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SCHEME FOR THE ASEAN FREE TRADE AREA
1. Background
At the Fourth ASEAN Summit in January 1992, the ASEAN Heads of
Government agreed to establish an ASEAN Free rade Area !AFA" by
theyear 2##$ to o%en u% their e&onomies in the era of
globali'ation( )uring the ASEAN E&onomi& *inisters !AE*"
*eeting in Se%tember 199+, thetarget date as advan&ed to
2##-(
A free trade area ould allo the &om%anies ithin the ASEAN
region to ta.e advantage of the e&onomies of s&ale( he
mainim%lementing me&hanism of AFA is the /ommon Effe&tive
0referential ariff !/E0" S&heme(
2. What is AFTA?
AFA stands forASEAN Free Trade Areahi&h involves the removal
of obsta&les to freer trade among member states( his
in&ludes theabolition of high tariffs or taes on traded goods
and the s&ra%%ing of uantitative restri&tions !345s" and
other non6tariff barriers !N75s" that limitthe entry of
im%orts(
here are ten !1#" ASEAN member &ountries( he si original
members are 7runei )arussalam, 8ndonesia, *alaysia, the
0hili%%ines, Singa%oreand hailand( he other members are ietnam
!199:", ;aos and *yanmar !199s &om%etitive edge as a
%rodu&tion base geared for the orld mar.et( A &riti&al
ste%in this dire&tion is the liberali'ation of trade in the
region through the elimination of intra6regional tariffs and
non6tariff barriers( his ill have theeffe&t of ma.ing
ASEAN>s manufa&turing se&tors more effi&ient and
&om%etitive in the global mar.et( At the same time,
&onsumers ill sour&e goodsfrom the more effi&ient
%rodu&ers in ASEAN thus e%anding intra6ASEAN trade(
As the &ost &om%etitiveness of manufa&turing
industries in ASEAN is enhan&ed and ith the larger si'e of the
mar.et, investors &an en=oye&onomies of s&ale in
%rodu&tion( 8n this manner, ASEAN ho%es to attra&t more
dire&t foreign investments into the region( his ill, in
turn,stimulate the groth of su%%ort industries in the region for
many dire&t foreign investments(
4. What is the C!T sche"e?
he /ommon Effe&tive 0referential ariff S&heme, or /E0,
is a &oo%erative arrangement among ASEAN *ember States that ill
redu&e intra6regional tariffs and remove non6tariff barriers
over a 1#6year %eriod &ommen&ing January 1, 199-( he goal
of the S&heme is to redu&e tariffs on allmanufa&tured
goods to #6:? by the year 2##-( his ill benefit 0hili%%ine e%orters
to ASEAN( he loer /E0 rates ma.e the &ountry5s
%rodu&ts&hea%er in these mar.ets, thus stimulating greater
demand( he in&rease in e%orts to ASEAN ould de%end on the
%ri&e elasti&ity of demand(
he /E0 S&heme is the main instrument for ma.ing ASEAN a free
trade area in ten !1#" years( his means that ASEAN *ember
Statesshall have &ommon effe&tive tariffs among themselves
in AFA but the level of tariffs vis6@6vis non6ASEAN &ountries
shall &ontinue to bedetermined individually(
What products are covered under the CEPT scheme?
All manufa&tured %rodu&ts, in&luding &a%ital
goods and %ro&essed agri&ultural %rodu&ts, and those
falling outside the definition of un%ro&essedagri&ultural
%rodu&tsB are &overed by the /E0 S&heme(
What kind of exclusions or exceptions are allowed under the CEPT
scheme?
here are three !-" instan&es hen a %rodu&t may be
e&luded from the /E0 S&hemeC
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General E&e%tions 6 A *ember State may e&lude a
%rodu&t hi&h it &onsiders ne&essary for the
%rote&tion of its national se&urity, the %rote&tion
of%ubli& morals, the %rote&tion of human, animal or %lant
life and health, and the %rote&tion of arti&les of
artisti&, histori& or ar&haeologi&al value(
he%rovision on General E&e%tions in the /E0 Agreement is
&onsistent ith Arti&le D of the General Agreement on ariffs
and rade !GA" 199+(
em%orary E&lusions 6 *ember States hi&h are, in the
interim, not ready to in&lude &ertain sensitive
%rodu&ts in the /E0 S&heme may e&lude
su&h%rodu&ts on a tem%orary basis( 0rodu&ts in the
E&lusion ;ist &annot en=oy the /E0 tariff from other ASEAN
*ember States( he E&lusion ;istdoes not in any ay relate to
%rodu&ts &overed under the General E&e%tions
%rovisions(
n%ro&essed Agri&ultural 0rodu&ts 6 hese are
agri&ultural %rodu&ts defined asCagri&ultural ra
materials and un%ro&essed %rodu&ts &overed under
/ha%ters 1 to 2+ of the Harmoni'ed System !HS" /ode and similar
agri&ultural ra
materials and un%ro&essed %rodu&ts in other related HS
headings and
%rodu&ts hi&h have undergone sim%le %ro&essing ith
minimal &hange in form from the original %rodu&ts(
What is the $rogra" of tariff reduction under the C!T
%che"e?
here are to %rograms of tariff redu&tion under the /E0
S&hemeC the Normal ra&. 0rogram and the Fast ra&.
0rogram(
&or"a' Track
0rodu&ts ith tariff rates above 2#? had their rates
redu&ed to 2#? by January 1,199$ and subseuently from 2#? to
#6:? by January 1,2##-(
0rodu&ts ith tariff rates at or belo 2#? had their rates
redu&ed to #6:? by January 1, 2###(
Fast Track
0rodu&ts ith tariff rates above 2#? had their rates
redu&ed to #6:? by January 1, 2###(
0rodu&ts ith tariff rates at or belo 2#? had their rates
redu&ed to #6:? by January 1, 199$(
(. What are the conditions for a $roduct to be e'igib'e for
concessions under the C!T?
here are three !-" &onditions, namelyC
he %rodu&t has to be in&luded in the 8n&lusion ;ists
of both the e%orting and the im%orting &ountries and must
belong to the same tariff band, ieabove 2#? or 2#? and belo(
8t has to have a %rogram of tariff redu&tion a%%roved by the
AFA /oun&il(
8t has to be an ASEAN %rodu&t, ie(, it has to satisfy the
lo&al &ontent reuirement of at least +#?(
0rodu&ts ith tariff rates of #6:? are deemed to have
satisfied these &onditions under the /E0 Agreement and shall
also en=oy the&on&essions(
). What other "easures* a$art fro" tariff reductions* are
covered under the C!T sche"e to $ro"ote free trade +ithin
A%A&?
A%art from tariff redu&tions, the /E0 S&heme %rovides
for the elimination of 34s !uotas, li&enses, et&(" and Non
ariffs 7arriers !N7s" as elas e&e%tions to foreign e&hange
restri&tions on /E0 %rodu&ts(
*ember States shall eliminate all 34s on /E0 %rodu&ts u%on
en=oyment of &on&essions a%%li&able to these
%rodu&ts(
As regards N7s, these shall be eliminated by *ember States on a
gradual basis ithin a %eriod of five years after the en=oyment
of&on&essions a%%li&able to the /E0 %rodu&ts(
*ember States shall also ma.e e&e%tions to their foreign
e&hange restri&tions relating to %ayments, as ell as
re%atriation of su&h %ayments, on/E0 %rodu&ts(
,. What are the safeguard $rovisions of the C!T Agree"ent?
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8f, as a result of the im%lementation of the /E0, the im%ort of
a %arti&ular %rodu&t is in&reasing to an etent that it
&auses in=ury to se&torsor industries %rodu&ing li.e or
&om%etitive %rodu&ts, the im%orting *ember State may
sus%end %referen&es %rovisionally as an emergen&y
measure(Su&h sus%ension shall be &onsistent ith Arti&le
D8D of GA 199+(
A *ember State ta.ing su&h an emergen&y a&tion shall
give immediate noti&e to the AFA /oun&il through the ASEAN
Se&retariat, andsu&h a&tion may be sub=e&t of
&onsultations beteen &on&erned *ember States(
-. What a$$ea's $rocedure is avai'ab'e to $arties interested in
reuesting a "odification* sus$ension or +ithdra+a' of C!T
concessions?
