Mahatma Devi and Alice, senior officials from the Embassy of the Republic of Indonesia visited AP Chambers Office here and interacted with the Chambers’ office-bearers and members. The officials discussed the bilateral trade opportunities between Indonesia and Andhra Pradesh.
AP Chambers discussed several key issues with the officials and requested the resolution of the issues. During the discussion, AP Chambers mentioned that Corn starch of Indian origin is subject to a 10 percent import duty in Indonesia, while corn starch originating from China enjoys preferential duty treatment.
This is despite Indonesia being a significant importer of corn starch from both countries. Unfortunately, Indian-origin corn starch (HS Code: 11081200) is excluded from the ASEAN–India Free Trade Agreement (AIFTA) preferential tariff list, placing Indian exporters at a disadvantage. The Chambers requested the Indonesia Embassy to consider this issue and support the inclusion of corn starch under the preferential tariff schedule for Indian-origin goods.
AP Chambers also pointed out that while India has moved to an online digital Certificate of Origin system (a certificate required for exports), Indonesian trade authorities are still insisting on the submission of physical copies with ink signature, which is causing delays in delivering the required documents.
The Chambers requested the Indonesian Embassy to take up this issue with the relevant authorities. The Chambers brought to the notice of the officials that Indonesia introduced quota system for import of chillies from India a few years ago, whereas the country does not have any such restriction for import of chillies from China. AP Chambers suggested abolition of the quota system to ensure level playing field for Indian chilli exporters.