Trade and

Facilitation
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Trade Facilitation in ASEAN
As Brunei Darussalam, Indonesia, Malaysia, Philippines,
Singapore and Thailand have eliminated the import duties
on 99.65% of traded tariff lines since 1 January 2010,
while Cambodia, Lao PDR, Myanmar and Viet Nam have
98.86% of their traded tariff lines reduced to 0-5%, the
focus of ASEAN will shift to further enhance trade among
ASEAN Member States (AMS). In this context, and in
order to facilitate a free ow of goods and to promote
a regional production network in ASEAN, AMS adopted
the Trade Facilitation Work Programme in 2008 and the
Trade Facilitation Indicators were subsequently adopted
in 2009.
Tariff Liberalisation in ASEAN
On 1 January 2010, ASEAN-6 eliminated tariffs on
additional 7,881 tariff lines bringing the number of tariff
lines having zero duty to 54,467, or 99.65% of the traded
tariff lines under the Common Effective Preferential Tariff
(CEPTAFTA). Of the 7,881 additional tariff lines that have
zero duties, goods under the Priority Integration Sectors
account for 24.15% of tariff lines, iron and steel account
for 14.92%, machinery and mechanical appliances for
8.93%, and chemicals for 8.3%. This additional tariff
elimination brings the expected average tariff rate of
ASEAN-6 to only 0.05 % in 2010 from 0.79 % in 2009.
For Cambodia, Lao PDR, Myanmar and Viet Nam (CLMV),
import duties on additional 2,003 tariff lines have been
reduced to 0-5% resulting in total 34,691 tariff lines or
98.96% of total tariff lines having 0-5% import duties.
In addition to the above-mentioned items, products like
prepared foodstuff, furniture, plastics, paper, cement,
ceramics, glass, and aluminium of ASEAN origin will also
enjoy duty-free entry into Brunei, Indonesia, Malaysia,
Philippines, Singapore, and Thailand.
Improving the Transparency of Trade
ASEAN is working towards the establishment of an
ASEAN Trade Repository (ATR) by 2015 that would
serve as a gateway of regulatory information at regional
and national levels. The ATR, among others will carry
information on tariff nomenclature; preferential tariffs
offered under the ASEAN Trade in Goods Agreement
(ATIGA); Rules of Origin; non-tariff measures; national
trade and customs laws and rules; documentary
requirements; and list of authorised traders of Member
States. Once established and fully functioning, the ATR
and the information contained therein will be accessible
through the internet to economic operators like exporters,
importers, traders, as well as government agencies and
the interested public and researchers. Currently, ASEAN
is developing the design and mechanism of the ATR.
Continuous Reforms of Rules of Origin
With a view to achieving a more expeditious clearance
and release of containerised shipments by Customs
authorities, AMS are developing the ASEAN Single
Window (ASW) which would provide an integrated
platform of partnership among government agencies and
end-users in the movement of goods across AMS. The
AMS are also engaged in the process of continuously
reforming and enhancing the ASEAN Rules of Origin
(ROO) to respond to changes in global production
processes, including making necessary adjustments.
The objective is to make the ROO more trade facilitative
and, at least, as liberal as those contained in the ASEAN
FTA arrangements. The revision of the ROO undertaken
to this date has introduced other origin criteria as an
alternative to the long-standing Regional Value Content
(RVC) of 40%. This provides economic operators a wider
option of co-equal methods of achieving ASEAN origin
status for regionally traded products. AMS are also
considering the establishment of the Self Certication
scheme for the declaration of origin, which is a priority
effort as envisaged in the ASEAN Economic Community
(AEC) building process. The self certication scheme
provides certied economic operators like exporters,
traders, and manufacturers who have demonstrated
their capacity to comply with the origin requirements to
self certify the originating status of goods in replacement
of presenting a Certicate of Origin issued by the issuing
government authority.