0etitions for modifi&ation, sus%ension or ithdraal of /E0
&on&essions may be filed by interested %arties under
Se&tion +#2 of the ariff and/ustoms /ode, as amended( he ariff
/ommission &ondu&ts investigations on %etitions it
re&eives during the &ourse of hi&h %ubli& hearings
areheld to afford interested %arties reasonable o%%ortunity to
%resent their vies( he /ommission submits its findings and
re&ommendations to the
National E&onomi& and )evelo%ment Authority !NE)A"
hi&h then s&hedules these for deliberation by both the
ariff and 4elated *atters !4*"e&hni&al and /abinet
/ommittees( he final de&ision is made by the NE)A 7oard after
hi&h the /ommission %re%ares the im%lementingEe&utive
rder(
1/. What are 0u'es of rigin?
a.en as a hole, the 4ules of rigin &om%ose the set of
&riteria used to determine the &ountry or &ustoms
territory of origin of a good or
servi&e in international trade( 8t is a &ru&ial
&om%onent of any regional trading arrangement and serves to
%revent non6members of a free trade areafrom ta.ing advantage of
different eternal tariff rates im%osed by individual member
&ountries( 8t is used to determine the eligibility of a
%rodu&t tore&eive &on&essions(
4ules of rigin rest on the &on&e%t of substantial
transformation so that origin is assigned to the &ountry here
the last substantialtransformation o&&urred( Substantial
transformation may be defined on the basis of a &hange in
tariff heading, a&hieving a threshold %ro%ortion ofvalue6added,
or on the basis of &ertain manufa&turing %ro&esses( 8n
AFA, the rule of origin is based on value6added ith the threshold
level set a+#? of the value of the %rodu&t(
11. o+ is the Te"$orar5 6c'usion 7ist e'i"inated?
0rodu&ts from the em%orary E&lusion ;ist are %hased6in
into the 8n&lusion ;ist in five eual installments annually( he
first installment aseffe&ted on January 1, 199I and the last
installment as effe&ted on January 1, 2### and in&luded in
E(( 2-+(
12. What tariff reduction schedu'es +i'' $roducts transferred
fro" the te"$orar5 e6c'usion 'ist have?
a( 0rodu&ts ith tariffs above 2#? must have had tariffs of
2#? by January 1, 199$( 0rodu&ts above 2#? and brought into the
8n&lusion ;isafter January 1, 199$ must have a tariff of 2#? or
less u%on transferring( ariffs should be subseuently redu&ed to
#6:? by January 1, 2##-(
b( 0rodu&ts ith tariff rates of or belo 2#? must have their
tariffs redu&ed to #6:? by January 1, 2##-(
13. o+ +i'' un$rocessed agricu'tura' $roducts be $hased8in into
the C!T %che"e?
a( %ensitive 7ist " 0rodu&ts in this &ategory, due to
their sensitivity, have a s%e&ial arrangement or me&hanism
! e#(, a longer timeframe ofim%lementation, final /E0 rate higher
than the eisting #6:?"( he 9 thAFA /oun&il *eeting held in
Singa%ore on A%ril 2I, 199I agreed tha
%rodu&ts in the Sensitive ;ist ould be divided into to
sub6&ategoriesC sensitive and highly sensitive(
For %rodu&ts in the SensitiveB &ategory, the folloing
agreements ere rea&hedC
the beginning year for %hasing6in as s&heduled for January
1, 2##1 but not later than January 1, 2##-
the ending year for %hasing6in ill be January 1, 2#1#
tariffs ill be at #6:? by January 1, 2#1# and
N75s ill be removed by January 1, 2#1#(
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0rodu&ts in the Highly SensitiveB &ategory refer to
ri&e for 8ndonesia, *alaysia, and the 0hili%%ines( 8t as agreed
that the ending year for the%hasing6in of this %rodu&t ill be
2#1#( here shall also be a fleibility o%tion for safeguard
measures(
Te"$orar5 6c'usion 7ist 6 0rodu&ts in this list ill be
%hased6in into the 8n&lusion ;ist in eual installments
beginning January 1, 199< andending January 1, 2##-(
0rodu&ts transferred by or after 199$ should have tariffs
redu&ed to 2#? or belo( 0rodu&ts transferred in 2##- should
havetariffs redu&ed to #6:?(
9nc'usion 7ist6 0rodu&ts in this list are for immediate
transfer to the /E0 S&heme( he %rogram of tariff redu&tion
is su&h that by January 12##-, the final /E0 rate is #6:?(
14. Can indirect consign"ents be acce$ted under the C!T
%che"e?
No( he /E0 &on&essions are granted only to dire&t
&onsignments( )ire&t &onsignmentsB refer to
%rodu&ts that areC !a" trans%ortedithout %assing through the
&ustoms territory of a non6ASEAN &ountry or !b" hose
trans%ort through the &ustoms territory of a
non6ASEAN&ountry &an be =ustified for geogra%hi&al
reasons, and has not entered into trade or &onsum%tion there,
or undergone any o%eration beyond unloadingor reloading(
1#. o+ does a fir" trading in a C!T8e'igib'e $roduct a$$'5 for a
Certificate of rigin For" : to co"$'5 +ith the 'oca' content
reuire"ent?
he firm a%%lies in riting to the relevant government authorities
in his &ountry reuesting the %re6e%ortation verifi&ation of
the origin of the%rodu&t( At the time of &arrying out the
formalities for e%orting the %rodu&t under %referential
treatment, the e%orter a%%lies for a /ertifi&ate ofrigin
!/"Form $ he authorities designated to issue the / !in our &ase
the 7ureau of /ustoms" &arry out the %ro%er eamination to
determine&onformity ith the 4ules of rigin( he / is issued at
the time of e%ortation or soon thereafter(
1(. What 6ecutive rders 9"$'e"enting the !hi'i$$ine C!T %che"e
have been issued?
0rodu&ts ith /E0 rates are in&luded in the 8n&lusion
;ist !8;" being im%lemented by the 0hili%%ines under the folloing
Ee&utiverdersC
Ee&utive rder )ate 8ssued Ee&utive rder )ate 8ssued
-$$ )e&ember 2
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Without pre+udice to existin# international o*li#ations! a
(em*er State which finds it necessar' to create or intensif'
0uantitative restrictions orother measures limitin# imports with a
view to forestallin# the threat of or stoppin# a serious decline of
its monetar' reserves! shall endeavor to do
so in a manner which safe#uards the value of the concessions
a#reed upon
iii Where emer#enc' measures are taken pursuant to this Article!
immediate notice of such action shall *e #iven to the Council
referred toin Article 1 of this A#reement! and such action ma' *e
the su*+ect of consultation as provided for in Article 2 of this
A#reement
3 What are the re0uirements for suspension of concessions under
Article %?
Four !+" elements must be %rovenC %rodu&t &om%arability,
in&reasing im%orts !due to unforeseen develo%ments and the
grant o&on&essions", serious in=ury or threat thereof, and
&ausal lin.age(
0etitioners must submit dataeviden&e on the above
elements(
- What constitutes serious in+ur' or threat thereof?
Among the fa&tors to be &onsidered in determining hether
in=ury to the domesti& industry is serious areC
de&line in sales or %ri&es donard trends in
%rodu&tion, %rofits, ages, or %rodu&tivity
inability to generate &a%ital for moderni'ation or maintain
eisting levels of e%enditures on resear&h and develo%ment
inability of signifi&ant number of firms to &arry out
%rodu&tion at a %rofit signifi&ant idling of %rodu&tion
fa&ilities in&luding the &losure of%lants or
underutili'ation of %rodu&tion &a%a&ity
signifi&ant unem%loyment underem%loyment signifi&ant
redu&tion in mar.et share as a %ro%ortion of mar.et demand
and
groing inventories of sub=e&t arti&le, hether maintained
by domesti& %rodu&ers, im%orters, holesalers or
retailers(
For threat of serious in=ury, the folloing fa&tors are
&onsideredC
signifi&ant in&rease in im%orts !eviden&ed, among
others, by the eisten&e of letters of &redit, su%%lysales
&ontra&ts, aards of a
tender, irrevo&able offers or other similar
&ontra&ts"
de&line in sales, %ri&es or mar.et share and donard
trends in %rodu&tion, %rofits, ages, %rodu&tivity or
em%loyment
inability to generate &a%ital for moderni'ation or maintain
eisting levels of e%enditures on resear&h and develo%ment
suffi&ient freely dis%osable, or an imminent substantial
in&rease in %rodu&tion &a%a&ity of foreign e%orters
in&luding a&&ess&onditions they fa&e in third
&ountry mar.ets indi&ating the li.elihood of substantially
in&reased e%orts to the 0hili%%ines and
groing inventories of sub=e&t arti&le, hether maintained
by domesti& %rodu&ers, im%orters, holesalers or
retailers(
)f the CEPT rate is suspended pursuant to Article % of the CEPT
A#reement! what rate of dut' will appl'?
he *ost6Favored6Nation !*FN" rate ill a%%ly( he %referential
rate may hoever be sus%ended to the etent as may be ne&essary
to %reventor to remedy the serious in=ury(
#. o+ 'ong can a C!T rate be sus$ended?
he /E0 rate &an be sus%ended only for su&h %eriod of
time as may be ne&essary to %reventremedy the serious in=ury
and to fa&ilitatead=ustment(
9s a "e"ber countr5 reuired to $rovide co"$ensation +hen it
sus$ends the a$$'ication of a C!T rate?
