Indonesia sets flat levy for UCO, Pome exports

Indonesia sets flat levy for UCO, Pome exports

Singapore, 18 March (Argus) — Indonesian exporters of waste biodiesel feedstock used cooking oil (UCO) must pay a flat $35/t tax at the border from today, while that of advanced feedstock palm oil mill effluent (Pome) will be charged $5/t no matter the sales price.

Jakarta sped through its new levy structure on crude palm oil (CPO) and derivatives today, after trade minister Muhammad Lutfi yesterday announced that changes would be made to boost funds for domestic vegetable oil subsidies.

The new regulation states that HS codes 2306.90.90 and 2306.60.90 cover Pome, while 1518.00.31 is given as an example code for UCO, implying that exports of the waste feedstock under other codes will not be exempt from the levy.

The feedstocks are among a handful of products with a flat tax. Most palm oils will be levied on a sliding scale, with a CPO price over $1,500/t triggering the highest rate.

CPO levies will rise to $375/t when the CPO price exceeds $1,500/t. Before today, the highest levy was $175/t on all CPO sales above $1,000/t.

Export duties across palm products will remain unchanged at current levels, with a CPO price over $1,000/t triggering the highest level of $200/t on CPO exports. UCO and Pome