Database
on Basic Documents of Japan-ASEAN Relations
Department of
Advanced Social and International Studies,
Protocol to Amend the Agreement on the Common Effective Preferential
Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA)
The Governments of Brunei Darussalam, the Republic of Indonesia,
Malaysia, the Republic of the Philippines, the Republic of Singapore and the
Kingdom of Thailand, Member States of the Association of South East Asian
Nations (ASEAN);
NOTING the Agreement on the Common Effective Preferential Tariff (CEPT)
Scheme for the ASEAN Free Trade Area (AFTA) ("the Agreement") signed
in
RECALLING the Protocol to Amend the Framework Agreement on Enhancing
ASEAN Economic Cooperation (1992) signed on 15 December 1995 in
RECOGNISING the need to amend the Agreement to reflect the latest
developments in ASEAN;
HAVE AGREED AS FOLLOWS:
ARTICLE 1
Article 2, paragraphs 3,5 and 6 of the Agreement
be amended to read as follows:
"3. Exclusions at the HS 8/9 digit level for specific products are
permitted for those Member States, which are temporarily not ready to include
such products in the CEPT Scheme. For specific products, which are sensitive to
a
5. All manufactured products, including capital goods, and agricultural
products shall be in the CEPT Scheme. These products shall automatically be
subject to the schedule of tariff reduction set out in Article 4 of the
Agreement as revised in Article 3 of this Protocol. In respect of PTA items,
the schedule of tariff reduction provided for in the revised Article 4(A) set
out in Article 3 of this Protocol shall be applied, taking into account the
tariff rate after the application of tile existing margin of preference (MOP)
as at 31 December 1992.
6. All products under the PTA which are not in the list for tariff
reductions of the CEPT Scheme shall continue to enjoy the MOPs
existing as at 31 December 1992.".
ARTICLE 2
Article 3 of the Agreement be amended to read as
follows:
"This Agreement shall apply to all manufactured products including
capital goods, and agricultural products.".
ARTICLE 3
Article 4 of the Agreement be substituted with
the following:
"Schedule of Tariff Reduction and Enjoyment of concessions
A. Schedule of Tariff Reduction
1 . Member States
agree to the following schedule of effective preferential tariff reductions:
a. The reduction from existing tariff rates to 20% shall be completed
within a time frame of 5 years, from 1 January 1993, subject to a programme of reduction to be decided by each
b. The subsequent reduction of tariff rates from 20% or below shall be
completed within a time frame of 5 years. The rate of reduction shall be at a
minimum of 5% quantum per reduction. A programme of
reduction to be decided by each
c. For products with existing tariff rates of 20% or below as at 1
January 1993, Member States shall decide upon a programme
of tariff reductions, and announce at the start, the schedule of tariff
reductions.
2. The above schedules of tariff reduction shall not prevent Member
States from immediately reducing their tariffs to O%-5% or following an
accelerated schedule of tariff reduction.
B. Enjoyment of Concessions
Subject to Articles 4(A) (1 b) and 4(A) (1 c) of the Agreement, products
which reach, or are at tariff rates of 20% or below, shall automatically enjoy
the concessions.".
ARTICLE 4
The following be inserted after Article 9 as a new Article 9A to the
Agreement:
"Accession of New Members
New Members of ASEAN shall accede to this Agreement on terms and
conditions, which are consistent with the Framework Agreement on Enhancing
ASEAN Economic Cooperation (1992) and the Agreement, and which have been agreed
between them and the existing Members of ASEAN.".
ARTICLE 5
This Protocol shall enter into force upon the deposit of instruments of
ratification or acceptance by all signatory governments with the
Secretary-General of ASEAN which shall be done not later than 1 January 1996.
This Protocol shall be deposited with the Secretary-General of ASEAN, who
shall promptly furnish a certified copy thereof to each Member Country.
IN WITNESS WHEREOF, the undersigned, being duly authorised
thereto by their respective Governments, have signed the Protocol to Amend the
Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade
Area (AFTA).
DONE at