PART SIX TRADING ARRANGEMENTS: REGIONAL IL Asia-Pacific Economic Cooperation A. Overview B. Individual Action Pian on Tariffs C. Environmental Goods and Services i. Association of Southeast Asian Nations A. Overview B. The ASEAN Charter C. The ASEAN Community 1. ASEAN Economic Community 2. ASEAN Political-Security Community 3. ASEAN Sociocultural Community lll. The ASEAN Free Trade Area Overview The Common Effective Preferential Tariff Scheme ASEAN Trade in Goods Agreement Protocol to Provide Special Consideration for Rice and Sugar SOUP Iv. ASEAN and its Free Trade Area Partners A. ASEAN-Australia-New Zealand Free Trade Area ASEAN-China Free Trade Area ASEAN-Hong Kong, China Free Trade Area ASEAN-India Free Trade Area ASEAN-Japan Comprehensive Economic Partnership Agreement ASEAN-Korea Free Trade Area Regional Comprehensive Economic Partnership o7 mooo|. Asia-Pacific Economic Cooperation A. Overview 1. ie What is the Asia-Pacific Economic Cooperation forum? The Asia-Pacific Economic Cooperation (APEC) forum refers to the associatigy, freatod in 1989 for economies that share the boundaries of the Pacific Ocean. APE: lember economies work together to reduce barriers 10 trade, ease the exchange and strengthen economic. ang foods, Services, resources, and technical know-how, ‘echnical cooperation between and among Members. ns full trade and investment liberalization ang 1020 for developing Members. Wit, veloped and developing APEC as an organization envisior facilitation by 2010 for industrialized economies and 2 Tespect to tariffs, the goal is zero tariffs in 2010 and 2020 for de\ countries, respectively. APEC currently has 21 Member countries, namely: Australia; Brunei Darussalam; Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia, Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; the Philippines; Russia; Singapore; Chinese Taipel; Thailand; United States of America; ang Viet Nam. 2. What are the four (4) objectives of APEC? Sustain the growth and development of the region for the common good of is peoples thus contributing to the growth of the world economy © Enhance the gains of both the regional and world economies by encouraging the flow of goods, services, capital, and technology © Develop and strengthen the open multilateral trading system in the interest of Asia-Pacific Member economies and all other economies © Reduce barriers to trade in goods and services, and minimize hindrance to investment among its participants in a manner consistent with GATTMWTO principles, where applicable, and without detriment to other economies What are the programs to achieve APEC's objectives? Liberalization to dismantle those obstacles to international economic transactions which are imposed as customs barriers Facilitation of trade and investment to reduce needless divergences in approaches to domestic policies influencing international commerce Technical cooperation to share the information and expertise needed © implement proposals for facilitation and to enhance the availabilty a! efficiency of regional infrastructure Economic policy coordination to reduce uncertainties that add to the costs international economic transactionspiake Island, USA 7994 gogor, Indonesia 1995 Osaka, Japan 1996 Manila, Philippines i997 Vancouver, Canada 4 PEC Ministers agreed on a Blueprint for Action on Electronic Kua Lumpur, Commerce including a commitment to paperless trading by 2008, Malaysia in developed economies and by 2010 in developing econo 1999 APEC Leaders endorsed the APEC Princes to Enhance Auckland, Competition and Reguatry Reform aimed at accessing the New Zealand SSructural and regulatory weaknesses that cont decides that Individual Action Plans should be updated annually. les" economies and by 2 economies’ APEC my Y 2020 for develop further reducing bamiers 12, 22264 10 pursue this. goal 3 | to trade Promoting the free flow of goods, servcen and net my The "Bogor Goals’ refer to th station ea r z common belief that free and omni eo lei g essential to realize the gr enhance economic an pen trade and investment re fowth potential of the regi 1d social outcomes for all APEC economies, | AS part of the process to track progress of APEC Member economies towards the realization ofthe Bogor Goals, the APEC Policy Support Unit was tasked to prepare short reports highlighting the achievements and remaining areas’ for improvement 28 wel as a dashboard with indicators providing | Quick snapshots of the advancement toward said goals. APEC member economies are requested to submit their Individual ‘Action Plans (\AP) regular The Osaka Action Agenda was adopted which provided a framework for meeting the Bogor Goals through trade and investment liberalization, business facilitation and sectoral activities, underpinned by policy dialogues and economic and technical cooperation. ‘The Manila Action Plan for APEC was adopted outlining the trade and investment liberalization and faciitation measures to reach the Bogor Goals Compiled the first Collective and Individual Action Pans outining how economies will achieve the free trade goals. The Vancouver Framework endorsed the proposal for Early Voluntary Sectoral Liberalization (EVSL) in 15 sectors and i I crisis. Ace commited to paperless trading by 2005 in developed 2010 in developing economies. the APEC sushess Travel Card scheme was approved and a se APE ccognition Arrangement on Electrical qupment and 8 mew for the Integration of Women in APEC are | i ee _ _ _endorsed.______— Tariff Commission | Page 145| 2000 Bandar Seri Begawan, Brunei Darussalam = nitn | Ambitions Accom shed an electronic Individual Acti estal n ie Herpes individual action ppetialg which dine trple internet access throughout the APEC region by 2op¢" © achieve universal access by 2010. 2001 Shanghai, China 2002 Los Cabos, Maxico jhai Accord which foo adopted the Shang} * aes ‘he ‘APEC Vision, Clarifying the Roadmap to Teach the Bogor Goals, and Strengthening the IAP Peer Rove? Process and capacity building activities. The eAPEC Strategy identifying the necessary pojey environment and specifying appropriate goals and actions 1 maximize the benefits of the digital economy was adopted, ‘APEC Leaders adopted the Trade Facilitation Action Plan ang the Statement to implement APEC Policies on Trade and the Digital Economy. APEC Leaders launched the Secure Trade in the APEC Region (STAR) Initiative A statement to Implement APEC Transparency Standards was endorsed. 2003 Bangkok, Thailand Agreed to re-energize the WTO-Doha Development Agenda (DDA) negotiations and stressed the complementary aims of bilateral and regional trade agreement, the Bogor Goals, and the ‘multilateral trading system under the WTO. 2004 Santiago, Chile APEC adopted the Best Practices for RTAs and FTAs, a reference guide for APEC members undertaking RTAIFTA negotiations, The Leaders’ Agenda to Implement Structural Reform (LAISR) is taunched. It addresses five priority areas: regulatory reform; Corporate governance; public governance; competition policy; and strengthening economic legal infrastructure. Leaders endorse the Santiago Commitment to Fight Corruption and Ensure Transparency. 2005 Busan, South Korea APEC completed the Mid-Term Stock-take of Progress towards the Bogor Goals. The stock-take finds that average tariffs in the APEC region have been reduced to 5.5 per cent, down from 16.9 Per cent when APEC was established in 1989, and that APEC is on schedule to meet the Bogor Goals. It also outlines the Busan Roadmap to the Bogor Goals. The APEC Privacy Framework was launched Adopted the Busan Roadmap and the APEC Privacy Framework, and completed the Mid-term Stocktake (which found that APEG is well on its way to meeting the Bogor Goals) 2006 Hanoi, Viet Nam Endorsed the Ha Noi Action Plan which identified Specific actions and milestones to implement the Bogor Goals and support capacity-building measures to help APEC economies Issued a statement on the WTO Doha Action Plan calling for | ambitious and balanced outcomes. 