the other Party repeatedly and unjustifiably refuses or fails to cooperate with that Party as provided for in paragraph 16.
(a) The Party which has made a finding referred to in paragraph 2 shall, without undue delay, notify the Trade Committee thereof and enter into consultations with the other Party within the Trade Committee with a view to reaching a solution acceptable to both Parties.
Within two months after such notification in paragraph 3 (a), the other Party may provide written comments to such finding.
Where the Parties have failed to agree on an acceptable solution within three months following the notification, the Party which has made the finding may decide to suspend for a limited period of time the relevant preferential tariff treatment of the goods concerned. The suspension shall apply only to those traders, which during consultations referred to in paragraph 3(a) were identified and agreed by both Parties as involved in the breaches of customs legislation.
The decision of such a suspension shall be notified to the Trade Committee without undue delay.
6 For greater certainty, cooperation is understood to be in place, for example, when exchanges between the Parties with a view to address the matter in paragraph 1 are undertaken, including within the [Trade Committee].
If a Party has made a finding, and within three months following the notification referred to in paragraph 3(c), has established that the temporary suspension referred to in paragraph 3(c) has been ineffective in combating breaches in customs legislation related to the preferential treatment granted under this Chapter, the Party may decide to suspend temporarily the relevant preferential treatment of the goods concerned.
The Party may also decide to suspend temporarily the relevant preferential treatment of the goods concerned if during consultations referred to in paragraph 3(a) the Parties were unable to identify and agree on traders involved in the breaches of customs legislation.
The decision of such a suspension shall be notified to the Trade Committee without undue delay.
The suspensions referred to in paragraphs 3(c) and 3(d) shall apply only for a period necessary to protect the financial interests of the Party concerned, and not longer than six months and may be terminated by the Party which has made the finding, any time before the end of the notified period. Any change of the suspension period shall be notified to the Trade Committee.
Where the conditions of paragraph 2 that gave rise to the initial suspension persist at the expiry of the period as notified to the Trade Committee, the Party concerned may decide to renew the suspension and notify the Trade Committee at the latest one month prior to the renewal. The pending suspensions shall be subject to periodic consultations within the Trade Committee.
Each Party shall publish, in accordance with its internal procedures, notices to importers about any notification and decision concerning temporary suspensions referred to in paragraphs 3(c) and 3(d).
Notwithstanding paragraph 3, if an importer satisfies the importing Party’s customs authority that its goods comply with the importing Party’s customs legislation, the requirements of this Agreement, and any other appropriate conditions related to the suspension limited in time established by the importing Party in accordance with its laws and regulations, the importing Party shall allow the importer to apply for preferential treatment and recover any customs duties paid in excess of the applicable preferential customs duties when the goods were imported.
Article ARTICLE 2.16
Committee on Trade in Goods, on Customs Matters and on Sanitary and Phytosanitary matters in its Trade in Goods, Trade Remedies and Technical Barriers to Trade Configuration
The Committee on Trade in Goods, on Customs matters, and on Sanitary and Phytosanitary matters in its specific configuration for trade in goods, trade remedies and technical barriers to trade established under Article 24.4 (Specialised Committees), hereinafter referred to in this Article as the "Committee", shall consider any matter relating to the effective implementation and operation of this Chapter, Chapter 5 (Trade Remedies) and Chapter 7 (Technical Barriers to Trade).
The Committee shall be composed of representatives of the European Union and Indonesia, including the contact point of each Party as set out in paragraph 3.
Each Party shall designate a contact point responsible for facilitating communication between the Parties on matters covered by this Chapter, Chapter 5 (Trade Remedies) and Chapter 7 (Technical Barriers to Trade) within 90 days of the date of entry into force of this Agreement. Each Party shall notify the other Party promptly in the event of any change to its contact point.
The Committee shall meet in accordance with paragraph 4 of Article 24.4 (Specialised Committees).
