ASEAN-and-its-FTA-Partners.pdf

The Lecturer: HARREN JAMES ASEAN BAUTISTA And its FREE TRADE AREA Partners ACFTA, AKFTA, AANZFTA, AJCEP, AIFTA, PJEP...

The Lecturer: HARREN JAMES ASEAN BAUTISTA And its FREE TRADE AREA Partners ACFTA, AKFTA, AANZFTA, AJCEP, AIFTA, PJEPA, PH-EFTA and RCEP Heading to A Responsive, Relevant and Enhanced Network  AANZFTA- ASEAN Australia-New Zealand Free Trade Area ACFTA- ASEAN China Free Trade Area AHKFTA- ASEAN Hong Kong, China Free Trade Area AIFTA- ASEAN India Free Trade Area AKFTA- ASEAN Korea Free Trade Area AJCEPA- ASEAN Japan Comprehensive Economic Partnership Agreement Heading to A Responsive, Relevant and Enhanced Network AANZFTA ASEAN Australia-New Zealand Free Trade Area Heading to A Responsive, Relevant and Enhanced Network  The (AANZFTA) ASEAN Australia New What is the Zealand Free Trade Area is a trade (AANZFTA) agreement among the 10 AMS, Australia and New Zealand. ASEAN Australia The agreement was signed at Cha-am, New Zealand Phetchaburi, Thailand on February 27, 2009 and entered into force on January 1, Free Trade Area 2010 Heading to A Responsive, Relevant and Enhanced Network  The AANZFTA is a comprehensive single undertaking FTA covering trade in goods. Trade What is the in services and investment. (AANZFTA) In also includes chapters on (i) rules of origin ASEAN Australia (ii) customs procedures (iii) sanitary and phytosanitary measures New Zealand (iv) standards, technical regulations and Free Trade Area conformity assessment procedures (v) safeguard measures Heading to A Responsive, Relevant and Enhanced Network  The AANZFTA seeks to establish deeper economic integration What is the between the two regions through progressive liberalization and Objective of the facilitation of trade in goods, trade in (AANZFTA) services and investments, and trade and investment facilitation and economic cooperation measures. Heading to A Responsive, Relevant and Enhanced Network  Except for rice, sugar and What are the selected articles of iron and Product coverage of steel, all products falling the Trade in Goods under the HS Chapters 1 to 97 (TIG) Chapter of the AANZFTA? are covered in the TIG Chapter Heading to A Responsive, Relevant and Enhanced Network  What are the 2 programs of tariff reduction under the AANZFTA TIG Chapter? NORMAL TRACK (NT) SENSITIVE TRACK (ST) Products included in NT Contains the remaining 10% comprise 90% of total tariff Divided into 2: Sensitive List lines. (SL) and Highly Sensitive List Tariff reduction was set to (HSL) commence on January 1, 2008 SL: reduced by 0-5% by 2020 0% by the year 2015 HSL: reduced by 20% by 2020 Heading to A Responsive, Relevant and Enhanced Network  What are the ROO Criteria- RVC 40 or Change Rules of Origin General Rule in Tariff Heading (ROO) under Certificate of Form AANZ AANZFTA? Origin (CO) Form Reciprocity Rule None Heading to A Responsive, Relevant and Enhanced Network  1. Product should be in the Inclusion What are criteria List 2. Product should be wholly obtained in for products to be the exporting party, or meets the eligible for RVC 40 or CTH or PSR criterion, to concession under be deemed originating AANZFTA? 3. Submission of CO Form AANZ Heading to A Responsive, Relevant and Enhanced Network ACFTA ASEAN China Free Trade Area Heading to A Responsive, Relevant and Enhanced Network  It is a free trade Area among the 10 Member States of ASEAN and China What is the The ACFTA Framework Agreement, signed at Phnom Penh, Cambodia on November 4, (ACFTA) 2002, provided the legal basis for ASEAN ad ASEAN China China to negotiate further agreements leading to the creation of the ACFTA by Free Trade Area January 1, 2010 The Agreement on Trade in Goods (TIG) was signed in Vientiane, Laos on November 29, 2004 Heading to A Responsive, Relevant and Enhanced Network  Accelerated the implementation of the Agreement on TIG EARLY for the ACFTA Covers the reduction to 0% import duty on products under HARVEST the harmonized System (HS) Chapters 01-08 (Live animals, meat and edible meat offal, fish, dairy