Asean Trade In Goods Agreement Rules Of Origin
Under ATIGA, products classified as “originating” are allowed to benefit from tariff reductions. The vast majority of trade agreements contain rules of origin to prevent third parties from freely making the sacrifices that the parties to the agreements make. These rules determine who is entitled to benefits under a particular agreement and under what circumstances those parties may do so. Currently, the ASEAN Trade in Goods Agreement (ATIGA) – ASEAN`s main agreement on regional tariff reduction – contains a number of criteria for determining the country of origin of a product and guidelines for determining whether certain products benefit from preferential tariff treatment. The guidelines established under ATIGA use the Harmonized System of Tariff Classification as a means of clarifying differences between products and setting standards that certain products must meet. Under the HS system, products are subdivided into: unless a product is included in the ATIGA list of 2000 products subject to specific requirements, exporters and manufacturers have the option to apply either the regional value criterion or the criterion for changing the tariff classification criterion: (i) if the goods have a regional value of at least 40%, using one of the two methods described in the following infographic. With the introduction of the ACS and the increasing harmonization of regional standards, the importance of regional supply chains cannot be underestimated. Further progress in regional integration is expected to continue these trends, further reduce trade barriers and reduce the impact of compliance on businesses throughout the region. While ASEAN`s prospects are good, success will ultimately depend on the ability of market participants to understand and seize the opportunities offered under agreements such as the ASEAN Agreement on Trade in Goods. Dezan Shira & Associates employs qualified professionals with years of experience in market entry and business creation and is perfectly positioned to help companies maximize business and expand throughout the region. Within ATIGA, the concept of cumulation is applied to the rules of origin of the agreement.
The de minimis principle allows goods which contain non-originating materials and which are unable to meet their tariff classification requirements to benefit from preferential tariff treatment under special conditions. . . .