TARIFF REFORM PROGRAM

*Two (2) main instruments of structural adjustments*

a. Tariff Reform Program b. Import Liberalization Program
Tariff Reform Program is the review/restructuring of the Phils. tariff system
TRP I scheduled from 1981 -1985; emphasized inter-industry & inter-sectoral linkages in the economy
Nominal Protection Rate percent tariff paid by consumers on a particular industrys output
Effective Protection Rate percent by w/c the entire set of nations trade barriers raises the industrys value added per unit of output
TRP II E.O 470 effective on August 24, 1991 signed by Corazon Aquino; period from 1991 - 1995
to reduce overall level of protection & disperse tariff protection w/n and across industries
TRP III uniform level of protection across all sectors; aimed at promoting global competitiveness, simplify tariff structure
and provide level playing field for local manufacturers vis--vis foreign competition
E.O 189 marked the onset of TRP III
E.O 264 tariff modifications on industrial products
E.O 288 tariff reductions on non-sensitive agricultural products those not covered by QR
E.O 313 interim tariff protection to sensitive agricultural products
E.O 461 3% tariff on imported crude oil & refined petroleum products
TRP IV correct any remaining tariff distortions
E.O 465 evaluate the tariff schedule of residual items
E.O 486 re-calibrated tariff schedule of residual items
E.O 334 tariff schedule from 2001 2004 of all products
E.O 83 & 91 1% MFN rates on various imported raw materials, intermediate inputs, machinery & parts
E.O 84 tariff schedule from 2002 2004 on sensitive agricultural products
E.O 196 1% MFN rate on critical inputs to agriculture & fisheries sectors
E.O 197 raised tariff on certain vegetables
E.O 241 2003 2005 MFN rate for locally produced industrial finished products
E.O 264 tariff schedule from 2004 2005 for residual products not covered by E.O 241
E.O 450 promote competitiveness of paper & aerosol industries
E.O 440 increasing prices of petroleum products
E.O 419 & 449 energy conservation & independence in transport sector
E.O 418, 443 & 477 support clean air act & promote road safety
E.O 691 temporarily modified the MFN rate on crude oil & refined petroleum products
E.O 765 aims to help stabilize the price of bread & other baked foods
E.O 766 cement & cement clinker
E.O 790 1% MFN rate on certain not locally produced raw material inputs &
3% MFN rate on biofuels & biofuel blend
E.O 877 identified the motor vehicle industry as significant contributor to countrys economic output
E.O 885 0% MFN rate on imported educational, technical, scientific, & historical or cultural books
E.O 898 Hot-rolled Coils (HRC) and Cold-Rolled Coils (CRC)

AGRICULTURE AND FISHERIES MODERNIZATION

ACT OF 1997
AFMA RA 8435, signed on December 22, 1997 by Pres. Fidel V. Ramos
*objectives of AFMA*
a. modernize agricultural & fishery sectors
b. enhance profits & incomes in agriculture & fishery sectors
c. ensure accessibility, availability & stability of food supply at all times
d. encourage horizontal & vertical integration, consolidation & expansion of agriculture & fishery activities
e. promote people empowerment
f. pursue a market-driven approach
g. induce the agricultural & fishery sectors to continuously ascend the value-added ladder
h. adopt policies that will promote industry dispersal & rural industrialization
i. provide social & economic adjustment measures
j. improve the quality of life of all sectors
Sec. 109 of RA 8435 provides that all enterprise engaged in agriculture & fishery duly certified by Department of Agriculture in
consultation w/ DOF & BOI, shall for 5 years exempted from payment of D&T on all types of imported
agricultural & fishery inputs, equipment and machinery
*who are eligible for exemption?*
a. Agricultural Sectors e. Fishery Enterprises
b. Cooperatives f. Fishery Sectors
c. Farmers & Fisherfolk g. Import Consolidators
d. Farmers & Fisherfolk organizations & associations

*role of the Tariff Commission in the AFMA*

actively participate in preparation of IRR of AFMA
preparation & review of the product list in consultation w/ concerned agencies & private sector
conduct public hearings; provide interested parties the opportunity to be heard & submit position papers
 THE PHILIPPINE FISHERIES CODE OF 1998
RA 8550
RA 8550 signed on February 25, 1998 by Pres. Fidel V. Ramos
*objectives of RA 8550*
a. conservation, protection & sustained management of countrys fishery & aquatic resources
b. poverty alleviation among municipal fisherfolk
c. improvement of productivity of aquaculture
d. optimal utilization of offshore & deep-sea resources
e. upgrading post-harvest technology
Sec. 35 of RA 8550 provides for the availment of incentives for commercial fishers;
a. long-term loans
b. tax & duty exemptions on importation of fishing vessels not more than 5yrs. old, equipment & paraphernalia
for a period of five(5) years
items eligible for tax-and-duty-free importation for a period of 5yrs. under E.O 209
1. Fishing vessel, fishery equipment & paraphernalia listed in ANNEX B of EO 209
secure first an Authority to Import (ATI) form MARINA & Cert. of Eligibilty from BFAR
2. Fishing vessel, fishery equipment & paraphernalia listed in ANNEX C
secure Certificate of Non-Availability from BOI
c. commercial fishing operators for high seas shall have duty & tax rebates on fuel consumption
fuel involved is consumed within 1 year from date of purchase
subject to submission of the ff. to the DOF One-Stop-Shop and Duty Drawback Center
1. Document attesting inspection of vessels as for high seas (certified true copy by MARINA)
2. Commercial Fishing Boat License issued by BFAR
3. Notarized Certificate of Fuel Loaded issued by BOC Inspector
4. Documents proving fuels consumed
5. Documents proving fuel purchased
6. Documents proving fuel delivered
d. All applicable incentives available under Omnibus Investment Code of 1987
Sec. 61 of RA 8550 provisions w/c governs the importation & exportation of fishery products
a. export of fishery products shall be regulated whenever it affects domestic food security & production
exportation of live fish is prohibited except those w/c are hatched or propagated from accredited hatcheries
b. protect & maintain local biodiversity or ensure the sufficiency of domestic supply
spawners, breeders, eggs & fry of bangus, prawn shall not be exported or caused to be export
c. Fishery products may imported only if certified as necessary by the DA in consultation w/ FARMC
all requirements have been complied
fish imports for canning/processing purposes only may allowed without necessary certification
d. No person shall import/export fishing products without securing permit from Department of Agriculture

*role of Tariff Commission of the Fisheries Code*

the TC, in coordination w/ DA, other government agencies & private sector, provide technical expertise in the tariff
Classification & preparation of list of products entitled to tax & duty exemption

JEWELRY INDUSTRY DEVELOPMENT ACT OF 1998

RA 8502
RA 8502 an act to promote the development of & providing incentives to jewelry manufacturing industry
signed on Feb. 13, 1998, took effect on July 9. 1998
Sec. 3 of RA 8502 incentives granted under this act to a qualified jewelry industry
a. zero(0) duty on imported raw materials
b. exemption from excise tax on goods commercially known as jewelry whether real/imitations
c. zero(0) duty on imported capital equipment, including spare parts & toolings
d. additional deduction from taxable income of 50% of expenses
e. gold & silver sales by the Bangko Sentral ng Pilipinas under minimal margins to jewelry enterprises
f. authority for jewelry enterprises to buy gold & silver directly from other sources
g. inclusion of locally-manufactured jewelry in the governments tourist duty-free shop
including promotion, advertisements & sale thereof
h. jewelry enterprises availing the incentives under this act shall still be eligible to incentives by other special laws
no double availment of the same incentives
Sec. 4 of RA 8502 jewelry enterprises availing incentives must be duly registered with the Board of Investments (BOI)
Jewelry enterprise any enterprise engaged in any aspect in the manufacture of goods commonly or commercially
known as fine and imitation jewelry

