CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)
Jhansi Castle, 4th floor, 7-Cooperage Road,   Mumbai - 400 001.

Tel:  +91-22- 69821200-6 Mobile No. : 91-7738933059
membership@chemexcil.in Web : https://chemexcil.in

EPC:LIC:IND-ASEA:AITIGA:PW:2025-26:266                                                                    15th May 2025 
To

ALL MEMBERS OF THE COUNCIL,

(IMPORTANT)

Dear Members,

We wisht to bring to your attention an opportunity to enhance the India Chemical Export to Indonesia under the ASEAN-India Trade in Goods Agreement (AITIGA).

The AITIGA was signed on 13th August 2009, and came into force on 1st January 2010. The officials copy of the agreement is available on below link
https://commerce.gov.in/wp-content/uploads/2020/06/MOC_636205354502532516_ASEAN-India_Trade_Goods_Agreement.pdf

A recent assessment by the Department has highlighted that the chemical sector shows significant underutilization of the preferential trade route offered by AITIGA, despite India enjoying a duty advantage over Indonesia’s Most Favoured Nation (MFN) rates.

Key findings from the assessment are as under.

• Preferential Duty Advantage: AITIGA offers lower preferential tariff rates compared to Indonesia’s MFN rates (excluding products with 0% MFN rates).

• Low Utilization Rate: The utilization of AITIGA’s preferential route for most of Indian chemical exports to Indonesia is below 50%.

In view of above findings, we suggest all members to go through the AITIGA agreement and benefit from the preferential duty benefits to strengthen your products export competitiveness in the Indonesian market.

The duty schedule of Indonesia for chemical products can be viewed on following link
https://commerce.gov.in/wp-content/uploads/2020/06/Indonesias-schedule.pdf

By utilizing the preferential tariff structure, you can increase the exports of your products and improve market penetration in Indonesia and contribute to India’s overall chemical export growth. We request members to review the important links of AITIGA provided above.

In case of any queries or issues regarding AITIGA, please send the same to pw@chemexcil.in  with a copy to dg@chemexcil.in  as early as possible

Thanks and Regards

Raghuveer Kini
Director General
CHEMEXCIL