The Committee’s shall have the following functions:
promoting trade in goods between the Parties, including through consultations on accelerating reduction or elimination of customs duties under this Agreement and other issues as appropriate;
reviewing and monitoring the implementation or operation of this Chapter and Chapter 5 (Trade Remedies);
addressing barriers to trade in goods between the Parties, especially those related to the application of non-tariff measures, and, if appropriate, referring such matters to the Trade Committee for its consideration;
considering matters related to Chapter 7 (Technical Barriers to Trade) that are referred by the chapter coordinators established under Article 7.11.1 of that Chapter;
promptly addressing barriers to trade in goods between the Parties;
consulting on and endeavouring to resolve any issues relating to this Chapter, including differences that may arise between the Parties on matters related to the classification of goods under the Harmonized System and Annex 2-A (Tariff elimination schedules), or amendment to the Harmonized System Code Structure or each Party’s respective nomenclatures, including methodologies and procedures used by each Party, to ensure that obligations in Annex 2-A (Tariff elimination schedules) of the Parties are not altered;
monitoring preference utilisation rates and statistics, the data of which may be presented for an exchange of views by the Committee to the Trade Committee;
working with any other committee or other subsidiary body established or granted authority to act under this Agreement on issues that may be relevant to that body, as appropriate;
where appropriate, referring matters considered by the Committee to the Trade Committee, including any recommendations or conclusions; and
on request of a Party review and exchange of statistical approval and denial information about each Party’s use of import licencing procedures.
Disclaimer: In view of the European Commission's transparency policy, the Commission is publishing the texts of its Comprehensive Economic Partnership Agreement with Indonesia following the Ministerial announcement on 23 September 2025. These texts are published for information purposes only and may undergo further modifications including as a result of the process of legal revision. These texts are without prejudice to the outcome of the Agreement between the EU and Indonesia. The texts will be final upon signature. The Agreement will become binding on the Parties under international law only after completion by each Party of its internal legal procedures necessary for the entry into force of the Agreement.
Chapter CHAPTER 3
RULES OF ORIGIN AND ORIGIN PROCEDURES
SECTION A RULES OF ORIGIN
Article ARTICLE 3.1
Definitions
For the purposes of this Chapter:
"chapters" and "headings" and "sub-headings" mean the chapters, the headings (four digit codes) and sub-headings (six digit codes) used in the nomenclature which makes up the Harmonized Commodity Description and Coding System, referred to in this Chapter as the "Harmonized System" or "HS";
"classified" means the classification of a product or material under a particular chapter, heading, or sub-heading of the Harmonized System;
"competent authority " means:
for the European Union, the customs authorities; and
for Indonesia, the Ministry of Trade or the customs authorities, as appropriate;
"consignment" means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice;
"customs authority" means the authority that is responsible under the legislation of each Party for the administration and enforcement of its customs laws and regulations. In addition, in the European Union, this definition includes the services of the European Commission responsible for customs matters;
"customs value" means the value as determined in accordance with the 1994 Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade (WTO Agreement on customs valuation);
"ex-works price" means the price paid for the product ex works to the manufacturer in whose undertaking the last working or processing is carried out, provided that the price includes the value of all the materials used and all other costs related to its production, minus any internal taxes which are, or may be, repaid when the product obtained is exported.
Where the actual price paid does not reflect all costs related to the manufacturing of the product which are actually incurred in the European Union or in Indonesia, the ex-works price means the sum of all those costs, minus any internal taxes which are, or may be, repaid when the product obtained is exported;
Where the last working or processing has been subcontracted to a manufacturer, the term “manufacturer” referred to in this paragraph may refer to the enterprise that has employed the subcontractor.
"exporter" means a person, located in a Party, who, in accordance with the requirements laid down in the laws and regulations of the Party, exports or produces the originating product and makes out a statement on origin;
"importer" means a person, located in a Party, who, in accordance with the requirements laid down in the laws and regulations of the Party, imports the originating product and claims preferential tariff treatment for it;
"material" means any ingredient, component, part or product used in the production of another product;
"preferential tariff treatment" means the rate of customs duties applicable to an originating good in accordance with paragraph X of Article 2.5 (Reduction and Elimination of Customs Duties) in Chapter 2 (National treatment and market access for goods).
"product" means the result of production;
"production" means any method of obtaining or processing goods, including growing, breeding, mining, extracting, raising, harvesting, gathering, collecting, fishing, trapping, hunting, capturing, manufacturing, assembling or disassembling a product; and
"value of materials" means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the European Union or in Indonesia;
Article ARTICLE 3.2
Requirements for originating goods
For the purposes of applying the preferential tariff treatment by a Party to the originating good of the other Party in accordance with this Agreement, provided that the products satisfy all other applicable requirements of this Chapter, the following products shall be considered as originating in the other Party:
products wholly obtained in that Party within the meaning of Article 4 (Wholly obtained products);
products produced in that Party exclusively from originating materials in that Party; and
products produced in that Party incorporating non-originating materials provided they satisfy the requirements set out in Annex 3-B (Product-specific rules of origin).