ANTI-DUMPING DUTY
Dumping occurs when foreign producers sell their products to an importer at prices lower than in their own national markets
or at prices below the cost of production
a form of price discrimination between two national markets
*elements of dumping*
1. Like Product product produced by domestic industry w/c is identical/alike in all respects LPIC
2. Price Difference amount by w/c normal value (exporting country price) exceeds export price (selling price to importer in PH)
3. Injury material injury to a domestic industry
4. Causal Link a finding that material injury is the direct result of importation of dumped products
Normal value foreign producers domestic selling price
the comparable price for like-product when destined for consumption in the country of export
Export price the ex-factory price at the point of sale for export; price assessed at the FOB level
the price at which such product has been purchased or agreed to be purchased at arms length transaction
Arms length transaction a transaction where the price is not affected by any relationship between buyer & seller
Domestic Industry the domestic producers of like-product
Comparable Price the domestic price of the product in the exporting country
Country of export the country from where the product was shipped to the Philippines
Country of origin the country where the product either wholly obtained where the last substantial transformation took place
New foreign exporter an exporter who did not export the allegedly dumped product during investigation period
Non-selected foreign exporter/producer a foreign exporter who has not been initially selected for the purpose of
computing the individual margins of dumping
Non-market economy the country of export/origin where the government has monopoly of trade
Price depression the domestic producer reduces its selling price to compete w/ dumped product
Price suppression the dumped product prevents domestic producer from increasing the selling price of its own like -product
Price undercutting the dumped product is sold at price below the domestic selling price
Dumping protest any specific kind/class of a foreign product w/c is being imported, sold or likely to be sold into the Philippines
at a price lesser that its normal value
Price undertaking a voluntary commitment by the exporter to increase his price or to cease exporting to PH at a dumped price
shall be made only after a preliminary affirmative determination & injury to domestic industry
a voluntary undertaking by government of exporting country to eliminate/limit subsidy
*importations exempted from anti-dumping protest*
a. Products imported by, or consigned to government agencies not organized for profit
b. Conditionally free importations
RA 8752 Anti-Dumping Act 1999 (Sec.301 of TCCP); signed on August 12, 1999, took effect on September 4, 1999.
JAO 1-2000 (Joint Administrative Order) the Implementing Rules & Regulation (IRR) of the act, took effect on July 10, 2000
CO No. 00-01 (Commission Order) prescribes the internal rules & regulations governing the conduct of formal investigation by TC
deposited on June 20, 2000 w/ the University of Philippines Law Center, took effect on July 5, 2000
*agencies administer anti-dumping legislation*
a. DTI-BIS in case of industrial goods; Department of Trade & Industry Bureau of Import Services
b. Department of Agriculture in case of agricultural products
c. Tariff Commission (TC) conducts formal investigation & submits report of findings to either Secretary
for the issuance of a Department Order
d. Bureau of Customs imposes the dumping bond and/or definitive duty upon receipt of Department Order
through the Secretary of Finance
*who may file anti-dumping protest*
a. domestic industry (in writing & in a notarized form)
b. DTI or DA
*the threshold of support by producers for the protest to be accepted*
a. collective output of more than 50% of total production of like-product produced by domestic industry
b. accounting for atleast 25% of total domestic production of product to be dumped
*Protestant shall post a surety bond to answer for any damages to the importer may sustain by reason of frivolous petition
the bond will be release only upon affirmative preliminary determination
*the de minimis rule of anti-dumping* protest shall be immediately rejected & investigation terminated if:
a. margin of dumping is less than 2% of the export price
b. volume of imports is less than 3% of all imports of like products into the importing country
c. the injury is negligible

Stages of Anti-Dumping Investigation

A. Prima Facie Determination
DTI-BIS or DA, upon acceptance of the protest/application, has 5 working days to decide whether the facts would
constitute a dumping case; undertake an in-depth evaluation
B. Preliminary Determination
DTI-BIS or DA notifies the government of the country of export about the i nvestigation
within 2 days from initiation of the investigation, DTI-BIS /DA notifies all known interested parties and send questionnaire
not later than 30 working days from receipt of the answer of the respondents,
Secretary shall make a preliminary determination
*the requirement of dumping bond (equivalent to the amount of dumping margin)
- shall be made not sooner than 60 days from date of initiation of investigation; only for a period of 4 months
*Secretary shall immediately terminate the investigation upon finding the de minimis rule
C. Final Determination
the Commission notifies all interested parties & holds preliminary conference and public consultations
from its receipt from Secretary of DTI/DA, the Commission has 120days to complete its own inquiry
and submit its report of findings to either Secretary
before making final determination, Commission is required to disclose the essential facts to the interested parties on w/c
the decision to apply the duty is made; Parties are given 5days from date of receipt of essential facts to defend it in writing
D. Issuance of Department Order
from receipt of affirmative final determination by the Commission, the DTI or DA Secretary within 10 working days
issue a Department Order imposing an anti-dumping duty on dumped product
*in case of negative finding by the Commission, either Secretary shall issue, through Secretary of Finance, after lapsed of
period for the petitioner to appeal to the Court of Tax Appeals, an Order for the Commissioner of Customs to immediately
release the anti-dumping bond to the importer.
*measures/remedies imposed against dumping*
a. Provisional Measure a cash or documentary security equal to the estimated difference between normal value & export price
of the protested article
applied only after DTI-BIS or DA has made a preliminary affirmative determination no sooner than 60days
from initiation of the case
DURATION: 4 months, extendable to 6 months
b. Definitive duty final anti-dumping duty imposed; it may be a full margin of dumping / a lesser amount adequate to remove the
the injury to the domestic industry
DURATION: 5 years from imposition

Sunset review a review that may be initiated by any interested party or upon own motion of the Commission before sunset date
whether the expiry of anti-dumping duty would likely lead to a continuation of dumping & injury
Interim review a review conducted by the Commission upon the direction of the Secretary or upon petition of any interested party
to determine whether : a. the need for the continued imposition of anti -dumping duty in no longer necessary
b. existing duty is not sufficient to counteract the dumping
Note: Atleast 1 year should have elapsed since imposition of anti-dumping duty
Newcomer review - a review carried out on an accelerated basis for determining individual margins of dumping for new exporters

SUBSIDIES & COUNTERVIELING MEASURES

Subsidy refers to any specific assistance directly/indirectly provided by the government of the country of export of
the products imported into the Philippines
*industry is deemed to have received subsidy if:*
a. direct and/or potential transfer of government funds (e.g., grants, loans, equity infusion, loan guarantees)
b. government offer tax credits
c. government providing goods/services or purchasing goods
Countervailing duty a special duty levied, in addition to the regular duty&other charges on imports w/c have been found to
be subsidized in the country of origin/exportation; equal to the amount of subsidy
imposed after an affirmative final determination
Countervailing bond a security (cash deposit/ bond) equal to the amount of the calculated amount of subsidy
*Types of subsidies*
1. Actionable/yellow subsidies those falling the definition of subsidy w/c neither non-actionable nor prohibited subsidies
2. Non-actionable/ green subsidies those permitted as general in nature ; cannot be subjected to countervailing measures
Examples: a. for research activities conducted by firms
b. to adapt existing production facilities to new environment requirements
c. to assist in development of industries in disadvantaged regions but not
directed to specific enterprises w/n the region
3. Prohibited/ red subsidies include export subsidies; An importing country alleging this kind of subsidy can avail of
remedy measures by bringing to the matter before the WTO Dispute Settlement Body
Examples: a. direct subsidy based on export performance
b. currency retention schemes or a bonus on exports
c. exemption from direct taxes (e.g., tax on profits)
d. exemption/ remission of indirect taxes (e.g., VAT)
e. remission/ drawback of import charges
f. export guarantee programs at premium rates inadequate to cover the cost of programs
*elements of countervailing duty*
1. Product comparability a product is identical or alike in all respects
2. Subsidy any specific assistance directly/indirectly provided by government PSIC
3. Injury material injury to a domestic industry
4. Causal Link material injury is direct result of the importation of subsidized product
RA 8751 Countervailing Duty Act of 1999 (Sec.302 of TCCP)
signed on August 7, 1999, took effect on August 31, 1999
JAO 2-2000 the IRR of the act; took effect on September 25, 2000
*who may file a petition for countervailing action*
a. domestic industry (in writing & notarized form
b. DTI or DA
*threshold support by producers for the petition to be accepted*
a. support by producers whose collected output of more than 50% of total production of like product
b. accounting for atleast 25% of total domestic production
*de minimis rule of countervailing* petition shall be immediately rejected & investigation terminated if:
A. in case of product from developed country
amount of subsidy is less than 1%
volume of subsidized imports is negligible
B. in case of product from developing countries
level of subsidies granted not exceed 2% of the value
level of subsidies granted not exceed 3% of the value (for least-developed countries)
subsidized imports are less than 4% of total imports
*Stages of countervailing investigation*
A. Prima Facie Determination
DTI-BIS / DA has 10 days to examine the accuracy& adequacy of the petition; determine sufficient evidence
before the initiation of investigation, either Secretary shall notify government of exporting country & invited for consultation
B. Preliminary Determination
DTI-BIS /DA initiates investigation & makes preliminary determination (whether or not provisional measure may be imposed)
not later than 20days from receipt of answer of the respondents
AFFIRMATIVE FINDING: Secretary issues Department Order for imposition of provisional countervailing duty (cash bond)
bond shall be made not sooner than 60days from date of initiation of investigation (the date when Secretary
publishes such notice in two(2) newspapers of general circulation
Secretary shall immediately terminate the countervailing investigation upon finding the de minimis rule
C. Final Determination
TC notifies all interested parties, holds preliminary conference & public consultations
TC has 120 days from receipt of advice from Secretary to complete its own inquiry & submit reports to either Secretary
D. Issuance of Department Order
either Secretary shall within 10 days from receipt of affirmative final determination by TC, issue Department Order
imposing a definitive countervailing duty unless he has earlier accepted price undertaking from foreign exporter/ government
*duration of countervailing measures*
1. Provisional countervailing duty four(4) months
2. Definitive countervailing duty five(5) years from imposition
*three(3) countervailing cases by Philippines*
1. Wheat flour from France (FR) & Germany (DE)
2. Spanners & wrenches from India (IN)
3. Transmission & conveyor belts from India
*Brazil (BR) file 121.5% countervailing duty to Philippines on Coconut product