2007 Sydney, Australia ‘APEC leaders adopted a maj economic integration and wek Facilitation Action Plan to furths by 5% in 2010 jor report on closer regional | Icomed the new APEC Trade fer reduce trade transaction costs‘Year / Venue 2008 | Lima, Peru Focus Somlahments 7 Commitments 7 Ambitions gap ba sore Social dimensions of trade and in reducing the 920 betwee 2008 Mohing and developed members in accordance — 'e “A New Commitment to Asia-Pacific nr) Singapore Held first-ever joint meetin i s of APE em to address the economic ersis, NO "20° and Finance ‘aunched the Supply-Chain Connectivity Fram: t ’ ework and th Ease of Doing Business Action Plan to make doing business in the region 25% cheaper, faster and easier by 2015; Commenced work on an APEC Services Action Plan and an Environmental Goods and Services Work Program 2010 Yokohama, Japan 2011 Honolulu, United States 2012 Vladivostok, Russia 2013 Bali, Indonesia Issued the Yokohama Vision which provided a roadmap for members to realize an economically-integrated, robust and secured community Completed an assessment of the progress towards the Bogor Goals and found significant gains in the areas of liberalizing trade in goods, services and investment, as well as trade facilitation Formulated the APEC Strategy for Investment and endorsed the APEC New Strategy for Structural Reform Issued the Honolulu Declaration which committed to take concrete steps toward a seamless regional economy; addressing shared green growth objectives; and advancing regulatory | cooperation and convergence. | Agreed to facilitate trade in remanufactured goods by making | existing and future tariffs and non-tariff measures applied to | goods that are not newly manufactured | Endorsed an APEC List of 54 Environmental Goods with a | ‘commitment to reduce applied rates to 5% or less by 2015 to | help stimulate the development of clean technologies, boost | green businesses, and foster sustainable growth | ‘Agreed to promote connectivity and infrastructure development in | the Asia Pacific Region by adopting the APEC Framework on | Connectivity and the Multi-Year Plan on Infrastructure Development and Investment 2014 Beijing, China 2015 Manila, Philippines 2016 Lima, Peru Endorsed the following: Beijing Roadmap for APEC's Contribution to the Realization of the Free Trade Area of the Asia-Pacific (FTAAP), APEC Strategic Blueprint for Promoting Global Value Chain Development and Cooperation, APEC ‘Accord on Innovative Development, Economic Reform and Growth and the APEC Connectivity Blueprint for 2015-2025 Reaffirmed commitment to achieve inclusive growth in the region by adopting the APEC Services Cooperation Framework (ASCF), and agreed on an APEC Strategy for Strengthening Quality Growth until 2020 to emphasize the importance of pursuing quality growth as envisaged in the 2010 APEC Growth Strategy. Endorsed the Boracay Action Agenda to Globalize Micro, Small and Medium Enterprises (MSMEs) which aimed to strengthen MSMEs participation in the regional and global markets | Issued the Lima Declaration which reaffirmed the commitment to advance the process in a comprehensive and systematic manner towards the realization of the FTAAPmplishments Commitments | Ambitiong —— the initiative jing the WTO je on Progressing Ta Endre ie Et Subsidies which seeks to mm Step | passnpettion amongst exporters and iMPOtrs of aaronet | ooo of the Supply Chain Frame | nd phase . nao 2020 and welcomed the ilmenite gt | actor tT as part of continuing efforts to enhancg te oo it sion ‘and supply chain connectivity in the region aera poy commitments for members {ward sui | . nai integration in the region _ | __| _ecanonic# Seat for the 2030 Agenda for Susie | eu i eect as a framework for inclusive growth | YIRIS |. fpstuced economic and france oficial {0 work joint ity 2018 APEC Economic Policy Report on Structural Refory ar Infrastructure + Endorsed the APEC Action Agenda on Advancing Exon | Financial and Socal Inclusion | + Endorsed. the APEC Framework on Hunan Pesos | Development in the Digital Age + Welcomed the adoption of the APEC Intent and Diy Eoonomy Roacmap and the APEC Framework on C litati =| | E-Commerce Facilitation + Welcomed the entyinto‘orce of the WTO Trade Faia, Agreement (TFA) |* Committed to strengthen the ability of MSMEs to compete jn international markets and participate in global value chains |* Adopted the Food Security and Climate Change Multi-Year Action Plan 2018-2020 * Welcomed the establishment of the APEC Vision Group to assy Senior Offa in shaping the post-2020 vision |The APEC Chair releases the Era Kone Statement, reflecting the ‘work of member economies throughout 2018. It states that Leaders reaffim the importance of trade liberalization ‘and facilitation in achieving sustainable economic growth and in Creating jobs, and recognize the contributions that the multilateral trading system has made towards that end. * APEC Leaders committed to advancing inclusive growth through innovation, such as the use of digital technologies. They Tecognize that digital technologies are changing the way ‘businesses and government operate, and although they come with challenges, they have the potential to provide significant widespread gains. To further APEC’s abilty to meet these | challenges, the APEC leaders endorses the Action Agenda for the Digital Economy which lays out clear commitments to meet the digital future Leaders meeting was not cor Some unforeseen circumstances ‘A Host Economy Leader's Statement was released highlighting ‘significant initiatives, deliverables and hundreds of meetings, workshops, and events thal took place thoughout Cle 2018 Port Moresby, Papua New Guinea 2019 . ened in November 2019 due fo| Santiago, Chile “Source wi ape og Tariff Commission | Page 148What were the operational targets tr ym + Trade in goods: Zero tarts f restrictions, MHS for ll goods ang the removal « — Trade in services: Unlimited Tight ‘ave elated to the provision o sane abishm + Intemational investment: () Nati fights of establishment in sy of international investors in tect0"® Of produ and (ii) Accessi * Transport: (i) Full harmonization of Standards: (i) Uninhibited (other thant (ate, contrt carriers with majority of shares economies which impose no carers (le. “open skies" in the Asia Posi governments to international legal te sea and land * Tourism: (i) Introduction of smart card international passengers; and i) Vi economies within the Passports and electronic isa-free travel by Fegion for visits of upto six (6) m processing of residents of APEC. ronths recognition ofall technical telecommunications rans-border tran: 'smissions; and (ii) National cal telecommunications networks standards; (ii) Unhampered tr treatment for connections to lo * Gipute settlement: Adoption of an APEC Code of Practice for the settlement of isputes ‘relating to trade policy or interationse investments based on "mediation and the reinforcement of existing multlateral mechani s Competition policy: Rejection of anti-dumping measures by APEC governments aaracg cients from any other APEC participant folowing the adoption of as reed code of minimum standards for competition policy Administrative procedures: (i) Full compatibility and Electronic Data Interchange of customs: documentation and clearance procedures; and (ii) Full documentation and on-line access to