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Kes, a member &ountry ill have to %rovide &om%ensation
as may be mutually agreed u%on ith the affe&ted ASEAN member
&ountries(
). Can other A%A& "e"bers reta'iate if the !hi'i$$ines is
found not to have co"$'ied +ith the reuire"ents of Artic'e (?
he 8nter%retative Notes of Arti&le I reuire that the
sus%ension of %referen&es be &onsistent ith Arti&le D8D
!Emergen&y A&tion on 8m%orts of0arti&ular 0rodu&ts"
of the GA( Arti&le D8D allos a &ountry affe&ted by the
emergen&y a&tion to ithdra substantially euivalent
&on&essions(
Arti&le 9 of the 0roto&ol on )is%ute Settlement
*e&hanism allos any %arty invo.ing the dis%ute settlement
me&hanism to sus%end thea%%li&ation of the
&on&essions of the member state &on&erned !i(e(,
the 0hili%%ines" or any other obligation under the AFA6/E0
Agreement, if nosatisfa&tory &om%ensation has been agreed
u%on(
as Artic'e ( been invoked $revious'5 b5 the !hi'i$$ines?
No( Hoever, under the ersthile 0referential rading Arrangements
!0A" S&heme, the 0hili%%ines sus%ended its tariff
&on&ession!*argin of 0referen&e or *0" on
refra&tory bri&.s(
ave other A%A& "e"bers invoked Artic'e (?
No(
What is the $rocess for sus$ension of C!T rate?
he ariff /ommission &ondu&ts a %ubli&
&onsultation on %etitions for sus%ension of tariff
&on&essions under Arti&le I( he /ommission then
submitsits re%ort of findings and re&ommendations to the ariff
and 4elated *atters /ommittee !4*"( he final de&ision is ta.en
by the NE)A 7oardafter hi&h the /ommission %re%ares the
im%lementing Ee&utive rder(
As reuired by the Agreement, the 0hili%%ines must notify the AFA
/oun&il of any emergen&y measures it underta.es under
Arti&le I(
What is the ti"etab'e of the Co""ission;s Artic'e (
investigation?
a.ing into a&&ount the emergen&y nature of an
Arti&le I %etition, the /ommission shall &om%lete its
investigation and submit its re%ort offindings and
re&ommendation to the 4* /ommittee ithin sity !I#" days from
re&ei%t of a %ro%erly do&umented %etition(
/ommission rder No( #26#1 %rovides the rules and regulations
governing the &ondu&t of the /ommission5s formal
investigation on theithdraal andor sus%ension of
&on&essions under Se&tion +#2 of the ariff and /ustoms
/ode(
12. What is A%A& Charter?
ASEAN /harter is one of the most im%ortant do&uments that
&reate a legal and institutional frameor. for &oo%eration
ithin the regionand toards the formation of an ASEAN &ommunity(
8t also laid the foundation for ASEAN to restru&ture is eisting
me&hanisms and im%rove itsde&ision6ma.ing %ro&ess to
enhan&e effi&ien&y and ensure %rom%t im%lementation of
all ASEAN agreements and de&isions( he ;eaders of the 1#member
Asso&iation of Southeast Asian Nations !ASEAN" signed the
do&ument on 2# November 2##< at the 1- th ASEAN Summit held
inSinga%ore( he ASEAN /harter fo&used at &ommitting the
ASEAN to the ideals of demo&ra&y, a single mar.et and the
%rote&tion of human rights(
13. What are the "ain dec'arations of the A%A& Charter?
o maintain and enhan&e %ea&e and se&urity in the
region, and to %reserve Southeast Asia as a nu&lear ea%on6free
'one(
o &reate a single mar.et and %rodu&tion base, hi&h
is highly &om%etitive and e&onomi&ally integrated and
has free flo of goodsservi&es and investment, ith
fa&ilitated movement of labour and freer flo of
&a%ital(
o strengthen demo&ra&y, enhan&e good governan&e
and the rule of la, and to %romote human rights( ASEAN shall
establish ahuman rights body, ith terms to be de&ided by
foreign ministers(
o res%e&t the inde%enden&e, sovereignty, territorial
integrity and national identity of all ASEAN member states(
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he renun&iation of aggression and threat or use of for&e
in any matter in&onsistent ith international la, and
relian&e on %ea&efulsettlements of dis%utes(
Non6interferen&e in the internal affairs of member
states(
o alleviate %overty and narro the develo%ment ga% ithin
ASEAN(
o %romote sustainable develo%ment to %rote&t the
environment, natural resour&es and &ultural heritage(
o develo% human resour&es and ell6being through
&o6o%eration on edu&ation, euitable a&&ess to
develo%ment o%%ortunities, so&ialelfare and =usti&e(
o %romote an ASEAN identity through aareness of &ulture(
0roto&ol on the 8m%lementation of the /E0 S&heme
em%orary E&lusion ;ist
1. What is the !rotoco' on the C!T8T7?
he 0roto&ol on the 8m%lementation of the /E0 S&heme
em%orary E&lusion ;ist signed on November 2-, 2### is an
e&e%tion indo of
the AFA6/E0 S&heme hi&h allos limited fleibility on the
im%lementation of the /E0 S&heme em%orary E&lusion ;ist
!E;"(
2. What is the objective and sco$e of the !rotoco'?
he ob=e&tive of this 0roto&ol is to allo a *ember State
to tem%orarily delay the transfer of a %rodu&t from its E; into
the 8n&lusion ;ist!8;", or to tem%orarily sus%end its
&on&ession on a %rodu&t already transferred into the
8;, if su&h a transfer or &on&ession ould &ause or
have&aused real %roblems, by reasons hi&h are not
&overed by Arti&le I !Emergen&y *easures" of the
Agreement(
he %rovisions of this 0roto&ol shall a%%ly only to the last
tran&he of E; manufa&tured %rodu&ts hi&h ere in the
E; as of )e&embe-1, 1999 or the relevant dates a%%li&able
to /ambodia, ;ao 0)4, *yanmar and ietam(
3. o+ does a
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). as the !hi'i$$ines invoked the !rotoco'?
Kes, the 0hili%%ines in )e&ember 2##2 sent its
notifi&ation to sus%end the tariff &on&essions on
%etro&hemi&al %rodu&ts already transferred into the/E0
8; to the AFA /oun&il( he %etro&hemi&al %rodu&ts
&om%osed of %olymers of %olyethylene, %ro%ylene, %olyvinyl
&hloride, %olystyrene0/ floor &overings sheets, %lates,
film, foil and stri% of 0/ tine, &ordage, ro%e, and &ables
of %olyethylene and %oly%ro%ylene(
,. What i"$'e"ented the sus$ension of tariff concessions on
$etroche"ica' $roducts?
Ee&utive rder No( 1I1 !issued on January 9, 2##-"
im%lemented the sus%ension of the tariff redu&tion s&hedule
on &ertain %lasti&%rodu&ts under the 0roto&ol
4egarding the 8m%lementation of the /E0 S&heme em%orary
E&lusion ;ist(
ASEAN Priorit# $ntegration Program %n"er the ASEAN&CEPT
Scheme
1. Background
As de&lared in the 7ali /on&ord 88 in 2##-, the
formation of an ASEAN E&onomi& /ommunity !AE/" by 2#2# is a
large ste% in the evolution ofASEAN( he AE/ not only signifies the
region5s &ommitment toard &loser &ohesion and
e&onomi& integrationB, but also sets a &on&rete
goal toa&hieve an integrated !single" mar.et and %rodu&tion
base for the region( his &ommitment as further reaffirmed at
the 1#th ASEAN Summit in
November 2##+ hen the ;eaders identified the eleven !11"
0riority Se&tors that ould a&&elerate the region5s
e&onomi& integration by 2#1# underthe Frameor. Agreement
for the 8ntegration of 0riority Se&tors (
2. What are the $riorit5 sectors under the A%A& !riorit5
9ntegration !rogra"?
he 11 %riority se&tors and the &orres%onding &ountry
&oordinators !sele&ted on the basis of &om%arative
advantage, s.ills and &ost&om%etitiveness, and value6added
&ontribution to ASEAN5s e&onomy" areC
Lood6based M Automotive 8ndonesia
4ubber6based M etiles *alaysia
Agro6based M Fisheries *yanmar
Ele&troni&s 0hili%%ines
e6ASEAN M Health&are Singa%ore
Airlines M ourism hailand
3. What are the "easures dra+n8u$ to rea'i>e the integration
of the e'even 11@ sectors?
