menu close menu

Weddingblog

Tariffs Under The Asean Trade In Goods Agreement (Atiga)

In order for a product to benefit from a customs concession under ATIGA, the following conditions must be met: the vast majority of trade agreements contain rules of origin to prevent third parties from releasing the sacrifices that these parties have made. These rules determine who can claim the benefits of a particular agreement and under what circumstances those parties can do so. Unless a product is on the ATIGA list of 2000 products subject to ATIGA`s specific requirements, Exporters and producers have the option of applying either the regional value test or the modification of the tariff classification criterion: unless otherwise stated, ASEAN Member States (AMS) will eliminate import duties on all intermediate products traded between AMS up to a) 2010 for ASEAN-6 (Brunei) , Philippines, Singapore and Thailand) and (b) 2015 with flexibility until 2018 for CLMV (Cambodia, Laos, Myanmar and Vietnam). Given the significant tariff reductions between ASEAN members and the ongoing harmonization of regulations by the ASEAN Economic Community, regional value chains have increased considerably in terms of profitability. For those considering such investments, it is important to understand not only negotiated tariff reduction plans, but also the conditions under which exports and imports can benefit from reduced rates. The introduction of the AEC and the increasing harmonisation of regional standards do not allow us to estimate the importance of regional supply chains. Ongoing progress towards regional integration is expected to continue, further reduce trade barriers and reduce the impact of compliance on businesses across the region. While ASEAN`s outlook is optimistic, success will ultimately depend on the ability of market participants to understand and seize the opportunities offered by agreements such as the ASEAN trade agreement. Dezan Shira Associates employs qualified professionals with long experience in entering the market and starting businesses and is uniquely positioned to help companies maximize their business and grow throughout the region. Currently, the ASEAN Merchandise Trade Agreement (ATIGA) – ASEAN`s main agreement on reducing regional tariffs – contains a number of criteria used to determine the country of origin of a commodity, as well as guidelines for determining whether certain products receive preferential tariff treatment.

Okategoriserade

Comments are closed.