is ranked 2nd in Indonesia’s top commodity exports with a product market share reaching 17%.
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