For more information:
Trade Facilitation Division
Quang Anh Le ([email protected])
ASEAN Trade in Goods Agreement (ATIGA)
In pursuing the goal of establishing a single market
and production base with free ow of goods by
2015 for the ASEAN Economic Community, a more
integrated and holistic approach would be required.
This calls for the integration and inclusion of existing
and additional measures relevant to the trade in goods
initiative under one umbrella. To achieve this, the
ASEAN Economic Ministers agreed in August 2007
to enhance the Common Effective Preferential Tariff
for ASEAN Free Trade Agreement (CEPT-AFTA) into a
more comprehensive legal instrument. This has led to
the signing of the ASEAN Trade in Goods Agreement
(ATIGA) in February 2009.
Key Elements of the ATIGA
(i) ATIGA consolidates and streamlines all the
provisions in the CEPT-AFTA, and formalises
several ministerial decisions. As a result, the
ATIGA becomes a single legal instrument for
government ofcials who implement and enforce
the Agreement, as well as for the private sector
who are the beneciaries.

(ii) The ATIGA annex provides the full tariff reduction
schedule of each Member State and spells out
the tariff rates to be applied on each product for
each year up to 2015. This makes tariff reduction
schedules transparent and predictable for the
business community. A single legal enactment
to effectively implement the stipulated reduction
schedule up to 2015 is also expected.
(iii) The ATIGA comprises elements to ensure the
realisation of free ow of goods in ASEAN,
including the following: tariff liberalisation,
removal of non-tariff barriers, rules of origin, trade
facilitation, customs, standards and conformance,
and sanitary and phyto-sanitary measures. The
ATIGA contains comprehensive coverage of
commitments related to trade in goods, and
mechanisms of its implementation as well as
institutional arrangements. This would allow
for synergy of actions being undertaken by the
various ASEAN sectoral bodies.
(iv) With the objectives of eliminating non-tariff
barriers, the provisions on non-tariff measures
(NTMs) in the ATIGA have been enhanced further
through codication of measures, as well as
establishment of a mechanism to monitor the
committed elimination of non-tariff barriers.

(v) The ATIGA places emphasis on trade facilitation
measures by including the ASEAN Framework
on Trade Facilitation. Subsequently, ASEAN has
developed the Trade Facilitation Work Programme
for the period of 2009-2015.
Entry into Force of the ATIGA
The ATIGA will enter into force upon the ratication of
all Member States. When it enters into force, certain
ASEAN agreements relating to trade in goods such as
the CEPT Agreement and selected Protocols would
be superseded.
For more information:
Trade Facilitation Division
Quang Anh Le ([email protected])
ASEAN Customs Modernisation
The customs administrations in the ASEAN Member
States have embarked on the acceleration of
modernisation of Customs techniques and procedures
with the main thrust to enhance trade facilitation.
With these objectives in mind, the Strategic Program
of Customs Development (SPCD) stipulates, for
example, the release of any containerised shipment
in thirty minutes. With a view to modernising the
Customs operations, Information and Communication
Technology (ICT) applications have been introduced in
the customs clearance of goods in all Member States
in accordance with international standards. This has
contributed to reducing both the time required for
release of shipments from customs control and
processing costs. The customs administrations
are also working in partnership with industries and
businesses to strengthen and improve the level of
service and compliance.
With tariffs going down to zero tariff rates on 99.65%
of traded lines for the ASEAN-6 (Brunei Darussalam,
Indonesia, Malaysia, Philippines, Singapore and
Thailand) and 0-5% on 98.86% of traded lines for
the remaining four countries, beginning 1 January
2010, the Customs agencies and departments are
accelerating efforts in enhancing trade facilitation vis-
-vis expeditious customs clearance .
Progress and Achievements
ASEAN customs administrations adopted the
ASEAN Customs Vision 2015 at the 17
th
Meeting
of the ASEAN Customs Directors-General in
Vientiane, Lao PDR, in June 2008.
