ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) Ms Foo May Yan Manager (FTA Division) Trade Services and Policy Group 9 July 2010

Transcription

1 ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) Ms Foo May Yan Manager (FTA Division) Trade Services and Policy Group 9 July 2010 THE SINGAPORE PUBLIC SERVICE: INTEGRITY SERVICE EXCELLENCE 1

2 Outline 1. Singapore s Network of FTAs 2. AANZFTA Trade in Goods 3. Rules of Origin 4. Business Models Under AANZFTA 5. Application 2

3 Singapore s Network of FTAs - 18 FTAs In Force with 24 trading partners ASEAN Jan 1993 New Zealand Jan 2001 Japan Nov 2002 * EFTA - Switzerland, Liechtenstein, Norway, Iceland Jan 2003 Australia Jul 2003 USA Jan 2004 ASEAN-China, (TIG) Jul 2005 (TIS) Jul 2007 (Investment) Feb 2010 Jordan Aug 2005 India Aug 2005 S. Korea Mar 2006 ** TPSEP - Brunei, Chile, New Zealand May 2006 Panama Jul 2006 ASEAN-Korea, (TIG) Jun 2007 (TIS) May 2009 (Investment) Aug 2009 China Jan 2009 ASEAN-Japan (TIG) Jan 2009 Peru Aug 2009 ASEAN-India (TIG) Jan 2010 ASEAN-Australia & New Zealand Jan 2010 *EFTA European Free Trade Association **TPSEP Trans Pacific Strategic Economic Partnership 3

4 Singapore s Network of FTAs Signed/ Concluded/ Under Negotiations Signed Undergoing Negotiations *GCC Dec 2008 Trans-Pacific Partnership (TPP) EU Costa Rica Jan 2010 ASEAN-EU ASEAN-Japan (Services & Investment) ASEAN-India (Services & Investment) * Cooperation Council for the Arab States of the Gulf (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE) Mexico Canada Pakistan Ukraine 4

5 AANZFTA Trade in Goods

6 AANZFTA (Trade in Goods) 1. Agreement was signed on 27 February The first comprehensive FTA that ASEAN has signed with a Dialogue Partner, and the only one that has commitments in all three pillars of goods, services and investments. 3. AANZFTA entered into force on 1 January 2010 for Australia, New Zealand, Brunei, Malaysia, Myanmar, Philippines, Singapore & Vietnam. Thailand implemented AANZFTA on 12 March

7 AANZFTA (Trade in Goods) 4. The remaining ASEAN member states will enforce AANZFTA after they have completed their ratification processes. 5. Each party shall progressively reduce and/or eliminate customs duties on originating goods of the other parties in accordance with its schedule of tariff commitments in Annex 1. 7

8 Singapore s FTAs with Australia and New Zealand Trade in Goods AANZFTA SAFTA ANZSCEP SIN-AU SIN-NZ SIN-AU SIN-NZ Implemented 1 January July January 2001 Product coverage All products entering the Australian and New Zealand markets. All Singapore products entering the Australian market. All Singapore products entering the New Zealand market. Tariff Elimination Schedule 100% by 1 January % immediate 100% immediate SAFTA: Singapore-Australia Free Trade Agreement ANZSCEP: Agreement between New Zealand and Singapore on a Closer Economic Partnership 8

9 Singapore s FTAs with Australia and New Zealand Trade in Goods Rules of Origin (ROO) Documentary Requirements AANZFTA SAFTA ANZSCEP SIN-AU SIN-NZ SIN-AU SIN-NZ (i) Local/regional value content of not less than 40% FOB; or (ii) Change in tariff heading (4-digit level) (iii) Product Specific Rule Form AANZ CO required Back-to-Back Form AANZ CO required for re-export of goods. Local value content of not less than either 30% or 50%, ex-factory cost. Preferential CO required for single or 1 st shipment. Exporter s declaration is required for subsequent multiple shipments. Local value content of not less than 40%, exfactory cost. Self-declaration made by exporter. 9

10 Rules of Origin (ROO) & Tariff Schedules

11 Rules of Origin A good shall be treated as an originating good and eligible for AANZFTA tariff concessions if it satisfies the Rules of Origin (ROO): 1. Goods Wholly Produced or Obtained. 2. Goods Not Wholly Produced or Obtained have to fulfil the following; I. Local/regional value content of at least 40% (FOB); or II. Change in Tariff Heading (4-digit level) III. Product Specific Rule (Annex 2 of Legal Text) 11

12 Schedule of Tariff Commitments (1 of 4) Go to

13 Schedule of Tariff Commitments (2 of 4)

14 Schedule of Tariff Commitments (3 of 4) 14

15 Schedule of Tariff Commitments (4 of 4) 15

16 Tariff Calculator Tariff Calculator web-link: 16

17 Business Models Under AANZFTA

18 Direct Shipment Original AANZ Certificate of Origin (CO) Manufacturer Importer Both Manufacturer and Importer must be parties of AANZFTA 18

19 Back-to-Back Certificate of Origin (CO) Original AANZ CO Back-to-Back AANZ CO Manufacturer Intermediate Country (e.g. Singapore) Importer Last place of substantial manufacture is in an ASEAN member state, Australia or New Zealand. The intermediate country will obtain the AANZ CO from the manufacturer and submit to the Customs Authority with their application for a Back-to-Back AANZ CO. 19

20 Third Party Invoicing Manufacturer issues invoice to company in third country who pays the manufacturer. Third Party in another Country Company in third country issues invoice to importer and importer pays to company in third country. Manufacturer Original AANZ CO Importer Third party invoicing is also possible under ASEAN Free Trade Area (AFTA), ASEAN Korea Free Trade Area (AKFTA), ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP) & ASEAN-India Free Trade Area. 20

21 Checking Tariff Concession & Application

22 Steps to Obtain Tariff Concessions Step 1 Step 2 Step 3 Know the HS code of your product Check that HS code for product is offered tariff concession Compare MFN rate and FTA rate Step 5 Step 4 Comply with Customs documentary requirements Check that product satisfies Rules of Origin (ROO) 22

23 Application Procedure for Preferential Certificate of Origin (CO) Factory Registration Prepare Manufacturing Cost Statement Apply for Preferential Certificate of Origin For more details, please visit 23

24 FTA Resources

25 IE Contact Information FTA website: Hotline : enquiry@iesingapore.gov.sg : (1800-IESPORE) 25

26 AANZFTA Information IE Singapore FTA website AANZFTA website by ASEAN Secretariat Guide to Rules of Origin & Preferential Certificate of Origin Procedures:

27 Thank you