AANZFTA - Singapore Manufacturing Federation
AANZFTA - Singapore Manufacturing Federation
AANZFTA - Singapore Manufacturing Federation
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ASEAN-Australia-New Zealand Free Trade<br />
Area (<strong>AANZFTA</strong>)<br />
Ms Foo May Yan<br />
Manager (FTA Division)<br />
Trade Services and Policy Group 9 July 2010<br />
THE SINGAPORE PUBLIC SERVICE: INTEGRITY • SERVICE • EXCELLENCE 1
Outline<br />
1. <strong>Singapore</strong>’s Network of FTAs<br />
2. <strong>AANZFTA</strong> Trade in Goods<br />
3. Rules of Origin<br />
4. Business Models Under <strong>AANZFTA</strong><br />
5. Application<br />
2
<strong>Singapore</strong>’s Network of FTAs<br />
- 18 FTAs In Force with 24 trading partners<br />
ASEAN<br />
Jan 1993<br />
New<br />
Zealand<br />
Jan 2001<br />
Japan<br />
Nov 2002<br />
* EFTA -<br />
Switzerland,<br />
Liechtenstein,<br />
Norway, Iceland<br />
Jan 2003<br />
Australia<br />
Jul 2003<br />
USA<br />
Jan 2004<br />
ASEAN-China,<br />
(TIG) Jul 2005<br />
(TIS) Jul 2007<br />
(Investment) Feb 2010<br />
Jordan<br />
Aug 2005<br />
India<br />
Aug 2005<br />
S. Korea<br />
Mar 2006<br />
** TPSEP - Brunei, Chile,<br />
New Zealand<br />
May 2006<br />
Panama<br />
Jul 2006<br />
ASEAN-Korea,<br />
(TIG) Jun 2007<br />
(TIS) May 2009<br />
(Investment) Aug 2009<br />
China<br />
Jan 2009<br />
ASEAN-Japan<br />
(TIG) Jan 2009<br />
Peru<br />
Aug 2009<br />
ASEAN-India<br />
(TIG) Jan 2010<br />
ASEAN-Australia &<br />
New Zealand<br />
Jan 2010<br />
*EFTA – European Free Trade Association<br />
**TPSEP – Trans Pacific Strategic Economic Partnership<br />
3
<strong>Singapore</strong>’s Network of FTAs<br />
– Signed/ Concluded/ Under Negotiations<br />
Signed<br />
Undergoing Negotiations<br />
*GCC<br />
Dec 2008<br />
Trans-Pacific Partnership<br />
(TPP)<br />
EU<br />
Costa Rica<br />
Jan 2010<br />
ASEAN-EU<br />
ASEAN-Japan<br />
(Services & Investment)<br />
ASEAN-India<br />
(Services & Investment)<br />
* Cooperation Council for the<br />
Arab States of the Gulf (Bahrain,<br />
Kuwait, Oman, Qatar, Saudi<br />
Arabia and UAE)<br />
Mexico Canada Pakistan Ukraine<br />
4
<strong>AANZFTA</strong> Trade in Goods
<strong>AANZFTA</strong> (Trade in Goods)<br />
1. Agreement was signed on 27 February 2009.<br />
2. The first comprehensive FTA that ASEAN has signed with a<br />
Dialogue Partner, and the only one that has commitments<br />
in all three pillars of goods, services and investments.<br />
3. <strong>AANZFTA</strong> entered into force on 1 January 2010 for<br />
Australia, New Zealand, Brunei, Malaysia, Myanmar,<br />
Philippines, <strong>Singapore</strong> & Vietnam. Thailand implemented<br />
<strong>AANZFTA</strong> on 12 March 2010.<br />
6
<strong>AANZFTA</strong> (Trade in Goods)<br />
4. The remaining ASEAN member states will enforce<br />
<strong>AANZFTA</strong> after they have completed their ratification<br />
processes.<br />
5. Each party shall progressively reduce and/or eliminate<br />
customs duties on originating goods of the other parties in<br />
accordance with its schedule of tariff commitments in<br />
Annex 1.<br />
7
<strong>Singapore</strong>’s FTAs with Australia and New<br />
Zealand<br />
Trade in<br />
Goods<br />
<strong>AANZFTA</strong> SAFTA ANZSCEP<br />
SIN-AU SIN-NZ SIN-AU SIN-NZ<br />
Implemented 1 January 2010 28 July 2003 1 January 2001<br />
Product<br />
coverage<br />
All products entering the<br />
Australian and New Zealand<br />
markets.<br />
All <strong>Singapore</strong><br />
products entering<br />
the Australian<br />
market.<br />
All <strong>Singapore</strong><br />
products entering<br />
the New Zealand<br />
market.<br />
Tariff<br />
Elimination<br />
Schedule<br />
100% by 1 January 2020 100% immediate 100% immediate<br />
SAFTA: <strong>Singapore</strong>-Australia Free Trade Agreement<br />
ANZSCEP: Agreement between New Zealand and <strong>Singapore</strong> on a Closer Economic Partnership<br />
8
<strong>Singapore</strong>’s FTAs with Australia and New<br />
Zealand<br />
Trade in<br />
Goods<br />
Rules of<br />
Origin (ROO)<br />
Documentary<br />
Requirements<br />
<strong>AANZFTA</strong> SAFTA ANZSCEP<br />
SIN-AU SIN-NZ SIN-AU SIN-NZ<br />
(i) Local/regional value<br />
content of not less than<br />
40% FOB; or<br />
(ii) Change in tariff heading<br />
(4-digit level)<br />
