International Trade Dispute Settlement under Free Trade Agreements: An Analysis of Indonesian Tax Court Verdicts

Tomy Prasetia

Abstract


This study analyses the lawsuits concerning the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) trade agreement within the Indonesian tax court between 2018 and 2025. The method of content analysis was performed to systematically categorise 71 verdicts based on the type of dispute, the evidence submitted, and the arguments of both disputants. The results outlined six key areas of disputes: time limits for submission of Certificate of Origin (COO), third party invoices, issuance of electronic COO, tariff classification, typographical errors and issues of completeness of the COO. These findings point to the fact that there exists a clear trend in the grounds for the acceptance and rejection of some decisions. For instance, uncontested cases are typified by data in contrast or different from the customs documents, while contested cases are those where evidence of sound form is submitted in adherence with certain pertinent laws. This trend buttresses the need to clearly and precisely fill in all documents in order to meet all the requirements of preferential tariff treatment as specified under AANZFTA rules. The legal implications of these findings are significant since they underscore that international regulations do not only form the basis of imposing for compliance but ensure that there will be no breeches in the trade relations. Recommendations are made in the research for enhanced management of AANZFTA regulations to prevent further disputes from arising in the future.

Keywords


Rules of Origin; Free Trade Agreements; International Tax Disputes; International Trade Dispute Settlement; Indonesian Tax Court; Certificate of Origin;

rticle

References


Amalina, Endah Nur, Ermita Yusida, and Febry Wijayanti, ‘Indonesia’s Export Comparative and Competitiveness Advantages in the “emerging Market” Scheme during the Pandemic’, R-Economy, 10.1 (2024), 74–90 https://doi.org/10.15826/recon.2024.10.1.005

Angulo, Harold, and Christian Corrales, ‘Valuation of Rules and Certificates of Origin for the SME Export Process from Peru’, WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS, 20 (2023), 2224–39 https://doi.org/10.37394/23207.2023.20.192

Ayele, Yohannes, Michael Gasiorek, and Manuel Tong Koecklin, ‘Trade Preference Utilization Post-Brexit: The Role of Rules of Origin’, World Trade Review, 22.3–4 (2023), 436–51 https://doi.org/10.1017/S1474745623000228

Bell, Sandra L., and Amadi Anene, ‘Meeting the Challenges of Customs Compliance in a Post TFTEA and Reinvigorated Trade Enforcement Environment: Go Beyond by Returning to Basics’, Global Trade and Customs Journal, 17. Issue 3 (2022), 105–12 https://doi.org/10.54648/GTCJ2022014

Bum Kim, Jong, ‘Article: Harmonization of FTA Rules of Origin: Examination of General Provisions’, Journal of World Trade, 58. Issue 3 (2024), 411–36 https://doi.org/10.54648/TRAD2024025

Burri, Mira, ‘Towards a New Treaty on Digital Trade’, Journal of World Trade, 55. Issue 1 (2021), 77–100 https://doi.org/10.54648/TRAD2021003

Chatagnier, J Tyson, and Haeyong Lim, ‘Does the WTO Exacerbate International Conflict?’, Journal of Peace Research, 58.5 (2021), 1068–82 https://doi.org/10.1177/0022343320960203

Clément, Jean-Marc, ‘Proving FTA Preferential Tariff Eligibility: The Evidentiary Burden in Canada’, Global Trade and Customs Journal, 15. Issue 3/4 (2020), 168–71 https://doi.org/10.54648/GTCJ2020022

Cornejo, Rafael, Surendar Singh, and Jeremy Harris, ‘Do Revisions to the Harmonized System Lead to Distortions in Rules of Origin? A Case Study of India’s Selected Free Trade Agreements’, Legal Issues of Economic Integration, 50. Issue 2 (2023), 185–210 https://doi.org/10.54648/LEIE2023010

Eliason, Antonia, and Matteo Fiorini, ‘Australia – Anti-Dumping Measures on A4 Copy Paper: Opening a Door to More Anti-Dumping Investigations’, World Trade Review, 20.4 (2021), 479–90 https://doi.org/10.1017/S147474562100015X

Figueredo, Flavia, ‘Mistakes in Certificates of Origin. Relationship with the General Principles of Law, the Legal Type and the Subjective Aspects of Customs Infractions’, Global Trade and Customs Journal, 15.Issue 3/4 (2020), 218–25 https://doi.org/10.54648/GTCJ2020030

Guo, Yihang, and others, ‘Tariffs, Transportation, and Profits in Cross-Border e-Commerce: A Dual-Channel Supply Chain Decision-Making Strategy’, PLOS ONE, 20.1 (2025), e0309535 https://doi.org/10.1371/journal.pone.0309535