he basis for e&onomi& integration for ea&h of the
%riority se&tors as %re%ared ith a&tive involvement of the
%rivate se&tor( he roadma%s aim toC
enhan&e the &om%etitiveness of ASEAN
strengthen regional integration efforts through liberali'ation,
fa&ilitation and %romotion measures and
%romote %rivate se&tor %arti&i%ation( his in&ludes
s%e&ifi& measures that are of dire&t relevan&e to
ea&h se&tor, as ell as &ommon measures that&ut
a&ross all %riority integration se&tors to be im%lemented
ith timelines from no on to the year 2#1#( Amongst these measures
areC
the elimination of all tariffs in relation to %rodu&ts
!other than those in the sensitive, highly sensitive and general
e&e%tion lists" &overed by the
%riority se&tors by 2##< for ASEAN I and 2#12 for the /;*
or - years earlier than the original target under the ASEAN Free
rade Area !AFA"(nder the liberali'ation %lan, ea&h &ountry
has a uota to e&lude no more than 1: %er&ent of the total
tariff lines in the %riority se&tors(
the establishment of a definitive or. %rogram for the
elimination of non6tariff measures and the standardi'ation of 4
the harmoni'ation of &ustoms de&laration forms and the
develo%ment of the Single Lindo a%%roa&h for &ustoms
the harmoni'ation of standards
a&&eleration of trade in servi&es liberali'ation
and
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%rogressive elimination of restri&tive investment measures
by 2#1# for
ASEAN I, 2#1- for iet Nam and 2#1: for /ambodia, ;ao 0)4 and
*yanmar(
As outlined in the 4oadma%, the measures to be %ursued are
grou%ed into to broad &ategories, namelyC
!a" /ommon or hori'ontal measures hi&h &ut a&ross
all %riority se&tors(
nder the eisting 4oadma% there are 1: &ategoriesC !i" ariff
Elimination !ii" Non6ariff *easures !N*s" !iii" 4ules of rigin !4"
!iv"/ustoms %ro&edures !v" Standard M /onforman&e !vi"
;ogisti& Servi&es !vii" utsour&ing and 8ndustrial
/om%lementation !viii" ASEAN8ntegration System of 0referen&es
!i" 8nvestments !" rade and 8nvestment 0romotion !i" 8ntra6ASEAN
rade and 8nvestment Statisti&s !ii"8ntelle&tual 0ro%erty
4ights !iii" *ovement of 7usiness 0ersons, S.illed ;abor, alents
and 0rofessionals !iv" Fa&ilitation of ravel in ASEANand !v"
Human 4esour&e )evelo%ment(
S%e&ifi& measures that are of dire&t relevan&e
to ea&h se&tor( he integration a%%roa&hes are %remised
on !i" &ombining the e&onomi& strengths ofASEAN member
&ountries for regional advantage !ii" fa&ilitate and
%romote intra6ASEAN trade and investments !iii" im%rove the
&ondition toattra&t and retain manufa&turing and other
e&onomi& a&tivities ithin the region !iv" %romote
outsour&ing %rogram ithin ASEAN and !v"
%romote the develo%ment of *ade in ASEANB %rodu&ts and
servi&es(
4. 9"$'e"enting Bodies
o ensure the im%lementation of the 4oadma% in an effe&tive
and sustainable manner, im%lementing bodies have been assigned to
loo.after ea&h of the res%e&tive measures( As indi&ated
by the ientiane A&tion 0rogramme, the im%lementing bodies
should 5streamline the decision"makin# process and ensure effective
implementation of all ASEAN economic initiatives6(
Senior E&onomi& ffi&ials *eeting !SE*" as overall in
&harge 8m%lementation by various ASEAN Lor.ing Grou%s
Eam%les
O ///AC /oordinating /ommittee on the 8m%lementation of the
/E06AFA
//SC /oordinating /ommittee on Servi&es
//8C /oordinating /ommittee on 8nvestments
A//S3C ASEAN /onsultative /ommittee on Standards and 3uality
E;S*C ele&ommuni&ations Senior ffi&ials *eeting
#. What i"$'e"ented the !hi'i$$ine co""it"ent under the
9ntegration of the !riorit5 %ectors?
E +1< as issued on A%ril 2-, 2##< to im%lement the
0hili%%ine &ommitments( his &overs the first and se&ond
%hases of tarifelimination under the %riority integration(
The ASEAN $ntegration S#stem of Preferences A$SP!
1. Background
At the Fourth ASEAN 8nformal Summit held on November 2262:, 2###
in Singa%ore, the ASEAN ;eaders agreed to laun&h an 8nitiative
for ASEAN8ntegration !8A8", hi&h gives dire&tion to and
shar%ens the fo&us of &olle&tive efforts in ASEAN to
narro the develo%ment ga% ithin ASEAN asell as beteen ASEAN and
other %arts of the orld(
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8n %ursuing the de&ision to laun&h the 8A8, the hirty
Fourth *eeting of ASEAN *inisterial *eeting !A**" on July 2-62+,
2##1 inHanoi, ado%ted the Hanoi )e&laration on Narroing the
)evelo%ment Ga% for /loser ASEAN 8ntegration( At the -:th A** held
on July 292##2 in 7runei )arussalam, Foreign *inisters endorsed the
8A8 Lor. 0lan and the list of %rograms and %ro=e&t %ro%osals(
he *inisters agreed todevote s%e&ial efforts and resour&es
to %romote effe&tive &oo%eration and mutual assistan&e
to narro the develo%ment ga% among ASEAN *ember/ountries for the
sa.e of dynami& and sustained groth of the region and
%ros%erity of the %eo%le( ASEAN ;eaders a%%roved the 8A8 Lor. 0lan
atheir Summit *eeting on November +, 2##2 at 0hnom 0enh,
/ambodia(
Lithin this &ontet, the or. %lan ill assist ne member
&ountries to redu&e the develo%ment ga%s among ASEAN *ember
/ountriesand e%edite greater regional e&onomi& integration,
%romote euitable e&onomi& develo%ment and hel% alleviate
%overty in /ambodia, ;aos,*yanmar and iet Nam !/;*"(
ASEAN has ado%ted the ASEAN 8ntegration System of
0referen&es !A8S0" s&heme hereby %referential tariffs are
offered to the neermembers by the older members on voluntary and
bilateral basis starting on January 1, 2##2( A8S0 is im%lemented
based on %rodu&ts %ro%osed by the/;* /ountries(
2. as the !hi'i$$ines granted tariff $references under the
A9%!?
he 0hili%%ines granted its first %a&.age of tariff
%referen&es under the A8S0 to *yanmar and ietnam &overing
&ertain agri&ulturalindustrial, %harma&euti&al and
ele&tri&al goods under Ee&utive rder No( 1II issued in
January 2##-( he se&ond %a&.age as etended to /;*under
Ee&utive rder ++$ in 2##:, &om%rising &ertain %lant
%rodu&ts and ood san timbers(
ASEAN Free Tra"e Area!AFTA"P1Qis atrade blo& agreement by
the Asso&iation of Southeast Asian Nations su%%orting lo&al
manufa&turing in allASEAN &ountries(
he AFA agreement as signed on 2$ January 1992 in Singa%ore( Lhen
the AFA agreement as originally signed, ASEAN had si
members,namely,7runei,8ndonesia,*alaysia,0hili%%ines,Singa%oreandhailand(ietnam=oined
in 199:,;aos and*yanmarin 199< and/ambodiain1999( AFA no
&om%rises ten &ountries of ASEAN( All the four
late&omers ere reuired to sign the AFA agreement in order to
=oin ASEAN, butere given longer time frames in hi&h to meet
AFA>s tariff redu&tion obligations(
he %rimary goals of AFA see. toC
8n&rease ASEAN>s &om%etitive edge as a %rodu&tion
base in the orld mar.et through the elimination, ithin ASEAN, of
tariffs
and non6tariff barriers and
Attra&t more foreign dire&t investment to ASEAN(
he %rimary me&hanism for a&hieving the goals given above
is the /ommon Effe&tive 0referential ariff !/E0" s&heme,
hi&h established as&hedule for %hased initiated in 1992 ith
the self6des&ribed goal to in&rease the re#ion7s
competitive advanta#e as a production *ase #eared for theworld
market(
Histor#
A %ro%osal to set u% a Free rade Area in Asean as first mooted
by the hai 0rime *inisterAnand 0anyara&hun, hi&h as agreed
u%on ithamendments during the ASEAN Seniors E&onomi&
ffi&ial *eeting !AE*" in Ruala ;um%ur( 8n January 1992, the
ASEAN members signed theSinga%ore )e&laration at the heart of
hi&h as the &reation of AFA in 1: years( his is a
&om%rehensive %rogram of tariff redu&tion in the
region,hi&h is to be &arried out in %hases through the year
2##$( his deadline as subseuently moved forard and AFA be&ame
fully o%erational on 1January 2##-(
ver the &ourse of several years, the initial %rogram of
tariff redu&tions as broadened and a&&elerated and
other AFA 0lus a&tivities ereinitiated( his in&ludes
efforts to eliminate non6tariff barriers, harmonisation of
&ustoms nomen&lature, valuation, and %ro&edures and
develo%ment of&ommon %rodu&t &ertifi&ation
standards(
'e"it( The Common Effective Preferential Tariff CEPT! scheme
nli.e the E, AFA does not a%%ly a &ommon eternal tariff on
im%orted goods( Ea&h ASEAN member may im%ose tariffs on goods
entering fromoutside ASEAN based on its national s&hedules(
Hoever, for goods originating ithin ASEAN, ASEAN members are to
a%%ly a tariff rate of # to :
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%er&ent !the more re&ent members of /ambodia, ;aos,
*yanmar and ietnam, also .non as /*; &ountries, ere given
additional time toim%lement the redu&ed tariff rates"( his is
.non as the /ommon Effe&tive 0referential ariff !/E0"
s&heme(
ASEAN members have the o%tion of e&luding %rodu&ts from
the /E0 in three &asesC 1(" em%orary e&lusions 2("
Sensitive agri&ultural %rodu&ts-(" General e&e%tions(
em%orary e&lusions refer to %rodu&ts for hi&h tariffs
ill ultimately be loered to #6:?, but hi&h are being
%rote&tedtem%orarily by a delay in tariff redu&tions(
Sensitive agri&ultural %rodu&ts in&lude
&ommodities su&h as ri&e( ASEAN members have until 2#1#
to redu&e the tariff levels to #6:?(
General e&e%tions refer to %rodu&ts hi&h an ASEAN
member deems ne&essary for the %rote&tion of national
se&urity, %ubli& morals, the %rote&tionof human, animal
or %lant life and health, and %rote&tion of arti&les of
artisti&, histori&, or ar&haeologi&al value( ASEAN
members have agreed toena&t 'ero tariff rates on virtually all
im%orts by 2#1# for the original signatories, and 2#1: for the /*;
&ountries(
'e"it( R%le of Origin
he /E0 only a%%lies to goods originating ithin ASEAN( he general
rule is that lo&al ASEAN &ontent must be at least +#? of
the F7 value ofthe good( he lo&al ASEAN &ontent &an be
&umulative, that is, the value of in%uts from various ASEAN
members &an be &ombined to meet the +#?reuirement( he
folloing formula is a%%liedC
4a material &ost )ire&t labor &ost )ire&t
overhead &ost 0rofit 8nland trans%ort &ost 1##? F7
value
Hoever, for &ertain %rodu&ts, s%e&ial rules
a%%lyC
/hange in /ha%ter 4ule for Lheat Flour
/hange of ariff Sub6Heading for Lood67ased 0rodu&ts
/hange in ariff /lassifi&ation for /ertain Aluminum and
Arti&les thereof(
he e%orter must obtain a Form )B &ertifi&ation from its
national government attesting that the good has met the +#?