SAFEGUARD MEASURES
*Importing government may take temporary(general) safeguard measures (high tariffs, tariff quotas, or QR) against imports if t he
products at issue are being imported in such increased quantities, to cause/threaten to cause serious injury to domestic industry
*Special transitional safeguards (additional duty not exceeding 1/3 of level of effective tariff) against importations of:
1. agricultural products whose QRs were tariffied into ordinary customs duties
2. agricultural products designated w/ symbol SSG in GATT Schedule of Concessions
*special safeguards may invoke if:*
a. volume of imports exceeds a trigger level
b. price of imports falls below a trigger price
*injury to domestic industry need not to be established
*purpose of safeguard measures*
to give the affected domestic industry time to prepare itself for & adjust to increased import competition
resulting from multinational trade negotiations

RA 8800 Safeguards Measures Act of 2000; signed by Joseph Estrada on July 19, 2000; took effect on August 9, 2000
JAO 3-2000 the IRR of this act; published on Manila Standard on Oct. 4, 2000, took effect on Oct. 11, 2000
*who may file petition for safeguard measures*
General Safeguard Measures: a. domestic producers
b. President, House/Senate Committee on Agriculture, or
House/Senate Committee on Trade and Commerce
c. DTI Secretary (non-agriculture products) or DA Secretary (agriculture products)
Special Safeguard Measures: 1. Any person (natural/juridical)
2. DA Secretary
*stages of general safeguard investigation*
A. Prima Facie Determination
DTI-BIS or DA has 5 calendar days to decide whether prima facie case exists
if no prima facie case exists, the application is denied
B. Preliminary Determination
w/n 2 calendar days after decision to initiate preliminary investigation is made, Secretary notify all interested parties
and government of exporting country about the investigation & send respondents questionnaire to all parties
not later than 30 calendar days from receipt of documented petition, Secretary shall make a preliminary determination
that increased imports are threaten/cause to serious injury to domestic industry
AFFIRMATIVE FINDINGS: w/n 3 calendar days the Secretary advises the Secretary of Finance to instruct BOC to
impose provisional safeguard measure (form of tariff increase/ cash bond); in case of agriculture products where tariff
Increase is not sufficient, a QR may applied
Secretary shall transmit its preliminary affirmative findings to the TC for formal investigation
C. Formal Investigation
the TC shall conduct the formal investigations; TC shall conclude & submit its report of findings to either Secretary
within 120 calendar days from receipt of request from Secretary except when it is urgent, in this case the TC shall
submit report within 60 calendar days
D. Decision
within 15 calendar days from receipt of Report of the Commission, Secretary shall make decision consider the
measures recommended by the TC
AFFIRMATIVE Final Determination: Secretary shall issue w/n 2 calendar days after making his decisions, a written
instruction to heads of government agencies to implement appropriate general safeguard measure
NEGATIVE/ excess of definitive safeguard duty, Secretary shall issue, through Secretary of Finance, a written instruction
to Commissioner of Customs, authorizing the return of cash bond within 10 days from date of final decision was made
*stages of special safeguard investigation*
A. Verification
DA Secretary shall verify if the cumulative import volume of an SSG dominated agricultural product in a given year
exceeded its trigger volume OR its CIF import price is less than its trigger price
B. Findings
Secretary shall come up a findings within 5 workings days from date of receipt of request
C. Imposition of special safeguard measure
Secretary shall issue Department Order requesting the Commissioner of Customs through Secretary of Finance
to impose an additional special safeguard duty
---- injury is not an element in the imposition of special safeguard measure
*duration of safeguard measures*
A. General Safeguard measures
Provisional measure shall not exceed 200 calendar days from date of imposition
applied after affirmative preliminary determination by BIS or DA
Definitive measure maximum of 4 years including the period of provisional relief
extendable up to maximum of 8 years (10 years for developing countries)
applied after affirmative final determination by the Tariff Commission
B. Special Safeguard Measures
the additional duty shall be maintained only until the end of the year
Adjustment plan the action plan indicating a set of quantified goals , specific programs & timetables that a concerned industry
commits to undertake in order to facilitate the industrys positive adjustment to import competition
*when is the adjustment plan submitted to the Commission*
---- within 45 calendar days upon receipt of notice
---- within 30 calendar days upon receipt of notice (URGENT)
*example of safeguard measure cases of the Philippines*
a. glass mirror Malaysia c. figured glass China e. cement India
b. float glass Malaysia d. sodium tripolyphosphate China f. ceramic tiles Indonesia

COMPARISON OF ANTI-DUMPING, COUNTERVAILING

AND SAFEGUARD MEASURES
1. RELEVANT AGREEMENT
Anti-dumping/Countervailing General/Safeguard
WTO Anti- Dumping Agreement (GATT Art. 6) WTO Agreement on Safeguards (GATT Art. 19)
WTO Agreement on Subsidies & Countervailing Measures (GATT Art.16) WTO Agreement on Agriculture
2. NATURE OF MEASURE
UNFAIR traded imports FAIRLY traded imports
Export price is lower than normal value Export price at level of normal value
Subsidized production or exportation of foreign merchandise Increased level of imports absolute/relative to production
(general safeguards)
Import volume exceed base trigger level OR price below the
trigger price level (safeguard measure)
6. ELEMENTS to be established
Product comparability (like-product) General Safeguard:
Price differences/subsidy Product comparability (like or directly competitive product)
Material Injury Increased imports
Causal Link Serious Injury
Causal Link
Special Safeguard:
Product comparability
Import volume exceeds a base trigger level
Price falls below a trigger price level
7. FORMS of MEASURE
a. Provisional measure General Safeguards:
dumping/countervailing bond a. Provisional tariff increase
b. Definitive b. Definitive tariff increase, quantitative restrictions (e.g.,
dumping/countervailing duty import quota, import licensing)
Special Safeguards:
a. Additional duty not exceeding 1/3 of level of ordinary customs
duty

