To the extent that a product is not included in the ATIGA list of 2000 products subject to specific requirements, exporters and producers have the opportunity to apply either the regional value test or the modification of the tariff classification criterion: the ATIGA guidelines use the harmonized tariff classification system (SH) to clarify product differences and establish standards that must meet certain products. According to the shS system, products are subdivided into: with the introduction of the AEC and the increasing harmonisation of regional standards, the importance of regional supply chains cannot be greatly appreciated. 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. Unless otherwise stated, ASEAN Member States (AMS) would remove import tariffs on all products traded between AMS by a) 2010 for ASEAN-6 (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand) and b) in 2015, with flexibility until 2018 for CLMV (Cambodia, Laos, Myanmar, Myanmar). Within ATIGA, the concept of accumulation applies to the rules of origin of the agreement. (i) whether the goods have a regional value of at least 40% – determined by one of the two methods described in the infographic below. (ii) if all non-original prefabricated materials used in the manufacture of products have undergone a change in the four-digit tariff classification (HS head) – see introduction for more information. The vast majority of trade agreements contain rules of origin to prevent third parties from freeing up the sacrifices 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. Under ATIGA, products classified as “original products” are qualified for tariff reductions. 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.

The ASEAN Goods Trade Agreement was signed on 26 February 2009 and is the result of the improvement and consolidation of all existing provisions of the CEPT-AFTA agreement and the relevant ASEAN economic agreements and instruments. Under ATIGA, products are considered to originate from the Member State in which the goods were processed or processed. This is determined by compliance with at least one of the following conditions: the de minimis principle allows products that are not from originating and cannot meet their relevant modifications to tariff classification requirements to receive preferential tariff treatment under specific conditions. Some products can be considered as products originating from ATIGA though: the old articles “RCEP negotiations” have reached a critical phase – Probably coloured by the end of the year Due to significant tariff reductions among ASEAN members and constant harmonization of regulations by the ASEAN Economic Community, regionally oriented 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.