INTERNATIONAL ENTERPRISE SINGAPORE

ASEAN Free Trade Area (AFTA)

Implemented on 1 Jan 1993, AFTA is an agreement aimed at boosting trade amongst ASEAN members. Among its many benefits, the AFTA Common Effective Preferential Tariff (AFTA CEPT) Scheme is the main mechanism for reducing tariffs and thereby, according businesses price competitiveness for their goods. This Scheme has since been enhanced and superseded by the ASEAN Trade in Goods Agreement (ATIGA), which entered into force on 17 May 2010, to reflect changes in business processes. ATIGA consolidates all commitments related to trade in goods. It focuses not only on tariff elimination and non-tariff measures, but also on simplifying the Rules of Origin and its implementation. Traders already benefiting from the AFTA CEPT Scheme can continue to benefit from the ATIGA. Businesses will be able to save time, lower the costs of doing business in ASEAN and access increased business opportunities. ASEAN Member States are Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand (which are collectively known as the ASEAN-6) and Cambodia, Lao PDR, Myanmar and Vietnam (which are collectively known as CLMV).
Date of Implementation: 1 January 1993 Common Effective Preferential Tariff (CEPT) Scheme 17 May 2010 ASEAN Trade in Goods Agreement (ATIGA)

AFTA at a glance
TOPICS Goods Coverage Tariff Elimination Schedule FACTS Tariff reduction/ elimination for 98% of all tariff lines Gradual tariff reduction/ elimination started in 1993 ASEAN-6 countries will eliminate all tariffs for products in Schedule A by 2010 CLMV will eliminate all tariffs for products in Schedule A by 2015, with flexibility up to 2018 Rules of Origin 40% local/ regional value-add required, based on FOB price, or change in tariff heading (4-digit level); or Product-specic rules may apply BENEFITS TO IMPORTERS Tariff-free importing for most products Almost all imports from Singapore into Brunei, Indonesia, Malaysia, Philippines and Thailand will be duty-free by 2010 Almost all imports from Singapore into Cambodia, Lao PDR, Myanmar and Vietnam should be duty-free by 2015

Access to a wide range of products eligible for preferential tariff treatment

AFTA at a glance
TOPICS Mutual Recognition Agreements Customs Procedures FACTS Concluded MRAs: cosmetic products electrical and electronic equipment pharmaceutical products ASEAN members have committed to improving customs clearance of goods through: green lane system for products under ATIGA adoption of WTO agreement on customs valuation service commitment single-window approach (including electronic processing of trade documents) Back-to-back certificate of origin Third Party Invoicing BENEFITS TO IMPORTERS Avoids duplication of testing Reduces the cost to importers Cuts down the time to market Time and cost savings Standardisation of procedures (less complicated)

Visit www.iesingapore.com/fta to find out more about how you can benefit from Singapores FTAs.
Please visit www.asean.org/25053.htm to view tariff concessions offered for each ASEAN country.

IE Singapores Ofces in ASEAN Countries

Bangkok c/o Embassy of the Republic of Singapore - Thailand (Bangkok) 129 South Sathorn Road Bangkok 10120 Thailand T +66 2 287 0897 F +66 2 287 0971 Hanoi Embassy of the Republic of Singapore - Vietnam (Hanoi) No. 41 & 43 Tran Phu Street Hanoi Socialist Republic of Vietnam T +84 4 3848 9151 F +84 4 3848 9150 Ho Chi Minh City c/o Consulate of the Republic of Singapore - Vietnam (Ho Chi Minh City) Saigon Centre, 65 Le Loi Boulevard 8th Floor, Unit 1, 1st District Ho Chi Minh City Socialist Republic of Vietnam T +84 8 3822 5173 F +84 8 3825 1600 Jakarta c/o Embassy of the Republic of Singapore - Indonesia (Jakarta) Block X/4, Kav No. 2, Jln HR. Rasuna Said Kuningan, Jakarta 12950 Indonesia T +62 21 522 9274 F +62 21 520 1488 Kuala Lumpur Suite Level 19.01 Menara Citibank 165 Jalan Ampang 50450 Kuala Lumpur  Malaysia T +60 3 2162 5966/ 60 12 212 1227 F +60 3 2162 5963 Surabaya c/o Embassy of the Republic of Singapore - Indonesia (Jakarta) Block X/4, Kav No. 2, Jln HR. Rasuna Said Kuningan, Jakarta 12950 Indonesia T +62 31 732 8738 F +62 21 520 1488

International Enterprise Singapore 230 Victoria Street #10-00 Bugis Junction Office Tower Singapore 188024 1800-IESPORE (1800-4377673) local toll-free T +65 6337 6628 F +65 6337 6898 www.iesingapore.com