texts of all significant commercial lesislations, “regulations, tariffs or quantitative restrictions influencing international economic transactions of all Participants, including patents, standards and testing procedures What are the proposed Philippine Action Plans for tho Trade and ivestnant Literalization and Facilitation areas in the implementatio Agenda? & Ontaritts a) Reduce tariffs progressively Tariff Commission | Page 149* Gradual phase dwnieiinatin of preferential ars under yap FTAs on substantially all goods by the agreed end-datesVlouy * Conduct of a comprehensive tat review at least every fig years % * 144 af ines classi 2s senstve agicutural products exe {rom tariff reduction fed i) Ensure transparency of aif regime: Active participation inthe APE Tariff Database to update its taif data notifications b. Onnon-tarff measures (i) Reduce non-tariff measures progressively * _Nonarif measures imposed fo reasons of pubic secuy, hay and safety, are alowed to remain from 1997-2020; and *_Ptiodl review of residual nora measures to a35ess the ney for continued application (i) Ensure transparency of non-aif measures: Exchange information yiy APEC on residual non-tariff measures 7, Arising from the 2011 AELM, what are the proposed defintions of remanufactured goods? + Non-agricultural goods that are enely or pataly comprised of pat that: () have been obtained from the disassembly of used goods; and (i) have bos) processed, cleaned, inspected, and tested to the extent necessary to ensure they have been restored to original working condition or better, and for which the remanufacturer has issued a warranty’ + Product that goes through a recovery process where itis transformed through Cleaning, testing, and other operations so that it meets the same specifications as a new good? * Industrial goods assembled in the territory of a Party classified under HS Chapter 84, 85, 87, oF 90 or heading 94.02, except goods classified under HS heading 84.18 or 85.16, that: (i) are entirely or partially comprised of recovered ‘goods; and (i) have a similar life expectancy and enjoy a factory warrant similar to such new goods* ‘+ Industrial good assembled in the terttory of a Paty a lsted in Annex 4A, that (i) is entirely or partially composed of recovered goods; (i) has the same lle * hips govpubleatons3s2punt356 pat 2 hitpoog race gowtapapec! 3 PERULUS, 2006, Article 4.28 Defintons,INTrade ID. wring rgint Tariff Commission | Page 150expectancy and meets the {i enloys the same factory wore pertormance Y Warranty ge ane standards as a new good uch @ new good! i and wnat ae the issues being discussed on rma nufactured «Provision of specie Harmonized Sytem ty haa riff line «Treatment of remanufactured goods as used 00d and waste «Imposition of trade-restit understanding or concem over pubis eaey measures due to a lack of + Opening up of developing marke te dumping of sub-standard gooey" °™=MSHUEY gods whch caus ead «Application of import prohibition a remanufactured goods in spect sectors °™aMM@tured goods or against «Application of technical regulations, co conformity documentation and import censing requirements concering eae remanufactured goods ‘concerning new goods to «Facilitation of trade by making existr measures isting and future tai a applied to goods that are not newly manufactured pubey arose @ What is the relevant use of advance rulings to the APEC economies? Through the use of advance rulings, APEC economies can hel address shpat te wupgty chin Ry iroudra iushasion cgeetrg W ‘ha egen a mere transparent and predictable environment in which o operate across borders * 40, What Executive Orders have been issued to implement the liberalization ‘measures adopted by the Philippine Government under APEC? Table 6.2 Os Issued to Implement Liberalization Measures ‘Adopted by the Philippines under APEC EO No. | Philippine Commitment Effectivity Dato Tarif reduction program on industrial products under 254 Chapters 25 to 97 of the TCCP 22 July 1985 Tariff reduction on non-sensiive agricultural products 288 (those not covered by quantitative restrictions) fling | 12 December 1995 under Chapters 1 to 24 of the TCCP__ Re-calbration of taf rates for deserving industies 465 and. corrected remaining distortions inthe tan structure Re-calbration of tariff 486 covered under EO 465 _ phased tari reduction program ___— 22 January 1998 ‘schedules for residual lems not 5 to achieve a coordinated PE(TP=) 2005, rile 4: Defintion,INTrade-BD, wow ed. 2010071 Rear o Minster, APEC Pubeations saritf Commission | Page 251EO Ne 5 —— [tone Prilippine Commitment para Pgricultural __ Reduction of tariff levels across all ad ba by 2004, excluding sensitive ucts en 08: 241 | Comprehensive tarif review that prescribed th 200: | 2005 tari schedules for ind en 264 | Provided the tai rr S74 | Set the tani stn 678 Reduced the rates of ‘manufacturing inputs 799 _ | Reduced the rates of buts which are. 890 Tariff eliminatic 18 June 2019 896 —_—_——_| 22 June 2019 ible sce Tait elation oF 899 _| costo support Provided the are not locally aval ods 10 5% _ __ 185 | goods to 5% Prescribed the MFN E _20__ | 2020. B. Individual Action Plan on Tarifts ) 11. What are Individual Acton Plans? rd the unilateral steps taken by Individual Action Plans are @ So ‘These are prepared for each ‘Members to meet the Bogt ‘action areas of the Osaka Action 12, Why ynnual reports that reco! of the fifteen (15) policy jor Goals. ‘Agenda. cdo Members need to submit Individual Action Plans? sstment regimes, providing rency of trade and inves ting intra-APEC trade and To improve the transpar iness and thereby faciltal valuable information to busi investment Members to focus on policy issues which need to be addressed To encourage to achieve the Bogor Goals through annual reporting and a peer review process To maintain and demonstrate the momentum of APEC trade and investment efforts, thereby encouraging liberalization in non-APEC economies through WTO processes To enable Member To enable Members to learn from the liberalization and facilitation experiences Tariff Commission | Page 152py the Committee on Trade a towards the Bogor Goals. nd m fecommendation: nism to track ePared Economies will re ha port Le improvements planned for Then new trade and invest - impreogor Goals. Electronic versione er ne eo the ge ete 2 raced tne 200 ons of the Individual Action pg 2 ies and the Action Plans are posted on tne en sted on the AF Ee PEC 14, _ Is there a legal obligato n to abide by tari. commitments? There is none. APEC : Members. they commit to ul are not bou : individual Action gee celia Werazatonfectaon ns ee implementation, lateral and voluntary “and. subject to besten endeavour 15, Are the tariff commitments under Al ncessions i PEC by the Philippines under the WTO a ee No. The Philippines did not commit i being unilaterally implemented. anything new in APEC outside of what is aready Does the Philippines intend to include in its revised Incvidual Acton Plens 2 16. commitment to reduce tariff rates to zero by 2020? tariffs to zero across-the-board and open trade through ‘and will continue to ‘commitment to reduce intends to promote free it of national development goals, At present, there is no definite by 2020 although the Philippines progressive reduction of tariffs in pursul aoa tain the transparency ofits tariff regime 1s and how is the work on tariffs, progressing? .e transparency obligation 17. What are th ” is wine i “tthe “APEC Tarif Databases Nate ; nges occur and annual all interested pal dates of tariff information as chal and is accessible to current by providing both regular uP gata. updates of trade and other agreed-upon”C. Environmental Goods and Services 18, What are Environmental Goods and Services? voted? 