WORLD TRADE ORGANIZATION

(WTO)
GATT a multilateral treaty w/c provides a code of agreed rules for international trade; tackle trade in goods alone
Contracting parties call to the members of GATT
WTO the successor of GATT; headquarter in Geneva, Switzerland
a single, formal & permanent international trade organization, has the institutional capacity to oversee the implementation of
various agreements negotiated in Uruguay Round that encompass services and intellectual property rights
began operation on January 1, 1995
an intl body administers trade laws & a forum for settling trade disputes among nation
*3 main objectives of WTO*
a. to help trade flow as freely as possible
b. to achieve further liberalization of trade through negotiation
c. to set up an impartial means of settling disputes
Final Act signed by Philippines embodying 30 agreements & 22 ministerial decisions resulting from Uruguay Round
agreement to establish the WTO on April 15, 1994 at Marrekesh, Morocco
Ministerial Conference meeting at least once every 2 years
highest decision-making body; composed of representatives of all members governments
General Council FUNCTIONS: a. oversees operation of the Agreements & Ministerial decisions
b. act as dispute settlement body & trade policy review mechanism
c. establishes subsidiary bodies:
(1) Goods Council
(2) Committee on Agriculture
(3) Services Council
(4.) Trade-related Intellectual Property Rights (TRIPS) Council
Single Undertaking Approach membership in WTO entails accepting all the results of the Round w/o exception
*WTO operates in 3 ways*
(1) as a set of multilaterally agreed rules
(2) as a forum for trade negotiations
(3) as an international court
*fundamental principles of GATT-WTO*
1. Trade w/o discrimination non-discrimination trade and that all contracting parties are bound to grant to each other
treatment as favorable as they give to any country
2. Protection only through tariffs protection can only be given to a domestic industry through customs tariffs
3. A stable basis for trade the binding of tariff levels
4. Consultation (to General Council) countries can call on WTO for a fair settlement of cases; such consultations help to
clarify difficulties & find equitable solutions
5. Quantitative Restrictions a general prohibition to maintain quantitative restrictions (QR)
6. Regional trading arrangements (Art. 24 of GATT) group of countries agreed to abolish barriers against imports from
one another (e.g., AFTA, NAFTA, APEC & EU
7. Waiver & possible emergency action (Art. 25 of GATT)
waiver a member country may seek a derogation from particular GATT/WTO obligations
Uruguay Round the 8 th and the most ambitious round
*three(3) key result of Uruguay Round*
1. Market Access encompassed negotiations in industrial tariffs, agriculture, textiles & clothing & services
2. Rules & Discipline negotiating topics form trade measures against unfair trade
3. Institutional Topics to improve the conduct of multilateral trading system
RA 8181 an act changing the Ad Valorem rate of duty from Home Consumption Value (HCV) to Transaction Value (TV)
RA 8178 an act replacing Quantitative Import Restrictions on Agricultural Products except Rice
E.O 313 set the tariff rates on agricultural products previously covered by quantitative restrictions

*WTO Director-Generals*
1 st Peter Sutherland Ireland (July 1993 May 1995)
2 nd Renato Ruggiero Italy (May 1995 September 1999)
3 rd Mike Moore New Zealand (Sept. 1999 Sept. 2002)
4 th Supachai Panithpakdi Thailand (2002 2005)
5 th Pascal Lamy France (2005-2013)
6 th Roberto Azevedo Brazil (2013-Present)

WTO MINISTRIAL MEETINGS

1. Singapore (1996)
first WTO ministerial meeting; eliminate tariffs in information technology (IT) products
duty-free treatment on 465 pharmaceutical products
2. Geneva (1998)
50 th Anniversary of Multilateral Trading System
negotiations on basic telecommunications&financial services & implementation of
Information Technology Agreement (ITA)
3. Seattle (1999)
hosted by US in Seattle, Washington
4. Doha, Qatar (2001)
launched the Doha Development Agenda
5. Cancun (2003)
Mexico; mid-term review on Doha Development Agenda
major challenges of TRIPS, public health, west africas proposal on cotton,
agriculture subsidies, NAMA modalities and Singapore issues
Cambodia and Nepal were welcomed as first least-developed countries
6. Hongkong (2005)
adopted a decision known as the July Package; the adoption of Swiss Formula
accession of Saudi Arabia and Tonga
7. Geneva (2009)
8. Geneva (2011)
9. Bali, Indonesia (2013)
10. Nairobe, Kenya (2015)
11. Buenos Aires (2017)

Tariff binding members commit to bind the tariff reduction/ elimination at a fixed level
Binding commitment a promise not to raise tariffs beyond specified rate
Tariff ceiling rate a level that is higher than the applied (existing) tariff
 WTO AGREEMENT ON AGRICULTURE
Agreement on Agriculture the agreement covering agricultural products (HS Chapter 1-24)
Tariffication all quantitative import restrictions (QRs) have to be removed & converted into ordinary customs duties
Tariff quotas a mechanism which tariffication system operates
MAVs Minimum Access Volume; also called in-quota tariff; lower tariff rates
Out-qouta tariff volume outside MAV; higher rates
MAV Plus (RA 8178); authorize the President to increase the MAVs w/ concurrence of Congress
EFFECT: in-quota volume of products to be in short supply OR domestic prices risen abnormally
MAV Management Committee composed of:
Chairman: Secretary of Agriculture
Members: Secretary of Agrarian reform Secretary of Science & Technology Director General of NEDA
Secretary of Finance Secretary of Trade & Industry
NAMA Non-Agricultural Market Access; objective is to reduce or eliminate tariffs, including the reduction/ elimination of tariff peaks,
high tariffs, tariff escalation & non-tariff barriers on particular products of export interest to developing countries
Linear reduction the method where all tariffs are reduced by an agreed percentage;
applied for industrial products during Kennedy Round
Harmonization formula seeks to reduce high tariffs more than those that are relatively low; used during Tokyo Round
Sector formula aims to complete the elimination (or harmonization) in a given sector applied during Uruguay Round
Cocktail approach a combination of the three above to achieve more meaningful tariff reductions; used in Uruguay Round
Swiss Formula is a special case of harmonizing tariff cuts; basic approach for tariff reduction/ elimination
proposed by Switzerland in Tokyo round

INFORMATION TECHNOLOGY AGREEMENT (ITA)

ITA a multilateral agreement aims to eliminate tariff and non-tariff barriers to trade in information technology products
concluded at the Singapore Ministerial Conference
proposed by the Quad countries: a. United States c. Japan
b. Canada d. European Union
*original signatories to the ITA*
1. Australia 8. Japan
2. Canada 9. Korea
3. Chinese Taipei 10. Norway
4. European Communities 11. Singapore
5. Hong Kong 12. Switzerland
6. Iceland 13. Turkey
7. Indonesia 14. United States
*product landscape of ITA*
(1) computer hardware products (4) Telecommunications equipment
(2) Semiconductor & integrated circuits (5) Other IT products
(3) Computer software
Ms. Zsofia Tvarusko (Hungary) newest chairperson of ITA
*Philippines signed ITA on April 1, 1997
*benefits from membership in ITA*
1. easier access to latest technology 4. improved productivity
2. heightened speed & accuracy of information exchange 5. lower cost of computers
3. accelerated development of information technology highway

WORLD CUSTOMS ORGANIZATION

WCO an independent intergovernmental body w/ world-wide membership whose mission is to enhance the effectiveness &
efficiency of customs administration
the successor of Customs Cooperation Council established in 1952
the only international organization dealing exclusively w/ customs matters
Council the highest body in WCO composed of Directors-General of Customs from all member countries
meets once a year assisted by: a. Finance Committee (17 members)
b. Policy Commission (24 members)
*technical committees of WCO*
A. Nomenclature & Classification
(1) Harmonized System Committee administer the Intl Convention on Harmonized Commodity & Coding System
resolves specific classification problems; the arbitrator in customs disputes
(2) Harmonized System Review Sub-Committee has the task of revising the HS in accordance w/ the Committees
general indications & preparation for amendments to HS Nomenclature
(3) Scientific Sub-Committee
B. Valuation
(1) Technical committee on Customs Valuation responsible for matters pertaining to customs valuation
C. Customs Technique
(1) Permanent Technical Committee assisting the Council; study all aspects of customs technique & contribute to the
simplification & harmonization of customs procedures
(2) Enforcement Committee fight against commercial fraud & illicit traffic in narcotics
(3) ADP sub-committee
D. Origin
(1) Technical committee on Rules of Origin together w/ the WTO Committee on Rules of Origin, is charged w/ the
implementation of work program on harmonization of rules of origin
Nairobi convention aimed at achieving mutual administrative assistance for the prevention, investigation
and prevention of customs offenses
Kyoto convention is an outline of a worldwide customs code & is an instrument to facilitate,
simplify and harmonized customs procedures
*Philippines is the 104th member of WCO
*Kosovo - 181 st newest member of WCO
*Kunio Mikuriya (Japan) Secretary-General of WCO
Secretaries General of ASEAN
Name Country Year
1. Hartono Dharsono Indonesia Jun 1976 Feb 1978
2. Umarjadi Notowjono Indonesia Feb 1978 Jun 1978
3. Ali Abdullah Malaysia Jul 1978 Jun 1980
4. Narciso G. Reyes Philippines Jul 1980 Jul 1982
5. Chan Kai Yau Singapore Jul 1982 Jul 1984
6. Phan Wannamethee Thailand Jul 1984 Jul 1986
7. Roderick Yong Brunei Jul 1986 Jul 1989
8. Rusli Noor Indonesia Jul 1989 Jan 1993
9. Ajit Singh Malaysia Jan 1993 Dec 1997
10. Rodolfo Severino Jr. Philippines Jan 1998 Dec 2002
11. Ong Keng Yong Singapore Jan 2003 Dec 2007
12. Surin Pitsuwan Thailand Jan 2008 Dec 2012
13. L Lng Minh Vietnam Jan 2013 - Present