reuirement( he Form )must %resented to the &ustoms authority of
the im%orting government to ualify for the /E0 rate(
)iffi&ulties have sometimes arisen regarding theevidentiary
%roof to su%%ort the &laim, as ell ho ASEAN national
&ustoms authorities &an verify Form ) submissions( hese
diffi&ulties arise
be&ause ea&h ASEAN national &ustoms authority
inter%rets and im%lements the Form ) reuirements ithout mu&h
&oordination(
A"ministration
Administration of AFA is handled by the national &ustoms and
trade authorities in ea&h ASEAN member( he ASEAN
Se&retariat has authority tomonitor and ensure
&om%lian&e ith AFA measures, but has no legal authority to
enfor&e &om%lian&e( his has led to in&onsistent
rulings byASEAN national authorities( he ASEAN /harter is intended
to bolster the ASEAN Se&retariat5s ability to ensure
&onsistent a%%li&ation of AFAmeasures(
ASEAN national authorities have also been traditionally
relu&tant to share or &ede sovereignty to authorities from
other ASEAN members !althoughASEAN trade ministries routinely ma.e
&ross6border visits to &ondu&t on6site ins%e&tions
in anti6dum%ing investigations"( nli.e the E or NAFA,
=oint teams to ensure &om%lian&e and investigate
non6&om%lian&e have not been idely used( 8nstead, ASEAN
national authorities must rely on therevie and analysis of other
ASEAN national authorities to determine if AFA measures su&h as
rule of origin are being folloed( )isagreementsmay result beteen
the national authorities( Again, the ASEAN Se&retariat may hel%
mediate a dis%ute but has no legal authority to resolve it(
ASEAN has attem%ted to im%rove &ustoms &oordination
through the im%lementation of the ASEAN Single Lindo %ro=e&t(
he ASEAN SingleLindo ould allo im%orters to submit all information
related to the transa&tion to be entered ele&troni&ally
on&e( his information ould then beshared ith all other ASEAN
national &ustoms authorities(
'e"it( Dis)%te resol%tion
Although these ASEAN national &ustoms and trade authorities
&oordinate among themselves, dis%utes &an arise( he ASEAN
Se&retariat has no legalauthority to resolve su&h dis%utes,
so dis%utes are resolved bilaterally through informal means or
through dis%ute resolution(
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An ASEAN 0roto&ol on Enhan&ed )is%ute Settlement
*e&hanism governs formal dis%ute resolution in AFA and other
as%e&ts of ASEAN( ASEANmembers may see. mediation and good
offi&es &onsultations( 8f these efforts are
ineffe&tive, they may as. SE* to establish %anel of
inde%endentarbitrators to revie the dis%ute( 0anel de&isions
&an be a%%ealed to an a%%ellate body formed by the ASEAN
E&onomi& /ommunity /oun&il(
he 0roto&ol has almost never been invo.ed be&ause of the
role of SE* in the dis%ute resolution %ro&ess( SE*
de&isions reuire &onsensusamong all ASEAN members, and
sin&e both the aggrieved %arty and the alleged transgressor are
both %arti&i%ating in SE*, su&h &onsensus
&annot
be a&hieved( his dis&ourages ASEAN members from invo.ing
the 0roto&ol, and often they see. dis%ute resolution in other
fora su&h as the L or
even the 8nternational /ourt of Justi&e( his &an also be
frustrating for &om%anies affe&ted by an AFA dis%ute, as
they have no rights to invo.edis%ute resolution yet their home
ASEAN government may not be illing to invo.e the 0roto&ol( he
ASEAN Se&retary General has listed dis%uteresolution as
reuiring ne&essary reform for %ro%er administration of AFA and
the AE/(
'e"it( F%rther tra"e facilitation efforts
Efforts to &lose the develo%ment ga% and e%and trade among
members of ASEAN are .ey %oints of %oli&y dis&ussion(
A&&ording to a 2##$ resear&hbrief %ublished by the
Lorld 7an. as %art of its rade /osts and Fa&ilitation
0ro=e&t,P2QASEAN members have the %otential to rea%
signifi&antbenefits from investments in further trade
fa&ilitation reform, due to the &om%rehensive tariff reform
already realised through the ASEAN Free radeAgreement(
his ne analysis suggests eamining to .ey areas, among othersC
%ort fa&ilities and &om%etitiveness in the 8nternet
servi&es se&tor( 4eform in theseareas, the re%ort states,
&ould e%and ASEAN trade by u% to
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South Rorea
8ndia
Australia
Ne Uealand
'e"it( ASEAN Pl%s Three
See also&Asian (onetar' 8nit
*embers of the ASEAN 0lus hree
ASEAN0lus hree !A0" is a forum that fun&tions as a
&oordinator of &oo%eration beteen the Asso&iation of
Southeast Asian Nationsand the threeEast Asian nations
of/hina,Ja%an, and South Rorea(
he first leaders> meeting as held in 199< and the
grou%>s signifi&an&e and im%ortan&e as strengthened
by the Asian Finan&ial /risis(he grou%ingas institutionalised
by 1999(P+Q
ASEAN 0lus hree, in establishing the /hiang *ai 8nitiative,has
been &redited as forming the basis for finan&ial stability
in Asia,P:Qthe la&. of su&hstability being a
&ontributing fa&tor to the Asian Finan&ial /risis( he
Asian /urren&y nit!A/" is a %ro%osed eighted inde of
&urren&ies forASEAN-( he A/ as ins%ired by the no
defun&t Euro%ean /urren&y nit,re%la&ed by theEuro(he
Asian /urren&y nit>s %ur%ose is to hel%stabili'e the
region>s finan&ial mar.ets( he A/ as it is %ro%osed is a
&urren&y bas.et and not a real &urren&y, i(e(, a
eighted inde of East Asian
&urren&ies that ill fun&tion as a ben&hmar. for
regional &urren&y movements( PIQP
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'e"it( References
( +AFA M FAs !ASEAN Se&retariat"( +Lorld 7an.
( +)ee%er 8ntegration in ASEANC Lhy rans%ort and e&hnology
*atter for rade,John S( Lilson M 7en=aminaylor rade
Fa&ilitation 4eform 8ssue 7rief, he Lorld 7an.( 2##$(
( +ASEAN 0lus hree /oo%eration
( +/hiang *ai 8nitiative as the Foundation of Finan&ial
Stability in East Asia
( +A nes re%ort of the A/Chinese!
