Indonesia lowers tariffs on RP lighters, matches

The Philippines will continue to enjoy lower tariffs for its export of cigarette lighters and matches to Indonesia after the Indonesian Trade Protection Committee (Komite Pengamanan Perdagangan Indonesia or KPPI) concluded its investigation of increased imports of cigarette lighters and other lighters from the Philippines and other import sources.

In a letter to Philippine Ambassador to Indonesia Shulan Primavera, KPPI said that it terminated the safeguard’s investigation after it found out that increased importation from the identified countries, absolute or relative to Indonesia’s production of the product, does not have strong causal link that could cause injury to the Indonesian cigarette lighter industry.

Swedish Match Philippines was the lone Filipino firm included in the KPPI investigation.

Aside from the Philippines, KPPI also investigated import supplier companies from China, Hong Kong, Japan, Singapore, Germany, Denmark, Taiwan, and France. 

Indonesia’s investigation, which started in July 2005, was based on the petition/request from the Association of Indonesian Matches Companies, representing the domestic wooden matches industry.  

The association alleged that the increased importation of cigarette lighters is seen to cause or threaten to cause damage or injury to the local Indonesian cigarette lighter industry.

Upon receipt by the Philippine import supplier company of the communication from KPPI of the investigation, the Department of Trade and Industry’s Bureau of International Trade Relations (BITR), Bureau of Import Services (BIS), Bureau of Export Trade Promotions (BETP), and the Tariff Commission (TC) assisted Swedish Match  submit the necessary response requirements to KPPI.

With the termination of the investigation, Swedish Match Philippines and other potential exporters can resume shipments of cigarette lighters and matches to Indonesia  without facing higher tariffs.

Statistics show that the importation of cigarette lighters and other lighters has been rising from 2001 to 2004. 

Imports peaked to 10.77 thousand kilograms in 2004, growing at an average of 20.88 percent for four years.

In 2005, the country’s exports of cigarette lighters amounted to $15.281 million with The Netherlands, (38.88 percent); Japan, (25.77 percent; the United States, (10.67 percent); Malaysia, (8.66 percent); Thailand, (8.37 percent); and Indonesia (one percent) as top export markets.