produce, PROGRAM other animal products, live trees, edible vegetables and edible fruits and nuts) not later than Jan 01, 2006 (EHP) Parties were allowed to have a Exclusion list. UNDER THE Implementation began on January 1, 2004 for ASEAN except for the PH and China. ACFTA Dec 29, 2005, the PH issued EO 485 to implement its EHP Heading to A Responsive, Relevant and Enhanced Network  What are the 2 programs of tariff reduction under the ACFTA TIG Agreement? NORMAL TRACK (NT) SENSITIVE TRACK (ST) ACFTA tariff reduction to 0% (a) Sensitive List (SL) (ASEAN-6 & China): 20% by Jan 1, 2012 to 0%-5% 2005 to 2010, with flexibility up by Jan 1, 2018 to Jan. 01, 2012 (ASEAN-6 & (CLMV): 20% Jan. 1, 2015 to 0%-5% by Jan. 1, 2020 b) Highly Sensitive List (HSL) China) (ASEAN-6 & China): 50% by January 1, 2015 2005 to 2015 Up to Jan. 01, 2018 (CLMV): 50% by January 1, 2018 (CLMV) Heading to A Responsive, Relevant and Enhanced Network  1. It is placed under the NT list of both the importing and exporting countries What are criteria 2. It is wholly obtained or complied with at for products to be least 40% Regional Value Content (RVC) rule or under the Product Specific Rules eligible for (ROO) concession under 3. With Certificate of Origin (CO) Form “E”; ACFTA? and 4. In the Exporter’s ST list with the tariff rates of 10% or below (Reciprocity Rule) Heading to A Responsive, Relevant and Enhanced Network  ROO Criteria- General Rule RVC 40 Certificate of What are the Origin (CO) Form E Rules of Origin Form Conditions: (ROO) under The product to be imported is in the NT of the Philippines and in the ST of the exporting FTA Partner ACFTA? Reciprocity The ST rate of FTA partner should be 10% and below Rule 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 Heading to A Responsive, Relevant and Enhanced Network Country A Country B Applicable Tariff Rate (Exporter) (Importer) EHP EHP rate of Country B EHP NT NT Rate of Country B ST ST/MFN Rate of Country B EHP EHP rate of Country B NT NT NT Rate of Country B ST ST/MFN Rate of Country B EHP MFN rate of Country B ST > 10% NT MFN rate of Country B ST ST/ MFN Rate of Country B EHP EHP Rate of country B or ST Rate of Country A whichever is HIGHER (MFN rate of Country B is applied if it is lower than ST rate of Country A) ST ≤ 10% NT NT Rate of Country B or ST rate of Country A whichever is HIGHER (MFN rate of Country B is applied if it is lower than ST rate of Country A) ST ST/MFN Rate of Country B Country A Country B Applicable Tariff Rate (Exporter) (Importer) EHP EHP rate of Country B EHP NT NT Rate of Country B ST ST/MFN Rate of Country B EHP EHP rate of Country B NT NT NT Rate of Country B ST ST/MFN Rate of Country B EHP MFN rate of Country B ST > 10% NT MFN rate of Country B ST ST/ MFN Rate of Country B EHP EHP Rate of country B or ST Rate of Country A whichever is HIGHER (MFN rate of Country B is applied if it is lower than ST rate of Country A) ST ≤ 10% NT NT Rate of Country B or ST rate of Country A whichever is HIGHER (MFN rate of Country B is applied if it is lower than ST rate of Country A) ST ST/MFN Rate of Country B Country A Country B Applicable Tariff Rate (Exporter) (Importer) EHP EHP rate of Country B EHP NT NT Rate of Country B ST ST/MFN Rate of Country B EHP EHP rate of Country B NT NT NT Rate of Country B ST ST/MFN Rate of Country B EHP MFN rate of Country B ST > 10% NT MFN rate of Country B ST ST/ MFN Rate of Country B EHP EHP Rate of country B or ST Rate of Country A whichever is HIGHER (MFN rate of Country B is applied if it is lower than ST rate of Country A) ST ≤ 10% NT NT Rate of Country B or ST rate of Country A whichever is HIGHER (MFN rate of Country B is applied if it is lower than ST rate of Country A) ST ST/MFN Rate of Country B Country A Country B Applicable Tariff Rate (Exporter) (Importer) EHP EHP rate of Country B EHP NT NT Rate of Country B ST ST/MFN Rate of Country B EHP EHP rate of Country B NT NT NT Rate of Country B ST ST/MFN Rate of Country B EHP MFN rate of Country B ST > 10% NT MFN rate of Country B ST ST/ MFN Rate