Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for the Asean Free Trade Area (AFTA)

January 28, 1992 AGREEMENT ON THE COMMON EFFECTIVE PREFERENTIAL TARIFF (CEPT) SCHEME FOR THE ASEAN FREE TRADE AREA (AFTA) The Governments of Brunei Darussalam, the Republic of Indonesia, Malaysia, the Republic of the Philippines, the Republic of Singapore and the Kingdom of Thailand, Member States of the Association of South East Asian Nations (ASEAN): MINDFUL of the Declaration of ASEAN Concord signed in Bali, Indonesia on 24 February 1976 which provides that Member States shall cooperate in the field of trade in order to promote development and growth of new production and trade; acd RECALLING that the ASEAN Heads of Government, at their Third Summit Meeting held in Manila on 13-15 December 1987, declared that Member States shall strengthen intra-ASEAN economic cooperation to maximize the realization of the region's potential in trade and development; NOTING that the Agreement on ASEAN Preferential Trading Arrangements (PTA) signed in Manila on 24 February 1977 provides for the adoption of various instruments on trade liberalization on a preferential basis; ADHERING to the principles, concepts and ideals of the Framework Agreement on Enhancing ASEAN Economic Cooperation signed in Singapore on 28 January 1992; CONVINCED that preferential trading arrangements among ASEAN Member States will act as a stimulus to the strengthening of national and ASEAN economic resilience, and the development of the national economies of Member States by expanding investment and production opportunities, trade, and foreign exchange earnings; DETERMINED to further cooperate in the economic growth of the region by accelerating the liberalization of intra-ASEAN trade and investment with the objective of creating the ASEAN Free Trade Area using the Common Effective Preferential Tariff (CEPT) Scheme; cd i DESIRING to effect improvements on the ASEAN PTA in consonance with ASEAN's international commitments; HAVE AGREED AS FOLLOWS: ARTICLE 1 Definition For the purposes of this Agreement: 1. "CEPT" means the Common Effective Preferential Tariff, and it is an agreed effective tariff, preferential to ASEAN, to be applied to goods originating from ASEAN Member States, and which have been identified for inclusion in the CEPT Scheme in accordance with Articles 2 (5) and 3. 2. "Non-Tariff Barriers" mean measures other than tariffs which effectively prohibit or restrict import or export of products within Member States. 3. "Quantitative restrictions" mean prohibitions or restrictions on trade with other Member States, whether made effective through quotas, licenses or other measures with equivalent effect, including administrative measures and requirements which restrict trade. 4. "Foreign exchange restrictions" mean measures taken by Member States in the form of restrictions and other administrative procedures in foreign exchange which have the effect of restricting trade. 5. "PTA" means ASEAN Preferential Trading Arrangements stipulated in the Agreement signed in Manila on 24 February 1977, and in the Protocol on Improvements on Extension of Tariff Preferences under the ASEAN Preferential Trading Arrangements (PTA), signed in Manila on 15 December 1987. 6. "Exclusion List" means a list containing products that are excluded from the extension of tariff preferences under the CEPT Scheme. 7. "Agricultural products" mean: (a) agricultural raw materials/unprocessed products covered under Chapters 1-24 of the Harmonized System (HS), and similar agricultural raw materials/unprocessed products in other related HS Headings; and (b) products which have undergone simple processing with minimal change in form from the original products. ARTICLE 2 General Provisions 1. All Member States shall participate in the CEPT Scheme. 