HARMONIZED SYSTEM
HS Harmonized Commodity & Coding System; update once every 5 years
internationally accepted coding system ; developed by the WCO
patterned after the Customs Cooperation Council (CCCN) & Standard Intl Trade Classification (SITC) Rev.2 drafted by U.N.
a systematic grouping into sections, chapters, headings & subheadings of products arranged to the degree of processing
E.O 688 mandating the TC to align the Philippine Tariff & Customs Code to the CCCN
HS Convention the intergovernmental commitment of the contracting parties to agree to use the HS up to 6 -digit level
Philippine Instrument of Accession was signed by Joseph Estrada on Sept. 23, 1998;
the instrument of accession finally deposited to WCO on June 25, 2001
tariff shift the change in classification in the HS nomenclature
*other publications complement the HS Code*
a. explanatory notes - constitute the official interpretation of HS at international level
b. alphabetical index the alphabetical list of articles mentioned in HS & explanatory notes
facilitates the location of references in HS Nomenclature OR in Explanatory Notes
to any of products/ articles mentioned therein
c. compendium of classification opinions consists of Classification Opinions adopted by the WCO
CITES Convention on International Trade in Endangered Species of Fauna & Flora
ICAT International Convention of Atlantic Tuna
Basel Convention waste
Convention on Psychotropic Substances narcotics & psychotropic substances; amended the Single Convention on Narcotic Drugs
Rotterdam Convention pesticides
Montreal Protocol ozone-depleting substances
INBAR (FAO) -

RULES OF ORIGIN
ROO are laws, regulations & administrative determination of general application to ascertain a products country of origin
set of criteria to determine the economic content & nationality of a product
*uses of ROO*
(a) implement measures & instrument of commercial policy (e.g., anti-dumping duty, qoutas, etc.)
(b) determine whether imported goods shall be subject to a MFN treatment or preferential treatment
(c) for purpose of trade statistics & issuance of certificate of origin
(d) for application of labeling & marking requirements
(e) for public procurement
(f) for process patent
*types of ROO*
1. Non-preferential ROO implements measure & instruments of commercial policy (imposing of special duties)
2. Preferential ROO whether a product is qualified to preferential tariff or MFN tariff
*criteria in determining the rules of origin* Wholly obtain & Substantial transformation
(1) Wholly obtain goods:
a. agricultural products harvested there
b. animals born & raised there
c. products obtained from animals referred to (b) above
d. products obtained from hunting or fishing
e. products obtained of sea fishing & other products taken from the sea by its vessel
f. products made on board its factory ships exclusively from the products referred to in (e)
g. mineral products extracted from its soil or seabed
h. used articles collected there
i. waste & scrap resulting from manufacturing operations conducted there
j. products obtained there
 (2) Substantial transformation: has three(3) criterion (dapat present tanang criterion para maconsider as originating)
1. value added rule minimum value added content expressed in percentage of the total product cost
40% RVC (regional value content) must come from ASEAN countries
*value added can be determined either by:
a. Direct /Build up Method - dividing the sum of the value of originating materials,
overhead cost, by the FOB value of finished product(%)
b. Indirect/Build-down Method to determine percentage by adding the values of imported materials,
parts & components including those unknown origin, divided by
FOB value of finished good
2. change in tariff classification (dapat mausab ang classification sa final product gikan sa raw materials)
(a) Change of Chapter (CC)
(b) Change of Tariff Heading (CTH) - mostly used by ASEAN; dapat mulahi ang heading sa finished good from heading sa raw m.
(c) Change of Tariff Subheading (CTSH)
(d) Change of Tariff Heading Split (CTHS)
(e) Change of Tariff Subheading Split (CTSHS)
3. Process Rule these processes do not confer origin:
a. preservation of products (e.g., drying, chilling, adding salt,etc)
b. sifting/examine/segregate, sorting, classifying, matching, washing, painting, or cutting up
c. changes of packing, breaking up & assembling of consignment
d. simple slicing, cutting & repacking/placing in bottle, flasks, bags, boxes (simple packing operations)
e. affixing marks, labels or other distinguishing signs on products
f. simple mixing of products
g. simple assembly of parts of products
h. combination of 2 or more operations in (a) to (f)
i. slaughter of animals
Accumulation rule products that subsequently used in a member state as inputs for a finished product eligible for preferential
treatment in another member state, shall be considered as products originating in a member state where
working or processing took place
*types of accumulation*
a. Full accumulation the full value of the product from a party in an FTA territory
b. Partial accumulation accumulate inputs w/ other member countries to hurdle ROO criterion
Indirect materials are materials used in the production but do not form part of the good
they are considered originating regardless of origin:
a. Fuel d. Gloves, glasses, footwear, clothing, safety equipment
b. Tools, dies & moulds e. Catalyst & solvents
c. Lubricants, greases, compounding materials
*accessories, spare parts & parts imported w/ originating goods will be treated as originating if:
a. not invoiced separately from the originating good that they are imported with
b. their quantities & value are customary for the imported good
Certificate of Origin (CO) a declaration of the exporter as certified by BOC, that export product complies with the origin requirement
*kinds of certificate of origin*
A. With preferential treatment
1. Generalized System of Preferences GSP (Form-A) 5. ASEAN-India FTA (Form-AI)
2. ASEAN Trade in Goods Agreement (Form-D) 6. ASEAN-Australia & New Zealand FTA (Form-AANZ)
3. ASEAN-China Free Trade Agreement (Form-E) 7. PH-Japan Economic Partnership Agreement (Form-JP)
4. ASEAN-Korea Free Trade Agreement (Form-AK) 8. ASEAN-Japan Comprehensive Economic Partnership (Form-AJ)
B. Without preferential treatment
1. CO for General Merchandise (White C.O)
Agreement on Rules of Origin aims to harmonize non-preferential rules of origin

ASSOCIATION OF SOUTEAST ASIAN NATION

(ASEAN)
ASEAN founded in Bangkok, Thailand in August 1967
permanent secretariat in Jakarta, Indonesia
established during Vietnam War
ASEAN Summit highest decision-making body; meets twice a year
is a semi-annual meeting held by the member of the ASEAN in relation to economic & cultural development
among member countries
4 TH ASEAN Summit to establish an Asean Free Trade Area (AFTA)
CEPT Common Effective Preferential Tariff; main implementing mechanism of AFTA
cooperative arrangement among ASEAN member states
CEPT Scheme main instrument for making ASEAN a free trade area
CEPT-AFTA was signed in Singapore on January 28, 1992
AFTA ASEAN Free Trade Area; signed during Singapore Declaration
Vietnam 1 st Communist member of Asian
*ASEAN 6* *CLMV*
1. Brunei 1. Cambodia
2. Indonesia 2. Lao PDR / Laos
3. Malaysia 3. Myanmar
4. Philippines 5 original signatories 4. Vietnam
5. Singapore of ASEAN

6. Thailand
Treaty of Amity & Cooperation a peace treaty among Southeast Asian Countries
ASEAN Observer: a. Papua New Guinea c. Bangladesh
b. East Timor d. Fiji
ATR ASEAN Trade Repository
shall be maintain/update by ASEAN Secretariat
like a library that contains all information of/about ASEAN