( +A %a%er analysing a broader bas.et of &urren&ies
( +8ntervie ith Asian )evelo%ment 7an. re%resentative 2+
February 2##I
( +A)7 ebsiteC 7oost for ne monetary s&heme 6 ASEAN-
finan&e ministers to ba&. Asian /urren&y nit %lan
#( +he Ja%an imes 6 Ja%an, South Rorea &an %ull Asia
together
1( +he 8nuirer !0hili%%ines" 6 Asian &urren&y unit
sha%ing u%
2( +Joint *edia Statement on the Signing of the Agreement
Establishing the ASEAN6Australia6Ne Uealand Free radeArea, hailand,
2< February 2##9
-( +ASEAN, Australia and Ne Uealand ;eaders5 StatementC Entry
into For&e of the Agreement Establishing theASEAN6Australia6Ne
Uealand Free rade Area 2: &tober 2##9, /ha am Hua Hin,
hailand
+( +Guide to the agreement establishing the ASEAN6Australia6Ne
Uealand Free rade Area !AANUFA"
:( Wabc0ush%anathan, Sundram !22 )e&ember 2##9"( ASEAN
/harterC ne year and going strong(The 9akarta
Post(htt%C(the=a.arta%ost(&omnes2##91222asean6&harter6one6year6and6going6strong(html(
4etrieved 1 January 2#1#(
http://en.wikipedia.org/w/index.php?title=ASEAN_Free_Trade_Area&action=edit§ion=10http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-0http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-0http://www.aseansec.org/4920.htmhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-1http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-1http://econ.worldbank.org/external/default/main?menuPK=1697684&pagePK=64168176&piPK=64168140&theSitePK=1697658http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-2http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-2http://siteresources.worldbank.org/EXTTRADECOSTANDFACILITATION/Resources/Deeper_Integration_ASEAN_Issue_Brief_Jul08.pdf?resourceurlname=Deeper_Integration_ASEAN_Issue_Brief_Jul08.pdfhttp://en.wikipedia.org/wiki/John_S._Wilsonhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-3http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-3http://www.aseansec.org/16580.htmhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-4http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-4http://www.aseansec.org/17902.pdfhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-5http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-5http://www.takungpao.com.hk/news/05/11/07/EF-481029.htmhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-6http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-6http://hiram7.files.wordpress.com/2008/03/workingpaper.pdfhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-7http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-7http://www.vneconomy.com.vn/eng/index.php?param=article&catid=01&id=43b1548514650fhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-8http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-8http://www.adb.org/AnnualMeeting/2006/EmergingMarkets/em0503-03.asphttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-9http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-9http://search.japantimes.co.jp/cgi-bin/nb20070222d1.htmlhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-10http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-10http://business.inquirer.net/money/breakingnews/view_article.php?article_id=71800http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-11http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-11http://www.aseansec.org/22255.htmhttp://www.aseansec.org/22255.htmhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-12http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-12http://www.15thaseansummit-th.org/PDF/25-01_2.4outcome_AANZFTA.pdfhttp://www.15thaseansummit-th.org/PDF/25-01_2.4outcome_AANZFTA.pdfhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-13http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-13http://www.asean.fta.govt.nz/http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-Pushpanathan_14-0http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-Pushpanathan_14-0http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-Pushpanathan_14-1http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-Pushpanathan_14-1http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-Pushpanathan_14-2http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-Pushpanathan_14-2http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-Pushpanathan_14-2http://www.thejakartapost.com/news/2009/12/22/asean-charter-one-year-and-going-strong.htmlhttp://en.wikipedia.org/wiki/The_Jakarta_Posthttp://en.wikipedia.org/wiki/The_Jakarta_Posthttp://www.thejakartapost.com/news/2009/12/22/asean-charter-one-year-and-going-strong.htmlhttp://en.wikipedia.org/w/index.php?title=ASEAN_Free_Trade_Area&action=edit§ion=10http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-0http://www.aseansec.org/4920.htmhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-1http://econ.worldbank.org/external/default/main?menuPK=1697684&pagePK=64168176&piPK=64168140&theSitePK=1697658http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-2http://siteresources.worldbank.org/EXTTRADECOSTANDFACILITATION/Resources/Deeper_Integration_ASEAN_Issue_Brief_Jul08.pdf?resourceurlname=Deeper_Integration_ASEAN_Issue_Brief_Jul08.pdfhttp://en.wikipedia.org/wiki/John_S._Wilsonhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-3http://www.aseansec.org/16580.htmhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-4http://www.aseansec.org/17902.pdfhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-5http://www.takungpao.com.hk/news/05/11/07/EF-481029.htmhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-6http://hiram7.files.wordpress.com/2008/03/workingpaper.pdfhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-7http://www.vneconomy.com.vn/eng/index.php?param=article&catid=01&id=43b1548514650fhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-8http://www.adb.org/AnnualMeeting/2006/EmergingMarkets/em0503-03.asphttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-9http://search.japantimes.co.jp/cgi-bin/nb20070222d1.htmlhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-10http://business.inquirer.net/money/breakingnews/view_article.php?article_id=71800http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-11http://www.aseansec.org/22255.htmhttp://www.aseansec.org/22255.htmhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-12http://www.15thaseansummit-th.org/PDF/25-01_2.4outcome_AANZFTA.pdfhttp://www.15thaseansummit-th.org/PDF/25-01_2.4outcome_AANZFTA.pdfhttp://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-13http://www.asean.fta.govt.nz/http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-Pushpanathan_14-0http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-Pushpanathan_14-1http://en.wikipedia.org/wiki/ASEAN_Free_Trade_Area#cite_ref-Pushpanathan_14-2http://www.thejakartapost.com/news/2009/12/22/asean-charter-one-year-and-going-strong.htmlhttp://en.wikipedia.org/wiki/The_Jakarta_Posthttp://www.thejakartapost.com/news/2009/12/22/asean-charter-one-year-and-going-strong.html
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Agreement On The Common Effective Preferential Tariff CEPT!
Scheme For The ASEAN Free Tra"e Area
Singa)ore, -. /an%ar# 011-
he Governments of 7runei )arussalam, the 4e%ubli& of
8ndonesia, *alaysia, the 4e%ubli& of the 0hili%%ines, the
4e%ubli& ofSinga%ore and the Ringdom of hailand, *ember States
of the Asso&iation of South East Asian Nations !ASEAN"C
M$NDF23of the )e&laration of ASEAN /on&ord signed in
7ali, 8ndonesia on 2+ February 19s international
&ommitments
HA7E A4REED AS FO33O8S9
ART$C3E $
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Definitions
For the %ur%oses of this Agreement C
/E0 means the /ommon Effe&tive 0referential ariff, and it is
an agreed effe&tive tariff, %referential to ASEAN, to be
a%%lied to goods originating from ASEAN *ember States, and
hi&h have been identified for in&lusion in the /E0
S&heme in a&&ordan&e ithArti&les 2 !:" and
-(
:Non&Tariff ;arriers
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)e&ember 1992(
*ember States, hose tariffs for the agreed %rodu&ts are
redu&ed from 2#? and belo to ?6:?, even though granted on an*FN
basis, shall still en=oy &on&essions, *ember States ith
tariff rates at *FN rates of ?6:#o shall be deemed to have
satisfied theobligations under this Agreement and shall also en=oy
the &on&essions(
ART$C3E =
Pro"%ct Coverage
his Agreement shall a%%ly to all manufa&tured %rodu&ts,
in&luding &a%ital goods, %ro&essed agri&ultural
%rodu&ts, and those %rodu&ts failingoutside the definition
of agri&ultural %rodu&ts as set out in this Agreement(
Agri&ultural %rodu&ts shall be e&luded from the /E0
S&heme(
ART$C3E >
Sche"%le of Tariff Re"%ction
*ember States agree to the folloing s&hedule of
effe&tive %referential tariff redu&tionsC
he redu&tion from eisting tariff rates to 2# ? shall be done
ithin a time frame of : years to $ years, from 1 January 199-,
sub=e&t to a%rogramme of redu&tion to be de&ided by
ea&h *ember State, hi&h shall be announ&ed at the start
of the %rogramme( *ember States areen&ouraged to ado%t an
annual rate of redu&tion, hi&h shall be !D62#"? : or $,
here D euals the eisting tariff rates of individual *ember
he subseuent redu&tion of tariff rates from 2#? or belo
shall be done ithin a time frame of < years( he rate of
redu&tion shall be at aminimum of :? uantum %er redu&tion(
A %rogramme of redu&tion to be de&ided by ea&h *ember
State shall be announ&ed at the start of the
%rogramme(
For %rodu&ts ith eisting tariff rates of 2##o or belo as at
1 January 199-, *ember States shall de&ide u%on a %rogramme of
tariff redu&tions,and announ&e at the start, the
s&hedule of tariff redu&tions( o or more *ember States may
enter into arrangements for tariff redu&tion to #?6:?on
s%e&ifi& %rodu&ts at an a&&elerated %a&e to
be announ&ed at the start of the %rogramme(
Sub=e&t to Arti&les + !1" !b" and + !1" !&" of this
Agreement, %rodu&ts hi&h rea&h, or are at tariff rates
of 2#? or belo, shallautomati&ally en=oy the
&on&essions
he above s&hedules of tariff redu&tion shall not %revent
*ember States from immediately redu&ing their tariffs to #?6:?
orfolloing an a&&elerated s&hedule of tariff
redu&tion(
ART$C3E ?
