Importing also entails other costs. Indonesia’s tariffs, while relatively low compared to many developing coun¬tries, are usually 5 to 10 percent of imported value. All imported goods are charged a 10-percent value-added tax (VAT; this also applies to domesti¬cally produced goods). The VAT is applied at port to the landed value of the imported product, including the tariff (Rangkuti, 2008)