20100326 Seminar - Singapore FTAs With China
Transcript of 20100326 Seminar - Singapore FTAs With China
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Title (ARIAL 32 pts)
How Companies Can Benefit from ACFTA & CSFTA
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Senior Manager, FTA Division
Trade Services & Policy Group 26 March 2010
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Outline
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2. ASEAN-China FTA
3. Singapore-China FTA4. Rules of Origin
. ACFTA & CSFTA
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1. Singapores Network of
Free Trade Agreements (FTAs)
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Singapores Network of FTAs
- 18 FTA s In Force with 24 trading partners
ASEANJ an 1993
NewZealandJ an 2001
J apanNov 2002 * EFTA - Switzerland,Liechtenstein,Norway, Iceland,
J an 2003
AustraliaJ ul 2003
USJ an 2004
ASEAN-China
(TIG) J ul 2005(TIS) J ul 2007
(Investment) Feb 2010
**Aug 2005 Aug 2005
- , ,New Zealand
May 2006
.Mar 2006 J ul 2006
-(TIG) J un 2007(TIS) May 2009
(Investment) Aug 2009
China ASEAN-J apan Peru ASEAN-India ASEAN-Australia &
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J an 2009 (TIG) J an 2009 ug an New ZealandJ an 2010
* EFTA: Europe Free Trade Association ** TPSEP: Trans-Pacific Strategic Economic Partnership Agreement
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Singapores Network of FTAs
Signed/ Concluded/ Under NegotiationsSigned / Concluded Undergoing Negotiations
GCC
Mexico Canada Pakistan Ukraine
Dec 2008
- apan(Services & Investment)
- n a(Services & Investment)
Costa Rica Trans-Pacific Partnershi TPP
ASEAN-EU EU
(Australia, Brunei, Chile,New Zealand, Peru,
US & Vietnam)
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2. ASEAN-China FTA (ACFTA)
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ACFTA 11 Parties
ASEAN 6:
Indonesia Malaysia
Singapore
Thailand
ASEAN-China Free
Trade Agreement
CLMV:
Cambodia- Myanmar
Vietnam
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CHINA
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History of ACFTA Negotiations
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Coverage of ACFTA
First ASEANs FTA with a Dialogue Partner
Lar est free trade area in the world with a total o ulation of
1.9 billion ACFTA includes:
Trade in Services
Investment
Economic Cooperation:
ICT
gr cu ure Human Resource Development
Mekon River Basin Develo men
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Dispute Settlement Mechanism
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ACFTA Legal Text
FTA Website: http://www.fta.gov.sg
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ACFTA Trade in Goods Tariff Schedule
Tariff reduction / elimination is staged under 5 different lists,submitted by each participating country:
ACFTA
TradeinGoods
EarlyHarvestProgramme NormalTrack SensitiveTrack
NormalTrack1 SensitiveList
HighlySensitive
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List
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ACFTA Trade in Goods Tariff Structure
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Determining Which Track The
Product Is On Know the products HS Code.
countrys list of products: Early Harvest Programme Chapters 1-8 and over 100 industrial
. ,Protocol to Amend the Framework Agreement (8 Dec 2006)
Normal Track 2 Annex 1, Appendix 1 of Trade in Goods
Sensitive Track - Attachment 8, Appendix 2 of Protocol to Amendthe Trade in Goods Agreement (8 Dec 2006)
- ,Amend the Trade in Goods Agreement (8 Dec 2006)
Products on Normal Track 1 are not listed. All
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products not listed in the mentioned attachments are
in Normal Track 1.
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ACFTA Tariff Reduction Schedule
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ACFTA Tariff Reduction Schedule
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3. China-Singapore FTA (CSFTA)
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History of CSFTA NegotiationsHistory of CSFTA Negotiations
Established J oint Expert Group in April 2006 tos u y eas y o e
Launched negotiations in August 2006
Held 8 rounds of negotiations over 2 years in both
Singapore and ChinaConcluded negotiations on 3 September 2008 in
Beijing
Signed on 23 October 2008 in Beijing
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Key Elements of CSFTAKey Elements of CSFTA
First comprehensive bilateral FTA that China has signedwith another Asian countr
The CSFTA comprises the following chapters:-
Customs Procedure
Trade RemediesTrade in Services
Movement of Natural Persons
Economic Cooperation
Dispute Settlement Mechanism
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CSFTA Trade in Goods Tariff Schedule
Builds on commitments of China and Singapore underASEAN-China FTA (ACFTA)
Accelerate tariff elimination of NT products by 1-3 yearsfrom 2012 to 2010
ACFTA
TradeinGoodsEarlyHarvestProgramme
NormalTrack SensitiveTrack
NormalTrack1 SensitiveList
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NormalTrack2 HighlySensitiveList
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CSFTA Legal TextCSFTA Legal Text
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Chinas Tariff Elimination ScheduleChinas Tariff Elimination Schedule
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4. Rules of Origin
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Rules of Origin
Rules of Origin to ensure that only goods originating,
tariff concessions.
