AHKFTA Tariff Rates and Rules
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Questions and Answers

What should be the applicable Special Tariff (ST) rate of an FTA partner according to the reciprocity rule?

10% and below

What should be the applicable tariff rate according to the rule?

  • Philippines’ NT rate (correct)
  • Philippines’ MFN rate
  • FTA partner’s ST rate

    • What is the tariff reduction coverage of the ASEAN-Hong Kong, China Free Trade Area (AHKFTA)?

    Jewelry, articles of apparel and clothing accessories, watches and clocks, toys

    The Agreement establishing the AHKFTA was signed by the Economic Ministers of ASEAN and the Secretary of Commerce and Economics Development of Hong Kong, China.

    <p>True</p> Signup and view all the answers

    Under AHKFTA, the product should be in the _ List to qualify for certain criteria.

    <p>Inclusion</p> Signup and view all the answers

    What does AANZFTA stand for?

    <p>ASEAN Australia-New Zealand Free Trade Area</p> Signup and view all the answers

    What is covered in the Trade in Goods (TIG) Chapter of AANZFTA?

    <p>Customs procedures</p> Signup and view all the answers

    What is the objective of AANZFTA?

    <p>To establish deeper economic integration between the two regions</p> Signup and view all the answers

    Except for rice, sugar, and selected articles of iron and steel, all products falling under the HS Chapters 1 to 97 are covered in the TIG _____ of AANZFTA.

    <p>Chapter</p> Signup and view all the answers

    What are the two programs of tariff reduction under the AANZFTA TIG Chapter?

    <p>NORMAL TRACK (NT) and SENSITIVE TRACK (ST)</p> Signup and view all the answers

    Match the following Rules of Origin (ROO) criteria with their descriptions:

    <p>ROO Criteria - General Rule = Product should be in the Inclusion List Certificate of Origin (CO) Form = Submission of CO Form AANZ Reciprocity Rule = Product should be wholly obtained in the exporting party</p> Signup and view all the answers

    The ACFTA stands for ASEAN China Free Trade Area.

    <p>True</p> Signup and view all the answers

    What did the ACFTA Framework Agreement signed in Phnom Penh, Cambodia in 2002 provide?

    <p>The legal basis for ASEAN and China to negotiate further agreements</p> Signup and view all the answers

    What are the criteria for products to be eligible for concession under ACFTA?

    <p>Wholly obtained or complied with at least 40% Regional Value Content (RVC) rule</p> Signup and view all the answers

    What are the Rules of Origin (ROO) under ACFTA?

    <p>General Rule, Certificate of Origin (CO) Form</p> Signup and view all the answers

    What is the ASEAN-India Free Trade Area (AIFTA)?

    <p>A trade agreement among the ten AMSs and India.</p> Signup and view all the answers

    When did the ASEAN-India Free Trade Area (AIFTA) Agreement enter into force?

    <p>July 1, 2004</p> Signup and view all the answers

    Where was the Trade in Goods Agreement for AIFTA signed?

    <p>Bangkok, Thailand</p> Signup and view all the answers

    What is the ASEAN Korea Free Trade Area (AKFTA)?

    <p>A free trade area agreement among the 10 Member States of ASEAN and South Korea.</p> Signup and view all the answers

    When was the AKFTA Framework Agreement signed?

    <p>November 29, 2004</p> Signup and view all the answers

    What is the applicable import duty rate according to the AKFTA Reciprocal Tariff Rate Treatment example?

    <p>0%</p> Signup and view all the answers

    What does AJCEPA stand for?

    <p>ASEAN Japan Comprehensive Economic Partnership Agreement</p> Signup and view all the answers

    What products are covered under AJCEPA?

    <p>All products falling under Harmonized System (HS) Chapters 1 to 97.</p> Signup and view all the answers

    What is RCEP?

    <p>Regional Comprehensive Economic Partnership</p> Signup and view all the answers

    The AIFTA (ASEAN-India Free Trade Area) Agreement was signed in Bali, Indonesia on October 8, 2003.