Gupta, Krisna, ‘The Heterogeneous Impact of Tariffs and Ntms on Total Factor Productivity for Indonesian Firms’, Bulletin of Indonesian Economic Studies, 59.2 (2023), 269–300 https://doi.org/10.1080/00074918.2021.2016613

Hiraide, Takashi, Shinya Hanaoka, and Takuma Matsuda, ‘The Efficiency of Document and Border Procedures for International Trade’, Sustainability, 14.14 (2022), 8913 https://doi.org/10.3390/su14148913

Huang, Weixiang, and others, ‘Challenge or Opportunity? Impact of a Two-Invoice Mechanism on Pharmaceutical Supply Chains with Channel Promotion’, International Journal of Production Economics, 270 (2024), 109194 https://doi.org/10.1016/j.ijpe.2024.109194

Inama, Stefano, and Pier Paolo Ghetti, ‘The Real Cost of Rules of Origin: A Business Perspective to Discipline Rules of Origin in a Post COVID-19 Scenario’, Global Trade and Customs Journal, 15. Issue 10 (2020), 479–86 https://doi.org/10.54648/GTCJ2020086

Isakhanova, Nataliia, ‘Rules of Origin Under the Legislation of Ukraine and Its Correlation with International Treaties to Which Ukraine Is a Party, Including FTAs and PEM Convention’, Global Trade and Customs Journal, 15. Issue 3/4 (2020), 137–45 https://doi.org/10.54648/GTCJ2020017

Hiraide, Takashi, Shinya Hanaoka, and Takuma Matsuda, ‘The efficiency of document and border procedures for international trade’, Sustainability, 14 (2022), 8913 https://doi.org/10.3390/su14148913

Jitsuya, Hasegawa, ‘Standardization of Complex and Diversified Preferential Rules of Origin’, Journal of World Trade, 55. Issue 4 (2021), 545–72 https://doi.org/10.54648/TRAD2021023

Liss, Jesse, ‘Globalization as Ideology: China’s Effects on Organizational Advocacy and Relations among US Trade Policy Stakeholder Groups’, Review of International Political Economy, 28.4 (2021), 1055–82 https://doi.org/10.1080/09692290.2020.1755716

Lux, Michael, ‘Export and the Responsible Person(s): What Would Change under the EU Commission’s Reform Proposal?’, Global Trade and Customs Journal, 19. Issue 6 (2024), 413–19 https://doi.org/10.54648/GTCJ2024039

Magno, Francisco A, and Martin Josef E Vivo, ‘Negotiating RCEP: The Role of ASEAN in Middle-Power Diplomacy’, China and WTO Review, 9.1 (2023), 103–22 https://doi.org/10.14330/cwr.2023.9.1.05

Mariño, Juan David Barbosa, and Juan David López Vergara, ‘The Preferential and Non-Preferential Certification of Origin in Colombia: Trends on the Origin Verification Process’, Global Trade and Customs Journal, 15. Issue 3/4 (2020), 205–12 https://doi.org/10.54648/GTCJ2020028

Mimoso, Maria João, and Liz Corrêa de Azevedo, ‘The Need for a Harmonious Interpretation of the Rules Applicable to International Contracts’, Juridical Tribune, 12.1 (2022) https://doi.org/10.24818/TBJ/2022/12/1.05

Mitchell, Andrew D, ‘The Right to Regulate and the Interpretation of the WTO Agreement’, Journal of International Economic Law, 26.3 (2023), 462–82 https://doi.org/10.1093/jiel/jgad024

Ndonga, Dennis, and Emmanuel Laryea, ‘Designing Preferential Rules of Origin for the AfCFTA: Addressing Pre-Existing Challenges at the Regional Level’, African Journal of International and Comparative Law, 30.4 (2022), 451–76 https://doi.org/10.3366/ajicl.2022.0420

Ossa, Ralph, Robert W. Staiger, and Alan O. Sykes, ‘Standing in International Investment and Trade Disputes’, Journal of International Economics, 145 (2023), 103791 https://doi.org/10.1016/j.jinteco.2023.103791

Riyanto, R Benny, and others, ‘Cross-Border Trade Disputes: A Comparative Analysis of Indonesia and Australia’, Journal of Indonesian Legal Studies, 9.1 (2024), 481–502 https://doi.org/10.15294/jils.vol9i1.6454

Sattayanuwat, Wanasin, and Nantarat Tangvitoontham, ‘Trade Creation and Trade Diversion of ASEAN’s Preferential Trade Agreements’, IAFOR Journal of the Social Sciences, 3.1 (2018) https://doi.org/10.22492/ijss.3.1.01

