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Indonesia New Quarantine Fees on Rice / Rice seeds
USDA, March, 2004
A new Presidential Decree has replaced the previous set of "quarantine" fees on a wide range of agricultural commodities and products. The new fees are significantly lower compared to the old structure. The new fee structure appears to be WTO inconsistent because different fees are levied on the same products depending on if it is being imported, exported or shipped within the country.A Presidential Decree (Peraturan Pemerintah No. 49/2002) has been signed by President Megawati on February 11, 2004 for immediate implementation to replace the old quarantine fee structure with considerably lower fees.

Potential impact of this decree if fully implemented include:
1. Quarantine inspection fee for rice seed imports – lowered from Rp 2,000/kg to Rp. 225/kg (US$0.026/kg or US$0.012/lb).

2. If they determine that rice/grains need to be isolated and observed the charge is now lowered from Rp 10,000/kg to Rp. 100/kg (US$0.012/kg or US$0.005/lb.) while for fruits and vegetables the charge is lowered from Rp 50,000/kg to Rp. 100/kg (US$0.012/kg or US$0.005/lb.)

Note: Exchange rate for the above calculation is Rp. 8,500/US$1.

It is rather obvious that if fully implemented this decree still has the potential to disrupt trade because add costs to U.S. products. However, the impact is at least less than the previous regulation. If the government does not implement the new policy consistently with strict law enforcement, it will provide for additional opportunities to pressure importers for informal payments to avoid spurious Sanitary and Phytosanitary Standard or SPS issues. The ambiguous status of the regional autonomy might also lead to double taxation for the very same products that are being distributed across borders within the country.
MGR Archive 18.3.2004
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Region Type Price  
Russia Rapan $ 700
USA Jupiter Rice $630
USA Calrose #1 $830
USA Calrose #1 Paddy $480
EU Prices Baldo €660
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