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frame of application was shortened from 15 to 10 years 17 the integration of cept and afta was presented by akrasanee where the cept rates of 0 5 were defined as free trade rates member countries were granted the timing to reduce their tariff rates to 0 5 within 15 years late joiners would be granted a shorter timespan to reduce their tariff rates accordingly 17 1995 vietnam officially joined asean on 28 july 1995 and has agreed to join afta as well 19 under vietnam s agreement with asean on afta vietnam will meet the requirements on tariff and non tariff reductions over a ten year period beginning on 1 january 1996 20 1997 laos and myanmar joined the afta agreement on 23 july 1997 21 both myanmar and laos has been given time to reduce tariffs on the local goods to below 5 until 2008 22 1999 cambodia joined the afta agreement on 30 april 1999 23 cambodia agreed to begin tariff reduction on 1 january 2000 and the deadline to achieve afta was 2010 23 the common effective preferential tariff cept scheme edit unlike the eu afta does not apply a common external tariff on imported goods each asean member may impose tariffs on goods entering from outside asean based on its national schedules however for goods originating within asean asean members are to apply a tariff rate of 0 5 the more recent members of cambodia laos myanmar and vietnam also known as cmlv countries were given additional time to implement the reduced tariff rates this is known as the common effective preferential tariff cept scheme asean members have the option of excluding products from the cept in three cases 1 temporary exclusions 2 sensitive agricultural products 3 general exceptions temporary exclusions refer to products for which tariffs will ultimately be lowered to 0 5 but which are being protected temporarily by a delay in tariff reductions for sensitive agricultural products include commodities such as rice asean members have until 2010 to reduce the tariff levels to 0 5 general exceptions refer to products which an asean member deems necessary for the protection of national security public morals the protection of human animal or plant life and health and protection of articles of artistic historic or archaeological value asean members have agreed to enact zero tariff rates on virtually all imports by 2010 for the original signatories and 2015 for the cmlv countries rule of origin edit the cept only applies to goods originating within asean the general rule is that local asean content must be at least 40 of the fob value of the good the local asean content can be cumulative that is the value of inputs from various asean members can be combined to meet the 40 requirement the following formula is applied raw material cost direct labour cost direct overhead cost profit inland transport cost x 100 fob value however for certain products special rules apply change in chapter rule for wheat flour change of tariff sub heading for wood based products change in tariff classification for certain aluminum and articles thereof the exporter must obtain a form d certification from its national government attesting that the good has met the 40 requirement the form d must be presented to the customs authority of the importing government to qualify for the cept rate difficulties have sometimes arisen regarding the evidentiary proof to support the claim as well as how asean national customs authorities can verify form d submissions these difficulties arise because each asean national customs authority interprets and implements the form d requirements without much co ordination administration edit administration of afta is handled by the national customs and trade authorities in each asean member the asean secretariat has authority to monitor and ensure compliance with afta measures but has no legal authority to enforce compliance this has led to inconsistent rulings by asean national authorities the asean charter is intended to bolster the asean secretariat s ability to ensure consistent application of afta measures asean national authorities have also been traditionally reluctant to share or cede sovereignty to authorities from other asean members although asean trade ministries routinely make cross border visits to conduct on site inspections in anti dumping investigations unlike the eu or nafta joint teams to ensure compliance and investigate non compliance have not been widely used instead asean national authorities must rely on the review and analysis of other asean national authorities to determine if afta measures such as rule of origin are being followed disagreements may result between the national authorities again the asean secretariat may help mediate a dispute but has no legal authority to resolve it asean has attempted to improve customs co ordination through the implementation of the asean single window project the asean single window would allow importers to submit all information related to the transaction to