If a product has acquired originating status, the non-originating materials used in the production of that product shall not be considered as non-originating when that product is incorporated as a material in another product.
The acquisition of originating status shall be fulfilled without interruption in Indonesia or the European Union.
Article ARTICLE 3.3
Cumulation of origin
Notwithstanding Article 2 (Requirements for originating goods), products shall be considered as originating in a Party if such products are obtained there by incorporating materials originating in the other Party, provided that the working or processing carried out goes beyond the operations referred to in Article 6 (Insufficient Working or Processing).
Materials originating in Japan and in the Association of Southeast Asian Nations ("ASEAN") member states shall be considered, in accordance with Appendix 2 to Annex II, as materials originating in Indonesia when further processed and incorporated into one of the products listed in Appendix 2 to Annex II, provided that they have undergone working or processing in Indonesia which goes beyond the operations referred to in Article 6 (Insufficient Working or Processing).
For the purposes of paragraph 2, the origin of the materials shall be determined according to the preferential rules of origin applicable in the framework of the European Union's preferential agreement with Japan and ASEAN member states.
For the purposes of paragraph 2, the originating status of materials exported from Japan or ASEAN member states to Indonesia to be used in further working or processing shall be established by a proof of origin under which these materials could be exported directly to the European Union.
Statements on origin made out by application of paragraph 2 shall bear the following entry: ‘Application of Article 3(2) of Chapter 3 [Rules of Origin] of the EU-Indonesia CEPA with XXX [Country(ies) of cumulation]’.
The cumulation provided for in paragraphs 2 to 5 may only be applied on the condition that:
Japan and the ASEAN member states apply with the Union a preferential trade agreement in accordance with Article XXIV of GATT 1994;
Japan, the ASEAN member states and Indonesia have undertaken and notified to the Union their undertaking to:
comply or ensure compliance with the cumulation provided for by this Article;
establish a proof of origin on the originating status of materials from Japan and ASEAN member states, and
(ii) provide the administrative cooperation necessary to ensure the correct implementation of this Chapter both with regard to the European Union and between themselves.
Article ARTICLE 3.4
Wholly obtained products
The following shall be considered as wholly obtained in a Party:
plant or plant products grown, cultivated, harvested, picked or gathered there;
live animals born and raised there;
products obtained from live animals raised there;
products obtained from slaughtered animals born and raised there;
products obtained by hunting, trapping, fishing, gathering or capturing conducted in a Party, but not beyond the outer limits of the Party's territorial sea;
products obtained from aquaculture there, where aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants are born or raised from seed stock such as eggs, roes, fry, fingerlings or larvae, by intervention in the rearing or growth processes to enhance production such as regular stocking, feeding or protection from predators;
minerals or other naturally occurring substances, not included in subparagraphs (a) through (f), extracted or taken from the soil or the seabed not going beyond the limits of the Party’s territorial sea;
products of sea fishing and other products taken from the sea outside any territorial seas by their vessels;
products made aboard their factory ships exclusively from products referred to in subparagraph (h);
products other than fish, shellfish and other marine life extracted from the seabed or subsoil which is situated outside any territorial sea but where the Party has exploitation rights in accordance with international law;
a product that is:
waste or scrap derived from manufacture there; or
waste or scrap derived from used products collected there, provided that those products are fit only for the recovery of raw materials.
a product produced there exclusively from products referred to in subparagraphs (a) through (k), or from their derivatives.
The terms “vessels” and “factory ships” in subparagraph 1 (h) and (i) shall apply only to vessels and factory ships:
which are registered in a Member State of the European Union or in Indonesia;
which sail under the flag of a Member State of the European Union or of Indonesia; and
which meet one of the following conditions:
they are at least 50% owned by nationals of a Member State of the European Union or of Indonesia; or
they are owned by juridical persons:
which have their head office and their main place of business in a Member State of the European Union or Indonesia; and
which are at least 50% owned by a Member State of the European Union or by Indonesia, by public entities or nationals of one of those Parties.
