ASEAN-China Free Trade Area (ACFTA)

Agreement

The Framework Agreement on Comprehensive Economic Cooperation Between the Association of South East Asian Nations (ASEAN) and the People's Republic of China (China) (Framework Agreement) was signed by the Heads of Government/State of the ASEAN Member States and China on 4 November 2002 in Cambodia.

Implementing Executive Orders

The following E.O.s implement the Philippines’ tariff commitments under the ACFTA:

  1. (1) E.O. 485 (s. 2005) – Early Harvest Programme
  2. (2) E.O.s 487 (s. 2006), 613 (s. 2007), and 814 (s. 2009) – Normal Track
  3. (3) E.O.s 71 (s. 2012) and 72 (s. 2012) – Sensitive Track
  4. (4) E.O. 618 (s. 2007) – Reciprocal tariff rate treatment on tariff lines included in Sensitive Track

Pursuant to Section 1100 of the Customs Modernization and Tariff Act, an importer or exporter may file a written application for an advance ruling on the tariff classification of goods with the Commission.

Submission of Certificate of Origin Form E is required in order to avail of ACFTA preferential tariffs.

Date of Full Implementation

2018

Overview of Tariff Commitments / Reciprocity

Tariff reduction/elimination is composed of two tracks:

  1. (1)   Normal Track
  2. (2)   Sensitive Track – Sensitive List and Highly Sensitive List

See Article 3 (Tariff Reduction and Elimination) of the Agreement on Trade in Goods of the Framework Agreement (TIG Agreement).

Annex 2 of the TIG Agreement provides that reciprocal tariff rate treatment of tariff lines placed by a Party in the Sensitive Track shall be governed by the following conditions:

  1. (1) the tariff rate for a tariff line placed by a Party in the Sensitive Track must be at 10% or below for the Party to enjoy reciprocity;
  2. (2) the reciprocal tariff rate to be applied to a tariff line placed by a Party in the Sensitive Track shall either be the tariff rate of that Party's tariff line, or the Normal track tariff rate of the same tariff line of the other Party or Parties from whom reciprocity is sought, whichever is higher; and
  3. (3) the reciprocal tariff rate to be applied to a tariff line placed by a Party in the Sensitive Track shall in no case exceed the applied MFN rate of the same tariff line of the Party or Parties from whom reciprocity is sought.

Amendments

Please visit www.asean.org for any future amendments to the Agreements.