2. Identification of products to be included in the CEPT Scheme shall be on a sectoral basis, i.e., at HS 6-digit level. 3. Exclusions at the HS 8/9 digit level for specific products are permitted for those Member States, which are temporarily not ready to include such products in the CEPT Scheme. For specific products, which are sensitive to a Member States, pursuant to Article 1 (3) of the Framework Agreement on Enhancing ASEAN Economic Cooperation, a Member State may exclude products from the CEPT Scheme, subject to a waiver of any concession herein provided for such products. A review of this Agreement shall be carried out in the eighth year to decide on the final Exclusion List or any amendment to this Agreement. 4. A product shall be deemed to be originating from ASEAN Member States, if at least 40% of its content originates from any Member State. 5. All manufactured products, including capital goods, processed agricultural products and those products falling outside the definition of agricultural products, as set out in this Agreement, shall be in the CEPT Scheme. These products shall automatically be subject to the schedule of tariff reduction, as set out in Article 4 of this Agreement. In respect of PTA items, the schedule of tariff reduction provided for in Article 4 of this Agreement shall be applied, taking into account the tariff rate after the application of the existing margin of preference (MOP) as at 31 December 1992. 6. All products under the PTA which are not transferred to the CEPT Scheme shall continue to enjoy the MOP existing as at 31 December 1992. 7. Member States, whose tariffs for the agreed products are reduced from 20% and below to 0%-5%, even though granted on an MFN basis, shall still enjoy concessions. Member States with tariff rates at MFN rates of 0%-5% shall be deemed to have satisfied the obligations under this Agreement and shall also enjoy the concessions. casia ARTICLE 3 Product Coverage This Agreement shall apply to all manufactured products, including capital goods, processed agricultural products, and those products falling outside the definition of agricultural products as set out in this Agreement. Agricultural products shall be excluded from the CEPT Scheme. ARTICLE 4 Schedule of Tariff Reduction 1. Member States agree to the following schedule of effective preferential tariff reductions: (a) The reduction from existing tariff rates to 20% shall be done within a time frame of 5 years to 8 years, from 1 January 1993, subject to a programme of reduction to be decided by each Member State, which shall be announced at the start of the programme. Member States are encouraged to adopt an annual rate of reduction, which shall be (X-20)%/5 or 8, where X equals the existing tariff rates of individual Member States. cd i (b) The subsequent reduction of tariff rates from 20% or below shall be done within a time frame of 7 years. The rate of reduction shall be at a minimum of 5% quantum per reduction. A programme of reduction to be decided by each Member State shall be announced at the start of the programme. (c) For products with existing tariff rates of 20% or below as at 1 January 1993, Member States shall decide upon a programme of tariff reductions, and announce at the start, the schedule of tariff reductions. Two or more Member States may enter into arrangements for tariff reduction to 0%-5% on specific products at an accelerated pace to be announced at the start of the programme. 2. Subject to Articles 4(1) (b) and 4(1) (c) of this Agreement, products which reach, or are at tariff rates of 20% or below, shall automatically enjoy the concessions. 