ASEAN-China Free Trade Agreement

  • Early Harvest Programme (EHP) has been implemented since 1st January 2004

  • FTA for the Trade in Goods Agreement (TIG) was signed on 29th November 2004

  • FTA for Trade in services and Investment - Negotiations on-going

  • Economic co-operation in other areas - Negotiations on-going

 

Normal Track

  • At least 40% of the products will be at tariff rates of 0-5% by 1st July 2005

  • At least 60% of the products will be at tariff rates of 0-5% by 1st January 2007

  • Tariff on all NT products will be eliminated by 1st January 2010

  • Flexibility is given to limited number of products (<150) where duties will be eliminated only in 2012 (Normal Track 2)


Sensitive Track

  • Sensitive List Products – Tariff will be reduced to 20% in 2012 and subsequently to 0-5% in 2018

  • Highly Sensitive List Products – Tariff will be reduced to 50% in 2015 


Malaysia’s Products

Total tariff lines: 10,591

Normal Track  - Covers 9,248 (87.3%) tariff lines

- Out of this, 137 (1.5%) are in NT2
 

Sensitive Track - 418 (3.9%) in the Sensitive List

  - 273 (2.6%) in the Highly Sensitive List
 

General Exception List - Covers 62 (0.6%) tariff lines

 

•    Normal Track 2 (NT2)

-        Textiles and apparel (90)

-        Electronics products (20)

-        Iron and steel (9)

-        Tyres (8)

-        Footwear (5)

-        Vehicle accessories (4)

-        Soap (1)

 

•    Sensitive List

-        Automobile (112)

-        Textiles and apparel (77)

-        Machinery and mech. Appliances (47)

-        Iron and steel (39)

-        Wood products (34)

-        Rubber products (33)

-        Plastic products (32)

-        Chemical products (29)

-        Cement, ceramic, footwear, soap, paper (15)

 

•    Highly Sensitive List

-        Automobile (125)

-        Iron and Steel (89)

-        Tobacco products (15)

-        Glass and glassware (12)

-        Rice (8)

-        Milk and cream (6)

-        Ceramic products (5)

-        Others : eggs, live swine, edible offal, round cabbage,
colour TV, alums  (13)

 

•    General Exception List

-        Alcoholic beverages (28)

-        Arms and weapons (29)

-        Unmanufactured tobacco (4)

-        Used Tyres (1)

 

China’s Products

393 tariff lines in the Sensitive  Track

- 244 in the Sensitive List

- 145 in the Highly Sensitive List

 

Products in the ST Include:

-        Paper products (131)

-        Automobiles (52)

-        Wood and wood products (30)

-        Ships and boats (20)

-        Cotton and wool fabrics (24)

-        Photographic equipment (20)

-        Electrical equipment (18)

-        Wheat and rice (15)

-        Tobacco (11)

-        Vegetable oils (11)

-        Flour (10)

-        Chemical products (10)

-       Others: coffee & pepper, sugar, canned food & beverages,
mineral fuels, plastics products and rubber products (41)

 

ACFTA Rules of Origin

•    Based on CEPT ROO and OCP

•    Origin criteria: -        Wholly obtained or produced

            -        40% value content (single/cumulative)
 

•    Cumulative includes all ASEAN countries and China (excl. Hong Kong, Taiwan, Macau)

•    Specific rules for selected products:

-        textiles products

-        preserved fish food

-        leather goods and furskin products

-        footwear

Posting date 030907

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