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APPENDIX I
Roadmap for Integration of Automotive Products Sector

 

 

I.          OBJECTIVES

 

The objectives of integrating the automotive sector are:

-          Strengthen regional integration efforts through liberalization, facilitation and promotion measures to ensure full integration of the automotive sector by 2010.

-          Promote private sector participation.

 

II.         MEASURES

 

This roadmap includes issues specific to the automotive industry sector, as well as horizontal issues cutting across all sectors.  Suggested measures are:

 

I.    Measures for increasing intra-ASEAN Trade and Investment

-          Tariff Elimination

-          Non-Tariff Measures (NTMs)

-          Custom Cooperation

-          Effective Implementation of AICO and CEPT Scheme

-          Improvement of Rules of Origin

-          Standards and Conformance

-          Future investment

-          Improvement of Logistics Services

 

II.    Measures for increasing ASEAN Automotive Industry’s Technological Capabilities

-          Enhancing ASEAN Car Manufacturing Capability

 

III.   Measures for improving human resources capability

-          Training and Skill Certification System

 

III.        COVERAGE

 

The scope of products includes passenger cars, commercial cars, special purpose vehicles, motorcycles, parts/components for both two wheelers and four wheelers.  Detail of the product coverage appears as Attachment 1.

 

 


 

NO.

MEASURES

IMPLEMENTING BODY

TIMELINE

COMMON ISSUES

I

Tariff Elimination

1

Eliminate CEPT-AFTA tariffs on all identified products

 

Coordinating Committee on the Implementation of the CEPT Scheme for AFTA (CCCA)

 

ASEAN 6:  2007

CLMV:  2012

 

II

Non-Tariff Measures (NTMs)

2

Establish the Database of ASEAN NTMs to ensure transparency[1]

 

CCCA

30 June 2004

3

Establish clear criteria to identify measures that are classified as barriers to trade

 

30 June 2005

4

Establish a clear and definitive work programme for the removal of the barriers.

 

31 December 2005

5

Adopt the WTO Agreement on Import Licensing Procedures and develop implementation guidelines appropriate for ASEAN.

 

31 December 2004

 

III

Rules of Origin

6

Improve the CEPT Rules of Origin by:

Task Force on CEPT Rules of Origin (ROO-TF)

31 December 2004

-          making it more transparent, predictable and standardised taking into account the best practices of other Regional Trade Agreements including the rules of origin of the WTO; and

 

-          adopting substantial transformation as alternative criteria for conferring origin status.

 

IV

Customs Procedures

7

Extend the application of the ASEAN Harmonised Tariff Nomenclature (AHTN) for extra-ASEAN trade.

 

Expert Committee on Customs Matters (ECCM)

on-going

8

Develop a simplified, improved and harmonised customs declaration form.

 

31 December 2005

9

Ensure full implementation of the Green Lane System for CEPT Products, or similar systems, at entry points of all Member States.

 

31 December 2004

10

Develop implementation guidelines, as appropriate, for Member States which are not members of the WTO to fulfill the obligations of the WTO Agreement on Customs Valuation

 

31 December 2004

11

Adopt service commitment (client charter) by ASEAN customs authorities.

 

31 December 2004

12

Develop the Single Window approach, including the electronic processing of trade documents at national and regional levels

 

Inter-Agency Task Force on Single Window

31 December 2005

 

V

Standards and Conformance

13

Accelerate the implementation/ development of sectoral Mutual Recognition Arrangements (MRAs), as appropriate

 

ASEAN Consultative Committee on Standards and Quality (ACCSQ)

beginning 1 January 2005

14

Encourage domestic regulators to recognise test reports issued by testing laboratories which are already accredited by National Accreditation Bodies in ASEAN that are signatories to ILAC and APLAC MRA

 

on-going

15

Set clear targets and schedules for harmonisation of standards, wherever required; where international standards are not available, and when requested by industry, align national standards among Member States.

 

31 December 2005

16

Harmonise and/or develop, wherever appropriate, technical regulations for national application.

 

31 December 2010

17

Ensure compliance with the requirements, rights and obligations of WTO Agreements on Technical Barriers to Trade.

 

on-going

18

Explore development of ASEAN policy on standards and conformance to further facilitate the realisation of the ASEAN Economic Community.