Other Provisions
3uantitative 4estri&tions and Non6ariff 7arriers
*ember States shall eliminate all uantitative restri&tions
in res%e&t of %rodu&ts under the /E0 S&heme u%on
en=oyment ofthe &on&essions a%%li&able to those
%rodu&ts(
*ember States shall eliminate other non6tariff barriers on a
gradual basis ithin a %eriod of five years after the en=oyment
of
&on&essions a%%li&able to those %rodu&ts(
Foreign E&hange 4estri&tions
*ember States shall ma.e e&e%tions to their foreign
e&hange restri&tions relating to %ayments for the
%rodu&ts under the /E0S&heme, as ell as re%atriation of
su&h %ayments ithout %re=udi&e to their rights under
Arti&le D888 of the General Agreement on ariff andrade !GA" and
relevant %rovisions of the Arti&les of Agreement of the
8nternational *onetary Fund !8*F"(
ther Areas of /oo%eration
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*ember States shall e%lore further measures on border and
non6border areas of &oo%eration to su%%lement and
&om%lement theliberalisation of trade( hese may in&lude,
among others, the harmonisation of standards, re&i%ro&al
re&ognition of tests and &ertifi&ation of
%rodu&ts, removal of barriers to foreign investments,
ma&roe&onomi& &onsultations, rules for fair
&om%etition, and %romotion of venture &a%ital(
)( *aintenan&e of /on&essions
*ember States shall not nullify or im%air any of the
&on&essions as agreed u%on through the a%%li&ation of
methods of &ustoms valuation,any ne &harges or measures
restri&ting trade, e&e%t in &ases %rovided for in this
Agreement(
ART$C3E 6
Emergenc# Meas%res
8f, as a result of the im%lementation of this Agreement, im%ort
of a %arti&ular %rodu&t eligible under the /E0 S&heme
isin&reasing in su&h a manner as to &ause or threaten
to &ause serious in=ury to se&tors %rodu&ing li.e or
dire&tly &om%etitive %rodu&ts in theim%orting *ember
States, the im%orting *ember States may, to the etent and for
su&h time as may be ne&essary to %revent or to remedy
su&hin=ury, sus%end %referen&es %rovisionally and ithout
dis&rimination, sub=e&t to Arti&le I !-" of this
Agreement( Su&h sus%ension of %referen&esshall be
&onsistent ith the GA(
Lithout %re=udi&e to eisting international obligations, a
*ember State, hi&h finds it ne&essary to &reate or
intensify
uantitative restri&tions or other measures limiting im%orts
ith a vie to forestalling the threat of or sto%%ing a serious
de&line of its monetaryreserves, shall endeavour to do so in a
manner, hi&h safeguards the value of the &on&essions
agreed u%on(
Lhere emergen&y measures are ta.en %ursuant to this
Arti&le, immediate noti&e of su&h a&tion shall be
given to the /oun&ilreferred to in Arti&le < of this
Agreement, and su&h a&tion may be the sub=e&t of
&onsultation as %rovided for in Arti&le $ of this
Agreement(
ART$C3E @
$nstit%tional Arrangements
he ASEAN E&onomi& *inisters !AE*" shall, for the
%ur%oses of this Agreement, establish a ministerial6level
/oun&il&om%rising one nominee from ea&h *ember State
and the Se&retary6General of the ASEAN Se&retariat( he
ASEAN Se&retariat shall %rovide thesu%%ort to the
ministerial6level /oun&il for su%ervising, &oordinating and
revieing the im%lementation of this Agreement, and assisting the
AE*in all matters relating thereto( 8n the %erforman&e of its
fun&tions, the ministerial6level /oun&il shall also be
su%%orted by the Senior E&onomi&ffi&ials> *eeting
!SE*"(
*ember States hi&h enter into bilateral arrangements on
tariff redu&tions %ursuant to Arti&le + of this Agreement
shall notifyall other *ember States and the ASEAN Se&retariat
of su&h arrangements(
he ASEAN Se&retariat shall monitor and re%ort to the SE* on
the im%lementation of the Agreement %ursuant to the Arti&le888
!2" !$" of the Agreement on the Establishment of the ASEAN
Se&retariat( *ember States shall &oo%erate ith the ASEAN
Se&retariat in the
%erforman&e of its duties(
ART$C3E .
Cons%ltations
*ember States shall a&&ord adeuate o%%ortunity for
&onsultations regarding any re%resentations made by other
*emberStates ith res%e&t to any matter affe&ting the
im%lementation of this Agreement( he /oun&il referred to in
Arti&le < of this Agreement, may see.
guidan&e from the AE* in res%e&t of any matter for
hi&h it has not been %ossible to find a satisfa&tory
solution during %revious &onsultations(
*ember States, hi&h &onsider that any other *ember State
has not &arried out its obligations under this Agreement,
resultingin the nullifi&ations or im%airment of any benefit
a&&ruing to them, may, ith a vie to a&hieving
satisfa&tory ad=ustment of the matter, ma.ere%resentations or
%ro%osal to the other *ember States &on&erned, hi&h
shall give due &onsideration to the re%resentations or %ro%osal
made to it(
Any differen&es beteen the *ember States &on&erning
the inter%retation or a%%li&ation of this Agreement shall, as
far as%ossible, be settled ami&ably beteen the %arties( 8f
su&h differen&es &annot be settled ami&ably, it
shall be submitted to the /oun&il referred to in
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Arti&le < of this Agreement, and if ne&essary, to the
AE*(
ART$C3E 1
4eneral Ece)tions
Nothing in this Agreement shall %revent any *ember State from
ta.ing a&tion and ado%ting measures, hi&h it &onsiders
ne&essary for the%rote&tion of its national se&urity,
the %rote&tion of %ubli& morals, the %rote&tion of
human, animal or %lant life and health, and the %rote&tion
ofarti&les of artisti&, histori& and
ar&haeologi&al value(
ART$C3E 0B
Final Provisions
he res%e&tive Governments of *ember States hall underta.e
the a%%ro%riate measures to fulfil the greed obligations
arisingfrom this Agreement(
Any amendment to this Agreement shall be made by &onsensus
and shall be&ome effe&tive u%on a&&e%tan&e by
all *ember
his Agreement shall be effe&tive u%on signing
his Agreement shall be de%osited ith the Se&retary6General
of the ASEAN Se&retariat, ho shall li.eise %rom%tly furnisha
&ertified &o%y thereof o ea&h *ember State(
No reservation shall be made ith res%e&t to any of the
%rovisions of this Agreement(
8n itness hereof, the undersigned, being duly authorised thereto
by their res%e&tive Governments, have signed thisAgreement on
/ommon Effe&tive 0referential ariff !/E0" S&heme for the
Free rade Area !AFA"(
)one at Singa%ore, this 2$th day of January, 1992 in a single
&o%y in the English ;anguage(
For the overn"ent of Brunei :arussa'a"
A;D23 RAHMAN TA$;
*inister of 8ndustry and 0rimary 4esour&es
For the overn"ent of the e$ub'ic of 9ndonesia
DR AR$F$N M S$RE4AR
*inister of rade
For the overn"ent of
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PETER D 4ARR2CHO /R
Se&retary of rade and 8ndustry
For the overn"ent of the e$ub'ic of %inga$ore
3EE HS$EN 3OON4
)e%uty 0rime *inister and *inister for rade and 8ndustry
For the overn"ent of the ingdo" of Thai'and
AMARET S$3A&ON
*inister of /ommer&e
Common Effective Preferential Tariff CEPT!