3. The above schedules of tariff reduction shall not prevent Member States from immediately reducing their tariffs to 0%-5% or following an accelerated schedule of tariff reduction. ARTICLE 5 Other Provisions A. Quantitative Restrictions and Non-Tariff Barriers 1. Member States shall eliminate all quantitative restrictions in respect of products under the CEPT Scheme upon enjoyment of the concessions applicable to those products. cd i 2. Member States shall eliminate other non-tariff barriers on a gradual basis within a period of five years after the enjoyment of concessions applicable to those products. B. Foreign Exchange Restrictions Member States shall make exceptions to their foreign exchange restrictions relating to payments for the products under the CEPT Scheme, as well as repatriation of such payments without prejudice to their rights under Article XVIII of the General Agreement on Tariffs and Trade (GATT) and relevant provisions of the Articles of Agreement of the International Monetary Fund (IMF). C. Other Areas of Cooperation Member States shall explore further measures on border and non-border areas of cooperation to supplement and complement the liberalization of trade. These may include, among others, the harmonization of standards, reciprocal recognition of tests and certification of products, removal of barriers to foreign investment, macroeconomic consultations, rules for fair competition, and promotion of venture capital. cd D. Maintenance of Concessions Member States shall not nullify or impair any of the concessions as agreed upon through the application of methods of customs valuation, any new charges or measures restricting trade, except in cases provided for in this Agreement. 1. If, as a result of the implementation of this Agreement, import of a particular product eligible under the CEPT Scheme is increasing in such a manner as to cause or threaten to cause serious injury to sector producing like or directly competitive products in the importing Member States, the importing Member States may, to the extent and for such time as may be necessary to prevent or to remedy such injury, suspend preferences provisionally and without discrimination, subject to Article 6(3) of this Agreement. Such suspension of preferences shall be consistent with the GATT. 2. Without prejudice to existing international obligations, a Member State, which finds it necessary to create or intensify quantitative restrictions or other measures limiting imports with a view to forestalling the threat of or stopping a serious decline of its monetary reserves, shall endeavour to do so in a manner, which safeguards the value of the concessions agreed upon. 3. Where emergency measures are taken pursuant to this Article, immediate notice of such action shall be given to the Council referred to in Article 7 of this Agreement, and such action may be the subject of consultations as provided for in Article 8 of this Agreement. ARTICLE 6 Emergency Measures 1. If, as a result of the implementation of this Agreement, import of a particular product eligible under the CEPT Scheme is increasing in such a manner as to cause or threaten to cause serious injury to sectors producing like or directly competitive products in the importing Member States, the importing Member States may, to the extent and for such time as may be necessary to prevent or to remedy such injury, suspend preferences provisionally and without discrimination, subject to Article 6 (3) of this Agreement. Such suspension of preferences shall be consistent with the GATT. 2. Without prejudice to existing international obligations, a Member State, which finds it necessary to create or intensify quantitative restrictions or other measures limiting imports with a view to forestalling the threat of or stopping a serious decline of its monetary reserves, shall endeavour to do so in a manner, which safeguards the value of the concessions agreed upon. 3. Where emergency measures are taken pursuant to this Article, immediate notice of such action shall be given to the Council referred to in Article 7 of this Agreement, and