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IA joined a multi-association letter raising concerns to USTR about Indonesia’s Regulation 17 and its broader implications. Indonesia has taken an unprecedented step to impose customs barriers and potentially duties on electronic transmissions. Indonesia appears to be the only country in the world that has added electronic transmissions to its HTS. Imposing customs requirements on purely digital transactions will impose significant and unnecessary compliance burdens on nearly every enterprise, including many SMEs. Indonesia’s actions establish a dangerous precedent, and will likely have the effect of encouraging other countries to violate the WTO Moratorium. In order to eliminate this barrier, Indonesia must rescind Regulation 17. The letter urges USTR to take steps to prevent Indonesia and other countries from improperly imposing customs formalities on U.S. digital exports.

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