2 E GS) refers to the ink 4 vironmental Goods and Services (EGS) r UStY sect invone4, "© S0hvng, limiting or preventing environmental problems, EGS companies may xe ved in manufacturing andlor services related to water oF ait pollution, wage Management, recyciing, renewable energy, monitoring, and analysis and assessment The development of an EGS industry in transition economies is instrumental j, eliminating preventable diseases, enhancing quality of life, protecting natural resources ayy attracting in-bound investment.” 19. What is the coverage of the APEC Environmental Goods List? In 2012, AELM endorsed the APEC List of 54 environmental goods, to include the following: + renewable and clean energy technologies, such as solar panels, and gas ang wind turbines; + wastewater treatment technologies, such as filters and ultraviolet disinfection equipment; «air pollution control technologies, such as soot removers and catalytic converters; + solid and hazardous waste treatment technologies, such as waste incinerators, and crushing and sorting machinery; and = environmental monitoring and assessment equipment, such as air and water quality monitors, and manometers to measure pressure, and water delivery systems, 20. What is the tariff schedule for environmental goods? Paragraph 31 of the Doha Development Agenda provides for the reduction, or as appropriate, elimination of tariff and non-tariff barriers on environmental goods and services. With the endorsement of the APEC Environmental Goods List in 2012, AELM also committed to reduce applied rates to 5% or less by the end of 2015 on said goods, taking into account Members’ economic circumstances, and without prejudice to APEC economies’ positions in the WTO" As of January 2016, APEC economies have published details on their respective implementation of said tari commitment. This APEC initiative has lowered the cost of environmental goods such as solar panels, wind turbines and air pollution contol equipment’ 7 APEC definition § Annex - APEC Lis of Envronmenial Goats (2th APEC Econom Leaders Metng) wn apec.og Tariff Commission | Page 154wnat isthe Philippines’ Environmental Goods Sched ule? ot on 26 June 2015, EO 185 was iss i 5 ued, modifyi __onmental goods, in compliance with ad, modifying the eqvrontmenna included condensers ee comming oe 2 certain Subjected to or other vapour 5% it it i incinerators: and filtering machinery and apparatus for liquids or gases. Power units, waste What are the implications of the APE 22 9 the Philippines? 'C Work Programme on Environmental Goods Reduction of tariffs to 5% in 2015 on the enviro 00d on Fr nmental improve market access of Philippine exports to USA, “Tawan and Mesico on i (wn lines. 23. Whatis the Environmental Services Action Plan? On 01 March 2016, APEC Members launched a multi-year Environmental Servi ction Plan (ESAP) to facilitate trade in environmental services by minimizing associated acuatory and trade policy barriers in APEC economies. The ESAP takes the following two- track approach: a. First, a survey will be undertaken to provide APEC economies with necessary information to gain greater insights about efficient regulatory and trade promotion policies in environmental services tinue to consider and study broader ew to build and enhance a industries/businesses. b. Second, APEC economies will cont environmental industries/businesses with a vi common understanding of Se This study is expected to contribute towards both the dis J of environmental services and identifying ‘challenges relating to environmental businesses."Association of Southeast Asian Nations A. Overview 1 Wet isthe Assocation of Southeast Asian Nations? il iat establish on 08 togr lhe Asstiaton of Southeast Asian wations (ASEAN) WO Stony created 10 Aa 67 through the Bangkok Declaration and is 2 foal oar count in polticl and- economic cooperation and 123iOn aout 2°85 wore Indore, Southeast Asian region Among te undi g of t*parussalam joined on Gi peutteest Asian region, Arora and TRala x Demerrale Ror oro January 1984, Viet Nam on 28 July 1995, 6, Peop| a Aer ghar and Myanmar on 23 July 1997, and ‘Cambodia on today the ten (10) Member States of M2 ASEAN. : vate economic growth, oriane® ASEAN's main objectives, me acs sora mee fn erm progress and cultural development, region. iiples of ASEAN? the ASEAN Mem! nntained in the Trea! ‘are the fundamental prin er States (AMSS) have adopteg rs What. ty of Amity and Cooperation in with one another, In their rations iles, as CO" the following fundamental princi ‘Southeast Asia of 1976: 1 respect for the independen' ‘entity of all nations; ‘ad its national existence free from external ce, sovereignty, equality, territorial integriy, * mutual and national id «the right of every State to le: interference, subversion oF coercion; non-interference in the internal affairs of one another; settlement of differences or disputes by a peaceful manner, «renunciation of the threat or use of force; and + effective cooperation among each other. B. The ASEAN Charter 3. What is the ASEAN Charter? The ASEAN Charter refe institutional fa fers to the legal document th Ituorlfanevr fr copeaon win the ASEAN Co afte ASEAN Community. The Chater also codes FAN region and towards the formaton and presents accounabiy and compliance, SNS S88 nce Overall, the ASEAN Chai the cond iter establis Gasca blishes the rules-based systems and structures for Tariff Commission | Page 156The ASEAN Charter was signed by the Governments 0 November 2007 and entered into force on 16 December 2008 of the ten (10) AMSs on What are the main declarations of the ASEAN Charter? «To maintain and enhance peace and sect in Southeast Asia as a nuclear weaponffee zone nan nd Preserve + Tocteate a single market and te a sin production base, which i eae ee ee facilitated movement of labour, and freer flow of capital event « Tostrengthen democracy, enhance good 5 governance and the rule of to promote human rights, The ASEAN shall establish a human igs boot ian terms to be decided by the foreign ministers. ‘i «To respect the independence, sovereignty, territorial inte identity of all AMSs " eet «s Renunciation of aggression and threat or use of force in any matter inconsistent with international law, and reliance on peaceful settlement 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 resources and wellbeing through co-operation 07 + To develop human access to development opportunities, social welfare and education, equitable justice To promote an ASEAN identity through awareness of culture What are the rights and obligations of AMSs under the ASEAN Charter? 5 AMSs have equal rights and obligations cluding the enactment of . must take all necessary Meanie, in n aerepite vsomestc legislation, 0 effectively implement the provisions of the Grrarter and to comply with all ‘obligations of Membership Charter or noncompliance, refer the serious breach of the ‘eon itt for ® satation ‘inder Article 20 (Consultation ‘and Consensus) of the a Charter. ertf Commission | Page 157i 6. What are the procedures for application and admission of new Members? 3. The procedure for application and admission fo ASEAN shall be preserga the ASEAN Coordinating Council (ACC). y b. Admission shall be based on the following criteria: + location inthe recognized geographical region of Southeast Asia, ‘© recognition by all AMSs; ‘+ agreement to be bound and to abide by the ASEAN Charter; ang + abiliy and wilingness to carry out the obligations of Membership © _Amision shal be decided by consensus by the ASEAN Summ. ony recommendation of the ACC. 4 An applicant State shal be admited to ASEAN upon signing an Instumen ‘Accession to the Charter. 