such action may be the subject of consultation as provided for in Article 8 of this Agreement. ARTICLE 7 Institutional Arrangements 1. The ASEAN Economic Ministers (AEM) shall, for the purposes of this Agreement, establish a ministerial-level Council comprising one nominee from each Member State and the Secretary-General of the ASEAN Secretariat. The ASEAN Secretariat shall provide the support to the ministerial-level Council for supervising, coordinating and reviewing the implementation of this Agreement, and assisting the AEM in all matters relating thereto. In the performance of its functions, the ministerial-level Council shall also be supported by the Senior Economic Officials' Meeting (SEOM). 2. Member States which enter into bilateral arrangements on tariff reductions pursuant to Article 4 of this Agreement shall notify all other Member States and the ASEAN Secretariat of such arrangements. 3. The ASEAN Secretariat shall monitor and report to the SEOM on the implementation of the Agreement pursuant to the Article III(2)(8) of the Agreement on the Establishment of the ASEAN Secretariat. Member States shall cooperate with the ASEAN Secretariat in the performance of its duties. ARTICLE 8 Consultations 1. Member States shall accord adequate opportunity for consultations regarding any representations made by other Member States with respect to any matter affecting the implementation of this Agreement. The Council referred to in Article 7 of this Agreement, may seek guidance from the AEM in respect of any matter for which it has not been possible to find a satisfactory solution during previous consultations. casia 2. Member States, which consider that any other Member State has not carried out its obligations under this Agreement, resulting in the nullifications or impairment of any benefit accruing to them, may, with a view to achieving satisfactory adjustment of the matter, make representations or proposals to the other Member State concerned, which shall give due consideration to the representations or proposals made to it. 3. Any differences between the Member States concerning the interpretation or application of this Agreement shall, as far as possible, be settled amicably between the parties. If such differences cannot be settled amicably, it shall be submitted to the Council referred to in Article 7 of this Agreement, and if necessary, to the AEM. ARTICLE 9 General Exceptions Nothing in this Agreement shall prevent any Member State from taking action and adopting measures, which it considers necessary for the protection of its national security, the protection of public morals, the protection of human, animal or plant life and health, and the protection of articles of artistic, historic and archaeological value. cd i ARTICLE 10 Final Provisions 1. The respective Governments of Member States shall undertake the appropriate measures to fulfill the agreed obligations arising from this Agreement. 2. Any amendment to this Agreement shall be made by consensus and shall become effective upon acceptance by all Member States. 3. This Agreement shall be effective upon signing. 4. This Agreement shall be deposited with the Secretary-General of the ASEAN Secretariat, who shall likewise promptly furnish a certified copy thereof to each Member State. 