Sen, Rahul, Sadhana Srivastava, and Sanchita Basu Das, ‘Can ASEAN+1 FTAs Be a Pathway towards Negotiating and Designing the Regional Comprehensive Economic Partnership (RCEP) Agreement?’, Journal of World Trade, 50. Issue 2 (2016), 253–88 https://doi.org/10.54648/TRAD2016013

Shraideh, Saleh Al, ‘Reflections on Developing Countries’ Initiation of Disputes in the WTO Dispute Settlement System’, Global Trade and Customs Journal, 16. Issue 3 (2021), 103–13 https://doi.org/10.54648/GTCJ2021012

Staples, Brian Rankin, ‘Importers: Improve Origin Data Quality to Reduce Origin Liability’, Global Trade and Customs Journal, 15. Issue 3/4 (2020), 213–17 https://doi.org/10.54648/GTCJ2020029

Sulaiman, Andi Amran, and others, ‘New Challenges and Opportunities of Indonesian Crude Palm Oil in International Trade’, Caraka Tani: Journal of Sustainable Agriculture, 39.1 (2024), 94 https://doi.org/10.20961/carakatani.v39i1.81957

Syarip, Rakhmat, ‘Defending Foreign Policy at Home: Indonesia and the ASEAN-Based Free Trade Agreements’, Journal of Current Southeast Asian Affairs, 39.3 (2020), 405–27 https://doi.org/10.1177/1868103420935556

Tam, Lisa, Myoung-Gi Chon, and Jeong-Nam Kim, ‘Country-of-Origin Relationship (CoOR): A Relational Approach to Understanding the Association Between a Multinational Company in Crisis and Its Country of Origin’, International Journal of Strategic Communication, 18.3 (2024), 189–207 https://doi.org/10.1080/1553118X.2024.2313644

Thangavelu, S M, D Narjoko, and S Urata, ‘Impact of FTA on Trade in ASEAN and Australia Using Customs Level Data’, Journal of Economic Integration, 36.3 (2021), 437–61 https://doi.org/10.11130/JEI.2021.36.3.437

Tran, Long Thanh, ‘The Impact of Capital Flows from Commercial Banks and FDI on Sustainable Economic Growth in ASEAN Countries’, Contemporary Economics, 16.3 (2022), 361–73 https://doi.org/10.5709/ce.1897-9254.487

Vázquez, J., and others, ‘Withholding Tax Obligations and Liabilities Imposed on Digital Platforms to Ensure the Effective Taxation of Their Sellers’, International Tax Studies, 7.2 (2024) https://doi.org/10.59403/vypqx

de Vries, Rachel Frid, ‘Jurisdictional Competition: Domestic Courts or Arbitral Tribunals? Lessons from the CJEU Judgments on EU’s Economic Agreements with Non-EU States’, European Studies, 9.2 (2022), 15–61 https://doi.org/10.2478/eustu-2022-0013

Wang, Qiang, and Fuyu Zhang, ‘The Effects of Trade Openness on Decoupling Carbon Emissions from Economic Growth – Evidence from 182 Countries’, Journal of Cleaner Production, 279 (2021), 123838 https://doi.org/10.1016/j.jclepro.2020.123838

Wright, Chris F, and Andreea Constantin, ‘Why Recruit Temporary Sponsored Skilled Migrants? A Human Capital Theory Analysis of Employer Motivations in Australia’, Australian Journal of Management, 46.1 (2021), 151–73 https://doi.org/10.1177/0312896219895061

Zhao, Yonghong, and others, ‘Domestic and Foreign Cap-and-Trade Regulations, Carbon Tariffs, and Product Tariffs during International Trade Conflicts: A Multiproduct Cost-Efficiency Analysis’, Energy Economics, 140 (2024), 108034 https://doi.org/ 10.1016/j.eneco.2024.108034




DOI: https://doi.org/10.20961/bestuur.v13i1.101519

Refbacks

  • There are currently no refbacks.


Copyright (c) 2026 Tomy Prasetia

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

  

Bestuur
Print ISSN:  2302-3783
Online ISSN: 2722-4708
Website: https://jurnal.uns.ac.id/bestuur/index
Email: bestuur_journaleditorial@mail.uns.ac.id cc to bestuurlaw@gmail.com
Published by: Universitas Sebelas Maret
Office: Department of Administrative, Faculty of Law, Universitas Sebelas Maret
Ir. Sutami Street, No. 36A, Surakarta, Jawa Tengah 57126- Phone 0271-642595