7. What are the general princes for the settlement of disputes? * Member States shall endeavor to resolve peacefully all disputes in a time Tanner through dialogue, consultation, and negotiation, * ASEAN shall maintain and establish dispute settlement mechanisms ina fy of ASEAN cooperation, & What will happen to unresolved disputes? When a dispute remains unresolved, after the application of the preceding provisions Of this Chapter, this dispute shall be referred to the ASEAN Summit, for its decision 9. What is the ASEAN Summit and its functions? The association holds meetings known as the “ASEAN Summit’, where Heads of State or Government of each Member State meet to discuss and resolve regional issues, 38 well as meet with other countries outside ofthe bloc with the intention of promoting extemal relations. As the supreme policy-making body of ASEAN, the ASEAN Summit undertakes the following * — deliberates, provides policy guidance, and takes decisions on key issues Pertaining to the realization of the abjectives of ASEAN, important matters of interest to AMSs and all issues referred to it by the ACC, ASEAN ‘Community Councils and ASEAN Sectoral Ministerial Bodies, + instructs the relevant Ministers in each of the Councils concemed to hold ad ‘hoc. inter-Ministerial_ meetings, and address important issues concering ASEAN that cut across the Community Councils, Tariff Commission | Page 158ee * addressed emergey cole ‘Geney situations affecting ASEAN by taki 9G appropriate + decid £8 on matters referred to it under Chapters Vil and Vilt + authorizes the establishment and tic and other ASEAN institutions; and.” \S*U#O” of Sectoral Ministerial Boies ‘+ appoints the Secretary-General of ASEAN. ASEAN Summit Meetings are held twice h an holding the ASEAN Chairmanship, is convened ealopanalce ait necessary, and is held at venues agreed upon by AMSe ed by the Member State ‘hoc meetings whenever 10. _ What bodies comprise the ASEAN Summit? a. ASEAN Coordinating Council - comprises the ASEAN F ‘oreign Ministers and meets at least twice a year. Supported by the relevant senior offi i ior officials, the ‘* prepare the meetings of the ASEAN Summit; * coordinate the implementation of agreements and decisions of the ASEAN Summit; * coordinate with the ASEAN Community Councils to enhance policy coherence, efficiency, and cooperation among them; * coordinate the reports of the ASEAN Community Councils to the ASEAN Summit; * consider the annual report of the Secretary-General on the work of ASEAN; consider the report of the Secretary-General on the functions and operations of the ASEAN Secretariat and other relevant bodies rove the appointment and termination of the Deputy Secretaries- : ea recommendation of the Secretary-General; and General upon the © «undertake other tasks provided for in this Charter or such other functions ae may be assigned by the ASEAN Summit f the ASEAN ils — comprise the three (3) pillars of b.ASEAN Communit ical Securiy Community Counel (APSCO} (i) Community: (i) Aer rramunity council (AECC), and (i) ASEAN Sooo Cull ASEAN Econom’ (ASCCC). To realize the objectives of each Counc unit co N Community Counc shoul oe the implementation of the relevant decisions of the «ensure cnn lors under its purview, and on different sect coordinate the work = re ther Community Councis; and issues which cut act ‘Tariff Commission | Page 159™ Leaders agreed to hasten the establishment of the AEC by 2016 and fo transform ag into a region characterized by the free movement of goods, services, investment, at labour, and freer flow of capital 15. What is the AEC Blueprint? ‘Adopted in 2007, the AEC Blueprint serves as a coherent master plan guid establishment of the AEC. It identifies the characteristics and elements of the AEC vith targets and tmelines for implementation of various measures @$ Well 25 pre-agrat flexbiltes to accommodate the interests ofall AMS. ‘The implementation of the first AEC Blueprint (2015-2018), adopted in 2007, hay been substantively achieved in eliminating taifs and facilitating free trade; advancing tye Tberalizig investment; streamlining and ha services trade liberalization agenda; capital market regulatory frameworks and platforms; faciitating skiled labour mebine promoting the development of regional frameworks in competition policy, cons, protection and intellectual property rights: promoting connectivity; narrowing thy development gap; and strengthening ASEAN's relationship with external partes. Moreover, as the ASEAN recognizes that regional economic integration is a dynamic, on-going process as economies as well as domestic external environments are constanty evolving it has developed the AEC Blueprint 2025, The AEC Blueprint 2025, adopted by the [ASEAN Leaders at the 27" ASEAN Summit on 22 November 2015 in Kuala Lumpur Malaysia, is built upon the AEC Blueprint 2015 and will provide broad directions through strategic measures to guide the next phase of ASEAN economic integration from 2016 a, 2025. The AEC Blueprint 2025 forms part of ASEAN 2025: Forging Ahead Together. 16. What are the key characteristics of AEC 2025? Highly integrated and Cohesive ASEAN Economy ‘A Competitive, Innovative, and Dynamic ASEAN Enhanced Connectivity and Sectoral Cooperation Resilient, Inclusive, People-Oriented, and People-Centered ASEAN ‘A Global ASEAN 17. What are the elements comprising a highly integrated and cohesive ASEAN economy? * Trade in goods © Trade in services © Investment environment © Financial integration, financial inclusion, and financial stability © Facilitated movement of skilled labour and business visitors + Enhanced participation of global value chain Tariff Commission | Page 16218. 19, What are the elements comprising an innovative and dynamic ASEAN? Effective competition policy Consumer protection Strengthened intellectual property rights cooperation Productvty- *hieving are enhanced. Its main focus is on nurt rf ate of the ASEA\ i turing human, N peoples sustained development in a harmonious and people-oriented aceon’ ature resources for 27. What is the ASEAN Socio-Cultural Community Blueprint? The ASCC Blueprint represents the human dimension " D of ASI ti upholds ASEAN’s commitment to address the region's aspi ti re wally often The goals of the ASCC are envisaged to be achieved by implementing concrete and productive actions that are people-centred and socially responsible. A set of cooperative activities has been developed based on the assumption that the three (3) pillars of the ASEAN Community are interdependent and interrelated and that linkages are imperative to ensure complimentarily and unity of purpose. What are the characteristics of the ASCC Blueprint? Human Development Social Welfare and Protection Social Justice and Rights Environmental Sustainability Building the ASEAN Identity Narrowing the Development Gap eee eeers ; Ill, The ASEAN Free Trade Area | A. Overview 1. What is the ASEAN Free Trade Area? de bloc agreement which seats th AS Tse eg sit or es icenea pars remove obstacles to freer trade among AN aoe and tt itative restrictions yr non-t and te saepe furs net aan etn ATTA year 2008 at the 4" ASEAN ‘Summit held in ‘Singapore on 28 January 2. Whatare the primary goats of AFTA? To increase ASEAN's competit market through the elimination, wit wve edge as a production base in the thin ASEAN, of tariffs and non-tarif barriers To attract more foreign direc investments to ASEAN Preferential Tariff Scheme B. The Common Effe What isthe Common Effective Preferential Tarif Scheme? tial Tarif (CEPT) Scheme is the main implementing {AMSs shall have common effective tariffs among fs non-ASEAN countries shall continue to 3 ‘The Common Effective Preferer mechanism of AFTA. This means that themselves in AFTA, but the level of tariffs vis-a-vis be determined individually. It is 2 cooperative arrangement among AMSs to reduce intra-tegional tans ang remove nena Beriers over a 15-year period commencing 01 January 1998. In September 1994 at the ASEAN Economic Ministers Meeting, the target date of 2008 was zecelerated to 2003. The goal of the Scheme is to reduce tariffs on a manufactured goods to 0%-5% by the year 2003. What EOs have been issued to implement the Philippine CEPT Scheme? 