Substantial progress has been achieved in
reviewing the ASEAN Agreement on Customs
(1997) to support the realisation of the ASEAN
Economic Community. New provisions enable
ASEAN customs practices to align to international
conventions and standards such as the Revised
Kyoto Convention, WTO Agreement on Customs
Valuation and the implementation of the World
Customs Organization SAFE Framework of
Standards.
Member States have implemented the ASEAN
Harmonized Tariff Nomenclature 2007/1, which
is fully aligned to the Harmonized Commodity
Description and Coding System 2007.
The Client Service Charters have been adopted by
ASEAN customs administrations as a commitment
to good governance.
The ASEAN Customs Valuation Guide, the ASEAN
Cargo Processing Model and the Customs Post
Clearance Audit Manual have been developed and
are being used by Member States.
Efforts in facilitating regional connectivity and
activating the ASEAN Customs Transit System
under the ASEAN Framework Agreement
on Facilitation of Goods in Transit have been
intensied. It is expected that Protocol 7 under
this Agreement would be signed in 2010.
The ASEAN customs administrations are currently
working to fully operationalise the ASEAN Single
Window which is expected to provide a common
platform of partnership among regulatory and
enforcement agencies and economic operators in
expediting customs clearance and release.
Future Directions
ASEAN will continue its efforts in modernising
customs techniques and enhancing the delivery of
customs services to the public in line with the ASEAN
Economic Community Blueprint.
For more information:
Trade Facilitation Division
Quang Anh Le ([email protected])
ASEAN Single Window (ASW)
ASEAN is developing the ASEAN Single Window (ASW)
to enhance trade facilitation by providing an integrated
platform of partnership among government agencies
and end-users such as economic operators, transport
and logistics operators in the movement of goods.
ASEAN Member States have invested substantial
effort in establishing the ASW through the laying
of the foundation to secure the interoperability and
interconnectivity of various automated systems of
information processing.
Brunei Darussalam, Indonesia, Malaysia, the Philippines,
Singapore and Thailand have activated their National
Single Windows (NSWs) and are currently at various
levels of development in their operationalisation.
Cambodia, Lao PDR, Myanmar and Viet Nam have
started building the groundwork in the development of
their NSWs.
At the national level, several government agencies
have established functional linkages within their NSWs
with a view to expediting the release of shipments
from Customs.
ASEAN businesses and industries are increasingly
making use of the NSWs for release of shipments from
Customs control. In Cambodia, Lao PDR, Myanmar and
Viet Nam, the e-Customs applications constitute the
main enabler.
ASEAN adopted the ASEAN Data Model (Work
base 1.0) in April 2008 and is currently upgrading it
to the ASEAN Data Model (Version 2.0) on the basis
of international standards of relevant international
organisations such as the World Customs Organization
(WCO), International Organization for Standardization
(ISO), and the United Nations Economic Commission
for Europe (UNECE). This Data Model provides the
common language of dialogue within and among the
NSWs and the international trading community.
Another initiative that ASEAN has embarked on is the
ASW Pilot Project that would work towards the design
of the ASW Technical Prototype in 2010.
The Memorandum of Understanding for the
implementation of the ASW Pilot Project is being
nalised and would provide the legal background
for activities being conducted under the ASW Pilot
Project.

Brunei Darussalam, Indonesia, Malaysia and the
Philippines have successfully conducted the electronic
exchange of information of the Common Effective
Preferential Tariff (CEPT) Form D using a regional
platform.
ASEAN has also adopted the concept of business
processes towards the development of the electronic
processing of the ASEAN Customs Declaration
Document.
Some of the major key areas under consideration of
Member States in the establishment of the ASW are:
business processes, data harmonization, communication
protocols, security and legal framework.
Partnership with the trading community and economic
operators need to be initiated as these parties play a
key role in the realisation of ASW as clearly stipulated
in the Agreement to Establish and Implement the
ASEAN Single Window and the Protocol to Establish
and Implement the ASEAN Single Window.