1. Wholly-Obtained or Produced entirely in the Party
2. Goods Not Wholly-Obtained or Produced
Local or Regional Value Content (RVC) of not less than 40%
Exclusive and Alternative Rule
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Singapore.
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Rules of Origin Wholly-Obtained
Wholly-Obtained or Produced entirely in the Party:
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(b) live animals born and raised there;
(c) products obtained from live animals;
(d) products obtained from hunting, trapping, fishing, aquaculture, gathering or capturing conducted
(e) minerals and other naturally occurring substances, extracted or taken from its soil, waters, seabedor beneath their seabed;
(f) products taken from the waters, seabed or beneath the seabed outside the territorial waters of thatPart rovided that thatPart has the ri hts to ex loit such waters seabed and beneath theseabed in accordance with international law;
(g) products of sea fishing and other marine products taken from the high seas by vessels registeredwith a Party or entitled to fly the flag of that Party;
(h) products processed and/or made on board factory ships registered with a Party or entitled to fly the
flag of that Party, exclusively from products referred to in sub-paragraph (g) above;(i) articles collected in the territory of that Party that can no longer perform their original purpose nor
are capable of being restored or repaired and are fit only for disposal or recovery of parts of rawmaterials, or for recycling purposes;
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(j) goods obtained or produced in a Party solely from products referred to in sub-paragraphs (a) to (i)above.
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ACFTA Rules of Origin Value Content
Formula:
Local Material Cost +Direct Labour & Direct Overheads + Profit--------------------------------------------------------
Free on Board (FOB) PriceX 100 = > 40% FOB
ASEAN-China Cumulative Content (Regional Value Content)
,Direct Labour & Direct Overheads + Profit-------------------------------------------------------- X 100 = > 40% FOB
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CSFTA Rules of Origin Value Content
Formula:
Local Material Cost +Direct Labour & Direct Overheads + Profit--------------------------------------------------------
Free on Board (FOB) PriceX 100 = > 40% FOB
China-Singapore Cumulative Content (Regional Value Content)
Direct Labour & Direct Overheads + Profit--------------------------------------------------------
Free on Board FOB Price
X 100 = > 40% FOB
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Rules of Origin PSRs
Product Specific Rules (PSRs):
xc us ve an erna ve ues o
Refer to Attachment 10, Attachment B in
Protocol to Amend the Trade in GoodsAgreement (8 Dec 2006)
Refer to Annex 2 (effective 1 J une 2009)
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Rules of Origin PSRs
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Rules of Origin PSRs
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4. How Companies Can Benefit from
ACFTA & CSFTA
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How does it benefit the company?How does it benefit the company?
Example:
xpor s o ec r c rons o na
CSFTA ACFTA
MFNRate 35% 35%PreferentialRate 0% 5%TariffSavings 35% 30%ExportValue $100,000 $100,000DutyPayablewithoutFTA $35,000 $35,000DutyPayablewithFTA $0 $5,000
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DutySavingsforImporter $35,000 $30,000
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How does it benefit the company?How does it benefit the company?
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$30,000,
1.the irons must satisfy the rules of origin under theCSFTA or ACFTA and
2. be exported with a Preferential Certificate of Origin(PCO) issued by Singapore Customs ie CSFTA PCO or
orm .
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Steps to Obtain Tariff Concessions
Step 1: Know the HS code of your product
Step 2: Check that the product is offered tariff
Ste 3: Com are MFN and FTA rates
Step 4: Check that your product satisfy the
Rule of Origin
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More Resources on the Internet
FTAs and Singapores network:
htt ://www.fta. ov.s
http://www.aseansec.org
Procedures & Guide to Rules of Origin:
http://www.tradexchange.gov.sg
htt ://www.customs. ov.s
Chinas FTA Website:
Further enquires with IE:
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Phone: 1800 437 7673
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More Resources on the Internet
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Thank You
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