THE
ASEAN COMMON EFFECTIVE PREFERENTIAL TARIFF
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
Trade Area (AFTA) by the year 2008 to open up their economies in the era of
globalization. During the ASEAN Economic Ministers (AEM) Meeting in September
1994, the target date was advanced to 2003.
A free trade area would
allow the companies within the ASEAN region to take advantage of the economies
of scale. The main implementing mechanism of AFTA is the Common Effective
Preferential Tariff (CEPT) Scheme.
2.
What is AFTA?
AFTA stands for ASEAN Free Trade Area
which involves the removal of obstacles to freer trade among member states.
This includes the abolition of high tariffs or taxes on traded goods and the
scrapping of quantitative restrictions (QR’s) and other non-tariff barriers (NTB’s)
that limit the entry of imports.
There
are ten (10) ASEAN member countries. The six original members are Brunei
Darussalam, Indonesia, Malaysia, the Philippines, Singapore, and Thailand. The
other members are Vietnam (1995), Laos and Myanmar (1997), and Cambodia
(1999).
3.
What are the objectives of AFTA?
The AFTA program was initiated in 1992 to
create an integrated market among ASEAN’s close to half a billion people
making the ASEAN economies more efficient and competitive, and attract
investments into the region.
The ultimate objective of AFTA is to increase
ASEAN's competitive edge as a production base geared for the world market. A
critical step in this direction is the liberalization of trade in the region
through the elimination of intra-regional tariffs and non-tariff barriers.
This will have the effect of making ASEAN's manufacturing sectors more
efficient and competitive in the global market. At the same time, consumers
will source goods from the more efficient producers in ASEAN thus expanding
intra-ASEAN trade.
As the
cost competitiveness of manufacturing industries in ASEAN is enhanced and with
the larger size of the market, investors can enjoy economies of scale in
production. In this manner, ASEAN hopes to attract more direct foreign
investments into the region. This will, in turn, stimulate the growth of support
industries in the region for many direct foreign investments.
4. What
is the CEPT scheme?
The Common Effective Preferential Tariff
Scheme, or CEPT, is a cooperative arrangement among ASEAN Member States that
will reduce intra-regional tariffs and remove non-tariff barriers over a 10-year
period commencing January 1, 1993. The goal of the Scheme is to reduce tariffs
on all manufactured goods to 0-5% by the year 2003. This will benefit Philippine
exporters to ASEAN. The lower CEPT rates make the country’s products cheaper in
these markets, thus stimulating greater demand. The increase in exports to
ASEAN would depend on the price elasticity of demand.
The CEPT Scheme is the main instrument for
making ASEAN a free trade area in ten (10) years. This means that ASEAN Member
States shall have common effective tariffs among themselves in AFTA but the
level of tariffs vis-à-vis non-ASEAN countries shall continue to be determined
individually.
All manufactured products, including capital
goods and processed agricultural products, and those falling outside the
definition of “unprocessed agricultural products” are covered by the CEPT
Scheme.
What
kind of exclusions or exceptions are allowed under the CEPT scheme?
There
are three (3) instances when a product may be excluded from the CEPT Scheme:
a. General Exceptions - A Member State
may exclude a product which it considers necessary for the protection of its
national security, the protection of public morals, the protection of human,
animal or plant life and health, and the protection of articles of artistic,
historic or archaeological value. The provision on General Exceptions in the
CEPT Agreement is consistent with Article X of the General Agreement on Tariffs
and Trade (GATT) 1994.
b. Temporary Exclusions - Member States
which are, in the interim, not ready to include certain sensitive products in
the CEPT Scheme may exclude such products on a temporary basis. Products in the
Exclusion List cannot enjoy the CEPT tariff from other ASEAN Member States. The
Exclusion List does not in any way relate to products covered under the General
Exceptions provisions.
c. Unprocessed Agricultural Products -
These are agricultural products defined as:
1 agricultural raw materials and
unprocessed products covered under Chapters 1 to 24 of the Harmonized System
(HS) Code and similar agricultural raw materials and unprocessed products in
other related HS headings; and
2 products which have undergone simple
processing with minimal change in form from the original products.
