TIM eMagazine Vol.3 Issue 6
T
he ASEAN Economic Ministers (AEM) signed the First
Protocol to Amend the ASEAN Trade in Goods Agreement
(ATIGA) that will facilitate the implementation of the
ASEAN-wide Self-Certification (AWSC) Scheme. This is
a simplified and streamlined procedure that will help
businesses use the zero tariffs under the free trade
agreement (FTA) between ASEAN Member States
(AMS).
Likewise, the high-level economic officials signed
the Protocol to Implement the 10th Package of
Commitments under the ASEAN Framework Agreement on Services
(AFAS). This will provide preferential markets for Filipinos engaging in
export services such as IT-BPO, tourism, and logistic sectors when doing
business across the nine other AMS.
ASEAN Self-Certification is Trade Facilitation
Department of Trade and Industry (DTI) Secretary Ramon M. Lopez,
representing the country as the Philippine (PH) AEM Leader, said: “ASEAN
is virtually tariff-free, and efforts are now focused on trade facilitation
initiatives that will ensure the ease in the flow of goods within the region
to complement free trade.”
“The AWSC will minimize burdens associated with administrative
The ASEAN Economic
Ministers (AEM)
According to the PH trade chief, the use of FTA will make exports more
cost competitive as exporters will no longer have to pay import duties.
The initiative has received positive feedback from the business sector.
They also commended the strong push for ease on trade facilitation. AWSC
is one of the priority request of the ASEAN Business Advisory Council
(ASEAN BAC), which is a new scheme is user-friendly and supports the
business models of today.
Under ATIGA, import duties have mostly been brought down to zero
percent. But businesses have a hard time accessing this because of
complicated procedures.
Certified Exporters can make the claim that their goods meet the
requirements of the ATIGA, at their own convenience and exactly when
they need it, be it on weekends or on holidays. It does not require
repeated applications for CO Form D. It will save time and money.
The Protocol and the ASEAN-wide Self-Certification Scheme is expected
to be implemented by all ASEAN Member States by the first semester of
2019. ASEAN is composed of Brunei Darussalam, Cambodia, Indonesia, Lao
PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
“We have this FTA in place and we want our exporters to maximize its
use. It will help make our MSMEs more competitive in the global market”
Sec. Lopez noted.
DTI and other government agencies such as the Bureau of Customs and
compliance and decrease transaction costs. Overall, the scheme is expected
to improve the ease of doing business, thereby making it easier for PH
companies to use the preferential tariff treatment under the ATIGA,” Sec.
Lopez added.
ATIGA has been in place since 2010 and provides for the elimination
of import duties for 98.7 percent of the product lines of ASEAN Member
States.
Under the AWSC, exporters may apply for Certified Exporter (CE) status
and support their claim that their goods are eligible for duty-free tariff
under ATIGA. This may be used as an alternative to a Certificate of Origin
(CO) Form D. In the current regime, for exported PH goods to enjoy ATIGA
benefits, exporters must apply for a CO Form D for every shipment. This
must be applied manually and can only be done on regular work days and
only during office hours.
The AWSC promotes convenience and leads to cost savings. It also
improves distribution timelines as weekend shipments will not be delayed
due to administrative limitations of the CO Form applications.
“This will be good for businesses, especially our Micro, Small, and
Medium Enterprises (MSMEs). It will make it easier for them to use the
FTA, as well as enjoy zero tariffs when they sell to other ASEAN countries,”
explained Sec. Lopez.
Credits: dti.gov.ph
the Tariff Commission will be going around the country to promote and
explain what the ATIGA and the AWSC Scheme is all about.
Towards Services Integration
Sec. Lopez also emphasized the importance of trade services in the
region following the signing of the 10th AFAS Package.
“We are confident that this package will be a catalyst towards a conducive
export environment for service providers and businesses, including our
MSMEs,” the PH AEM Leader said.
The AFAS was first signed in December 1995, and it pushed for succeeding
liberalization packages as part of efforts to reduce barriers to the service
se