4 Table 6.3 EOs Issued to Implement the Philippine CEPT Scheme [EO No. | Date Issued Description Modified the nomenclature and rates of import duty on zinc aae | 77 December oxide, zinc. peroxide and loctylorthophthalates under the CEPT-AFTA _] Modified the rates of duly on certain imported articles to | a1 cctover implement the 1997-2008 Philippine schedule of tari eduction 453 October of products transferred fom the Temporary Exclusion List (TEL) “to the Inclusion List (IL) under the new timeframe of the | Accelerated CEPT-AFTA | Modified the rates of duly on certain imported articles t0| 487 | 11 4une 1998 plement the 1998-2003 Philpine sched of tari reduction | | of products transferred from TEL to IL under the new timeframe | of the Accelerated CEPT-AFTA ‘| Tariff Commission | Page 16624 254 49 163 165 166 200 316 484 hasdiied he as a ao ——— implement the 1968-900 ocean imporied aricles t | of products transferred ror opine, Schedule of tari ved of product ffom TEL to under the new tisefinny ne rated CEPT-AFTA 1@ new timeframe Modified the rates of di implement the 72000-2003 ty impoted aricles To ‘7 Apt 2000 | of product transferred ftom TEL and the Senate Lat eens TLof tho Acooleraled CEPT-AFTA and the anfeases oege CEPT rates on extactedtfines net Modified the rates of duty on porled articles y on cei ices 0 Implement te 2000-2003 Philppine schedule of wr fest ude the Bold Eoonomic Measure navesof he Aeeloatog under the Ba initiatives of the Accelerated Modified the rates of duty on ported implement the 2001-2003 apne scious of tar rection (03 November | under the Bold Economic Measure Initiatives of the ante 2001 | CEPTAFTA rd the transfer of products from the Unprocessed | Aon cl al ProceTEL ‘and the General Exclusion (GE) List TModified the rales of nation and | 40 January import duty of Information and 3003 ‘Communications Technology products to implement the e- [ASEAN Framework Agreement Modified the rates of duty on certain imported article ies 40 January implement the 2002 Philippine schedule of tariff reduction under 2003 the Bold Economic Measure Initiatives of the Accelerated CEPT-AFTA ar he transfer of products from the Agricultural roducts-SL to the CEPT-IL Modified the rates of duly on 40 Jani ty on certain imported articles to Janay implement. the “ASEAN Integration System of Preferences _{AISP) Package of the Philippines Modified the rates of duty on sugar fo implement preferential 26 July 2003 rates under the CEPT-AFTA 7 Modified On fated ay ‘on certain imported articles to a implement the transfer of the last tranche of products from the 0 December | grcutual Producs-SL tothe CEPT. and the modification of the CEPT rates on oil cake ‘and other solid residues of maize _ __ (com) germ, sodium tipolyphosphates and cassava starch 09 January Modified the rates of duly on certain imported articles to sooa implement the commitment to reduce the tar rates on 60% of 04 the products inthe IL to 0% under the CEPT-AFTA __ “Temporarily granted ate 0 42 June 2000 2 CEPT rate of 0% on certain imported | articles to implement ‘the agreement between the Philippines: 21 May 2004 and Singapore on the ‘compensatory adjustment measures relating to the Philippine suspension of concessions on certain petrochemical produs eat] ———fodified the rates of import duty on certain icles to implement 22 July 2005 | the ASEAN Integration System of Preferences — 39 December | Modified the rates of duly on sugar 10 implement preferential 2005 ‘CEPT-AFTA oS ~~ Lifted the suspension of ication of the tariff reduction 42 January schedule on petrochemicals and certain plastic products under 2006 the CEPT-AFTA ‘riff Commission | Page 167OO” EO No. | Date Issued a tio a ‘Modified the rates ‘of duty on ee products . 2 athe. tarff reduction schedule. for 2008.20 jer a ducts transferred from the Agen iad 2008 | sensitive agricultural pro Prods Su tothe CEPT __| Products Se eof duly on_ cern imported aries eet | "2006 | the products in the IL to 0% under the CEPT-AFTA, o | i ed the rates of duty on certain imported aries ie: 617 23.April2007 | implement the ‘commitment to reduce the CEPT rates on bo] | products 100% underthe AISP __|_——Hfictfed the rates of duty on certain imported articles i> ros 22280089 implement ine commento reduce te a ls ora 2008 the products inthe IL. to.0% under the CEPT-AFTA a “Amended Section 4 of EO 486 dated 12 January 2006 iting the’ 'e application ofthe tariff reduction schedule en, yos | 22 January | suspension of th 2008,” | petrochemicals and certain plastic products under the CEpr. [ARTA : 768 “D7 November | Modified the rates of import duty on certain artes mY “2008 _| implement the AISP _ Titcdified the rates of duly on certain imported artices ig) aso 23Deceriber | implement the commiment 1 ‘eliminate the tar rates on the ED | Femaining products in the IL in year 2010 under the CEPT. _ 700° _| AETAIASEAN Trade in Goods Agreement (ATIGA) Modified the rates of import duty on sugar producis 1p| Implement the tariff reduction schedule on sugar oon rTsune 2010, BENE et re Holos, pone pe a _ consgerction fr rice and sugar under the CEPT-AFTAVATIGA Modified the rates of import duly on rice products to implement ‘| the tariff reduction schedule on rice products through 894 18 June 2010 invocation of the Protocol to Provide Special Coneidraton fr Rice and Sugar under the CEPT-AFTAVATIGA [7 socnon 3 of EO #6,» 2009 sles “The tres td nh Annex ad all evant EOs sued n come ae Cctonilmnatin canines ao m accance wth the ogaions under Aric 19 (Re CEPT at fart Des] ns 2 (sane Logl Enactnents) of We RTIGA coh Tariff Commission | Page 168 4C. ASEAN Trade in Goods Agreement wnat is the ASEAN Trade in Goods Agreement? ‘An improvement over the CEPT-AFTA Scheme, the ASI ‘cent (ATIGA) consolidates into one comprehensive agreemer tions, and commitments made by the AMSs with regard to both trade i oblige rif elements (e.g, trade disciplines on Santary and Phytosantiay movers) ms procedures, and trade facilitation). The ATIGA was signed in February 2009 oa i into force on 17 May 2010 upon the notification of the ratification of all AMSs. EAN Trade in Goods i nt the existing initiatives, custo enter With ATIGA, certain ASEAN agreements relating to trade in goods, such as the get Agreement and selected Protocols, were superseded. What is the objective of ATIGA? ATIGA seeks to achieve free flow of goods in ASEAN, and considered as one of the principal means to establish a single market and production base for the deeper economic Megraton of the region towards the realization of the ASEAN Economic Community by 018. 