5.
What is the program of tariff reduction under the CEPT Scheme?
There are two programs of tariff reduction
under the CEPT Scheme: the Normal Track Program and the Fast Track Program.
Products with tariff rates above 20% had their
rates reduced to 0-5% by January 1, 2000.
Products with tariff rates at or below 20% had
their rates reduced to 0-5% by January 1, 1998.
6.
What are the
conditions for a product to be eligible for concessions under the CEPT?
There are three (3) conditions, namely:
a. The product has to be included in
the Inclusion Lists of both the exporting and the importing countries and must
belong to the same tariff band, i.e., above 20% or 20% and below.
b. It has to have a program of tariff
reduction approved by the AFTA Council.
c. It has to be an ASEAN product,
i.e., it has to satisfy the local content requirement of at least 40%.
Products with tariff rates of 0-5% are deemed
to have satisfied these conditions under the CEPT Agreement and shall also
enjoy the concessions.
Apart
from tariff reductions, the CEPT Scheme provides for the elimination of QRs
(quotas, licenses, etc.) and Non Tariffs Barriers (NTBs) as well as
exceptions to foreign exchange restrictions on CEPT products.
Member
States shall eliminate all QRs on CEPT products upon enjoyment of concessions
applicable to these products.
As regards NTBs, these shall be eliminated by
Member States on a gradual basis within a period of five years after the
enjoyment of concessions applicable to the CEPT products.
Member
States shall also make exceptions to their foreign exchange restrictions
relating to payments, as well as repatriation of such payments, on CEPT
products.
8.
What are the safeguard provisions of the CEPT Agreement?
If, as a result of the implementation of the
CEPT, the import of a particular product is increasing to an extent that it
causes injury to sectors or industries producing like or competitive products,
the importing Member State may suspend preferences provisionally as an
emergency measure. Such suspension shall be consistent with Article XIX of
GATT 1994.
A Member State taking such an emergency action
shall give immediate notice to the AFTA Council through the ASEAN Secretariat,
and such action may be subject of consultations between concerned Member
States.
9. What
appeals procedure is available to parties interested in requesting a
modification, suspension or withdrawal of CEPT concessions?
Petitions for modification, suspension or
withdrawal of CEPT concessions may be filed by interested parties under
Section 402 of the Tariff and Customs Code, as amended. The Tariff Commission
conducts investigations on petitions it receives during the course of
which public hearings are held to afford interested parties reasonable
opportunity to present their views. The Commission submits its findings
and recommendations to the National Economic and Development Authority (NEDA)
which then schedules these for deliberation by both the Tariff and Related
Matters (TRM) Technical and Cabinet Committees. The final decision is made by
the NEDA Board after which the Commission prepares the implementing Executive
Order.
10.
What are “Rules of Origin”?
Taken as a whole, the Rules of Origin compose
the set of criteria used to determine the country or customs territory of
origin of a good or service in international trade. It is a crucial component
of any regional trading arrangement and serves to prevent non-members of a
free trade area from taking advantage of different external tariff rates
imposed by individual member countries. It is used to determine the
eligibility of a product to receive concessions.
Rules of Origin rest on the concept of
"substantial transformation" so that origin is assigned to the country where
the last substantial transformation occurred. Substantial transformation may
be defined on the basis of a change in tariff heading, achieving a threshold
proportion of value-added, or on the basis of certain manufacturing processes.
In AFTA, the rule of origin is based on value-added with the threshold level
set at 40% of the value of the product.
11.
How is the Temporary Exclusion List eliminated?
Products
from the Temporary Exclusion List are phased-in into the Inclusion List in
five equal installments annually. The first installment was effected on
January 1, 1996 and the last installment was effected on January 1, 2000 and
included in E.O. 234.
a.