For more information:
Trade Facilitation Division
Quang Anh Le ([email protected])
Conformity Assessment in ASEAN
Mutual Recognition Arrangements (MRAs) are
agreements made between two or more parties to
mutually recognise or accept some or all aspects of
one anothers conformity assessment results.
In the area of conformity assessment, having such
MRAs in ASEAN would reduce the need for a product
to undergo multiple tests in order to be sold or used in
different ASEAN countries. As such, MRAs can help
reduce business costs on test reports and increase the
certainty of market access for products. Consumers
also are assured of the quality of the products in the
market that have been tested in accordance with the
requirements of the MRAs.
ASEAN MRAs are concluded at the government-to-
government level for product sectors regulated by the
governments. The ASEAN Framework Agreement on
Mutual Recognition Agreements was signed in 1998
and it has provided a framework for ASEAN Member
States to conclude MRAs in different sectors.
Two Sectoral MRAs Concluded
To date, ASEAN has concluded two sectoral MRAs,
namely in the electrical and electronic sector and the
cosmetics sector. The ASEAN Electrical and Electronic
Mutual Recognition Arrangement was signed in
April 2002 while the ASEAN Mutual Recognition
Arrangement of Product Registration Approvals for
Cosmetics was signed in September 2003.
The ASEAN Electrical and Electronic MRA covers
electrical and electronic equipment (EEE) that is
connected to low voltage power supply or is battery
powered. There are currently 13 Testing Laboratories
and 2 Certication Bodies listed under this MRA.
Under this MRA, any EEE product that has been
tested and/or certied by a listed Testing Laboratory or
Certication Body would be accepted as having met
the regulatory requirements of all ASEAN Member
States.
The ASEAN MRA of Product Registration Approval
for Cosmetics is not compulsory for ASEAN Member
States. However, it is considered to be a preparatory
stage before ASEAN Member States accede to
the ASEAN Cosmetics Directive. This directive has
been implemented since 1 January 2008 making
it a single regulatory regime for cosmetics in the
ASEAN region.
MRAs for agro-based products and automotives
sectors are being developed. They are expected to be
concluded by 2010.
Future Steps
ASEAN is working on having the Marking Scheme to
indicate that a product is in conformity with the ASEAN
Harmonised Technical Regulations/Requirements
specied under the relevant ASEAN Agreements.
In other words, the Marking Scheme shows that
the product has complied with the harmonised
requirements of ASEAN Member States.
For more information:
Trade Facilitation Division
Shirley V. Ramesh ([email protected])
Harmonising Standards and Technical Regulations
Different standards and technical regulations, excessive
of what is needed, can pose as technical barriers to
trade. As such, harmonising standards, technical
regulations and conformity assessment will play a key
role in trade facilitation.
Since 1992, ASEAN has been working towards the
free movement of goods in the region by the removal
of non-tariff barriers to trade. Work in this area has
been directed towards the harmonisation of standards,
technical regulations and conformity assessment
procedures.
Alignment with International Standards and
Practices
In preparing, revising or applying standards and technical
regulations and associated conformance regulations,
ASEANs approach is based on the use of international
standards and practices as well as alignment with the
WTO/TBT obligations as far as possible, except where
legitimate reasons for deviations exist.
The ASEAN Policy Guideline on Standards and
Conformance, adopted in 2005, sets the guiding
principles for the implementation of joint efforts of
ASEAN Member States in the area of standards and
conformance, both in regulated and non-regulated
sectors.
The ASEAN Good Regulatory Practice Guide provides
guidance to regulators in ASEAN Member States
to assist in the preparation and adoption of efcient
regulatory arrangements that would improve the
consistency and transparency of technical regulations,
thereby reducing the regulatory barriers to trade.
Harmonisation of Standards
Work on harmonising standards began with the
identication of 20 priority products in 1997. As a
result, a total of 58 standards for electrical appliances
and three standards for rubber-based products sector
were harmonised. Progress also has been reported in
the pharmaceutical sector.
