The Comprehensive Economic Partnership Agreement (CEPA) will improve market access and legal certainty for trade in goods and services. All customs duties will be eliminated for 98% of Switzerland’s current goods exports to Indonesia once the phase-out periods for customs duties expire. What’s more, the agreement includes, in particular, provisions on investment, protection of intellectual property, the removal of non-tariff barriers, competition, trade facilitation, trade and sustainable development, and economic cooperation.
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Questions Free Trade Agreement with Indonesia
Here you will find the relevant documents and the most frequently asked questions about the free trade agreement (FTA) with Indonesia, which entered into force on November 1, 2021.
Will the preferential rates still be granted?
Once the Free Trade Agreement comes into force, Indonesia will no longer be granted customs duty preferences under the Generalized System of Preferences for developing countries. These will be replaced by the agreed preferential rates.
Cumulation of origin
The EFTA-Indonesia agreement provides for cumulation for products originating in the EFTA countries and Indonesia. Cumulation with goods from other countries is not permitted.
Non-alteration rule
This agreement provides for the non-alteration rule, i.e. the imported originating goods must be the same as those exported from the contracting party. They must not have undergone any unauthorized working or processing during transport. The splitting of consignments in third countries is permitted.
Declaration of origin
The declaration of origin can be issued by the exporter regardless of the value of the goods. The declaration of origin must be made out in English. A movement certificate is not provided for in this agreement.
Review procedure
The time limit for responding to requests for review is short at just three months (can be extended by an additional three months). Exporters must therefore be prepared for short deadlines for the submission of supporting documents and the like.
Reduction of customs duties on imports to Indonesia
The reduction of customs duties will be asymmetrical for most of the products listed in Chapters 25-97. While the EFTA countries will abolish their customs duties in one step when the agreement comes into force, the reduction/elimination of duties in Indonesia will take place gradually.
The current customs duties can be viewed in our customs database.
Transitional provisions
Originating products, which at the time of entry into force of the agreement are either in transit or in temporary storage in a customs warehouse or in a free zone, may nevertheless benefit from preferential treatment under the agreement. In such cases, until February 28, 2022, it is possible to submit a declaration of origin made after the entry into force of the agreement in the exporting country as well as documents proving direct transport.
Palm oil and palm kernel oil
Anyone wishing to import palm oil or palm kernel oil from Indonesia at the preferential rate of duty must present the authorization number received from SECO in addition to the declaration of origin. With the customs declaration, the importer confirms that the imported palm oil or palm kernel oil is certified along the entire supply chain in accordance with an approved certification system.
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