of Country B EHP EHP Rate of country B or ST Rate of Country A whichever is HIGHER (MFN rate of Country B is applied if it is lower than ST rate of Country A) ST ≤ 10% NT NT Rate of Country B or ST rate of Country A whichever is HIGHER (MFN rate of Country B is applied if it is lower than ST rate of Country A) ST ST/MFN Rate of Country B  APPLICATION OF TARIFF RATE EXPORTER IMPORTER -If the product is in the EHP of the The product is in the ST importing country: List of the exporting Applicable rate is STILL MFN rate -If the product is in the NT List of the country and have a rate importing Country: of MORE than 10% Applicable rate is still MFN Rate -if the product is in the ST List of the importing country: Applicable rate is MFN rate Heading to A Responsive, Relevant and Enhanced Network Country A Country B Applicable Tariff Rate (Exporter) (Importer) EHP EHP rate of Country B EHP NT NT Rate of Country B ST ST/MFN Rate of Country B EHP EHP rate of Country B NT NT NT Rate of Country B ST ST/MFN Rate of Country B EHP MFN rate of Country B ST > 10% NT MFN rate of Country B ST ST/ MFN Rate of Country B EHP EHP Rate of country B or ST Rate of Country A whichever is HIGHER (MFN rate of Country B is applied if it is lower than ST rate of Country A) ST ≤ 10% NT NT Rate of Country B or ST rate of Country A whichever is HIGHER (MFN rate of Country B is applied if it is lower than ST rate of Country A) ST ST/MFN Rate of Country B ACFTA Reciprocal tariff Rate Arrangement  APPLICATION OF TARIFF RATE EXPORTER IMPORTER The product is in the ST List -If the product is in the EHP of the importing country: of the exporting country and have a rate of 10% or Applicable rate is EHP rate of BELOW the Importer or ST rate of Exporter whichever is higher or REMINDER: The applied import duty rate should not MFN rate if it is lower than ST be higher than the importer’s MFN rate. rate of Exporter Heading to A Responsive, Relevant and Enhanced Network EXPORTER IMPORTER EHP RATE 0% ST RATE 9% MFN RATE 10% WHAT RATE TO APPLY? Heading to A Responsive, Relevant and Enhanced Network EXPORTER IMPORTER ST RATE 6% EHP RATE 8% MFN RATE 9% WHAT RATE TO APPLY? Heading to A Responsive, Relevant and Enhanced Network EXPORTER IMPORTER ST RATE 9% EHP RATE 8% MFN RATE 7% WHAT RATE TO APPLY? Heading to A Responsive, Relevant and Enhanced Network EXPORTER IMPORTER ST RATE 9% EHP RATE 0% MFN RATE 7% WHAT RATE TO APPLY? Heading to A Responsive, Relevant and Enhanced Network  APPLICATION OF TARIFF RATE EXPORTER IMPORTER The product is in the ST List -If the product is in the NT of the importing country: of the exporting country and have a rate of 10% or Applicable rate is NT rate of the BELOW Importer or ST rate of Exporter whichever is higher or MFN rate REMINDER: The applied import duty rate should not if it is lower than ST rate of be higher than the importer’s MFN rate. Exporter Heading to A Responsive, Relevant and Enhanced Network EXPORTER IMPORTER ST RATE 8% NT RATE 3% MFN RATE 10% WHAT RATE TO APPLY? Heading to A Responsive, Relevant and Enhanced Network EXPORTER IMPORTER ST RATE 8% NT RATE 5% MFN RATE 7% WHAT RATE TO APPLY? Heading to A Responsive, Relevant and Enhanced Network  AHKFTA ASEAN Hong Kong, China Free Trade Area Heading to A Responsive, Relevant and Enhanced Network  The ASEAN-Hong Kong, China Free Trade Area (AHKFTA) is a trade agreement among the ten (10) AMSs and Hong Kong, China. What is the The Agreement establishing the AHKFTA (AHKFTA) was signed by the Economic Ministers of ASEAN and the Secretary of Commerce ASEAN Hong Kong, and Economics Development of Hong China Kong, China on November 12, 2017 and sidelines of the 31st ASEAN Summit in Free Trade Area Manila, Philippines. Heading to A Responsive, Relevant and Enhanced Network  To progressively liberalize and facilitate trade in goods among the Parties through, inter alia, progressive elimination of tariff and non-tariff What are the barriers in substantially all trade in goods among the Parties; objectives of the To progressively liberalize and facilitate