Products with tariffs above 20% must have had tariffs of 20% by January 1,
1998. Products above 20% and brought into the Inclusion List after January
1, 1998 must have a tariff of 20% or less upon transferring. Tariffs should be
subsequently reduced to 0-5% by January 1, 2003.
b.
Products with tariff rates of or below 20% must have their tariffs
reduced to 0-5% by January 1, 2003.
13.
How will unprocessed agricultural products be phased-in into the
CEPT Scheme?
a.
Sensitive List
-
Products in this category, due to their
sensitivity, have a special arrangement or mechanism (e.g., a longer
timeframe of implementation, final CEPT rate higher than the existing 0-5%).
The 9th AFTA Council Meeting held in Singapore on April 26, 1996
agreed that products in the Sensitive List would be divided into two
sub-categories: sensitive and highly sensitive.
For
products in the “Sensitive” category, the following agreements were reached:
·
the beginning year for phasing-in was scheduled
for January 1, 2001 but not later than January 1, 2003;
·
the ending year for phasing-in
will be January 1, 2010;
·
tariffs will be at 0-5% by January
1, 2010; and
·
NTB’s will be removed by January
1, 2010.
Products in the “Highly Sensitive” category
refer to rice for Indonesia, Malaysia, and the Philippines. It was agreed that
the ending year for the phasing-in of this product will be 2010. There shall
also be a flexibility option for safeguard measures.
b.
Temporary Exclusion List
- Products in this list will be
phased-in into the Inclusion List in equal installments beginning January 1,
1997 and ending January 1, 2003. Products transferred by or after 1998 should
have tariffs reduced to 20% or below. Products transferred in 2003 should have
tariffs reduced to 0-5%.
c.
Inclusion List
- Products in this list are for immediate transfer to the CEPT Scheme. The
program of tariff reduction is such that by January 1, 2003, the final CEPT
rate is 0-5%.
14.
Can indirect consignments be accepted under the CEPT Scheme?
No. The CEPT concessions are granted only to
direct consignments. “Direct consignments” refer to products that are: (a)
transported without passing through the customs territory of a non-ASEAN
country or (b) whose transport through the customs territory of a non-ASEAN
country can be justified for geographical reasons, and has not entered into
trade or consumption there, or undergone any operation beyond unloading or
reloading.
15.
How does a firm trading in a CEPT-eligible product apply for a
Certificate of Origin Form D to comply with the local content requirement?
The firm applies in writing to the relevant
government authorities in his country requesting the pre-exportation
verification of the origin of the product. At the time of carrying out the
formalities for exporting the product under preferential treatment, the
exporter applies for a Certificate of Origin (CO) Form D. The
authorities designated to issue the CO (in our case the Bureau of Customs)
carry out the proper examination to determine conformity with the Rules of
Origin. The CO is issued at the time of exportation or soon thereafter.
16.
What Executive Orders Implementing the Philippine CEPT Scheme have
been issued?
Products with CEPT rates are included in the
Inclusion List (IL) being implemented by the Philippines under the following
Executive Orders:
Article 6 of the Agreement on
the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free
Trade Area
1.
What is Article 6 of the CEPT Agreement?
The ASEAN members signed
the Agreement on the CEPT Scheme for the AFTA on January 28, 1992 in
Singapore. Article 6 of this Agreement provides for emergency measures as
follows:
Article 6: Emergency
Measures
i.
If, as a result of the implementation of this Agreement, import of a
particular product eligible under the CEPT Scheme is increasing in such a manner
as to cause or threaten to cause serious injury to sectors producing like or
directly competitive products in the importing Member States, the importing
Member States may, to the extent and for such time as may be necessary to
prevent or to remedy such injury, suspend preferences provisionally and without
discrimination, subject to Article 6(3) of this Agreement. Such suspension of
preferences shall be consistent with the GATT.
ii.
Without prejudice to existing international obligations, a Member State
which finds it necessary to create or intensify quantitative restrictions or
other measures limiting imports with a view to forestalling the threat of or
stopping a serious decline of its monetary reserves, shall endeavor to do so in
a manner which safeguards the value of the concessions agreed upon.
iii.