E.O issued to implement Philippine CEPT Scheme

388 Zinc oxide, zinc peroxide & diotyl orthophthalates

453 1997-2003
487 1998-2003
71 1999-2003
234 2000-2003
254 2000-2003 Bold economic measure

49 2001-2003

163 Information & communications technology (ICT)product

165 2002

166 Implement AISP package in PH

230 Modify ROD of Sugar

Oil cake & solid residues of maize (Corn germ), cassava
263
starch, sodium tripolyphosphates
486 Petrochemicals & plastic products
489 2006-2010

892 Tariff reduction on Sugar

894 Tariff reduction on Rice

ASEAN SUMMITS
# City Country Theme
1 st Bali Indonesia
2 nd Kuala Lumpur Malaysia
3 rd Manila Philippines
4 th Singapore Singapore
5 th Bangkok Thailand
6 th Hanoi Vietnam
7 th Bandar Seri Begawan Brunei
8 th Phnom Penh Cambodia
9 th Bali Indonesia
10 th Vientiane Laos
11 th Kuala Lumpur Malaysia
12 th Cebu Philippines
13 th Singapore Singapore One ASEAN at the Heart of Dynamic Asia
th Cha Am & Hua Hin
14
Pattaya Thailand
15 th Cha Am & Hua Hin
16 th Towards the ASEAN Community: from Vision to Action
Hanoi Vietnam
17 th
18 th Jakarta
Indonesia
19 th Bali
20 th
Phnom Penh Cambodia
21 st
22 nd
Bandar Seri Begawan Brunie
23 rd
24 th
Naypidaw Myanmar
25 th
Kuala Lumpur &
26 th
Langkawi Malaysia
27 th Kuala Lumpur
28 th
Vientiane Laos Turning Vision into Reality for a Dynamic ASEAN Community
29 th
30 th Cebu/Pampanga/
Philippines
31 st Davao

ASEAN Informal Summits

1 st Jakarta Indonesia November 1996
2 nd Kuala Lumpur Malaysia December 1997
3 rd Manila Philippines November 1999
4 th Singapore Singapore November 2000
ASEAN Theme One Vision, One Identity, One Community
ASEAN Charter most important documents that create a legal & institutional framework for cooperation of an ASEAN
Community
13 th ASEAN Summit 10 leaders of member states of ASEAN signed the Charter; held in Singapore
Minister rank & status of Secretary-General of ASEAN
*Procedure for Admission to be an ASEAN Member
ASEAN Coordinating Council prescribe the procedure for application & admission
Admission will be based on: a. geographical location in Southeast Asia
b. recognition by all ASEAN member
c. agreement to abide the Charter
d. ability & willingness to carry obligation as member
Admission be decided by consensus by ASEAN Summit upon recommendation of ACC
Applicant shall be admitted upon signing an Instrument of Accession to the Charter

*What comprises ASEAN Summit?

1. ASEAN Coordinating Council comprise the ASEAN Foreign Ministers
meet at least twice a year
2. ASEAN Community Councils
a. ASEAN Political-Security Community Council (APSC) promote peace & security in the Region
b. ASEAN Economic Community Council (AEC) enhance economic competitiveness & establishes the region as
a single market & production base
c. ASEAN Socio-Cultural Community Council (ASCC) envisions a common regional identity by pursuing social development
and building a people-centered, responsible, caring & sharing community
*each member designates a representative for each community council meetings
3. ASEAN Sectoral Ministerial Bodies

Secretary-Gen. of ASEAN appointed by the ASEAN Summit

Non-renewable term of office of 5 years
selected among members based on Alphabetical Rotation
initiate, advice, coordinate & implement ASEAN activities
responsible to Heads of Government Meetings
chairs all meetings of the ASEAN Standing Committee (ASC)
*Happenings in every ASEAN Summits*
1 st Summit the leaders of ASEAN member countries endorsed the Treaty of Amity and Cooperation in Southeast Asia and the
Declaration of ASEAN Concord
2 nd Summit a joint communique was signed
3 rd Summit approved the Manila Declaration 1987 and four major economic agreements aimed at promoting economic cooperation
within the organization
4 th Summit signed the Singapore Declaration and a framework agreement on enhancing ASEAN economic cooperation. They decided
to hold a summit every three years
5 th Summit Bangkok Declaration was adopted; agreed to hold informal meetings every year
6 th Summit approved Hanoi Declaration, the Hanoi Plan of Action and a number of what they called "bold measures" to strengthen
economic, political and security cooperation
7 th Summit endorsed the Mid-Term Review of the Hanoi Plan of Action and identified new priorities which included ASEAN
integration, information and communications technology along with human capacity building
adopted a 2001 ASEAN Declaration on Joint Action to Counter Terrorism and a Declaration on HIV/AIDS
th
8 Summit signed the ASEAN Tourism Agreement
9 th Summit seen as "very productive," the leaders adopted a milestone document - the Declaration of ASEAN Concord II, also known
as Bali Concord II, which envisions the establishment of an ASEAN Community by 2020
10 th Summit adopted the Vientiane Action Program, a vehicle to build an ASEAN community through realizing comprehensive
Integration
11 th Summit adopted the Kuala Lumpur Declaration on the Establishment of the ASEAN Charter
12 th Summit endorsed the Cebu Declaration on the blueprint of the ASEAN Chart to form the basis of a mini constitution that seeks to
transform the ASEAN into a legal entity with binding rules and regulations
13 th Summit signed the ASEAN Charter and the Declaration on the ASEAN Economic Community Blueprint
14 th Summit signed Cha-am Hua Hin Declaration on the Roadmap for an ASEAN Community (2009-2015)
15 th Summit adopted Cha-am Hua Hin Declaration on Inauguration of the ASEAN Intergovernmental Commission on Human Rights
(AICHR), Cha-am Hua Hin Declaration on Strengthening Cooperation on Education to Achieve an ASEAN Caring and
Sharing Community and Draft ASEAN Joint Statement on Climate Change
16 th Summit leaders pledged to effectively implement the bloc's cooperation pacts over the next five years
17 th Summit adopted several key documents on strengthening connectivity within the bloc, on the improvement of human resources
development and on the protection of women and children
18 th Summit agreed & adopted three joint statements on "ASEAN Community in a Global Community of Nations," "Establishment of
the ASEAN Institute for Peace and Reconciliation" and "Enhancing Cooperation against Trafficking in Persons in Southeast Asia
19 th Summit adopted Bali Declaration on ASEAN Community in a Global Community of Nations, or the Bali Concord III, the Agreement
of the Establishment of the ASEAN Coordinating Center for Humanitarian Assistance on Disaster Management, and the
ASEAN Declaration on Unity in Diversity: Toward Strengthening the ASEAN Community
20 th Summit adopted four(4) outcome documents, namely the (a) Phnom Penh Agenda on ASEAN Community Building, (b) the Phnom
Penh Declaration on "ASEAN: One Community, One Destiny," (c) the ASEAN Leaders' Declaration on Drug-Free ASEAN
2015 and (d) the Global Movement of Moderates
21 st Summit three(3) outcomes were adopted: (a) Phnom Penh Agenda on ASEAN Community Building, (b) Phnom Penh Declaration
on "ASEAN: One Community, One Destiny," (c) ASEAN Leaders' Declaration on Drug-Free ASEAN 2015 and the Global
Movement of Moderates
22 nd Summit to push ahead with the ASEAN Roadmap and ASEAN Economic Community (AEC) Blueprint
starting negotiations on the Regional Comprehensive Economic Partnership (RCEP)
23 rd Summit adopted the Bandar Seri Begawan Declaration on the ASEAN Community's Post-2015 Vision
24 th Summit adopted Nay Pyi Taw Declaration on Realization of the ASEAN Community in 2015
25 th Summit focused on ASEAN community building and a post-2015 vision for the group
26 th Summit adopted Kuala Lumpur Declaration on a People-Oriented, People-Centered ASEAN, a milestone in the history of the
grouping, and the Langkawi Declaration on the Global Movement of Moderates as well as the Declaration on
Institutionalizing the Resilience of ASEAN and its Communities and People to Disasters and Climate Change
27 th Summit endorsed Kuala Lumpur Declaration on ASEAN 2025: Forging Ahead Together

