Customs Authority Explains How FTAs Boost Business Profits

Indonesia’s Customs and Excise Agency (DJBC) says free trade agreements (FTAs) can bring substantial benefits to import‑dependent businesses. Under an FTA, import duties can be reduced to as low as zero percent, lowering overall import costs.

Preferential tariffs arise because partner countries agree to lower duties, potentially dropping rates from 10% to between 0% and 5%. To qualify, goods must satisfy rules of origin (ROO), such as having a Certificate of Origin or Declaration of Origin.

These lower costs make products more competitive locally and for re‑export, especially for SMEs and new exporters. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id/berita/nasional/1814624/fta-bikin-pengusaha-lebih-untung-djbc-jelaskan-alasannya).