Where emergency measures are taken pursuant to this Article, immediate
notice of such action shall be given to the Council referred to in Article 7
of this Agreement, and such action may be the subject of consultation as
provided for in Article 8 of this Agreement.
2.
What are the requirements for suspension of concessions under Article
6?
Four (4) elements must
be proven: product comparability, increasing imports (due to unforeseen
developments and the grant of concessions), serious injury or threat thereof,
and causal linkage.
Petitioners must
submit data/evidence on the above elements.
3.
What constitutes serious injury or threat thereof?
Among the factors to be
considered in determining whether injury to the domestic industry is serious
are:
·
decline in
sales or prices; downward trends in production, profits, wages, or productivity;
·
inability to
generate capital for modernization or maintain existing levels of expenditures
on research and development;
·
inability of
significant number of firms to carry out production at a profit; significant
idling of production facilities including the closure of plants or
underutilization of production capacity;
·
significant
unemployment/ underemployment; significant reduction in market share as a
proportion of market demand; and
·
growing
inventories of subject article, whether maintained by domestic producers,
importers, wholesalers or retailers.
For threat of serious
injury, the following factors are considered:
·
significant
increase in imports (evidenced, among others, by the existence of letters of
credit, supply/sales contracts, awards of a tender, irrevocable offers or
other similar contracts);
·
decline in
sales, prices or market share and downward trends in production, profits, wages,
productivity or employment;
·
inability to
generate capital for modernization or maintain existing levels of expenditures
on research and development;
·
sufficient
freely disposable, or an imminent substantial increase in production capacity
of foreign exporters including access conditions they face in third country
markets indicating the likelihood of substantially increased exports to the
Philippines; and
·
growing
inventories of subject article, whether maintained by domestic producers,
importers, wholesalers or retailers.
4.
If the CEPT rate is suspended pursuant to Article 6 of the CEPT
Agreement, what rate of duty will apply?
The
Most-Favored-Nation (MFN) rate will apply. The preferential rate may however be
suspended to the extent as may be necessary to prevent or to remedy the serious
injury.
5.
How long can a CEPT rate be suspended?
The CEPT rate can be
suspended only for such period of time as may be necessary to prevent/remedy
the serious injury and to facilitate adjustment.
6.
Is a member country required to provide compensation when it
suspends the application of a CEPT rate?
Yes, a member
country will have to provide compensation as may be mutually agreed upon with
the affected ASEAN member countries.
7.
Can other ASEAN members retaliate if the Philippines is found not to
have complied with the requirements of Article 6?
The
Interpretative Notes of Article 6 require that the suspension of preferences be
consistent with Article XIX (Emergency Action on Imports of Particular Products)
of the GATT. Article XIX allows a country affected by the emergency action to
withdraw substantially equivalent concessions.
Article 9 of the Protocol
on Dispute Settlement Mechanism allows any party invoking the dispute settlement
mechanism to suspend the application of the concessions of the member state
concerned (i.e., the Philippines) or any other obligation under the AFTA-CEPT
Agreement, if no satisfactory compensation has been agreed upon.
8.
Has Article 6 been invoked previously by the Philippines?
No. However, under the
erstwhile Preferential Trading Arrangements (PTA) Scheme, the Philippines
suspended its tariff concession (Margin of Preference or MOP) on refractory
bricks.
9.
Have other ASEAN members invoked Article 6?
No.
10.
What is the process for suspension of CEPT rate?
The Tariff
Commission conducts a public consultation on petitions for suspension of
tariff concessions under Article 6. The Commission then submits its report of
findings and recommendations to the Tariff and Related Matters Committee (TRM).
The final decision is taken by the NEDA Board after which the Commission
prepares the implementing Executive Order.
As required by the
Agreement, the Philippines must notify the AFTA Council of any emergency
measures it undertakes under Article 6.
11.
What is the timetable of the Commission’s Article 6 investigation?