5. No reservation shall be made with respect to any of the provisions of this Agreement. In witness whereof the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement on Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA). Done at Singapore, this 28th day of January, 1992 in a single copy in the English Language. FOR THE GOVERNMENT OF BRUNEI DARUSSALAM: ABDUL RAHMAN TAIB Minister of Industry and Primary Resources FOR THE GOVERNMENT OF THE REPUBLIC OF INDONESIA: DR. ARIFIN M. SIREGAR Minister of Trade FOR THE GOVERNMENT OF MALAYSIA: RAFIDAH AZIZ Minister of International Trade and Industry FOR THE GOVERNMENT OF THE REPUBLIC OF PHILIPPINES: PETER D. GARRUCHO, JR. Secretary for Trade and Industry FOR THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE: LEE HSIEN LOONG Deputy Prime Minister and Minister for Trade and Industry FOR THE GOVERNMENT OF THE KINGDOM OF THAILAND: AMARET SILA-ON Minister of Commerce Table 1 - A General Formula of Fast Track Tariff Reduction Program (Tariff Rates Above 20%) * ------------------------------------ Existing Country Tariff 1993 1994 1995 1996 1997 1998 Rates ** ------------------------------------ Brunei D. No products with tariffs above 20% Indonesia 40% 40% 40% 30% 30% 20% 20% 30% 30% 30% 20% 20% 20% 20% 25% 25% 25% 20% 20% 20% 20% Malaysia 50% 45.5% 41.0% 36.5% 32.0% 27.5% 23.0% 40% 36.5% 33.0% 29.5% 26.0% 22.5% 19.0% 30% 27.5% 25.0% 22.5% 20.0% 17.5% 15.0% Philippines 46-50% During this period, Executive 45% 40% 35% 41-45% Order 470 implements an 40% 35% 30% 36-40% autonomous 5-year tariff 35% 30% 25% 31-35% reduction program ending 30% 25% 20% 26-30% 1995 25% 25% 20% 21-25% 20% 20% 15% Singapore Above 20% 0 NA NA NA NA NA Thailand Above 30% 30% 30% 25% 25% 20% 20% 26-30% 25% 25% 20% 20% 21-25% 20% 20% 15% 15% -------------------------------------- Existing Country Tariff 1999 2000 2001 2002 2003 Rates ** -------------------------------------- Brunei D. Indonesia 15% 15% 10% 10% 0-5% 15% 15% 10% 10% 0-5% 15% 15% 10% 10% 0-5% Malaysia 18.5% 14.0% 9.5% 5.0% 15.5% 12.0% 8.5% 5.0% 12.5% 10.0% 7.5% 5.0% Philippines 30% 25% 20% 15% 0-5% 25% 20% 15% 10% 0-5% 20% 15% 10% 10% 0-5% 20% 15% 15% 10% 0-5% 20% 15% 15% 10% 0-5% 15% 15% 10% 10% 0-5% Singapore NA NA NA NA NA Thailand 15% 15% 10% 10% 0-5% 15% 15% 10% 10% 0-5% 10% 10% 0-5% ------------------------------------ * The above is a general tariff reduction formula. This does not preclude a faster or slower rate of reduction for each tariff line within the specified time-frame. ** Existing Tariff Rates applicable to ASEAN: Non-PTA products (as of January 1992); PTA products (as of 31 December 1992) Table 1 - B -------------------------------------- Existing Country Tariff 1993 1994 1995 1996 1997 1998 1999 2000 2001-2003 Rates ** -------------------------------------- Brunei D. 20% 20% 20% 15% 15% 15% 10% 10% 0-5% 15% 15% 15% 10% 10% 10% 10% 10% 0-5% 10% 10% 10% 5% 5% 5% 5% 5% 0-5% Indonesia 20% 20% 20% 15% 15% 10% 10% 10% 0-5% 15% 15% 15% 10% 10% 5% 5% 5% 0-5% 10% 10% 10% 5% 5% 5% 5% 5% 0-5% Malaysia 20% 17.86% 15.72% 13.58% 11.44% 9.30% 7.16% 5.02% 10% 9.30% 8.60% 7.90% 7.20% 6.50% 5.80% 5.00% Philippines During this period, Exe- cutive Order 470 implements 16-20% an autonomous 5-year tariff 15% 15% 10% 10% 0-5% 11-15% reduction program ending 10% 10% 0-5% 0-5% 0-5% 6-10% 1995 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% Singapore 0-2.5% 0 NA NA NA NA NA NA NA Thailand 20% 20% 20% 15% 15% 10% 10% 10% 0-5% 5-19% 15% 15% 15% 10% 10% 0-5% 10-14% 10% 10% 10% 0-5% 6-9% 0-5% 5% or below 0-5% -------------------------------------- * The above is a general tariff reduction formula. This does not preclude a faster or slower rate of reduction for each tariff line within the specified time-frame ** Existing Tariff Rates applicable to ASEAN: Non-PTA products (as of January 1992); PTA products (as of 31 December 1992) Table 1 - C -------------------------------------- Existing Country Tariff 1993 1994 1995 1996 1997 1998 1999 Rates ** -------------------------------------- Brunei D. 30% 30% 28% 26% 24% 22% 20% 15% Indonesia 50% 50% 50% 50% 50% 50% 40% 30% 40% 40% 40% 40% 40% 40% 30% 30% 30% 30% 30% 30% 30% 30% 20% 20% 25% 25% 25% 25% 25% 25% 20% 20% Malaysia 50% 46.25% 42.5% 38.75% 35.0% 31.25% 27.5% 23.75% 30% 28.75% 27.5% 26.25% 25.0% 23.75% 22.5% 21.25% Philippines 46-50% During this period 45% 40% 35% 30% 41-45% Executive Order 470 40% 35% 30% 25% 36-40% implements