    <p>False</p> Signup and view all the answers

    Study Notes

    ASEAN Free Trade Areas

    • ASEAN has multiple free trade areas with various countries and regions, including Australia, New Zealand, China, Hong Kong, India, Japan, Korea, and the European Free Trade Association (EFTA).

    AANZFTA (ASEAN-Australia-New Zealand Free Trade Area)

    • AANZFTA is a comprehensive single undertaking FTA covering trade in goods, services, and investment.
    • The agreement was signed on February 27, 2009, and entered into force on January 1, 2010.
    • AANZFTA seeks to establish deeper economic integration between ASEAN and Australia and New Zealand through progressive liberalization and facilitation of trade.
    • The agreement includes chapters on rules of origin, customs procedures, sanitary and phytosanitary measures, standards, technical regulations, and conformity assessment procedures.
    • The agreement covers all products except for rice, sugar, and selected articles of iron and steel.

    Tariff Reduction under AANZFTA

    • There are two programs of tariff reduction: Normal Track (NT) and Sensitive Track (ST).
    • NT covers 90% of total tariff lines, with tariff reduction commencing on January 1, 2008, and reaching 0% by 2015.
    • ST covers the remaining 10% of tariff lines, with tariff reduction commencing on January 1, 2008, and reaching 0-5% by 2020 (Sensitive List) and 20% by 2020 (Highly Sensitive List).

    Rules of Origin under AANZFTA

    • ROO criteria: RVC 40 or Change in Tariff Heading.
    • Certificate of Origin: Form AANZ.
    • Reciprocity Rule: None.

    Criteria for Products to be Eligible for Concession under AANZFTA

    • Product should be in the Inclusion List.
    • Product should be wholly obtained in the exporting party or meet the RVC 40 or CTH criterion.
    • Submission of CO Form AANZ is required.

    ACFTA (ASEAN-China Free Trade Area)

    • ACFTA is a free trade area among the 10 ASEAN Member States and China.
    • The agreement was signed on November 4, 2002, and entered into force on January 1, 2010.
    • ACFTA covers trade in goods, services, and investment.

    Early Harvest Program under ACFTA

    • The Early Harvest Program (EHP) covers the reduction of tariffs to 0% on products under HS Chapters 01-08, including live animals, meat, fish, dairy products, and fruits.
    • The EHP was implemented on January 1, 2004, except for the Philippines and China.

    Tariff Reduction under ACFTA

    • There are two programs of tariff reduction: Normal Track (NT) and Sensitive Track (ST).
    • NT covers tariff reduction to 0% from 2005 to 2010, with flexibility up to 2012.
    • ST covers tariff reduction to 0% from 2015 to 2018, with a Highly Sensitive List (HSL) covering 50% tariff reduction by 2015.

    Rules of Origin under ACFTA

    • ROO criteria: RVC 40 or Change in Tariff Heading.
    • Certificate of Origin: Form E.
    • Reciprocity Rule: The applicable rate is whichever is higher between the importing country's NT rate and the exporting country's ST rate.

    Criteria for Products to be Eligible for Concession under ACFTA

    • Product should be in the Inclusion List.
    • Product should be wholly obtained in the exporting party or meet the RVC 40 or CTSH criterion.
    • Submission of CO Form E is required.

    AHKFTA (ASEAN-Hong Kong, China Free Trade Area)

    • AHKFTA is a trade agreement among the 10 ASEAN Member States and Hong Kong, China.
    • The agreement was signed on November 12, 2017, and aims to progressively liberalize and facilitate trade in goods and services.
    • AHKFTA covers different kinds of commodities, including jewelry, articles of apparel, and toys.

    Rules of Origin under AHKFTA

    • ROO criteria: RVC 40 or Change in Tariff Heading.
    • Certificate of Origin: Form AHK.
    • Reciprocity Rule: None.

    Criteria for Products to be Eligible for Concession under AHKFTA

    • Product should be in the Inclusion List.
    • Product should be wholly obtained in the exporting party or meet the RVC 40 or CTSH criterion.
    • Submission of CO Form AHK is required.