Taking into account the
emergency nature of an Article 6 petition, the Commission shall complete its
investigation and submit its report of findings and recommendation to the TRM
Committee within sixty (60) days from receipt of a properly documented
petition.
Commission Order No.
02-01 provides the rules and regulations governing the conduct of the
Commission’s formal investigation on the withdrawal and/or suspension of
concessions under Section 402 of the Tariff and Customs Code.
12.
What is
ASEAN Charter?
ASEAN
Charter is one of the most important documents that create a legal and
institutional framework for cooperation within the region and towards the
formation of an ASEAN community. It also laid the foundation for ASEAN to
restructure is existing mechanisms and improve its decision-making process to
enhance efficiency and ensure prompt implementation of all ASEAN agreements
and decisions. The Leaders of the 10-member Association of Southeast Asian
Nations (ASEAN) signed the document on 20 November 2007 at the 13th
ASEAN Summit held in Singapore. The ASEAN Charter focused at committing the
ASEAN to the ideals of democracy, a single market and the protection of human
rights.
13. What
are the main declarations of the ASEAN Charter?
§
To maintain and enhance peace and
security in the region, and to preserve Southeast Asia as a nuclear weapon-free
zone.
§
To create a single market and
production base, which is highly competitive and economically integrated and
has free flow of goods, services and investment, with facilitated movement of
labour and freer flow of capital.
§
To strengthen democracy, enhance
good governance and the rule of law, and to promote human rights. ASEAN shall
establish a human rights body, with terms to be decided by foreign ministers.
§
To respect the independence,
sovereignty, territorial integrity and national identity of all ASEAN member
states.
§
The renunciation of aggression
and threat or use of force in any matter inconsistent with international law,
and reliance on peaceful settlements of disputes.
§
Non-interference in the internal
affairs of member states.
§
To alleviate poverty and narrow
the development gap within ASEAN.
§
To promote sustainable
development to protect the environment, natural resources and cultural
heritage.
§
To develop human resources and
well-being through co-operation on education, equitable access to development
opportunities, social welfare and justice.
§
To promote
an ASEAN identity through awareness of culture.
Protocol on the
Implementation of the CEPT Scheme Temporary Exclusion List
1.
What is the Protocol
on the CEPT-TEL?
The Protocol on the Implementation
of the CEPT Scheme Temporary Exclusion List signed on November 23, 2000 is an
exception window of the AFTA-CEPT Scheme which allows limited flexibility on
the implementation of the CEPT Scheme Temporary Exclusion List (TEL).
2.
What is the objective and scope of the Protocol?
The objective of this Protocol is to allow a Member State to
temporarily delay the transfer of a product from its TEL into the Inclusion
List (IL), or to temporarily suspend its concession on a product already
transferred into the IL, if such a transfer or concession would cause or have
caused real problems, by reasons which are not covered by Article 6 (Emergency
Measures) of the Agreement.
The provisions of this Protocol shall apply only to the last
tranche of TEL manufactured products which were in the TEL as of December 31,
1999 or the relevant dates applicable to Cambodia, Lao PDR, Myanmar and Vietam.
3.
How does a Member State invoke the Protocol?
A
member State which seeks to invoke the provisions of the Protocol shall make a
written submission (herein referred to as the “Submission”) to the ASEAN Free
Trade Area (AFTA) Council. A copy of the Submission shall be extended by the
ASEAN Secretariat to the Senior Economic Officials’ Meeting (SEOM) and to the
Coordinating Committee on the Implementation of the CEPT Scheme for AFTA.
4.
What is the right of affected ASEAN Member State/s?
Member States having principal or substantial supplying interest in the
particular product shall submit a written request for consultation to discuss
provision for compensatory adjustment measures which may take any form.
Member States shall ensure a general level of reciprocal and mutually
advantageous concessions not less favorable to trade than that provided for
and prevailing under Agreement prior to such discussions.
5.
Is a Member State required to pay compensations?
An
ASEAN Member State shall provide compensatory adjustment as agreed upon and
shall be extended on the most favored nation (MFN) basis to all Member States.
6.
