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TARIFF COMMISSION PUBLIC HEARING/CONSULTATION On The Implementation of The ASEAN HARMONIZED

TARIFF COMMISSION PUBLIC HEARING/CONSULTATION On The Implementation of The ASEAN HARMONIZED TARIFF NOMENCLATURE (AHTN 2007/1). ASSOCIATION OF SOUTHEAST ASIAN NATIONS. Myanmar. ASEAN. Laos. Thailand. Vietnam. Philippines. Cambodia. Malaysia. Brunei. Singapore. Indonesia.

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TARIFF COMMISSION PUBLIC HEARING/CONSULTATION On The Implementation of The ASEAN HARMONIZED

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  1. TARIFF COMMISSION PUBLIC HEARING/CONSULTATION On The Implementation of The ASEAN HARMONIZED TARIFF NOMENCLATURE (AHTN 2007/1)

  2. ASSOCIATION OF SOUTHEAST ASIAN NATIONS Myanmar ASEAN Laos Thailand Vietnam Philippines Cambodia Malaysia Brunei Singapore Indonesia

  3. What is the AHTN 2007/1? The AHTN 2007/1 stands for the ASEAN Harmonized Tariff Nomenclature to be implemented in 2007. It is an 8-digit commodity nomenclature and coding system based on the AHTN 2002/1 and 2007 Harmonized System (HS) Amendments. It involves the alignment of the national tariff requirements of each ASEAN member country and the HS 2007. The AHTN is a milestone of ASEAN Customs integration through the promotion of a uniform and consistent classification of goods to facilitate trade in the region.

  4. AHTN Background

  5. AHTN Background  Flexibility to adopt the AHTN 2007 within 2007

  6. Comparison Between the AHTN - TCCP 2004 and the AHTN - TCCP 2007

  7. Comparison Between the AHTN 2002 and 2007

  8. Uses of the AHTN As a uniform tariff nomenclature within ASEAN As a base for preferential tariff purposes in AFTA and FTAs As a base for uniform data collection

  9. Art. 3 - AHTN Structure The AHTN is comprised of the (1) General Rules for the interpretation of the System, (2) Section and Chapter Notes, including Subheading Notes, and (3) a list of headings arranged in systematic order and, where appropriate, subdivided into subheadings. Adheres up to the 6-digit level of the HS, the seventh and eighth digit codes are assigned to ASEAN subheadings. In instances where national classifications of Member Countries are not included in the AHTN, these shall be dealt with beyond the eight-digit code or through domestic procedures.

  10. 7 1 0 1 . 1 0 . 1 0 AHTN Subheadings One Dash/Two-Dash Subheading (HS) One-Dash Subheading Heading Number Chapter Number

  11. 1st AHTN 2002 REVIEW FOR AHTN 2007 Rules Implications Publications Others

  12. RULES OF THE AHTN REVIEW Rule 1  Trade Value would be the primary criteria of the review process and the simplification exercise.  The threshold of three-year trading value of US $ 1 million in a particular good or commodity (intra- and extra-ASEAN trades) justifies the existence of tariff lines in the revised AHTN 2007/1.  This criterion is aligned with the criteria used by the WCO in amending the HS 2002 and its respective revisions.

  13. RULES OF THE AHTN REVIEW • Rule 2 • Member Countries would adopt 354 sets of amendments to the HS 2002. Rule 3  Inclusion of an ASEAN sub-heading could be justified on the basis of the frequency of use of this position in tariff nomenclatures of Member Countries.

  14. RULES OF THE AHTN REVIEW Rule 4  Non-existent goods in the international trade by Member Countries would be removed.  Practical illustration: any description leading to a diverse interpretation should be avoided. No creation of unnecessary tariff lines (6th AHTN Review Committee Meeting).

  15. RULES OF THE AHTN REVIEW Rule 5  The revised version of the AHTN would retain ASEAN subheadings, even trading values in the related goods do not meet the criterion as set forth in Rule 1 – Trade Value, if required by international conventions.

  16. RULES OF THE AHTN REVIEW Rule 6  The AHTN 2007/1 contains revisions of the codification system & terms of headings with a view to simplify the current hierarchical structures (e.g., merging the text description, simplification of the dash system of sub-division).  Simplify the SEN in line with international best practices.

  17. IMPLICATIONS OF AHTN 2007 ADOPTION Products not included/provided in the AHTN 2007:  In Quota/Out-Quota provisions  CKD Pack provisions for MVDP participants  New provisions (i.e., new Executive Orders (EOs)  ASSIGN CODES BEYOND THE AHTN 8-DIGIT CODES Alignment of Classification of Products Under Special Laws:  Fishery Act (R.A. 8550)  AFMA (R.A. 8435)  Jewelry Act (R.A. 8502)  Others  PROVIDE AHTN 2007 CODES Difficulty in Interpretation/Implementation/Application  FAMILIARIZATION AND INFORMATION DRIVE  UPDATING OF SUPPLEMENTARY EXPLANATORY NOTES (SEN)  AHTN 2002 – 2007 CORRELATION TABLES  SET UP ASEAN REGIONAL CLASSIFICATION WORKING GROUP