be entered electronically once this information would then be shared with all other asean national customs authorities dispute resolution edit although these asean national customs and trade authorities co ordinate among themselves disputes can arise the asean secretariat has no legal authority to resolve such disputes so disputes are resolved bilaterally through informal means or through dispute resolution an asean protocol on enhanced dispute settlement mechanism governs formal dispute resolution in afta and other aspects of asean asean members may seek mediation and good offices consultations if these efforts are ineffective they may ask seom senior economic officials meetings to establish panel of independent arbitrators to review the dispute panel decisions can be appealed to an appellate body formed by the asean economic community council the protocol has almost never been invoked because of the role of seom in the dispute resolution process seom decisions require consensus among all asean members and since both the aggrieved party and the alleged transgressor are both participating in seom such consensus cannot be achieved this discourages asean members from invoking the protocol and often they seek dispute resolution in other fora such as the wto or even the international court of justice this can also be frustrating for companies affected by an afta dispute as they have no rights to invoke dispute resolution yet their home asean government may not be willing to invoke the protocol the asean secretary general has listed dispute resolution as requiring necessary reform for proper administration of afta and the aec further trade facilitation efforts edit efforts to close the development gap and expand trade among members of asean are key points of policy discussion according to a 2008 research brief published by the world bank as part of its trade costs and facilitation project 24 asean members have the potential to reap significant benefits from investments in further trade facilitation reform due to the comprehensive tariff reform already realised through the asean free trade agreement this new analysis suggests examining two key areas among others port facilities and competitiveness in the internet services sector reform in these areas the report states could expand asean trade by up to 7 5 22 billion and 5 7 17 billion respectively by contrast cutting applied tariffs in all asean members to the regional average in southeast asia would increase intra regional trade by about 2 6 3 billion 25 membership edit asean countries with which asean has free trade agreements countries that agree to eliminate tariffs among themselves brunei indonesia malaysia philippines singapore thailand vietnam laos myanmar cambodia timor leste regular observers papua new guinea the most recent asean meeting was observed also by china south korea japan india russia australia new zealand related free trade areas edit regional comprehensive economic partnership asean australia new zealand free trade area aanzfta is a free trade area between asean and anzcerta that was signed on 27 february 2009 and came into effect on 1 january 2010 details of the aanzfta agreement are available online 26 asean china free trade area acfta in effect as of 1 january 2010 27 asean india free trade area aifta in effect as of 1 january 2010 27 asean japan comprehensive economic partnership ajcep in effect as of 1 december 2008 28 asean korea free trade area akfta in effect as of 1 january 2010 27 comprehensive economic partnership for east asia references edit afta ftas asean secretariat archived from the original on 30 october 2012 the asean free trade area reaching its target opening remarks of h e rodolfo c severino secretary general of the association of southeast asian nations at the afta 2002 sympossium 31 january 2002 retrieved 3 november 2019 asean free trade area afta council asean one vision one identity one community asean leaders agree to create an asean free trade area singapore history eresources nlb gov sg india at the east asia summit mea gov in august 2018 trade agreements are in asean s best interests east asia forum 6 february 2016 asean s role in asia pacific in the driver s seat or just a back seat driver ink library smu edu sg history www apec org elec andrew back to canberra founding apec retrieved 3 november 2019 understanding asean free trade agreements aseanbriefing com 13 february 2014 history the founding of asean asean org archived from the original on 8 august 2021 retrieved 7 october 2021 1 2 3 asean summit malaysia to take centre stage asean china center www asean china center org retrieved 7 october 2021 desker barry october 2017 the 1976 bali summit asean shifts gears 50 years of asean and singapore world scientific pp 21 34 doi 10 1142 9789813225138_0002 isbn 978 981 322 511 4 retrieved 7 october 2021 1 2 3 indorf hans h 1978 the kuala lumpur summit a second for asean southeast asian affairs 1978 35 44 issn 0377 5437 jstor 27908333 1 2 