If no agreement is reached, can a Member State retaliate?
If no agreement is reached on the Submission
at the latest by 180 days of the date of receipt of the Submission by the
AFTA Council and the applicant Member State nevertheless insists on proceeding
with the delay of the transfer or the suspension of the concession, Member
States with principal or substantial supplying interest and which have entered
into separate discussions with the applicant Member State shall be free, not
later than 90 days after such action is taken, to withdraw substantially
equivalent concessions from the applicant Member State, upon the expiration of
30 days from the date on which written notice of the intention to make such
withdrawal is received by all Member States.
7.
Has the Philippines invoked the Protocol?
Yes, the Philippines in
December 2002 sent its notification to suspend the tariff concessions on
petrochemical products already transferred into the CEPT IL to the AFTA
Council. The petrochemical products composed of polymers of polyethylene,
propylene, polyvinyl chloride, polystyrene; PVC floor coverings; sheets,
plates, film, foil and strip of PVC; twine, cordage, rope, and cables of
polyethylene and polypropylene.
8.
What EO implemented the suspension of tariff concessions on
petrochemical products?
Executive Order No. 161 (issued on January 9,
2003) implemented the suspension of the tariff reduction schedule on certain
plastic products under the Protocol Regarding the Implementation of the CEPT
Scheme Temporary Exclusion List.
ASEAN Priority
Integration Program under the ASEAN-CEPT Scheme
1.
Background
As
declared in the Bali Concord II in 2003, the formation of an ASEAN Economic
Community (AEC) by 2020 is a large step in the evolution of ASEAN. The AEC
not only signifies the region’s commitment toward “closer cohesion and
economic integration”, but also sets a concrete goal to achieve an integrated
(single) market and production base for the region. This commitment was
further reaffirmed at the 10th ASEAN Summit in November 2004 when the Leaders
identified the eleven (11) Priority Sectors that would accelerate the region’s
economic integration by 2010 under the
Framework
Agreement for the
Integration of Priority Sectors.
2. What are the
priority sectors under the ASEAN Priority Integration Program?
The 11 priority sectors and the corresponding
country coordinators (selected on the basis of comparative advantage, skills
and cost competitiveness, and value-added contribution to ASEAN’s economy)
are:
3.
What are the measures drawn-up to realize the integration of the
eleven (11) sectors?
The
basis for economic integration for each of the priority sectors was prepared
with active involvement of the private sector. The roadmaps aim to:
(i)
enhance the competitiveness of ASEAN;
(ii)
strengthen regional integration efforts through liberalization,
facilitation and promotion measures; and
(iii)
promote private sector participation. This includes specific measures
that are of direct relevance to each sector, as well as common measures that
cut across all priority integration sectors to be implemented with timelines
from now on to the year 2010. Amongst these measures are:
·
the elimination of all tariffs
in relation to products (other than those in the sensitive, highly sensitive
and general exception lists) covered by the priority sectors by 2007 for ASEAN
6 and 2012 for the CLMV; or 3 years earlier than the original target under the
ASEAN Free Trade Area (AFTA). Under the liberalization plan, each country has
a quota to exclude no more than 15 percent of the total tariff lines in the
priority sectors.
·
the establishment of a
definitive work program for the elimination of non-tariff measures and the
standardization of ROO;
·
the harmonization of customs
declaration forms and the development of the Single Window approach for
customs;
·
the harmonization of standards;
·
acceleration of trade in
services liberalization; and
·
progressive elimination of
restrictive investment measures by 2010 for
ASEAN 6, 2013 for Viet Nam and 2015 for
Cambodia, Lao PDR and Myanmar.
As outlined in the Roadmap, the measures to be
pursued are grouped into two broad categories, namely:
(a) Common or
horizontal measures which cut across all priority sectors.