ASEAN TRADE IN GOODS AGREEMENT

(ATIGA)
ATIGA ASEAN Trade In Goods Agreement
free flow of goods by 2015 in ASEAN Economic Community
improvement of CEPT-AFTA Scheme
(objtv) to achieve free flow of goods in ASEAN
to establish single market and production base
signed on February 2009; entered into force on May 17, 2010
39 th Meeting ASEAN Economic Ministers agreed to sign ATIGA
*Conditions for a product to be eligible for concessions under ATIGA
a. Products on which tariff of exporting member have reached 20% or below.
b. RVC of not less than 40% or all non-originating materials undergone CTC (4digit level/CTH)
c. Preferential tariff shall supported by Certificate of Origin (CO Form D)
*When can member apply for temporary suspension of concessions?
Member shall notify in writing to AFTA Council at least 180days before temporary suspension
Protocol for Rice & Sugar special consideration for rice and sugar; request waiver
recognize political sensitivity of basic commodities
ensure self-efficiency & food security
*How does member invoke protocol?
- Member requesting for waiver, make a written submission to AFTA Council
At least 90 days before waiver to take effect
- ASEAN Secretariat submits waiver copy to:
SEOM Senior Economic Officials Meting
CCCA Coordinating Committee on the Implementation of CEPT Scheme for AFTA
*How can request of waiver be considered?
- CCA submit report to SEOM within 30days from date of request
- SEOM forward its own report to AFTA Council within 30days from date report of CCA
- AFTA Council considers & decides not exceeding 30days from date report of SEOM
*Time limit of member states waiver
- ASEAN member submit annual report for review to AFTA Council
- Based on review, AFTA Council decides whether to continue or terminate the waiver
Dispute Settlement Mechanism shall apply to any dispute arising between members concerning the Protocol on Enhanced Dispute
Settlement Mechanism for ASEAN

ASEAN Priority Integration Program

Under ASEAN-CEPT Scheme
AEC ASEAN Economic Community
commitment toward closer cohesion & economic integration
sets a goal to achieve an integrated (single) market & production base
reaffirmed at 10th ASEAN Summit on November 2004
*12 Priority Sectors under ASEAN Priority Integration Program
E.O 617 covers 1 st & 2 nd phases of tariff elimination under priority integration
Wood-based & Automotive Indonesia I
Rubber-based & Textiles Malaysia M
Agro-based & Fisheries Myanmar M
Electronics & Logistics Philippines P
e-ASEAN & Healthcare Singapore S
Airlines & Tourism Thailand T

ASEAN Integration System of Preferences (AISP)

AISP ASEAN-6 give preferential treatment to CLMV countries
4 th ASEAN Informal Summit in Singapore, ASEAN Leaders agreed to launch an Initiative for ASEAN Integration (IAI)
AMM ASEAN Ministerial Meeting
34 th AMM in Hanoi, adopted the Hanoi Declaration on Narrowing the Development Gap for Closer ASEAN Integration
Phnom Penh, Cambodia a Summit Meeting where IAI Work Plan approved
AISP Scheme preferential tariffs are offered to the newer members by the older embers on voluntary & bilateral basis
E.O 166 Philippines granted 1st package tariff preference to Myanmar & Vietnam on certain agricultural, industrial,
pharmaceutical and electrical goods
E.O 448 2 nd package extended to CLMV on certain plant products & wood sawn timbers
 ASEAN Industrial Cooperation (AICO) Scheme
AICO Scheme is the latest industrial cooperation program in ASEAN that superseded the ASEAN Industrial Joint Ventures (AIJV) &
Brand-to Brand Complementation (BBC) Schemes
Company to Company
signed during ASEAN Economic Minister Meeting in Singapore
seeks to promote the sharing industrial activities between ASEAN-based companies
offers 0%-5% preferential tariff rate
AICO Arrangement a cooperative arrangement involving a minimum of two (2) companies from two different ASEAN countries
Intra-firm AICO Arrangement applied for manufacturing companies that belong to the same group of companies
AICO Final Product its all intermediate products and/or raw materials are entitled preferential tariff rates
*How is an AICO Arrangement formed? Companies must:
incorporated & operating in any ASEAN country
30% minimum national equity
undertake resource sharing
(A waiver is possible for companies cannot meet equity condition if it meets other criteria)
*Application Procedures for AICO Arrangement
Companies apply to their respective national authorities by providing the ff:
a. proof of legal incorporation & equity holding
b. identification of products & partner company
c. documentary proof of resource sharing
Applications are processed within 45 days from submission
Certificate of Eligibility (COE) issued by ASEAN Secretariat to the companies within 10 days after approval
by the participating countries
approved AICO products then granted AICO privileges within 45 days thereafter
*Documents require by BOC to accompany AICO products
a. Normal shipping documents c. Certificate of Origin (Form D)
b. Copy of COE d. Pre-Shipment Assessment Report (PSI)
*AICOs Product Coverage (3-tier product ranges)
a. AICO Final Product final output w/c does not undergo any further processing
b. AICO Intermediate Product used within AICO arrangement as an input to the AICO Final Product
c. AICO Raw Material used as an input to an Intermediate product or as direct input to the AICO Final Product

ASEAN Harmonized Tariff Nomenclature

(AHTN)
AHTN an 8-digit commodity nomenclature adopted by 10 ASEAN Member in 2004
comprised of: a. General Interpretative Rules of HS
b. Section & Chapter Notes including Subheading Notes c. list of headings arranged in systematic order
7 th & 8 th digit codes are assigned to ASEAN subheadings
beyond 8t-digit code is for national subheadings
*Uses of AHTN
a. uniform tariff nomenclature in ASEAN
b. a base for preferential tariff purposes in AFTA & other FTAs
c. a base for collection of trade statistics
*Advantages of AHTN
a. uniformity of application in classification of goods in ASEAN
b. enhances transparency in classification process for goods in the region
c. simplifies the tariff nomenclature system of ASEAN Member States
E.O 688 mandated the Commission to align Phil. Tariff nomenclature to the CCCN
AHTN Protocol the legal framework governing the implementation of the AHTN
signed in Manila on August 7, 2003 by:
1. Brunei Darussalam 6. Union of Myanmar
2. Kingdom of Cambodia 7. Republic of the Philippines
3. Republic of Indonesia 8. Republic of Singapore
4. Lao Peoples Democratic Republic 9. Kingdom of Thailand
5. Malaysia 10. Socialist Republic of Vietnam
ASEAN Directors-General (ADG) of Customs responsible for monitoring, reviewing, supervising, relating to AHTN Protocol
ASEAN Finance Ministers Meeting the forum for all decisions relating to the Protocol ASEAN Secretariat provide necessary support
for supervising, coordinating & reviewing relating to AHTN Protocol; assist the ADG of Customs
responsible of assisting experts panel & assisting member states in monitoring & reviewing the AHTN
*How do countries provide for national subdivisions?
beyond 8-digit AHTN level, member state can create new national subheadings
Member states made proposals for amendments to the ADG of Customs through ASEAN Secretariat
ADG of Customs shall be the forum to allow amendments in AHTN
ADG of Customs may convene an experts panel consists of representatives from all member states
the Decision of ADG of Customs shall be made by consensus
*Publications related to implementation of AHTN
1. Supplementary Explanatory Notes (SEN) compilation of official interpretation of ASEAN subheadings
2. Alphabetical Index alphabetical list of articles to facilitate location of references
3. Correlation Table essential guide for the transposition of AHTN
4. Compendium of Classification compilation of tariff classification rulings
 ASEAN China Free Trade Area
(ACFTA)
Framework Agreement Framework Agreement on Comprehensive Economic Cooperation
agreement between ASEAN & Peoples Republic of China (PROC)
signed by ASEAN Members & China on Nov.4,2002 in Cambodia
ACFTA worlds biggest free trade area
*Economic benefits of the agreement
1. Increased bilateral trade 3. Greater economic efficiency
2. Expanded GDP 4. Lower cost 5. Increased investment
*Objectives of the Agreement
1. Strengthen & enhance economic, trade, investment co-operation between parties
2. Progressively liberalize & promote trade in goods & services
Create a transparent, liberal & facilitative investment regime
3. Explore new areas & develop measures for closer economic cooperation
4. Facilitate more effective economic integration of the newer ASEAN Member and
Bridge the development gap among parties
EHP Early Harvest Program
aims to accelerate the implementation of the Agreement for trade in goods
covers all products at 8/9 digit level in HS Chapter 1-8
E.O 485 issued to implement Philippine commitment on EHP
Reciprocal Tariff Rate Treatment a party shall enjoy the tariff concessions other
parties have made for the same tariff line as long as that party adheres to its own
commitment for tariff reduction & elimination for that tariff lines
NT Normal Track Rate ST Sensitive Track Rate