trade in services among the Parties, with substantial sectoral (AHKFTA) coverage; To promote and enhance investment opportunities; ASEAN Hong Kong, To strengthen, diversify and enhance trade, investment and economic links among the Parties; China and To provide special and differential treatment to Free Trade Area ASEAN Member States, especially to the newer ASEAN Member States, to facilitate their more effective economic integration. Heading to A Responsive, Relevant and Enhanced Network  Tariff reduction commitments under the AHKFTA cover different kinds of What is the product commodities, including jewelry, coverage of the articles of apparel and clothing accessories, watches and clocks, Trade in Goods (TIG) and toys. Chapter of the The tariff reduction commitments of AHKFTA? each AMS and Hong Kong, China are set out in the Schedules of Tariff Commitments in Annex 2-1 of the Agreement Heading to A Responsive, Relevant and Enhanced Network  ROO Criteria- RVC 40 What are the General Rule Rules of Origin Certificate of Form AHK (ROO) under Origin (CO) Form AHKFTA? Reciprocity Rule None Heading to A Responsive, Relevant and Enhanced Network  1. Product should be in the Inclusion What are criteria List 2. Product should be wholly obtained in for products to be the exporting party, or meets the eligible for RVC 40 or CTSH to be deemed concession under originating AHKFTA? 3. Submission of CO Form AHK Heading to A Responsive, Relevant and Enhanced Network  AIFTA ASEAN India Free Trade Area Heading to A Responsive, Relevant and Enhanced Network  The ASEAN-India Free Trade Are (AIFTA) is a trade agreement among What is the the ten (10) AMSs and India. (AIFTA) The AIFTA (ASEAN-India Free Trade ASEAN India Area) Agreement was signed at Bali, Free Trade Area Indonesia on October 8, 2003 and entered into force on July 1, 2004 Heading to A Responsive, Relevant and Enhanced Network  2013: Brunei, Indonesia, What is the Malaysia, Singapore, Thailand (AIFTA) and India ASEAN India 2018: the Philippines, Free Trade Area Cambodia, Lao PDR, Myanmar, Viet Nam and India Heading to A Responsive, Relevant and Enhanced Network  The Trade in Goods What is the Agreement for the AIFTA was (AIFTA) signed at Bangkok Thailand ASEAN India on August 13, 2009 and at Free Trade Area Hanoi, Viet Nam Heading to A Responsive, Relevant and Enhanced Network  RVC 35 or Change What are the ROO Criteria- Rules of Origin in Tariff General Rule (ROO) under Subheading AIFTA? Certificate of Form AI Origin (CO) Form Reciprocity Rule None Heading to A Responsive, Relevant and Enhanced Network  1. Product should be in the Inclusion What are criteria List 2. Product should be wholly obtained in for products to be the exporting party, or meets the eligible for RVC 35 or CTSH to be deemed concession under originating AIFTA? 3. Submission of CO Form AI Heading to A Responsive, Relevant and Enhanced Network AKFTA ASEAN Korea Free Trade Area Heading to A Responsive, Relevant and Enhanced Network  It is a free trade Area among the 10 Member States of ASEAN and SOUTH What is the KOREA (AKFTA) The AKFTA Framework Agreement, signed on November 29, 2004 in Vientiane, Lao ASEAN Korea PDR. Free Trade Area The Agreement on Trade in Goods (TIG) under the Framework agreement was signed in Kuala Lumpur Malaysia on August 24, 2006 Heading to A Responsive, Relevant and Enhanced Network  I. Normal Track (NT): (covers general goods) -AKFTA tariff reduction to 0% The Agreement Up to Jan. 01, 2010 (ASEAN-6 & Korea) Up to Jan. 01, 2016 (Viet Nam) on TIG of the Up to Jan. 01, 2018 (CLM) II. Sensitive Track (ST): (covers sensitive goods) AKFTA covers 2 (a) Sensitive List (SL) (AKFTA tariff reduction t 0-5%) programs of Up to Jan. 01, 2016 (ASEAN-6 & Korea) Up to Jan. 01, 2021 (Viet Nam) tariff reduction, Up to Jan. 01, 2024 (CLM) (b) Highly Sensitive List (HSL) (AKFTA tariff reduction to 50-20%) namely: Up to Jan. 01, 2016 (ASEAN-6 & Korea) Up to Jan. 01, 2021 (Viet Nam) Up to Jan. 01, 2024 (CLM) Heading to A Responsive, Relevant and Enhanced Network  1. A product can enjoy the preferential tariff rate if: What are criteria 2. It is placed under the NT list of both the importing and exporting countries for products to be 3. It is wholly obtained or complied with at least eligible for 40% Regional Value Content (RVC) rule or concession under under the Product Specific Rules of the governing ROO AKFTA? 