Product and Corresponding
Standards
Progress Made
Electrical Appliances
ISO, IEC & ITU
Electrical safety
IEC
Electromagnetic components
CISPR
58 harmonised
standards
71 harmonised
standards
10 harmonised
standards
Rubber-based products
ISO
3 harmonised standards
Pharmaceuticals
International Conference on
Harmonisation Requirements
(ICH)
Completion of the
ASEAN Common
Technical Dossiers
(ACTD) and ASEAN
Common Technical
Requirements (ACTR)
The harmonisation of standards in the sectors
earmarked as priority for economic integration (see
Fact Sheet 2007/AEC/002) also are underway. These
include agro-based products, cosmetics, sheries,
pharmaceuticals, rubber-based products, wood-based
products, automotive, construction, medical devices,
traditional medicine and health supplement sectors.
Harmonisation of Technical Regulations
ASEAN has harmonised the technical regulations for
the cosmetics and electrical and electronics sector.
The ASEAN Harmonised Cosmetic Regulatory Scheme
was signed on 2 September 2003 and the ASEAN
Harmonised Electrical and Electronics Equipment
Regulatory Regime was signed on 9 December 2005.
The harmonisation of technical regulations is underway
for based products, automotive, medical devices,
traditional medicine and health supplement sectors.
For more information:
Trade Facilitation Division
Shirley V. Ramesh ([email protected])
Ensuring Safe Pharmaceutical Products in ASEAN
Divergences in national product standards often
act as impediments to trade in goods. In order to
promote deeper economic integration between
economies towards the realisation of the ASEAN
Economic Community by 2015, harmonisation of
product standards and technical regulations, and
mutual recognition of test reports and certication are
necessary.
In the area of healthcare, which is one of the priority
sectors identied to accelerate the economic integration
process, the ASEAN Sectoral Mutual Recognition
Arrangement (MRA) for Good Manufacturing Practice
(GMP) Inspection of Manufacturers of Medicinal
Products was signed by the ASEAN Economic
Ministers at the 14
th
ASEAN Summit and Related
Summits on 10 April 2009 in Pattaya, Thailand.
MRA for GMP Inspection of Manufacturers of
Medicinal Products
The MRA for GMP Inspection of Manufacturers of
Medicinal Products calls for the mutual recognition of
GMP certications and/or inspection reports issued by
inspection bodies that are parties to this MRA through
their listing as the authorised bodies to issue such
certicates and/or test reports. These certicates and/
or inspections reports will be used as the basis for
regulatory actions such as the granting of approvals
or licences to the manufacturer, supporting post-
market assessments of conformity of these products,
and providing information on the manufacturers
facilities including the testing laboratories, if any, or
its contracted laboratory. The reports also will include
information on the dosage forms manufactured at the
facility and whether the manufacturer complies with
the GMP requirements.
Under this MRA, a facility manufacturing medicinal
products shall ensure that it is licensed or authorised
to manufacture medicinal products or carry out a
manufacturing operation in question. The facility
shall be regularly inspected for compliance with
GMP standards. The facility shall also demonstrate
that it complies with the Pharmaceutical Inspection
Cooperation Scheme (PIC/S) Guide to GMP for
Medicinal Products or equivalent GMP code to full
the obligations under this MRA.
The MRA will be fully implemented by all ASEAN
Member States by 1 January 2011.
Benets
This MRA will benet both manufacturers and
consumers alike. For manufacturers of medicinal
products, in particular pharmaceutical products,
ensuring the safety, quality and efcacy of their
products will become a priority. Compliance with
the MRA demonstrates that the medicinal products
in ASEAN are consistently produced and controlled
in accordance with the agreed principles of good
manufacturing practices and quality standards
among ASEAN regulators. This will enhance the
competitiveness of the manufacturers as well as the
consumers condence in their products.
Business costs will also be reduced since
manufacturers do not need to undertake repetitive
testing or certication process. For consumers, they
will benet from the assurance that the medicinal
products they consume are safe for use.
For more information:
Trade Facilitation Division
Shirley V. Ramesh ([email protected])