Article ARTICLE 3.5
If a non-originating material used in the production of a product does not satisfy the conditions as set out in Annex 3-B (Product-Specific Rules of Origin), that material may nevertheless be used provided that;
for a product classified under Chapters 2 and 4 to 24 of the Harmonized System, other than processed fishery products of Chapter 16 of the Harmonized System, the value of all those materials does not exceed 10% of the ex-works price of the product;
for a product classified under Chapter 1, Chapter 3, processed fishery products of Chapter 16, Chapters 25 to 49 or Chapters 64 to 97 of the Harmonized System, the value of all those materials does not exceed 15% of the ex-works price of the product; and
for a product classified under Chapters 50 to 63 of the Harmonized System, tolerance shall apply as stipulated in Note 7 and 8 of Annex XX (Product-Specific Rules of Origin).
Paragraphs 1 shall not allow exceeding any of the percentages for the maximum value or weight of non-originating materials as specified in the rules laid down in the list in Annex 3-B (Product-Specific Rules of Origin).
Paragraphs 1 shall not apply to products wholly obtained in the territory of a Party within the meaning of Article 4 (Wholly Obtained Products). If the rule laid down in the list in Annex 3-B (Product-Specific Rules of Origin) for a product requires that the materials used in the production of that product be wholly obtained, the tolerance provided for in Paragraph 1 applies to the sum of these materials.
Article ARTICLE 3.6
Insufficient working or processing
By way of derogation from Article 2(b), a product shall not be considered originating if the working or processing carried out in a Party consists only of one or more of the following operations conducted on non-originating materials:
preserving operations to ensure that the products remain in good condition during transport and storage;
breaking-up and assembly of packages;
washing, cleaning; removal of dust, oxide, oil, paint or other coverings;
ironing or pressing of textiles and textile articles;
simple painting and polishing operations;
husking and partial or total milling of rice; polishing and glazing of cereals and rice;
operations to colour or flavour sugar or form sugar lumps; partial or total milling of crystal sugar;
peeling, stoning and shelling, of fruits, nuts and vegetables;
sharpening, simple grinding or simple cutting;
simple sifting, screening, sorting, classifying, grading, matching, including the making-up of sets of articles;
simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;
simple mixing of products, whether or not of different kinds; mixing of sugar with any material;
simple addition of water or dilution or dehydration or denaturation of products;
simple assembly of parts of articles to constitute a complete article or disassembly of products into parts; or
slaughter of animals.
For the purpose of paragraph 1, operations shall be considered simple when neither special skills nor machines, apparatus or tools especially produced or installed for those operations are required for their performance.
Article ARTICLE 3.7
Unit of qualification
The unit of qualification for the application of the provisions of this Chapter shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonized System.
When a consignment consists of a number of identical products classified under the same heading of the Harmonized System, each individual item shall be taken account when applying the provisions of this Chapter.
Article ARTICLE 3.8
Accessories, spare parts and tools and instructional or other information materials
If the product is originating in accordance with Article 2(a), or if the product satisfies a process or change in tariff classification requirement as set out in Annex (Product-Specific Rules of Origin), accessories, spare parts, tools and instructional or other information materials as described in paragraph 4 shall be disregarded.
In determining whether a product meets a value requirement set out in Annex XX (Product-Specific Rules of Origin), the value of accessories, spare parts, tools and instructional or other information materials as described in paragraph 4, are to be taken into account as originating or non-originating materials, as the case may be, in calculating the value requirement of the product.
A product’s accessories, spare parts, tools or instructional or other information materials, as described in paragraph 4, have the originating status of the product with which they are delivered.
For the purposes of this Article, accessories, spare parts, tools, and instructional or other information materials are covered when:
the accessories, spare parts, tools and instructional or other information materials are classified with, delivered with but not invoiced separately from the product; and
the types, quantities, and value of the accessories, spare parts, tools and instructional or other information materials are customary for that product.
Article ARTICLE 3.9
Sets
A set, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating when all component products are originating. Where a set is composed of originating and non-originating components, the set as a whole shall be regarded as originating, provided that the value of the non-originating components does not exceed 20 per cent of the ex-works price of the set.
Article ARTICLE 3.10
Neutral materials and elements
In order to determine whether a product qualifies as an originating product of a Party, it shall not be necessary to determine the origin of the following elements:
energy and fuel;
plant and equipment, including materials used and to be used for their maintenance;
machines and tools and dies and moulds;