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Asean China Free Trade Agreement Rules Of Origin

After the first six signatories reached their target by 2010, the CLMV countries (Cambodia, PDR, Myanmar, Vietnam) pursued the same customs policy, with the same goal to be achieved by 2015. [6] In 2010, the ASEAN-China Free Trade Area became the largest free trade area in terms of population and the third largest in nominal GDP. It was also the third volume of trade after the European Economic Area and the North American Free Trade Area. [12] [7] Since the creation of the ASEAN-China Free Trade Area in 2010, two-way trade has grown at an average annual rate of nearly 20%. After 31 August 2019, all parties to the ASEAN-China Free Trade Agreement will be required to adopt the standard international A4 E format form. The updated Form E has been improved and has a simplified procedure for filling out the information. The main updates to Form E are as follows: in practice, the different ways of deciding the origin of the property are now clarified. The ASEAN-China Free Trade Area (ACFTA) is a free trade area between the ten member states of the Association of South Asian Nations (ASEAN) and the People`s Republic of China. As more and more countries appear to be opting for increasing protectionism, the Southeast Asian region and China are actively developing stronger regional and global trade and investment relationships. Ad 136 also added content related to the origin check. China Customs is increasingly focusing on respect for origin, so companies need to pay close attention to reducing the risks associated with country-of-origin verification. Import and export companies must understand and apply the right rules of origin, focus on changes to applicable rules of origin, comply with requirements to complete Form E, meet compliance management requirements and meet other related criteria, properly apply the preferential rules of origin and implement origin management in accordance with the agreement. On 1 January 2010, the average tariff rate on Chinese products sold in ASEAN countries increased from 12.8% to 0.6% until the remaining ASEAN members implemented the free trade area.

Meanwhile, the average tariff rate on ASEAN products sold in China increased from 9.8% to 0.1%. [13] Up to 2015, ASEAN`s total merchandise trade with China reached $346.5 billion (15.2% of ASEAN trade), and ACFTA accelerated growth in Chinese direct investment and trade cooperation. [6] China first proposed the idea of a free trade area in November 2000. The leaders of ASEAN and China therefore decided to discuss economic integration measures in the region the following year[1][2] In Brunei, they supported the creation of an ASEAN-China free trade area. [3] The Ministry of Industry and Trade has announced changes to the rules of origin under the ASEAN-China Free Trade Agreement (ACFTA), which will come into force on 12 September. In addition, a new section on customs procedures and trade facilitation has been added, which specifies operational certification procedures for the application and obtaining of preferential tariffs. The “Form E” established by the protocol verifies the admissibility of products exported for preferential processing. Changes to the free trade area framework mainly concerned Vietnam. These amendments were intended to help Vietnam reduce tariffs and were cited as guidelines.

[14] The protocol lists specific market access rules for sectors such as engineering, construction, sport, health, securities and tourism services.