20100326 seminar - singapore ftas with china

7/28/2019 20100326 Seminar - Singapore FTAs With China

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Title (ARIAL 32 pts)

How Companies Can Benefit from ACFTA & CSFTA

THE SINGAPORE PUBLIC SERVICE: INTEGRITY SERVICE EXCELLENCE 1

1 1

Senior Manager, FTA Division

Trade Services & Policy Group 26 March 2010


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Outline

.

2. ASEAN-China FTA

3. Singapore-China FTA4. Rules of Origin

. ACFTA & CSFTA


2


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1. Singapores Network of

Free Trade Agreements (FTAs)


3

3


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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 &


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


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


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


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


products not listed in the mentioned attachments are

in Normal Track 1.


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ACFTA Tariff Reduction Schedule

THE SINGAPORE PUBLIC SERVICE: INTEGRITY SERVICE EXCELLENCE 1414www.aseansec.org/19105.htm

14


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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


NormalTrack2 HighlySensitiveList


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CSFTA Legal TextCSFTA Legal Text



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Chinas Tariff Elimination ScheduleChinas Tariff Elimination Schedule

THE SINGAPORE PUBLIC SERVICE: INTEGRITY SERVICE EXCELLENCE 2121 2121


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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


Singapore.


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Rules of Origin Wholly-Obtained

Wholly-Obtained or Produced entirely in the Party:

,

(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;


(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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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


DutySavingsforImporter $35,000 $30,000


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How does it benefit the company?How does it benefit the company?

,

$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:


. .

Phone: 1800 437 7673


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More Resources on the Internet



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Thank You


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20100326 seminar - singapore ftas with china

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