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 1 November 2021.

The Comprehensive Economic Partnership Agreement (CEPA) improves market access and legal certainty for trade in goods and services. Once the phase-out periods for customs duties expire, all duties will be eliminated for 98% of Switzerland's current goods exports to Indonesia. The agreement also covers provisions on investment, protection of intellectual property, removal of non-tariff barriers, competition, trade facilitation, trade and sustainable development, and economic cooperation.

Will the preferential rates still be granted? 

Since the free trade agreement came into force, Indonesia is no longer granted customs duty preferences under the Generalized System of Preferences for developing countries. These have been replaced by the agreed preferential rates.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 

The agreement provides for the non-alteration rule, meaning 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 and 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 — just three months, with the option of a three-month extension. Exporters should therefore be prepared for tight deadlines when submitting supporting documents.

Reduction of customs duties on imports to Indonesia 

The reduction of customs duties is asymmetrical for most of the products listed in Chapters 25–97. While the EFTA countries abolished their customs duties in one step when the agreement came into force, the reduction or elimination of duties in Indonesia takes place gradually.

Transitional provisions 

Originating products that were either in transit or in temporary storage in a customs warehouse or free zone at the time the agreement entered into force could still benefit from preferential treatment. In such cases, until 28 February 2022, it was possible to submit a declaration of origin made after the agreement's entry into force in the exporting country, together with 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.