an 35% 30% 30% 25% 31-35% autonomous 5-year 30% 30% 30% 25% 26-30% tariff reduction program 25% 25% 25% 25% 21-25% ending 1995 20% 20% 20% 20% Singapore NA NA NA NA NA NA NA NA Thailand Above 30% 30% ***30% 30% 30% 30% 25% 25% 26-30% 25% 25% 21-25% -------------------------------------- Existing Country Tariff 2000 2001 2002 2003 2004 2005 2006 2007 2008 Rates ** -------------------------------------- Brunei D. 15% 10% 10% 10% 0-5% Indonesia 30% 20% 20% 20% 15% 15% 10% 10% 0-5% 40% 20% 20% 20% 15% 15% 10% 10% 0-5% 30% 20% 20% 20% 15% 15% 10% 10% 0-5% 20% 20% 20% 15% 15% 10% 10% 0-5% Malaysia 20.0% 20.0% 20.0% 15.0% 15.0% 15.0% 10% 10% 0-5% 28.75% 20.0% 20.0% 15.0% 15.0% 15.0% 10% 10% 0-5% Philippines 25% 20% 20% 20% 15% 15% 10% 10% 0-5% 25% 20% 20% 20% 15% 15% 10% 10% 0-5% 25% 20% 20% 20% 15% 15% 10% 10% 0-5% 25% 20% 20% 20% 15% 15% 10% 10% 0-5% 25% 20% 20% 20% 15% 15% 10% 10% 0-5% 20% 20% 20% 20% 15% 15% 10% 10% 0-5% Singapore NA NA NA NA NA NA NA NA NA Thailand 20% 20% 20% 20% 15% 15% 10% 10% 0-5% 20% 20% 20% 20% 15% 15% 10% 10% 0-5% 20% 20% 20% 20% 15% 15% 10% 10% 0-5% -------------------------------------- * The above is a general tariff reduction formula. This does not preclude a faster or slower rate of reduction for each tariff line within the specified time-frame ** Existing Tariff Rates applicable to ASEAN: Non-PTA products (as of January 1992); PTA products (as of 31 December 1992) *** For most manufactured products. Table 1 - D General Formula of Normal Track Tariff Reduction Program (For Products with Tariff Rates 20% and Below) * -------------------------------------- Existing Country Tariff 1993 1994 1995 1996 1997 1998 Rates ** -------------------------------------- Brunei D. 20% 20% 20% 20% 15% 15% 15% 15% 15% 15% 15% 10% 10% 10% 10% 10% 10% 10% 5% 5% 5% Indonesia 20% 20% 20% 20% 15% 15% 15% 15% 15% 15% 15% 10% 10% 10% 10% 10% 10% 10% 5% 5% 5% Malaysia 20% 18.5% 17.0% 15.5% 14.0% 12.5% 11.0% 10% 9.5% 9.0% 8.5% 8.0% 7.5% 7.0% Philippines During this period, Executive Order 470 implements an 16-20% autonomous 5-year tariff 15% 15% 15% 11-15% reduction program ending 10% 10% 10% 10% 6-10% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% 0-5% Singapore 0-2.5% 0 NA NA NA NA NA Thailand 20% 20% 20% 20% 15-19% 10-14% 6-9% 5% or below 0-5% -------------------------------------- Existing Country Tariff 1999 2000 2001 2002 2003 Rates ** -------------------------------------- Brunei D. 15% 10% 10% 10% 0-5% 10% 10% 10% 5% 0-5% 5% 5% 5% 5% 0-5% Indonesia 10% 10% 5% 5% 0-5% 5% 5% 5% 5% 0-5% 5% 5% 5% 5% 0-5% Malaysia 9.5% 8.0% 6.6% 5.0% 6.5% 6.0% 5.5% 5.0% Philippines 15% 10% 10% 10% 0-5% 10% 10% 10% 0-5% 0-5% 0-5% 0-5% 0-5% Singapore NA NA NA NA NA Thailand 15% 15% 10% 10% 0-5% 15% 15% 10% 10% 0-5% 10% 10% 0-5% 0-5% -------------------------------------- * The above is a general tariff reduction formula. This does not preclude a faster or slower rate of reduction for each tariff line within the specified time-frame ** Existing Tariff Rates applicable to ASEAN: Non-PTA products (as of January 1992); PTA products (as of 31 December 1992) Table 2 SUMMARY OF CEPT PRODUCT LISTS -------------------------------------- INCLUSION EXCLUSION -------------------------------------- No Country HS Fast Normal Sub- % Temporary General Unpro- Sub- Total Digit Track Track Total Exception cessed Total Level Agricultural Products -------------------------------------- (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) -------------------------------------- 1 Brunei 9 2,420 3,659 6,079 92.89 208 201 56 465 6,544 Darussalam 6 1,975 2,604 4,579 - - - - - 2 Indonesia 9 2,816 4,539 7,355 78.39 1,654 50 324 2,028 9,383 6 1,445 2,734 4,179 80.07 834 30 176 1,040 5,219 3 Malaysia 9 3,166 5,611 8,777 87.39 627 98* 541 1,266 10,043 6 1,725 2,419 4,144 85.50 273 98* 332 703 4,847 4 Philippines 9 1,033 3,418 4,451 