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Primer Acfta
Primer Acfta
Primer Acfta
The ASEAN-China Free Trade Area (ACFTA) is a trade agreement among the ten
(10) Member States of the Association of Southeast Asian Nations (ASEAN) and China.
Explore new areas and develop appropriate measures for closer economic co-
operation between the Parties; and
Facilitate the more effective economic integration of the newer AMS and bridge
the development gap among the Parties.
3. What is the Early Harvest Programme (EHP) under ACFTA and what is its
product coverage?
The EHP covers all products falling under Harmonized System (HS) Chapters 1 to 8
(live animals, meat and edible meat offal, fish, dairy produce, other animal products, live
trees, edible vegetables and edible fruits and nuts). Parties were allowed to have an
Exclusion List.
4. What was the modality for tariff reduction and elimination under the EHP?
Implementation began on January 1, 2004 for ASEAN, except for the Philippines and
China. On December 29, 2005, the Philippines issued Executive Order (EO) 485 to implement
its EHP commitments.
Implementation began on July 1, 2005 with two (2) programs of tariff reduction:
For ASEAN 6 and China: 2005 to 2010, with flexibility up to January 1, 2012
6. What are the modalities for tariff reduction and/or elimination for products
under the normal and sensitive tracks for ASEAN 6 and China?
Normal Track: Products were classified as belonging to either NT1 (2007 to 2010)
or NT2 (tariff elimination in 2012). The modality is shown below:
Sensitive Track: ST is divided into two (2) Lists: SL and HSL. For SL products,
tariffs will be reduced to 20% in 2012 and to 0%-5% (ending rates) by 2018. For
HSL products, there is no commitment in 2012, but there is an ending rate of 50%
by 2015.
Reciprocal tariff treatment is not automatically applied. Products that have been
placed in ST may be accorded reciprocal tariff treatment as governed by Paragraphs 5 and 6
of Annex 2 of the TIG, after notification has been received from the Party/Parties that the
rates of duty on its products in ST are at 10% and below.
Country A Country B
(Exporting (Importing Applicable ACFTA Rate
Country) Country)
EHP EHP rate of Country B*
EHP NT NT rate of Country B
ST ST rate of Country B
EHP EHP rate of Country B
NT NT NT rate of Country B
ST ST rate of Country B
EHP rate of Country B or ST rate of Country A,
EHP whichever is higher (provided that tariff rate to be
applied shall not exceed the MFN rate of Country B)
ST < 10% NT rate of Country B or ST rate of Country A, whichever
NT is higher (provided that tariff rate to be applied shall not
exceed the MFN rate of Country B)
ST ST ST rate of Country B
EHP MFN rate of Country B
ST > 10% NT MFN rate of Country B
ST ST rate of Country B
*
Article 6 (3)(a)(iii), Framework Agreement on ACFTA
Products which are wholly obtained or produced in the exporting party shall be
deemed originating and eligible for preferential tariff treatment.
The General Rule of Regional Value Content (RVC) 40 is applicable to all other
goods except where there is no Product Specific Rule (PSR). The PSR becomes either the
exclusive rule or an alternative to the General Rule depending on the provisions of Annex 3
of the TIG Agreement.
10. What Executive Orders (EOs) were issued to implement the Philippines
commitments under the Agreement on Trade in Goods?