7. What are the key elements of the ATIGA? a. The ATIGA consolidates and streamlines all the provisions in the CEPT-AFTA (CEPT, TEL, SUHSL Protocols), and formalizes several Ministerial decisions. b. The ATIGA Annex provides the full tariff reduction schedule of each AMS and spells out the tariff rates to be applied on each product for each year up to 2015. This makes tariff reduction schedules transparent and predictable for the business community. A single legal enactment to effectively implement the stipulated reduction schedule up to 2015 is also expected. c. The ATIGA comprises elements to ensure the realisation of free flow of goods in ASEAN, including the following: tariff liberalisation, removal of non-tariff barriers, rules of origin, trade facilitation, customs, standards and conformance, and sanitary and phyto-sanitary measures. The ATIGA contains comprehensive coverage of commitments related to trade in goods, mechanisms for its implementation, and institutional arrangements. This would allow for synergy of actions being undertaken by the various ASEAN sectoral bodies. 4. With the objective of eliminating non-tariff barriers, the provisions on non-tariff measures in the ATIGA have been enhanced further through codification of measures, as well as establishment of a mechanism to monitor the committed elimination of non-tariff measures. on trade facilitation measures by including the Facilitation. Subsequently, ASEAN developed the for the period of 2009-2015. e. The ATIGA places emphasis ASEAN Framework on Trade Trade Facilitation Work Programme ‘Tariff Commission | Page 169What are the programs for tit reduction oeimiaton of part dues? @. Under ie the ATIGA, AMSs shall eliminate impot duties all products tray between among them by 2010 fr MEANS (refers t0 the first 6 ‘members \SEAN) ‘and. by 2015, with flexity to 2018, for Cambodia, Lao Pp Myanmar and Vietnam (CLMV). rort duties on originating goods gy b. Each AMS shall reduce andlor eliminate I the other AMSs in accordance with the following modalities under Annex 2 (Tariff Schedules) of ATIGA: iyels listed in Schedule A of each AMS he Pro pe elminated by 2070 for ASEAN ot 2015 for CLMV. Import duties on Some ‘products of CLMV, Not exceeding 29. ot tari lines, shall be eliminated PY 2018, and their tariff reduction 7 ules for said products up 10 2018 ‘shall be identified by CLMV not later than 01 January 2014; mation and Comm ‘© Import duties on tt liberalization schedul nications Technology products «Import duties on Infor iistod in Schedule B of CLMV shall be ‘eliminated in three (3) tranches, jie. by 2008, 2009 and 2010; ts listed in Schedule ‘on Priority Integration Sector produc «Import duties iminated by 2012; of CLMV shall be eli tural products listed in Schedule D Import duties on unprocessed agricul of each AMS on its own acoord shall be reduced or eliminated to between oie ee by 2010 for ASEAN-6; 2013 for Viet Narn: 2015 for Lao POR rk Myanmar, and 2017 for Cambodia. impor. duties on sugar products a Viel Nam shall be reduced to between 0% - 5% by 2010; Unprocessed agricultural products placed!) Schedule E of each AMS on its own accord shall have their respective ‘applied MFN import duties a veyed in accordance with the schedules set Out therein, An AMS may ecide to conduct reviews on unprocessed ‘agricultural products with a cece improving the market aocess for these products: .d in Schedule F of Thi ff rates reduced in accordance wit ding to their respective product classification: vailand and Viet Nam shall have The products liste« th the tariff reduction their out-quota tari ‘schedules correspon «Import duties on petroleum products listed in Schedule G of Cambodia ‘and Viet Nam, shall be reduced in accordance with the schedule as mutually agreed by all AMSs; ced in Schedule H (General Exceptions) of each AMS . The products pla Jimination of import duties; shall not be subject to reduction or el «Reduction and elimination of import duties shall be implemented on ot January of each year and ‘The base rates from which import duties are to be r ed educed or elimina shall be the CEPT rates atthe time of entry into force of the ATIGA.No AMS shall nullify or impair any tariff con © the tariff schedules. : \cessions applied in accordance with No AMS may increase an existing duty specifi 6. No AMS ee einating G00 juty specified in the schedules made on What is the status of the tanffreduction/elimination intiatives in ASEAN?"* Progress in tariff elimination is demonstrated by the average ATIGA rate spony 054% in 2014 compared with the Most Favoured Nation (MFN) Borage of 890%, fn the case Of ASEAN-6, the average ATIGA rate is now negligible, while for CLMV, the case Sues to dectine until tarif elimination for several products is implemented in orate of ATIGA tariff lines with ATIGA rate of 0% is (i) 99.2% for ASEAN-6 and (ii) 2018. The ° 590.8% for CLMV in 2014 and 2018, respectively. 72.6% an yo. What are the exclusions/exceptions allowed under the ATIGA? a, General Exceptions — An AMS may exclude a product based on the following considerations: «to protect public morals; «to protect human, animal or plant life or health; « _ importations or exportations of gold or silver; «to secure compliance with laws or regulations which are not inconsistent With the provisions of the ATIGA including those relating to customs wivereoment, the enforcement of monopolies operated under paragraph 4 ortarticle Il and Article XVII of GATT 1994, the protection of patents, Gademarks and copyrights, and the prevention of deceptive practices: «products of prison labour, «= to protect national treasures of artistic, historic, of archaeological value: «to conserve exhaustible natural resources if such measure are made vvcative in. conjunction with restrictions on domestic production or consumption; + to pursue obligations under any intergovernmental commodity agreement verfoh conforms to criteria submitted to the WTO and not disapproved by iLor which is itself so submitted and not So disapproved; «restrictions on exports of domestic materials necessary to ensure eRlontial quantities of such materials 10% domestic processing industry Guring periods when the domestic price of such materials is held Below the world price as part of @ governmental stabilization Plan, provided that such restrictions shall not ‘operate to increase the exports of or the “ASEAN, ‘Secretariat tariff Commission | Page 272shall not depan ust, and ie auch domestic incu, and shal olcton ae ATIGA relating fo nonce proves — equ tito of outs TE ay + ezontal od tha any such measures Shay, i as Son poh. r 5 that any such measures, Fkal necpbaty jucts, and th itomatona supp of? Per provsons_ the ATIGA, shat a inuod as soon as the C ons be ‘ondtions giving rise to them have ceagegs® ides from ATIGA all products falling under HS Chapter g, ams and Ammunition; Parts Thi xcept for goods cla; ‘and Accessories Thereof), © Sc (Arms and Amaro. 93.07 (Swords, culasses, bayonets, lances and simitar am under HS Hea therefor nd pets thoreof and scabbards and sheaths therefor). security Exceptions ~ These refer to the following: The Philippines exclu b. To require any AMS fo furnish any information, the disclosure Of which 4 considers contrary to its essential security interests; + To prevent any AMS from taking any action which it considers necessary {or the protection of its essential security interests: or under the United Nations Charter for the maintenance of intemationa, ) + Toprevent any AMS from taking any action in pursuance of its obligations peace and security. 