3 4 crone donald 1988 the asean summit of 1987 searching for new dynamism southeast asian affairs 1988 32 50 issn 0377 5437 jstor 27911946 asean economic co operation the tasks ahead report of a colloquium on asean economic co operation the tasks ahead held in singapore 27 28 february 1987 asean economic bulletin 4 1 119 124 1987 issn 0217 4472 jstor 25770146 1 2 3 4 5 akrasanee narongchai asean free trade agreement a major milestone in the 50 years of asean pdf the asean journey reflections of asean leaders and officials 1 archived pdf from the original on 21 january 2021 1 2 hapsari indira m mangunsong carlos determinants of afta members trade flows and potential for trade diversion pdf asia pacific research and training network on trade working paper series 21 archived pdf from the original on 22 december 2014 tongzon jose l the challenge of regional economic integration the vietnamese perspective the developing economies xxxvii 2 june 1999 137 61 frost frank vietnam s membership of asean pdf current issues brief 3 1995 96 archived pdf from the original on 9 april 2016 association of southeast asian nations asean treaties regimes nti www nti org retrieved 7 october 2021 stuart fox martin 1998 laos in 1997 into asean asian survey 38 1 75 79 doi 10 2307 2645470 issn 0004 4687 jstor 2645470 1 2 the thirteenth meeting of the asean free trade area afta council pdf archived pdf from the original on 26 august 2017 world bank archived 30 may 2008 at the wayback machine deeper integration in asean why transport and technology matter for trade archived 5 february 2009 at the wayback machine john s wilson benjamin taylor trade facilitation reform issue brief the world bank 2008 new zealand ministry of foreign affairs and trade asean australia new zealand fta aanzfta new zealand ministry of foreign affairs and trade archived from the original on 16 october 2015 retrieved 28 april 2016 1 2 3 pushpanathan sundram 22 december 2009 asean charter one year and going strong the jakarta post retrieved 1 january 2010 mofa entry into force of the japan asean comprehensive economic partnership agreement www mofa go jp retrieved 18 september 2019 external links edit wikimedia commons has media related to asean free trade area asean free trade area page on the rules of origin facilitator with member countries status and access to legal documents asean free trade agreement v t e association of southeast asian nations asean politics charter customs union founding document organisations secretary general treaty of amity and cooperation visa policies symbols anthem emblem flag hymn members membership brunei cambodia indonesia laos malaysia myanmar philippines singapore thailand timor leste accession vietnam observers papua new guinea status non members bangladesh status sri lanka status events summits asean summit 2017 2025 2026 east asia summit asean republic of korea commemorative summit asean india commemorative summit others asean plus three asean regional forum asia europe meeting sports sea games university games school games para games football federation football championship asean all stars armies rifle meet economy asian monetary unit chiang mai initiative comprehensive economic partnership for east asia regional comprehensive economic partnership asean free trade area asean china free trade area asean india free trade area asean australia development cooperation program initiatives centre for biodiversity disaster relief exercise smart cities network commissions human rights asean human rights declaration rights of women others common time asean rise eu relations outstanding scientist and technologist award asean observer team lists airport banks cities by population gdp hdi minimum wage mountains stock exchanges subdivisions by gdp universities retrieved from https en wikipedia org w index php title asean_free_trade_area oldid 1364808516 categories asean meetings asean laws international diplomatic organizations organisations associated with asean currencies of asia proposed currencies currency unions economy of southeast asia treaties concluded in 1992 treaties entered into force in 2003 free trade areas free trade agreements of singapore free trade agreements of indonesia hidden categories articles with short description short description matches wikidata articles needing additional references from january 2009 all articles needing additional references use british english from july 2026 all wikipedia articles written in british english use dmy dates from july 2026 cs1 unfit url cs1 long volume value webarchive template wayback links commons category link from wikidata this page was last edited on 18 july 2026 at 17 04 utc page was rendered with parsoid text is available under the creative commons attribution sharealike 4 0 license additional terms may apply by using this site you agree to the terms of use and privacy policy wikipedia is a registered trademark of the wikimedia foundation inc 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