Swallow's Nest tax to China Still 17 Percent

Swallow's Nest tax to China Still 17 Percent. Although the agreement of ASEAN-China free trade has been effective since January last. However, until now swallow nest exports to China are still taxable at 17 percent. Whereas the export potential of swiftlet nests Indonesia reaches 500 tons to 600 tons per year with a par of around Rp 7.5 trillion.

"Entry into the export tax by 17 percent to China is very regrettable the swallow nest farmers and traders. It's very ironic because the ASEAN member countries such as Malaysia, Singapore, Vietnam, and Thailand can export to China swiftlet nests without incurring taxes," said Chairman Swallow's Nest Traders Association of Indonesian Farmers (APPSWI) Wahyudin Husein, Friday (9/4/2010) in Surabaya.

Given the tax rate of 17 percent, the farmers and traders were forced swallow nest swiftlet nests exported through Hong Kong. Exports through Hong Kong's nest swiftlet thinking about the consequences of reduction in price of about Rp 2 million per kilogram.

Prices range from clean swallow nest USD 16 million to $ 19 million per kilogram. Because Hong Kong's past, this price cut to Rp 2 million per kilogram to an average of USD 14 million per kilogram to Rp 17 million per kilogram. "If there is no export tax, the price actually swallow nest would be more expensive if directly exported to China. But, until now China still insists on applying the tax rate on the product by reason of Indonesian swiftlet nests have not been free from bird flu virus," he said.

Wahyudin worry, swiftlet nests export mechanism that must pass through Hong Kong became a political tool of trade for China's government. Export swiftlet nests from Indonesia to Hong Kong will automatically provide foreign exchange income for Hong Kong.

Currently, most raw materials Indonesian swiftlet nests are given the label of products of Hong Kong. In fact, most of the swiftlet's nest from Indonesia.


Government intervention

Addressing this problem, APPSWI requested the Ministry of Commerce to fight in order to export to China swiftlet nests not taxed like other export products. "We also hope that Indonesian trade attache in China can communicate with the association of swallow nest farmers and traders to resolve this issue," he said.

If the export of swiftlet nests finally freed from taxes, the farmers and businessmen expect the government to impose rules or restrictions swallow nest was exported in raw form.

The reason, the process of swiftlet nest processing of raw materials to absorb a large workforce to 200,000 people per day. "If there is no such restriction, then the people of China will be more freely take the raw materials into Indonesian swiftlet nests and severity of many workers who have lost due to processing of raw materials moved to China," he said.

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