11. What are the programs for elimination of tariff rate quotas and non-tariff barriers? a, Each AMS undertakes not to introduce Tariff Rate Quotas (TRQs) on the importation of any goods originating in other AMSs or on the exportation of any goods destined for the territory of the other AMSs. Viet Nam and Thailand shall eliminate their existing TRQs in three (3) tranches, + Thailand - by 01 January 2008, 2009 and 2010; and * Yet Nam - by 01 January 2013, 2014 and 2015, with flexibility up to 2018. © Each AMS undertakes not to adopt or maintain any prohibition or Quantitative Seaetten oy ae importation of any goods of the other AMSs oF or ihe exportation of any goods destined for the territor ir g a ry of the other AMSs, except in Recordance with its WTO rights and obligations or other brovisions inthe ATIGA. To this end, Artle XI of GATT 1994, shan form part of the ATIGA mutatis mutandis = Secrreratel a et d. The identified non-tari a barriers shall be eliminated in three (3) tranches as * Brunei Darussalam, indonesia ot Jonny aoa do 7 evs, Singapore, and Thailand - by ‘iff Commission | Page 172+ the Philippines - by 01 January 20t0, aor + 2011 and 2012; a rar and o 7 OF January 2013, 2014 and 2015 with fe . with flexibility up to 2018, pats the ASEAN Trade Repostony2 ASEAN Trade Repository (ATR) conta set rense; (MEN its and proueta fe s agement 0 with its Dialogue Partners; (i) Ruce of one Av national rade and customs laws and rls; proces ay onan ost es i) aint rulings; vt) best prachee ttf, and (x) Ht OF authorized traders of ANS and a gnieiteret in trade faclitation applied ty plied made accessible to the bie ‘ne ASEAN Secretariat maintains and u ently ipdates the ATR based on the notifications 1g, What re the Rules of Origin for the ATIGA? pues of Origin (ROO) are sets of criteria used to determin crice andthe egy ofa product to receive concessions line the origin of a good or The ATIGA ROO is based on the Regional Value Content (RVC) of 1% {RVC 4) oF all nonaniginatng materia used inthe rodicion ate eed ‘eve tadergone a Change in Tariff Classification at four-digit level (Le, a change in ta or CTH) of the HS. ( Inge in tariff heading 14 What are the criteria for a product to be eligible for concession under the ATIGA? a. Products in the Inclusion List on which tariffs of the exporting AMS have reached or are at the rate of 20% or below; b. Ifthe product conforms to the origin requirements specified in the ATIGA ROO; and shall be supported by a Certificate of Origin (CO) © Preferential tariff treatment ity designated by the exporting AMS. Form *D" issued by a government author ‘5 When and how can a Member State apply for 2 temporary modification or suspension of concessions? An AMS may temporarly modfy or suspend 2 concession Wet ze nerson teats in implementing ts tariff commitments. It shall nay Pm veo "fication of suspension of concessions 1 the AFTA oul atleast 18 a ‘2 when the temporary modification or suspension of concess! tariff Commission | Page 17316. What are the rights and obligations of @ Member state concerning 1200 rang, measures? ligations under «Safeguard Meesures. AMSs affirm their its and 0 XoC or GATT. 1994, the Agreement” ‘reguards, and Article § ae Agreement on ‘Agriculture. 4 obligations with respec, 5 affirm their rights an¢ ‘+ AntiDumping Duties. AMS: arch other under Article VI of GATT 1994 tes? 17. Whats the frequency distribution of Philepine ATIGA ra quency Distribution of Phi Table 6.4 Fret zona | 2017 | more | 20H eo inset sal #3 nas] 5] [=] we fen] emf on[ on] en] en Papp en oe] onl eel el ae Sain el| cue) ow) 0% | 028 ie afelelajel eal | Gd) se Taos nn wae |e | nos | rae oman] roe] oe | oe ‘0000 | om ie a fe a ee | Tota ‘any tani concessions i GE (General Exclusion) - exciuded from D. Protocol to Provide Special Consideration for Rice and Sugar Protocol for Rice and Sugar and what is its obje The Protocol for Rice at ‘on 23 August 2007 in recognition ofthe poitical sensitty of certain basic commodties ‘and the domestic policy framework of potvidual AMSs to ensure self-suficency and food secur tive? 18, Whats the ind Sugar was signed to request for waiver from the under exceptional cases, with regards to ‘The protocol allows AMSS, and its related Protocols, obligations imposed under the CEPT Agreement rice and sugar. 19. How does a Member State invoke the Protocol? ‘An AMS requesting for a waiver shall make a written submission to the AFTA Council at least 90 days prior to the date the waiver is to take effect. ‘The submission shall include the following information: (i) product or list of products with the corresponding tariff nomenclature in AHTN; (i) justification for the request; (i) latest available three (3) years of import statistics, by origin, of the product i gator a (iv) indicative modality for tariff reduction. farff Commission | Page 174‘copy. of the submission shall Ac Economic Officials Meeting | ses OM senior immediate on Frplementation of the ATIGA (CCA). 'y by on rded EOM) as well the Ast 8 10 the re ASEAN Secretariat Coordinating Commi tee id how can . nm wen ant @ request of waiver be considered? unless otherwise directed by the AFTA Council, the 1 red within the CCA, The CCA shall su fequest for waiver shall be const including its recor ibmit its report on cussions, I 9 ymmendations, to SEOM wit the outcome aio. oF Ne request. OM within 30 days from the date ot fe ‘The SEOM shall consider the report of the CCA and fc se eoormendatlos,t0 the AFTA Counc win 30 days forward own ep, ng Mepot rom the CCA. fate of receipt of the The AFTA Council shall consider and decide on th jeanol exceeding 30 days from the date of receipt of the rer SEOM The dean og RETA Council granting the waiver shal state the exceptonalcrcumstar cos ane orth decision, the terms and conditions governing the grant of the wave, any. si tod win which the waiver shal preva Tat sx, What are the rights of affected ASEAN Member States under the Protocol? a. AN AMS which has been granted a waiver pursuant to Article 3 shall provide i adequate opportunity for bilateral consultaions with AMSs having export interests on the product in question so that these interests are considered in the implementation of the Protocol. b. Whilst compensatory adjustment measures are not available under the Protocol, such bilateral consultations may include, inter alia, measures aimed at providing continued market access for the product in question and jolt Secnomic cooperation activities that would facitate the eventual restoraton of the obligations under the CEPT Agreement and its related Protocols the outcomes of such bilateral consultations may request ‘Any AMS affected by ith the AMS which has been granted with the for bilateral consultations wi waiver. iver granted a Member State? review the waiver to determine il exist and whether the whether the exceptional circumstances justifying ae ween i a on terms and conditions attached to the waiver, if any, are being a wh omit an annual report for review by the ranted with the waiver shall su! 22. Is tinere a time limit to the wai its annual meeting. er its Based on the outcome of the annual review, the ae Council shal ren inate the waiver Secsion on whether to continue, macy oF ioe sant Commission | Page 175ment mechanism available? Yes. The Protocol on Enhanced Dispute settlemers Mecha Os ASEAN 7 apply in relation to any dispute arising from, or any differ ' me the interpretation or application of the Protocol ’ 23. In cases of disputes, is there a settle! ued by the Philippines to implement its rm i 24, — What Executive Orders have been iss commitments on rice and sugar’ ai . mitments on Rice Table 6.5 EOs Issued to Implement the Philippines’ Comm! aNd Suga, Date Issueg Commitment juty on sugar products to hedule on sugar products | to Provide Special | 17 June under the CEPT- 2010 EO No. Modified the rates of import di implement the tariff reduction scl ion of the Protocol 892 | through the invocati Consideration for Rice and Sugar LAFTA/ATIGA | Modified the rates of import duty on rice products to implement | g94 the tariff reduction schedule on rice products through the invocation of the Protocol to Provide Special Consideration for 18 June 2019 | | Rice and Sugar under the CEPT-AFTA/ATIGA