4. With Certificate of Origin (CO) Form “AK”; and 5. In the Exporter’s ST list with the tariff rates of 10% or below (Reciprocity Rule) Heading to A Responsive, Relevant and Enhanced Network  ROO Criteria- General Rule RVC 40 or CTH Certificate of What are the Origin (CO) Form AK Rules of Origin Form Conditions: (ROO) under The product to be imported is in the NT of the Philippines and in the ST of the exporting FTA Partner AKFTA? Reciprocity The ST rate of FTA partner should be 10% and below Rule 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 Heading to A Responsive, Relevant and Enhanced Network Country A Country B Applicable Tariff Rate (Exporter) (Importer) NT NT Rate of Country B NT ST ST/MFN Rate of Country B NT MFN rate of Country B ST > 10% ST ST/ MFN Rate of Country B NT NT Rate of Country B or ST rate of Country A whichever is HIGHER (MFN rate of Country B is applied if it is lower than ST rate of Country A) ST ≤ 10% ST ST/MFN Rate of Country B AKFTA Reciprocal Tariff Rate Treatment Heading to A Responsive, Relevant and Enhanced Network  EXAMPLE A product from Korea covered by CO form AK and deemed as originating by the governing ROO was imported into the Philippines. The product was under Korea’s ST list with 9% SR rate. On the other hand, in the Philippines, the products has an MFN rate of 10% and was classified under the AKFTA NT list with 0% NT rate. What is the applicable import duty rate of the product? NT RATE 0% ST RATE 9% MFN RATE 10% Heading to A Responsive, Relevant and Enhanced Network  AJCEPA ASEAN Japan Comprehensive Economic Partnership Agreement Heading to A Responsive, Relevant and Enhanced Network  What is the The Framework Agreement for (AJCEPA) Comprehensive Economic ASEAN Japan Partnership to establish the ASEAN- Comprehensive Japan Free Trade Area (AJFTA) Economic The Philippines signed and ratified the Agreement on April 2, 2008 and Partnership December 24, 2008, respectively Agreement Heading to A Responsive, Relevant and Enhanced Network  What is the Product Coverage (AJCEPA) All products falling under Harmonized System (HS) Chapters 1 ASEAN Japan to 97 Comprehensive Note: The Philippines excluded rice, Economic salt, certain chemical products and Partnership articles of iron and steel, and motor vehicles of Heading 87.03 Agreement Heading to A Responsive, Relevant and Enhanced Network  What are the ROO Criteria- RVC 40 or Change Rules of Origin General Rule in Tariff Heading (ROO) under Certificate of Form AJ AJCEPA? Origin (CO) Form Reciprocity Rule None Heading to A Responsive, Relevant and Enhanced Network  AANZFTA- ASEAN Australia-New Zealand Free Trade Area ACFTA- ASEAN China Free Trade Area AHKFTA- ASEAN Hong Kong, China Free Trade Area AIFTA- ASEAN India Free Trade Area AKFTA- ASEAN Korea Free Trade Area AJCEPA- ASEAN Japan Comprehensive Economic Partnership Agreement Heading to A Responsive, Relevant and Enhanced Network  RCEP Regional Comprehensive Economic Partnership Heading to A Responsive, Relevant and Enhanced Network  A proposed FTA between the 1O Regional Member States of ASEAN and the 6 states with which ASEAN has Comprehensive existing FTAs, namely; Australia, Economic China, India, Japan, South Korea and Partnership( New Zealand. RCEP) RCEP negotiations were formally launched in November 2012 at the ASEAN Summit in Cambodia Heading to A Responsive, Relevant and Enhanced Network  The RCEP will have broader and Regional deeper engagement with Comprehensive significant improvements over Economic the existing ASEAN+1 FTAs, while recognizing the individual Partnership( and diverse circumstances of RCEP) the participating countries. Heading to A Responsive, Relevant and Enhanced Network