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Asean-China Free Trade Agreement Rules Of Origin

From August 2019, the updated protocol will make changes to the ASEAN-China Free Trade Agreement (ACFTA) by simplifying rules of origin, customs procedures, trade facilitation measures and investment rules. Changes to the free trade area framework mainly concerned Vietnam. These amendments were intended to help Vietnam reduce tariffs and were cited as guidelines. [14] China first proposed the idea of a free trade area in November 2000. The leaders of ASEAN and China therefore decided to discuss economic integration measures in the region the following year[1][2] In Brunei, they supported the creation of an ASEAN-China free trade area. [3] The Ministry of Industry and Trade has announced changes to the rules of origin under the ASEAN-China Free Trade Agreement (ACFTA), which will come into force on 12 September. Announcement 136 contains updates to the rules of origin, changes to the “guidelines” for filling out Form E, and updated requirements for managing the original compliance. The amendment introduces provisions that expressly call on Member States to simplify the procedures for investment applications, to improve access to investment laws, rules and procedures and, where appropriate, to use existing investment promotion agencies. The updates to Article 136 of Announcement 136 are seen as further improvements to preferential rules of origin under the ASEAN-China Free Trade Agreement and the implementation of the ASEAN-China Free Trade Area. On 1 January 2010, the average tariff rate on Chinese products sold in ASEAN countries increased from 12.8% to 0.6% until the remaining ASEAN members implemented the free trade area. Meanwhile, the average tariff rate on ASEAN products sold in China increased from 9.8% to 0.1%.

[13] Up to 2015, ASEAN`s total merchandise trade with China reached $346.5 billion (15.2% of ASEAN trade), and ACFTA accelerated growth in Chinese direct investment and trade cooperation. [6] In addition to the general rule, the product-specific rule (PSR) was based on the 2017 Harmonized System (SH), which added original criteria for different products. The rules are proposed in the form of tables in Appendix 2 of the Protocol, which sets out China`s positions vis-à-vis each ASEAN member country with respect to market access restrictions and restrictions on national treatment. In accordance with the rules of origin framework, distributors must first refer to the list of specific rules for establishing rules of origin for products other than WO or PE products. If the products are not included in the PSR list, you will then determine whether the products are applicable to (i.e. included in the HS codes of the 46 chapters) and comply with the CTH rules or whether they meet the criteria of the Regional Value Rules (RVC). In addition, a new section on customs procedures and trade facilitation has been added, which specifies operational certification procedures for the application and obtaining of preferential tariffs. The “Form E” established by the protocol verifies the admissibility of products exported for preferential processing. Since the creation of the ASEAN-China Free Trade Area in 2010, two-way trade has grown at an average annual rate of nearly 20%. Last year, the total volume of trade between China and ASEAN countries reached a record $587.87 billion, 14.1% higher than the United States for the first time since 1997.

For ASEAN, 2018 was also the ninth consecutive year in which China was ASEAN`s largest trading partner, in part because of China`s geographical proximity and the multilateral trade partnership that began in 2004. The free trade agreement reduced tariffs to 7,881 product categories, or 90% of imported products at zero. [15] This reduction came into effect in China and in the original six members of the

December 3, 2020 - Posted by | Uncategorized

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