·
Under the existing Roadmap there
are 15 categories: (i) Tariff Elimination; (ii) Non-Tariff Measures (NTMs);
(iii) Rules of Origin (ROO); (iv) Customs procedures; (v) Standard &
Conformance; (vi) Logistic Services; (vii) Outsourcing and Industrial
Complementation; (viii) ASEAN Integration System of Preferences; (ix)
Investments; (x) Trade and Investment Promotion; (xi) Intra-ASEAN Trade and
Investment Statistics; (xii) Intellectual Property Rights; (xiii) Movement of
Business Persons, Skilled Labor, Talents and Professionals; (xiv) Facilitation
of Travel in ASEAN; and (xv) Human Resource
Development.
(b) Specific measures that are of direct
relevance to each sector. The integration approaches are premised on (i)
combining the economic strengths of ASEAN member countries for regional
advantage; (ii) facilitate and promote intra-ASEAN trade and investments;
(iii) improve the condition to attract and retain manufacturing and other
economic activities within the region; (iv) promote outsourcing program within
ASEAN; and (v) promote the development of “Made in ASEAN” products and
services.
4.
Implementing Bodies
To
ensure the implementation of the Roadmap
in an effective and sustainable
manner, implementing bodies have been
assigned to look after each of the respective measures.
As indicated by the Vientiane
Action Programme, the implementing bodies should “streamline the
decision-making process and ensure effective implementation of all ASEAN
economic initiatives”.
Ø
Senior Economic
Officials Meeting (SEOM) as overall in
charge
Ø
Implementation by various ASEAN
Working Groups
ü
Examples
•
CCCA: Coordinating Committee on
the Implementation of the CEPT-AFTA
•
CCS: Coordinating Committee on
Services
•
CCI: Coordinating Committee on
Investments
•
ACCSQ: ASEAN Consultative
Committee on Standards and Quality
•
TELSOM: Telecommunications Senior
Officials Meeting
5.
What EO implemented the Philippine commitment under the Integration
of the Priority Sectors?
EO 417 was issued on April 23,
2007 to implement the Philippine commitments. This covers the first and
second phases of tariff elimination under the priority integration.
The ASEAN Integration System of Preferences
(AISP)
1.
Background
At
the Fourth ASEAN Informal Summit held on November 22-25, 2000 in Singapore,
the ASEAN Leaders agreed to launch an Initiative for ASEAN Integration (IAI),
which gives direction to and sharpens the focus of collective efforts in ASEAN
to narrow the development gap within ASEAN as well as between ASEAN and other
parts of the world.
In pursuing the decision to
launch the IAI, the Thirty Fourth Meeting of ASEAN Ministerial Meeting (AMM)
on July 23-24, 2001 in Hanoi, adopted the Hanoi Declaration on Narrowing
the Development Gap for Closer ASEAN Integration. At the 35th AMM held on
July 29, 2002 in Brunei Darussalam, Foreign Ministers endorsed the IAI Work
Plan and the list of programs and project proposals. The Ministers agreed to
devote special efforts and resources to promote effective cooperation and
mutual assistance to narrow the development gap among ASEAN Member Countries
for the sake of dynamic and sustained growth of the region and prosperity of
the people. ASEAN Leaders approved the IAI Work Plan at their Summit Meeting
on November 4, 2002 at Phnom Penh, Cambodia.
Within this context, the work
plan will assist new member countries to reduce the development gaps among
ASEAN Member Countries and expedite greater regional economic integration,
promote equitable economic development and help alleviate poverty in Cambodia,
Laos, Myanmar and Viet Nam (CLMV).
ASEAN has adopted the ASEAN
Integration System of Preferences (AISP) scheme whereby preferential tariffs
are offered to the newer members by the older members on voluntary and
bilateral basis starting on January 1, 2002. AISP is implemented based on
products proposed by the CLMV Countries.
2.
Has the Philippines granted tariff preferences under the AISP?
The Philippines granted
its first package of tariff preferences under the AISP to Myanmar and Vietnam
covering certain agricultural, industrial, pharmaceutical and electrical goods
under Executive Order No. 166 issued in January 2003. The second package was
extended to CLMV under Executive Order 448 in 2005, comprising certain plant
products and wood sawn timbers.
______
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