EXPORT OFFERS

US TRIM DUTY FISHERY PRODUCTS THROUGH RI GSP SCHEME

In the economic situation which is experiencing a slowdown, Indonesia's fishery sector to get fresh air for the export market to the United States (US). The reason, President Barack Obama with the approval of the US Senate signed a renewal and extension of the scheme of Generalized System of Preference (GSP), on Monday, June 29th, 2015.

GSP is a special scheme of developed countries that offer preferential treatment of non-reciprocal such as low or zero tariff to the import of products originating from developing countries. "Indonesia including that get GSP facility", said Saut P. Hutagalung, Director General of Processing and Marketing of Fisheries (DG P2HP) Ministry of Maritime Affairs and Fisheries in Jakarta, Wednesday (29/7).

According to Director General P2HP, the scheme had been halted since 2013 because it does not get the approval of the US Senate. GSP scheme will come into force July 29, 2015 to 31 December 2017. This will be an excellent opportunity for exporters of fisheries Indonesia because through the scheme a number of Indonesian fishery products, such as frozen crab, sardines, frog meat, canned fish, processed lobster, and crab exempt from tariffs or otherwise subject to a tariff of 0 percent. The amount of reduction in rates between 0.5 to 15 percent.

The US is the major export destination markets for Indonesian fishery products. Over the past four years the export value of Indonesian fishery products to the United States continues to show improvement. Export value respectively from 2011 to 2014 was USD 1.07 billion, USD 1.15 billion, USD 1.33 billion and USD 1.84 billion.

Indonesian fishery products export growth to the US has increased by an average of 21.14 percent since 2011. The main commodities exported include shrimp, crab, tuna, tilapia, squid, fish, seaweed, oyster and lobster. All fishery products which get GSP facility estimated 1.75 percent of the total exports to the US, which reached USD 1.84 billion in 2014.

GSP given a special scheme lowering of tariffs to the United States that are non-reciprocal means determined solely by the US Government. However, this has to be the fruit of a good relationship between Indonesia - US during this time, especially good cooperation between the MOMAF and the relevant authorities in the US.

In addition, the MOMAF vigorous efforts to lower tariffs, especially since November 2014 as well as mitigation measures IUU fishing practices and building sustainable marine and fisheries contribute to the administration of the GSP facility to Indonesia. "This momentum should be utilized by the exporter of fishery products in view of Indonesia's competitors such as China and Vietnam do not get similar facilities", said Director General P2HP.

Nonetheless, exporters still have to maintain the quality and the quality of fishery products and pay attention to aspects of sustainability of fishery resources and social aspects as determined by the US authorities. It is considering the US government is quite strict in implementing various requirements for imported products.

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