79.61 714 28 398 1,140 5,591 6 974 3,079 4,053 - - - - - - 5 Singapore 9 2,205 3,517 5,722 97.95 Nil 120 Nil 120 5,842 6 1,896 3,078 4,974 100.00 Nil - Nil - 4,974 6 Thailand Tariff Line 3,509 5,254 8,763 94.00 118** 26* 415 559 9,322 6 1,736 2,777 4,513 91.56 - 26* 390 416 4,929 -------------------------------------- * Products ** at HS-10 digit level SUMMARY OF CEPT PRODUCT LISTS -------------------------------------- INCLUSION EXCLUSION -------------------------------------- No Country HS Fast Normal Sub- % Temporary General Unpro- Sub- Total Digit Track Track Total Exception cessed Total Level Agricultural Products -------------------------------------- (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) -------------------------------------- 1 Brunei 9 2,420 3,659 6,079 92.89 208 201 56 465 6,544 Darussalam 6 1,975 2,604 4,579 - - - - - 2 Indonesia 9 2,816 4,539 7,355 78.39 1,654 50 324 2,028 9,383 6 1,445 2,734 4,179 80.07 834 30 176 1,040 5,219 3 Malaysia 9 3,166 5,611 8,777 87.39 627 98* 541 1,266 10,043 6 1,725 2,419 4,144 85.50 273 98* 332 703 4,847 4 Philippines 9 1,033 3,418 4,451 79.61 714 28 398 1,140 5,591 6 974 3,079 4,053 - - - - - - 5 Singapore 9 2,205 3,517 5,722 97.95 Nil 120 Nil 120 5,842 6 1,896 3,078 4,974 100.00 Nil - Nil - 4,974 6 Thailand Tariff Line 3,509 5,254 8,763 94.00 118** 26* 415 559 9,322 6 1,736 2,777 4,513 91.56 - 26* 390 416 4,929 -------------------------------------- * Products ** at HS-10 digit level Table 3 STARTING/ENDING YEAR FOR THE VARIOUS TARIFF REDUCTION PROGRAMS UNDER THE CEPT SCHEME -------------------------------------- COUNTRY FAST TRACK NORMAL TRACK -------------------------------------- ABOVE 20% 20% BELOW ABOVE 20% 20% BELOW -------------------------------------- Interpretative 0-5% by 0-5% by 1) 20% by 0-5% by Notes 1 Jan 2003 1 Jan 2000 1 Jan 1998 1 Jan 2003 (10 years) (7 years) or 1 Jan 2001 (5 or 8 years) 2) 0-5% by 1 Jan 2008 (7 years) -------------------------------------- Brunei D. NA 1994-2000 1994-2008 1994-2003 Indonesia 1993-2003 1993-2000 1993-2008 1993-2003 Malaysia 1993-2003 1993-2000 1993-2008 1993-2003 Philippines 1993-2003 1993-2000 1993-2008 1993-2003 Singapore 1993 1993 NA 1993 Thailand 1993-2003 1993-2000 1993-2008 1996-2003 -------------------------------------- Sources: Product Lists received at ASEAN SEOM Meetings, 7-8 May 1993 and 12-13 July 1993, Jakarta, and 6-8 September 1993, Cebu Table 4 SUMMARY TABLE Showing Number of Tariff Lines of Member Countries With 1993 as the Starting Year for Implementing Tariff Reductions Under the CEPT Scheme -------------------------------------- COUNTRY FAST TRACK NORMAL TRACK -------------------------------------- Brunei D. 813* 595* Indonesia 1,541 460 (at HS 9-digit level) (at HS 9-digit level) Malaysia 1,373** 2,403** (at HS 9-digit level) (at HS 9-digit level) Philippines 599 453 (at HS 8-digit level) (at HS 8-digit level) Singapore 346 27 (at HS 9-digit level) (at HS 9-digit level) Thailand 758 569 (at HS 6-digit level) (at HS 6-digit level) -------------------------------------- * In effect from June 1994 ** This excludes tariff lines which have a specific tariff where conversion to ad valorem rate is pending plus tariffs that are already at 0-5% rates. Sources: Product Lists received at ASEAN SEOM Meetings, 7-8 May 1993 and 12-13 July 1993, Jakarta; and 6-8 September 1993, Cebu. Table 5 SUMMARY OF INCLUSION LISTS FOR CEPT (HS-4 DIGITS) -------------------------------------- FAST TRACK NORMAL TRACK TOTAL % OF -------------------------------------- COUNTRY PRODUCT % PRODUCT % INCLUSION OVERALL GROUPS GROUPS GROUPS* -------------------------------------- Brunei D. 1,975 43.13 2,604 56.87 4,579 88.93 Indonesia 1,445 34.58 2,734 65.42 4,179 81.16 Malaysia 1,725 41.63 2,419 58.37 4,144 80.48 Philippines 974 24.03 3,079 75.97 4,053 78.71 Singapore 1,896 38.12 3,078 61.88 4,974 96.60 