ANALYSIS OF THE IMPLEMENTATION OF IMPORT DUTIES SAFEGUARD POLICY ON FINISHED GOODS FROM GARMENT COMPANIES RECEIVING BONDED ZONE FACILITIES TOWARDS COMPANY PROFITS AND IMPORT LEVIES

Abstract

The imposition of Import Duties Safeguard on finished goods has been applied since November 2021 based on the Regulation of the Minister of Finance. This research analyzes the implementation of the Safeguard policy for garment companies at KPPBC TMP A Bogor using an empirical juridical method with descriptive analysis, supported by interviews, observations, and document review. Sampling was conducted through purposive non probability techniques involving Export Import managers or staff from 30 garment companies receiving Bonded Zone facilities. The findings show that state revenue in the 2022 to 2023 period reached IDR 6,278,138,000.00, yet the predetermined Safeguard rates create a significant burden for companies. A total of 17 out of 30 companies face rates that exceed their selling prices, causing sales to decline and preventing them from generating profit. The policy meets only two tax principles, namely neutrality and revenue productivity, while for equity only horizontal equity is achieved, and for the ease of administration principle only certainty and simplicity are fulfilled. Overall, the Safeguard imposition does ensure state revenue but places substantial pressure on garment companies, and the unfulfilled principles indicate that the policy has not fully protected taxpayer interests or ensured alignment with fundamental tax principles.