Within ATIGA, the concept of accumulation applies to the rules of origin of the agreement. Unless a product is on the ATIGA list of products with specific requirements dating back to the year 2000, exporters and producers have the option of applying either the regional value test or the modification of the tariff classification test: the de minimis principle allows products that do not contain native products and are unable to meet their relevant changes in tariff requirements in order to benefit from the preferential tariff treatment under special conditions. Some products may be considered to originate from ATIGA if: (ii) when all the aforementioned non-native materials used in the manufacture of the products have undergone a change in the four-digit tariff classification (HS head) – see the introduction for more information. 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. (i) whether the goods have a regional value of at least 40% – determined by one of the two methods described in the infographic below. The ATIGA guidelines use the Harmonized System (SH) of the Tariff Classification as a means of clarifying product differences and setting standards that certain products must meet. 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. 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 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: given the significant tariff reductions between ASEAN members and the ongoing harmonization of regulation by the ASEAN Economic Community, regional 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. Under ATIGA, products classified as “original products” are qualified for tariff reductions. Previous article “RCEP negotiations reach critical phase – Probably tinged at the end of next year Myanmar is planning economic zones at the Chinese border 2017” – Cambodia, Myanmar, Philippines, Singapore AHTN 2012 – Brunei Darussalam, Lao PDR, Malaysia, Thailand Singapore Customs is the authorized body in Singapore for the Preferential Certificate of Origin (PCO). The three general literature processes for the use of ESFs are listed below.