AHKFTA Tariff Rates and Rules

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