(iii) Product Specific Rule<br />
•Form AANZ CO required<br />
•Back-to-Back Form AANZ CO<br />
required for re-export of<br />
goods.<br />
Local value content of<br />
not less than either<br />
30% or 50%, ex-factory<br />
cost.<br />
Preferential CO<br />
required for single or<br />
1 st shipment.<br />
Exporter’s declaration<br />
is required for<br />
subsequent multiple<br />
shipments.<br />
Local value<br />
content of not<br />
less than 40%, exfactory<br />
cost.<br />
Self-declaration<br />
made by exporter.<br />
9
Rules of Origin (ROO) & Tariff Schedules
Rules of Origin<br />
A good shall be treated as an originating good and eligible for<br />
<strong>AANZFTA</strong> tariff concessions if it satisfies the Rules of Origin<br />
(ROO):<br />
1. Goods Wholly Produced or Obtained.<br />
2. Goods Not Wholly Produced or Obtained have to fulfil<br />
the following;<br />
I. Local/regional value content of at least 40% (FOB); or<br />
II. Change in Tariff Heading (4-digit level)<br />
III. Product Specific Rule (Annex 2 of Legal Text)<br />
11
Schedule of Tariff Commitments (1 of 4)<br />
Go to http://www.fta.gov.sg<br />
1.<br />
2.<br />
12
Schedule of Tariff Commitments (2 of 4)<br />
3.<br />
4.<br />
13
Schedule of Tariff Commitments (3 of 4)<br />
14
Schedule of Tariff Commitments (4 of 4)<br />
15
Tariff Calculator<br />
Tariff Calculator web-link: http://www.fta.gov.sg/calculator/tariff-calculator-step1.aspx<br />
16
Business Models Under <strong>AANZFTA</strong>
Direct Shipment<br />
Original<br />
AANZ<br />
Certificate of<br />
Origin (CO)<br />
Manufacturer<br />
Importer<br />
<br />
Both Manufacturer and Importer must be parties of <strong>AANZFTA</strong><br />
18
Back-to-Back Certificate of Origin (CO)<br />
Original<br />
AANZ CO<br />
Back-to-Back<br />
AANZ CO<br />
Manufacturer<br />
Intermediate<br />
Country<br />
(e.g. <strong>Singapore</strong>)<br />
Importer<br />
<br />
<br />
Last place of substantial manufacture is in an ASEAN member state,<br />
Australia or New Zealand.<br />
The intermediate country will obtain the AANZ CO from the<br />
manufacturer and submit to the Customs Authority with their<br />
application for a Back-to-Back AANZ CO.<br />
19
Third Party Invoicing<br />
Manufacturer<br />
issues invoice to<br />
company in third<br />
country who pays<br />
the manufacturer.<br />
Third Party in<br />
another Country<br />
Company in third<br />
country issues<br />
invoice to importer<br />
and importer pays<br />
to company in third<br />
country.<br />
Manufacturer<br />
Original<br />
AANZ CO<br />
Importer<br />
<br />
Third party invoicing is also possible under ASEAN Free Trade Area<br />
(AFTA), ASEAN Korea Free Trade Area (AKFTA) , ASEAN-Japan<br />
Comprehensive Economic Partnership Agreement (AJCEP) &<br />
ASEAN-India Free Trade Area.<br />
20
Checking Tariff Concession &<br />
Application
Steps to Obtain Tariff Concessions<br />
Step 1 Step 2 Step 3<br />
Know the HS<br />
code of your<br />
product<br />
Check that HS<br />
code for product<br />
is offered tariff<br />
concession<br />
Compare MFN<br />
rate and FTA rate<br />
Step 5 Step 4<br />
Comply with<br />
Customs<br />
documentary<br />
requirements<br />
Check that product<br />
satisfies Rules of<br />
Origin (ROO)<br />
22
Application Procedure for Preferential<br />
Certificate of Origin (CO)<br />
Factory<br />
Registration<br />
Prepare<br />
<strong>Manufacturing</strong><br />
Cost Statement<br />
Apply for<br />
Preferential<br />
Certificate of<br />
Origin<br />
For more details, please visit http://www.customs.gov.sg/leftNav/trad/Certificates+of+Origin.htm<br />
23
FTA Resources
IE Contact Information<br />
FTA website: http://www.fta.gov.sg<br />
Email<br />
Hotline<br />
: enquiry@iesingapore.gov.sg<br />
: 1800 4377673 (1800-IESPORE)<br />
25
<strong>AANZFTA</strong> Information<br />
IE <strong>Singapore</strong> FTA website<br />
http://www.fta.gov.sg/fta_C_aanzfta.asp?hl=47<br />
http://www.fta.gov.sg/calculator/tariff-calculator-step1.aspx<br />
<strong>AANZFTA</strong> website by ASEAN Secretariat<br />
http://aanzfta.asean.org/<br />
Guide to Rules of Origin & Preferential<br />
Certificate of Origin Procedures:<br />
http://www.customs.gov.sg/leftNav/trad/Rules+of+Origin.htm<br />
http://www.tradexchange.gov.sg<br />
26
Thank you<br />
www.iesingapore.com
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