he /ommon Effe&tive 0referential ariff !/E0" s&heme is a
&o6o%eration among ASEAN &ountries to redu&e
intra6regional tariffs and eliminatenon6tariff barriers for a
%eriod of ten years effe&tive January 1st 199-(
A tariffis a talevied on im%orts ore%orts( he ord is derived
from the Arabi& ord ta rXf, meaning >fees to be
%aid(>
A ca)ital goo", or sim%ly ca)italine&onomi&s, is a
manufa&turedmeans of %rodu&tion(P1Q/a%ital goods are
a&uired by a so&iety by saving ealthhi&h &an be
investedin the means of %rodu&tion(
8ndividuals, organi'ations and governments use &a%ital goods
in the %rodu&tion of other goods or &ommodities( /a%ital
goods in&lude fa&tories,ma&hinery, tools, eui%ment, and
various buildings hi&h are used to %rodu&e other
%rodu&ts for &onsum%tion( /a%ital goods, then, are
%rodu&tshi&h are not %rodu&ed for immediate
&onsum%tion rather, they are ob=e&ts that are used to
%rodu&e other goods and servi&es( hese ty%es of goodsare
im%ortant e&onomi& fa&tors be&ause they are .ey to
develo%ing a %ositive return from manufa&turing other
%rodu&ts and &ommodities(
*anufa&turing &om%anies also use &a%ital goods(
/a%ital goods hel% their &om%any ma.e fun&tional goods to
sell individuals valuable servi&es( As aresult, &a%ital
goods are sometimes referred to as )ro"%cers goo"sor means of
)ro"%ctionAn im%ortant distin&tion should also be made
beteen
&a%ital goods and&onsumer goods, hi&h are
%rodu&ts dire&tly %ur&hased by &onsumers for
%ersonal or household use(
For eam%le, &ars are generally &onsidered &onsumer
goods be&ause they are usually bought by an individual for
%ersonal use( )um% tru&.s,hoever, are usually &onsidered
&a%ital goods, be&ause they are used by
&onstru&tion and manufa&turing &om%anies to haul
various materials in orderto ma.e other %rodu&ts su&h as
roads, bridges, dams, and buildings( Similarly, a &ho&olate
&andy bar is a &onsumer good but the ma&hines used
to
%rodu&e the &ho&olate &andy bar are
&onsidered &a%ital goods(
/a%ital goods are generally man6made, and do not
in&ludenatural resour&essu&h as land or minerals, or
human &a%italYthe intelle&tual and %hysi&als.ills and
labor %rovided by human or.ers(
http://en.wikipedia.org/wiki/Taxhttp://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Means_of_productionhttp://en.wikipedia.org/wiki/Capital_good#cite_note-0http://en.wikipedia.org/wiki/Capital_good#cite_note-0http://en.wikipedia.org/wiki/Investment#In_economics_or_macroeconomicshttp://en.wikipedia.org/wiki/Investment#In_economics_or_macroeconomicshttp://en.wikipedia.org/wiki/Consumer_goodshttp://en.wikipedia.org/wiki/Consumer_goodshttp://en.wikipedia.org/wiki/Natural_resourceshttp://en.wikipedia.org/wiki/Natural_resourceshttp://en.wikipedia.org/wiki/Natural_resourceshttp://en.wikipedia.org/wiki/Human_capitalhttp://en.wikipedia.org/wiki/Taxhttp://en.wikipedia.org/wiki/Importhttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Means_of_productionhttp://en.wikipedia.org/wiki/Capital_good#cite_note-0http://en.wikipedia.org/wiki/Investment#In_economics_or_macroeconomicshttp://en.wikipedia.org/wiki/Consumer_goodshttp://en.wikipedia.org/wiki/Natural_resourceshttp://en.wikipedia.org/wiki/Human_capital
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CEPT Pro"%ct Profile
%TDCTD F T C!T !:DCT 79%T
he /E0 0rodu&t ;ists is a &om%ilation of the
%rodu&ts hi&h *ember /ountries have offered to in&lude
in the /E0 S&heme, hether in theFast ra&., Normal ra&.
or em%orary E&lusloin ;ists( Sin&e the e&hange of /E0
&on&essions is based on re&i%ro&ity, the, si'e of
thein&lusion list by a *ember /ountry indi&ates the
&overage of those &on&essions that it ould be eligible
to re&eive(
sing *ember /ountry submissions to the ASEAN Se&retariat as
of )e&ember 199-, there are a total of ++,#9: tariff lines in
these lists( here area number of &aveats to &onsider hen
measuring the si'e of the in&lusion list by the number of
tariff lines( First, *ember /ountries differ in thedegree of
disaggregation of their tariff lines( For eam%le, the
0hili%%ines> tariff lines are disaggregated only u% to the
eight6digit level( hailanduses a mi of I6digit and 96digit
&odes( All the other *ember /ountries use tariff &odes at
the 96digit level( Hen&e, &ountries using I6digit or
$6di&rit tariff &odes ill ne&essarily have feer tariff
lines than &ountries using 96digit level &odes( Se&ond,
for any given se&tor the number of tarifflines in&luded in
the /E0 need not be indi&ative of a more &om%rehensive
&overage of the /E0 for that se&tor( his is be&ause
some se&torshave inherently Greater differentiation of
%rodu&ts hen&e they ill ne&essary have more tariff
lines( Nevertheless, even hile noting these &aveats,it is
im%ortant to &onsider that the tariff lines in&luded in the
/E0 re%resent almost 9:
here are a total of 1+,$:: tariff lines in the Fast ra&.,
2:,91$ tariff lines in the Normal ra&. and -,-22 tariff lines
in the tem%orary E&lusion;ist !see able 1"( 0rodu&ts in the
em%orary E&lusion ;ist are items that are deemed sensitive by
ea&h *ember /ountry( 0rodu&ts in this listill not en=oy any
&on&essions until they are brought into the 8n&lusion
;ists(
Finally, un%ro&essed agri&ultural %rodu&ts are not
in&luded in the /E0 S&heme( he nature of %rodu&ts in
this grou% is dis&ussed more fully laterin this se&tion( he
remaining %rodu&ts are %rodu&ts in the General E&e%tion
list( hese are %rodu&ts that meet the ualifi&ation under
Arti&le DDof the GA(
vera'' Tariff eduction under the C!T %che"e
he ultimate ob=e&tive of the /E0 s&heme is to redu&e
tariff rates among *ember /ountries to :? or belo( here are +#,
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he /E0 also in&ludes a fast tra&. %rogram here
%rodu&ts are s&heduled to undergo an a&&elerated
tariff redu&tion %rogram to redu&e the levelof
%rote&tion don to #6:? in ten years( he se&tors &overed
by the Fast ra&. %rogram in&ludesC
Fats M oils
*ineral %rodu&ts
/hemi&als
0lasti&s
Hides M leather
0ul% M %a%er
etiles M a%%arel
/ement
Gems
7ase metals M metal arti&les
*a&hinery M ele&tri&al a%%lian&es
*is&ellaneous manufa&tured arti&les
8t should be noted that the se&tors &overed by the Fast
ra&. %rogram a&tually in&ludes more than the 1:
%rodu&ts originally agreed u%on in the1992 Singa%ore
)e&laration( he notable additions are me&hani&al
a%%lian&es and mineral %rodu&ts( here are a total of 1+,$::
tariff lines
in&luded in the fist tra&. %rogram !seeable -"( About
+:? of the tariff line submissions are in the tetiles and a%%arel
se&tor alone( /hemi&alsa&&ounts for about a fourth
hile %lasti&s and a%%lian&es a&&ount for a little
less than a fifth(
he ben&hmar. years for the Fast ra&. 0rogramm of the /E0
are the fifth year !199$" and the tenth year !2##-"( 7y the fifth
year, all %rodu&tsin the Fast ra&. must have a%%lied /E0
tariff rates it or loer than 2#?( 7y the tenth year of the /E0, all
%rodu&ts in the Fast ra&. musthave tariff rates ithin the
#6:? range(
Te"$orar5 6c'usion 7ist
As of )e&ember 199-, the si ASEAN &ountries have
submitted a total of -,-22 tariff lines for tem%orary e&lusion
from tile /E0 !seehis is less than $? of the total tariff lines
&ommitted under the /E0 S&heme(
he bul. of submissions in the tem%orary e&lusion list is in
the &hemi&als, %lasti&s and vehi&les se&tors(
oo6ether these three se&tors a&&ount fora little over
+:? of the tem%orary e&lusion list( his ran.ing is hoever
biased by the fa&t that 8ndonesia has made a large number
ofsubmissions in these se&tors( 8f e loo. at ea&h /ountry
individually to determine hi&h %rodu&ts bul. large in the
tem%orary e&lusion list, efind that ma&hinery and
ele&tri&al a%%lian&es is ran.ed first in 7runei
&hemi&als in 8ndonesia vehi&les in *alaysia tetiles in
the 0hili%%ines
and vehi&les in hailand(
he tem%orary e&lusion list ill be revieed by the eighth year
of the /E0 s&heme( he ASEAN &ountries ill ma.e an effort to
remove%rodu&ts in the e&lusion list and sub=e&t them to
a s&hedule of tariff redu&tion to bring the tariffs don to
#6:? ithin the remaining seven yearsof the %rogram(
Dn$rocessed Agricu'tura' !roducts
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n%ro&essed agri&ultural %rodu&ts are defined in
Arti&le < of the /E0 Agreement as C
!a" agri&ultural ra materials un%ro&essed %rodu&ts
&overed under /ha%ter 162+ of the Harmonised System !HS", and
similar agri&ultural ramaterials un%ro&essed %rodu&ts
in other related HS Headings and
!b" %rodu&ts hi&h have undergone sim%le %ro&essing
ith minimal &hange in form the original %rodu&ts(
*ember &ountries have submitted a list of %ro&essed
agri&ultural %rodu&ts that are based on this definition(
Hoever, all *ember /ountries havealso 8n&luded some
%rodu&ts that fall under this definition in the /E0( his leaves
only a small number of n%ro&essed agri&ultural %rodu&ts
thatare e&luded from the /E0(
here are 1,$2- tariff lines in the list of un%ro&essed
agri&ultural %rodu&ts submitted by *ember /ountries !see
able :"( his a&&ounts for about+? of the total number of
tariff lines in ASEAN( Fish !/ha%ter -", edible vegetable
!/ha%ter