  18. IMPLICATIONS OF AHTN 2007 ADOPTION Alignment of Classification of Products Under FTAS:  ASEAN-CHINA FREE TRADE AGREEMENT (ACFTA)  ASEAN-KOREA FREE TRADE AGREEMENT (AKFTA)  JAPAN-PHILIPPINE ECONOMIC PARTNERSHIP AGREEMENT (JPEPA)  OTHER FTA’S: ANZFTA, AIFTA PROVIDE CODES/AHTN 2002-2007 CORRELATION TABLES SCHEDULE LXXV UNDER THE WTO PROVIDE CORRELATIONS AND BOUND RATES Alignment/Integration of Statistical Codes COORDINATE WITH NSCB/NSO

  19. Publications Complementary to the AHTN 2007 a.Supplementary Explanatory Notes (SEN)– a compilation of the official interpretation of the ASEAN subheadings. Updated during the Review. b.Alphabetical Index– an alphabetical electronic list of the articles mentioned in the AHTN and the SEN.It facilitates the location of references in the AHTN or the SEN to any of the products or articles mentioned therein. Still in process at the ASEAN Secretariat c.Correlation Tables– an essential guide for the transposition of the HS2002 8-digit HS-based Code (TCCP) to the 8-digit AHTN. Tariff Commission to publish and make available to all users

  20. Structure of the Philippine version of the ASEAN Harmonized Tariff Nomenclature (TCCP-AHTN 2004) * The CEPT rate in the relevant CEPT Executive Order. When the MFN rate is reduced to a rate lower than the CEPT rate, the CEPT will follow the MFN. However, when the MFN rate is increased to a rate higher than the CEPT rate, the CEPT rate in column 6 shall apply. ** All = All member countries can avail the concession or MFN rate will apply if MFN is lower than the CEPT rate.

  21. Sample Structure of the Philippine version of the ASEAN Harmonized Tariff Nomenclature (TCCP-AHTN 2007) (1) (2) (3) (4) (5) (6) 02.03 Meat of swine, fresh, chilled or frozen. -  Fresh or chilled: 0203.11.00 - -  Carcasses and half-carcasses: 0203.11.00A - - - In-Quota 30 30 All 0203.11.00B - - - Out-Quota 40 30 All 0203.12.00 - -  Hams, shoulders and cuts thereof, with bone in: 0203.12.00A - - - In-Quota 30 30 All 0203.12.00B - - - Out-Quota 40 30 All 0203.19.00 - -  Other: 0203.19.00A - - - Pork bellies, in-quota 30 30 All 0203.19.00B - - - Pork bellies, out-quota 40 30 All 0203.19.00C - - - Fore-ends and cuts thereof, in-quota 30 30 All 0203.19.00D - - - Fore-ends and cuts thereof, out-quota 40 30 All 0203.19.00E - - - Other, in-quota 30 30 All 0203.19.00F - - - Other, out-quota 40 30 All * The CEPT rate in the relevant CEPT Executive Order. When the MFN rate is reduced to a rate lower than the CEPT rate, the CEPT will follow the MFN. However, when the MFN rate is increased to a rate higher than the CEPT rate, the CEPT rate in column 6 shall apply. ** All = All member countries can avail the concession or MFN rate will apply if MFN is lower than the CEPT rate.

  22. SUPPLEMENTARY EXPLANATORY NOTES (SEN) to the AHTN 2007

  23. SUPPLEMENTARY EXPLANATORY NOTES (SEN) to the AHTN 2007 Do You Know these products ? 1. Shiitake 2. Beches-de-mer 3. Rauwolfia serpentina roots 4. Tengkawang oil 5. Belachan (blachan) 6. Ang Hoon 7. Seri Kaya 8. Pisang mas, pisang rastali 9. Langsat 10. Mata kucing

  24. SUPPLEMENTARY EXPLANATORY NOTES (SEN) to the AHTN 2007 AHTN IS FOR ALL ASEAN MEMBER COUNTRIES THE DESCRIPTIONS OF THE GOODS MUST BE FAMILIAR TO ALL MEMBER COUNTRIES NEED EXPLANATORY NOTES TO EXPLAIN SPECIFIC PRODUCTS

  25. SUPPLEMENTARY EXPLANATORY NOTES (SEN) to the AHTN 2007  Intended to provide meaning/description of unfamiliar terms used in the AHTN  To avoid overlapping between ASEAN subheadings  Serves as reference material in identifying the nature of the goods

  26. STRUCTURE OF SEN 2007 Chapter 8 0803.00.10 Pisang mas, pisang rastali The fruit of this ASEAN subheading are bananas of the Musaceae family Pisang mas (Musa cv. Mas (AA)) Pisang rastali (Musa cv. Rastali)

  27. Example 2 Chapter 8 0810.90.40 Langsat Langsat (Lansium spp.)

  28. SUPPLEMENTARY EXPLANATORY NOTES (SEN) to the AHTN 2007 Form part of the AHTN Protocol Developed to help users understand the products and to determine proper tariff classifications of AHTN lines The General Interpretative Rules (GIR) still apply The SEN should be read jointly with the HS and EN. In case of any conflict between the text of HS and EN and SEN, the provisions of the HS and EN shall prevail Pictures, graphs, diagrams or illustrations have been provided for clarity Written in English, the official Language of ASEAN

  29. COMPARISON OF ASEAN TARIFFNOMENCLATURES

  30. Thank You Tariff Commission 2007

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