Thailand 1,736 38.47 2,777 61.53 4,513 87.65 -------------------------------------- TOTAL 9,751 36.88 16,691 63.12 26,442 85.59 -------------------------------------- * Total number of HS-6 (product groups) in the submissions from all Member States is 5,149 groups. Source: ASEAN Secretariat Table 6 SUMMARY OF INCLUSION LISTS BY TARIFF LINES -------------------------------------- FAST TRACK NORMAL TRACK TOTAL -------------------------------------- TARIFF %* TARIFF %* TARIFF %* LINES LINES LINES -------------------------------------- Brunei D. 2,420 36.98 3,659 55.91 6,079 92.89 Indonesia 2,816 30.01 4,539 48.37 7,355 78.38 Malaysia 3,166 31.52 5,611 55.87 8,777 87.39 Philippines 1,033 18.48 3,418 61.13 4,451 79.61 Singapore 2,205 37.74 3,517 60.20 5,722 97.94 Thailand 3,509 37.64 5,254 56.36 8,763 94.00 -------------------------------------- TOTAL 15,149 32.06 25,998 56.31 41,147 88.37 -------------------------------------- * % of total inclusion plus exclusion Source: ASEAN Secretariat Table 7 CHANGE IN THE SUBMISSIONS OF CEPT PRODUCTS (AT HS-9 DIGITS) -------------------------------------- FAST TRACK NORMAL TRACK TOTAL -------------------------------------- 1992 1993 CHANGE 1992 1993 CHANGE 1992 1993 CHANGE -------------------------------------- Brunei Darussalam 1,826 2,420 594 2,812 3,659 847 4,638 6,079 1441 Indonesia 3,165 2,816 -349 4,288 4,539 251 7,453 7,355 -98 Malaysia 3,251 3,166 -85 6,895 5,611 -1284 10,146 8,777 -1369 Philippines 862 1,033 171 3,250 3,418 168 4,112 4,451 339 Singapore 2,200 2,205 5 3,514 3,517 3 5,714 5,722 8 Thailand na 3,509 0 na 5,254 0 0 8,763 0 -------------------------------------- TOTAL * 11,304 11,640 336 20,759 20,744 -15 32,063 32,384 321 -------------------------------------- * Total not including Thailand. Source: ASEAN Secretariat Table 8 TEMPORARY EXCLUSION LIST -------------------------------------- Number of %* Change Tariff from Lines Dec. 1992 -------------------------------------- Brunei D. 208 3.18 42 Indonesia 1,654 17.63 -54 Malaysia 627 6.24 -19 Philippines 714 12.77 -485 Singapore Nil 0.00 0 Thailand * 118 1.27 0 -------------------------------------- TOTAL 3,321 6.85 -516 -------------------------------------- * at HS-10 digits. Source: ASEAN Secretariat Table 9 SUMMARY OF GENERAL EXCEPTIONS AND UNPROCESSED AGRICULTURAL PRODUCTS -------------------------------------- GENERAL UNPROCESSED SUB- EXCEPTIONS AGRICULTURAL TOTAL PRODUCTS PRODUCTS -------------------------------------- Brunei D. 243 22 265 Indonesia 50 324 374 Malaysia 0 541 541 Philippines 28 398 426 Singapore 120 0 120 Thailand 26 390 416 -------------------------------------- TOTAL 467 1,675 2,142 -------------------------------------- Source: ASEAN Secretariat Table 10 SUMMARY LIST OF PROCESSED AGRICULTURAL PRODUCTS IN THE CEPT SCHEME -------------------------------------- BRU IND MAL PHI SIN THAI** -------------------------------------- FAST TRACK VEGETABLE OIL 51 59 157 10 38 83 -------------------------------------- NORMAL TRACK LIVE ANIMALS 25 0 0 0 18 0 MEATS 56 54 0 10 56 49 FISH AND PRODUCTS 107 122 0 12 107 39 DAIRY PRODUCTS 47 11 47 20 35 54 ANIMAL PRODUCTS NES. 20 32 4 16 23 1 LIVE PLANTS 18 0 0 4 14 3 VEGETABLES 64 56 0 5 65 10 FRUITS 66 26 11 0 55 6 COFFEE, TEA 30 43 13 23 44 3 CEREALS 21 0 0 0 29 3 MILLED PRODUCTS 36 10 41 17 37 42 OIL SEEDS 53 33 7 23 45 3 LAC: GUM 12 25 20 15 14 3 VEGETABLE PRODUCTS 11 8 0 5 12 0 ANIMAL FATS AND OILS 15 20 24 27 17 30 PREPARED MEATS 57 68 99 16 35 49 SUGAR 22 13 41 7 19 28 COCOA 11 15 10 3 15 10 CEREAL PREPARATIONS 32 38 45 15 38 26 PREPARED VEGETABLE 78 111 142 22 52 90 MISC. EDIBLES 28 40 37 12 23 34 BEVERAGES 42 11 32 18 10 34 RESIDUES AND WASTE 31 41 40 20 30 25 TOBACCO 4 15 0 0 0 3 -------------------------------------- TOTAL 886 792 613 290 793 545 -------------------------------------- ** at HS-6 digit level Source: ASEAN Secretariat