1 / 6

4 December 2009 Tariff Commission Public Hearing

Waiver of the Reciprocity Provision under the Trade in Goods Agreement (TIG) of the ASEAN-Korea FTA (AKFTA). 4 December 2009 Tariff Commission Public Hearing. Based on Korea’s request for compensation for Philippines’ delayed implementation of her TIG commitments

hanzila
Download Presentation

4 December 2009 Tariff Commission Public Hearing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Waiver of the Reciprocity Provisionunder the Trade in Goods Agreement (TIG) of the ASEAN-Korea FTA (AKFTA) 4 December 2009 Tariff Commission Public Hearing

  2. Based on Korea’s request for compensation for Philippines’ delayed implementation of her TIG commitments • EO 812 was implemented only 8 July 2009 • Korea compensated ASEAN for her delayed implementation of her TIG commitments • Compensation in the form of reciprocity waiver • Benefits to RP exports estimated at US$28M Rationale for Waiver of Reciprocity

  3. Reciprocal tariff rate treatment of tariff lines placed by an exporting party in the Sensitive Track (ST), excluding Group E (Exclusions), while the same tariff lines are placed by an importing party in the Normal Track (NT), shall be governed by the following conditions: • Tariff rate must be at 10% or below and exporting party has given notification • Reciprocal tariff rate to be applied to an exporting party’s tariff line, shall either be the tariff rate (i.e. MFN) or the NT rate of the same tariff line of an importing party from whom reciprocity is sought, whichever is higher • Importing party can, on its own discretion, apply its NT tariff rate even if such rate is lower than tariff rate of exporting party • Reciprocal tariff rate to be applied to a tariff line placed by an exporting party in the ST shall in no case exceed the applied MFN rate of the same tariff line of an importing party from whom reciprocity is sought Reciprocity Provision under the TIG

  4. Illustrative Example

  5. Low or zero MFN/CEPT rate • Not locally produced • Minimal trade from Korea • No requests for flexibility Proposed Criteria for Product Selection

  6. Bureau of Customs to implement Implementation

More Related