WT/COMTD/RTA12/2  
 
1 April 2021 
(21-2766) Page: 1/2 
Committee on Trade and Development  
Dedicated Session on Regional Trade Agreements  Original: English  
 
 
PREFERENTIAL  TRADE  AGREEMENT BETWEEN INDONESIA AND PAKISTAN  
(GOODS ) 
QUESTIONS AND REPLIES  
 The following communication, dated 31 March  2021, is being circulated at the request of the 
delegations of  Indonesia  and Pakistan . 
 
The document reproduces the questions addressed to the Parties and the responses 
submitted.  
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Question s from the delegation of  Brazil  
 
Question 1  
 
Point 3.1 states that "According to the Parties, Indonesia does not have any provisions on 
para-tariffs". Considering the elimination of para tariffs provided for in Article 8 of the 
Agreement and the definition of para tariffs contained on Article 2(d) of the A greement, 
could the Parties give examples of what types of duties and charges are expected to be 
eliminated under these provisions? Also, could the Parties clarify if Article 8 applies only 
to Pakistan?  
 
Replies from Pakistan : Article 8 was added as a stan dard provision in the Agreement to ensure 
effective  liberalization  under the terms of the Agreement . There are no duties and charges as per 
the definition in Article 1 (d) of the agreement that can be expected to be eliminated under Article  8. 
As informed, Article 8 was added as a standard provision and, wherever applicable, applies equally 
to both parti es of the Agreement.  
 
Replies from Indonesia : The para -tariffs provisions was agreed upon by both countries to avoid 
additional tariffs instead of customs duty. This provisions is intended to ensure that both countries 
does not impose any para -tariffs on a ll products that are committed in the IP -PTA. Currently, 
Indonesia does not impose any para -tariffs on imported products.  
 
Question 2  
 
Regarding point 3.19, the factual presentation mentions that the Parties have not agreed 
on a list of Product Specific Ru les (Attachment B of the Agreement). Could the Parties 
explain what treatment textile and apparel goods will have, in terms of rules of origin, 
under the Agreement?  
 
Replies from Pakistan : The Ministry of Com merce Notifica tion, S.R.O No. 1485(I)/2012 of 
22 December 2012 (available at https://www.commerce.gov.pk/wp -
content/uploads/pdf/SRO_148512012_ROO_IP_PTA.pdf ) specifies the rules. Art. 6; Rul e 4: a (i) of 
this notification also applies to Textiles and Clothing, i.e. "a product shall be deemed to be originating 
if: the total value of the materials, part or produce originating from outside of the territory of a Party 
does not exceed 60% of the F OB value of the product so produced or obtained provided that the 
final manufacture i s performed within the territory of the exporting Party. " 
 WT/COMTD/RTA12/2  
 
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  Replies from Indonesia : There is no special treatment in terms of rules of origin for textile and 
apparel produc ts that are committed to in the IP -PTA. Therefore, with no list of PSR in the 
agreement, the rules of origin applied for textile and apparel products is:  "a product shall be deemed 
to be originating if: the total value of the materials, part or produce ori ginating from outside of the 
territory of a Party does not exceed 60% of the FOB value of the product so produced or obtained 
provided that the final process of the manufacture is performed within the territory of the exporting 
Party". 
 
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