    AIFTA (ASEAN-India Free Trade Area)

    • AIFTA is a trade agreement among the 10 ASEAN Member States and India.
    • AIFTA covers trade in goods, services, and investment.

    Note: The text does not provide detailed information on the rules of origin, tariff reduction, and criteria for products to be eligible for concession under AIFTA.### ASEAN-India Free Trade Area (AIFTA)

    • Signed on October 8, 2003, and entered into force on July 1, 2004
    • Original members: Brunei, Indonesia, Malaysia, Singapore, Thailand, and India
    • Expanded to include the Philippines, Cambodia, Lao PDR, Myanmar, Viet Nam, and India in 2018
    • Trade in Goods Agreement signed at Bangkok, Thailand on August 13, 2009, and at Hanoi, Viet Nam
    • Rules of Origin (ROO) Criteria:
      • General Rule
      • Certificate of Origin (CO) Form AI
      • Reciprocity Rule
    • Criteria for products to be eligible for concession under AIFTA:
      • Product should be in the Inclusion List
      • Product should be wholly obtained in the exporting party, or meets the RVC 35 or CTSH to be deemed originating
      • Submission of CO Form AI

    ASEAN-Korea Free Trade Area (AKFTA)

    • Signed on November 29, 2004, in Vientiane, Lao PDR
    • Agreement on Trade in Goods (TIG) signed in Kuala Lumpur, Malaysia on August 24, 2006
    • Covers 2 programs of tariff reduction:
      • Normal Track (NT): general goods, AKFTA tariff reduction to 0%
      • Sensitive Track (ST): sensitive goods, AKFTA tariff reduction to 0-5% or 50-20%
    • Criteria for products to be eligible for concession under AKFTA:
      • Product can enjoy preferential tariff rate if:
        • Placed under the NT list of both the importing and exporting countries
        • Wholly obtained or complied with at least 40% Regional Value Content (RVC) rule or under the Product Specific Rules of the governing ROO
        • With Certificate of Origin (CO) Form “AK”; and
        • In the Exporter’s ST list with the tariff rates of 10% or below (Reciprocity Rule)
    • ROO Criteria:
      • General Rule
      • Certificate of Origin (CO) Form AK
      • Conditions:
        • The product to be imported is in the NT of the Philippines and in the ST of the exporting FTA Partner
        • The ST rate of FTA partner should be 10% and below
        • The applicable rate is whichever is higher between the FTA partner’s ST rate and the Philippines’ NT rate
        • The applicable rate should not be greater than the Philippines’ MFN rate

    ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEPA)

    • Framework Agreement for Comprehensive Economic Partnership to establish the ASEAN-Japan Free Trade Area (AJFTA)
    • Signed and ratified by the Philippines on April 2, 2008, and December 24, 2008, respectively
    • Product Coverage: All products falling under Harmonized System (HS) Chapters 1 to 97, except for rice, salt, certain chemical products, and articles of iron and steel, and motor vehicles of Heading 87.03
    • ROO Criteria:
      • General Rule
      • Certificate of Origin (CO) Form AJ
      • Reciprocity Rule: None

    Other ASEAN FTAs

    • AANZFTA: ASEAN-Australia-New Zealand Free Trade Area
    • ACFTA: ASEAN-China Free Trade Area
    • AHKFTA: ASEAN-Hong Kong, China Free Trade Area
    • AKFTA: ASEAN-Korea Free Trade Area
    • AJCEPA: ASEAN-Japan Comprehensive Economic Partnership Agreement

    Regional Comprehensive Economic Partnership (RCEP)

    • Proposed FTA between the 10 Member States of ASEAN and the 6 states with which ASEAN has existing FTAs
    • Negotiations launched in November 2012 at the ASEAN Summit in Cambodia
    • Aims to have broader and deeper engagement with significant improvements over the existing ASEAN+1 FTAs

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    Description

    This quiz assesses your understanding of the tariff rates and rules applicable to the ASEAN-Hong Kong, China Free Trade Area (AHKFTA). It covers the reciprocity rule, tariff reduction coverage, and product listing requirements.

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