Country (A) Country (B) ACFTA Rate

(Export Country) (Import Country)
EHP EHP of Country (B)
EHP NT NT of Country (B)
ST ST of Country (B)
EHP EHP of Country (B)
NT NT NT of Country (B)
ST ST of Country (B)
EHP of (B) or ST of (A) whichever is higher
EHP
(Provided: MFN of (B) is not less than the ST of (A)
ST 10% NT of (B) or ST of (A) whichever is higher
NT
(Provided: MFN of (B) is not less than the ST of (A)
ST ST ST of (B)
EHP MFN of (B)
ST 10% NT MFN of (B)
ST ST of (A) or MFN of (B) whichever is higher
(Naay reciprocity if ang ST (A) is equal/less than 10%)

ASEAN JAPAN Comprehensive

Economic Partnership (AJCEP)
*ASEAN-JAPAN relations have further enhanced by:
a. signing of Tokyo Declaration for the Dynamic & Enduring ASEAN-JAPAN Partnership in the New Millennium
b. adoption of ASEAN-JAPAN Plan of Action at the ASEAN-JAPAN Commemorative Summit in Tokyo on Dec. 11-12, 2003
*Areas of Cooperation
(a) Trade related Measures ( b) Business Environment ( c) Intellectual Property Rights
E.O 767 issued to implement the Philippines commitment to reduce tariff in this agreement

ASEAN-KOREA Free Trade Area

AKFTA)
AKFTA agreement between ASEAN & Republic of Korea
signed by Economic Ministers of the parties on August 24, 2006 in Kuala Lumpur
Thailand the only ASEAN member has not signed the agreement
only became member on 2006
ASEAN-Korea 5 th largest trading partners for each other
*Products covered of the AKFTA All except:
1. arms & ammunitions
2. clinical & municipal wastes
3. specialized medicine for cancer, AIDS, & other dreaded diseases

ASEAN India Free Trade Area

(AIFTA)
ASEAN-India Summitin 2003, ASEAN & Republic of India signed Framework Agreement
RVC is only 30%; CTSH (6-digits level)
ASEAN Australia & New Zealand FTA
(AANZ)
AANZ leaders of ASEAN agreed this agreement at the ASEAN-Australia & New Zealand Commemorative Summit in Vientiane, Laos
on November 30, 2004
 ASIA PACIFIC ECONOMIC COOPERATION
(APEC)
APEC association of economies that share boundaries of the Pacific Ocean
created by the initiative of Australia in 1989
Member economies called to the members of APEC
Canberra, Australia 1 st ministerial meeting of APEC was held on Nov.6-7, 1989
*Twelve (12) Founding members of APEC A-B-C-I-J-K-M-N-P-S-T-U
1. Australia 5. Japan 9. Philippines
2. Brunei Darussalam 6. Korea 10. Singapore
3. Canada 7. Malaysia 11. Thailand
4. Indonesia 8. New Zealand 12. United States
*9 other member economies C-H-C-M-P-C-P-V-R
13. China 16. Mexico 19. Peru
14. Hong Kong 17. Papua New Guinea20. Viet Nam
15. Chinese Taipei 18. Chile 21. Russia
*Asian Tigers
a. South Korea b. Taiwan c. Hong Kong d. Singapore
APEC Secretariat based on Singapore & operates as the core support mechanism for the APEC process
performs a central project management role
headed by Executive Director (Present: Dr. Alan Bollard)\
APEC Economic Leaders' Meetings attended by the heads of government from all member countries except Taiwan, w/c
represented by a ministerial-level official
annual Leaders Meetings are not called Summits

APEC SUMMIT MEETINGS

1 ST Canberra, Australia on Nov. 6-7, 1989
2 nd Singapore, Singapore on July 29-31, 1990
3 rd Seoul, South Korea on Nov. 12-14, 1991
4 th Bangkok, Thailand on September 10-11, 1992
5 th The Blake Island Economic Vision
1 st APEC Economic Leaders Meeting on Nov. 20, 1993 in Blake Island, Seattle
hosted by U.S President Bill Clinton
6 th The Bogor Declaration of Common Resolve
Bogor, Indonesia on Nov. 15, 1994
hosted by President Suharto
the foundation of APEC 2020 economic growth through open trade, equal partnership, shared responsibility & mutual respect
7 th The Osaka Action Agenda
Osaka, Japan on Nov. 19, 1995
hosted by Prime Minister Tomiichi Murayama
served as a roadway towards achieving APECs agenda
translated the Seattle vision & Bogor goals into reality
th
8 The Manila Action Plan (MAPA)
Subic, Philippines on 1996
hosted by Fidel v. Ramos
the realization of Seattle Vision & the attainment of Bogor objectives
9 th The Vancouver Summit
Vancouver, Canada on November 1997
hosted by Prime Minister Jean Chretien
admission of Peru, Russia and Viet Nam as new member
10 th The Kuala Lumpur Summit
Kuala Lumpur, Malaysia on 1998
Leaders pledged to pursue a cooperative growth strategy
11 th The Auckland Summit
Auckland, New Zealand on 1999
three (3) themes w/c serve as focus of agenda & decisions of 11 th Ministerial Meeting:
1. expanding opportunities for business around the region
Ministers reaffirmed the central role of individual Action Plans
2. strengthening the functioning of markets
Ministers agreed to a road map setting out for future work by APEC to strengthen markets
3. expanding support for APEC
th
12 The Brunei Summit
Bandar Seri Begawan, Brunei on November 15-16, 2000
Ministers laid out APECs vision to capture the full economic & social benefits of the emerging new global economy.
e-Commerce assessment, paperless trading, electronic Individual Action Plans
guidelines on Osaka Action Agenda provide critical guidance to APEC
13 th The Shanghai Accord
Shanghai, China on October 20-21, 2001
strengthen commitments in achieving Bogor Goals
the e-APEC strategy is adopted
APEC members reaffirm support to the Multilateral Trading System and issue the 1st Counter Terrorism Statement
14 th The Los Cabos Summit
Los Cabos, Mexico on 2002
fight against all form of terrorism & strengthen Multilateral Trading System
APEC adopts the Secure Trade in APEC Region (STAR) initiative
15 th The Bangkok Summit
Bangkok, Thailand on 2003
APEC pushed for renewed negotiation on WTO Doha Development Agenda (DDA)
curb terrorist threats posed by Man Portable Air Defense Systems
16 th The Santiago Summit
Santiago, Chile on 2004
APECs 2004 theme: One Community, Our Future
APECs strong statement of support for progress in WTO DDA
December 2005 6 th WTO Ministerial Conference APEC adopts Best Practices for RTAs & FTAs, the Santiago Initiative for
Expanded Trade & Data Privacy Framework
17 th The Busan Roadmap
Busan, South Korea on 2005
leaders commit to confront pandemic health threats
APEC completes the Mid-Term Stocktake w/c found its way to meet Bogor Goals
18 th The Ha Noi Declaration
Hanoi, Vietnam on 2006
Leaders call for balance outcomes on the WTO Doha Development Agenda
19 th The Sydney Summit
Sydney, Australia on 2007
highlights issues on climate change, energy security & clean development
20 th Lima Declaration
Lima, Peru on 2008
theme: A new commitment to Asia-Pacific Development
21 st Singapore, Singapore on 2009
22 nd Yokohama, Japan on 2010
23 rd Honolulu, United States on 2011
24 th Vladivostok, Russia on 2012
25 th Bali, Indonesia on 2013
26 th Beijing, China on 2014
27 th Manila, Philippines on 2015
28 th Lima, Peru on 2016
29 th Da Nang, Vietnam on 2017
30 th Port Moresby, Papua New Guinea on 2018