 

beginning 2005

VI

Logistics Services

19

Expedite the development of integrated transport logistics services within ASEAN through:

 

Senior Transport Officials Meeting (STOM)

beginning 2005

-          Promotion of efficient door-to-door cargo transport and cross-border transport facilitation through the expeditious implementation of the ASEAN Framework Agreement on the Facilitation of Goods in Transit, and the ASEAN Framework Agreement on Multimodal Transport;

 

-          Improvement of land transport network infrastructures and services to achieve better inter-connectivity, inter-operability and inter-modality with the national, regional and international maritime and air transport gateways;

 

-          Strengthening intra-ASEAN maritime and shipping transport services; and

 

-          Establishment of enabling and conducive policy environment for increased private sector involvement and/or public-private partnerships in the development of transport infrastructure and the provision and operation of transport logistics facilities and services.

 

 

VII

Outsourcing and Industrial Complementation

20

Identify and develop specialisation of production processes, research and development (R&D), and testing facilities based on comparative advantages of individual Member States

 

Working Group on Industrial Cooperation (WGIC), with inputs from the private sector

 

on-going

21

Develop guidelines to promote outsourcing arrangements among Member States, as applicable.

 

VIII

ASEAN Integration System of Preferences

22

Endeavour to expand the coverage of the ASEAN Integration System of Preferences (AISP) Scheme by including products in the priority integration sectors

 

CCCA

on-going

IX

Investments

23

Accelerate the opening up of sectors currently in the Sensitive List (SL) by transferring these sectors into the Temporary Exclusion List (TEL) under the Framework Agreement on the ASEAN Investment Area, using the ASEAN-X formula.

 

Coordinating Committee on Investment (CCI)

beginning 2004

24

Reduce restrictive investment measures in the SL

 

beginning 2004

25

Complete the progressive elimination of restrictive investment measures in the TEL

 

on-going[2]

 

26

Identify programmes and activities to promote investments in ASEAN

 

31 December 2005

27

Promote manufacturing processes across different ASEAN countries to take advantage of their comparative strengths through:

 

-          the establishment of a network of ASEAN free trade zones to facilitate outsourcing activities

beginning 2005

-          undertaking more efficient joint ASEAN facilitation and promotion measures to promote FDI

 

on-going

28

Promote and facilitate joint/cross border investments in manufacturing activities through:

on-going

-          special incentives, where appropriate, to be given by CLMV for investments from ASEAN

-          special measures, where appropriate to be given by ASEAN 6 to promote and facilitate relocation of investment to CLMV countries especially for labour intensive manufacturing activities

 

X

Trade and Investment Promotion

29

Intensify intra- and extra ASEAN joint promotion efforts regularly

 

CCI; ASEAN Chambers of Commerce and Industry (ASEAN-CCI); and relevant Industry Clubs/ Associations

 

on-going

beginning 2005

30

Organise regular private sector initiatives to undertake:

CCI;

ASEAN Business Advisory Council (ASEAN-BAC);

and ASEAN-CCI

on-going

beginning 2005

-          more efficient joint ASEAN facilitation and promotion measures to promote FDI ASEAN selling-buying missions; and

-          promotional activities to assist CLMV countries

 

31

Undertake more effective joint ASEAN facilitation in promotion measures and develop new sources of inward foreign direct investments, particularly from potential countries such as the People’s Republic of China, India and the Republic of Korea

 

 

 

 

on-going

XI

Intra-ASEAN Trade and Investment Statistics

32

Establish an effective system to monitor intra-ASEAN trade and investment through:

Working Group on Statistics; Working Group on Foreign Direct Investment Statistics; and CCCA

 

on-going

-          provision of updates to the ASEAN Secretariat of the latest trade (goods and services) and investment statistics

-          preparation of consolidated industry profile, by the respective associations, which among other matters, cover information such as production capacity and product range

 

XII

Intellectual Property Rights

33

Expand the scope of ASEAN intellectual property rights cooperation beyond trademarks and patents by including cooperation in copyrights information exchange and enforcement

 

ASEAN Working Group on Intellectual Property Cooperation (AWGIPC)

31 December 2004

XIII

Movement of Business Persons, Skilled Labour, Talents and Professionals

34

Develop an ASEAN Agreement to facilitate the movement of business persons, including the adoption of an ASEAN Travel Card, taking into account Member States’ domestic laws and regulations.

 

Directors-General of Immigration Departments and Heads of Consular Affairs Division of the Ministries of Foreign Affairs (DGICM)

 

31 December 2005

35

Develop an ASEAN Agreement to facilitate the movement of experts, professionals, skilled labor and talents, taking into account Member States’ domestic laws and regulations

 

Coordinating Committee on Services (CCS)

31 December 2005

36

Accelerate completion of MRAs to facilitate free movement of experts, professionals, skilled labor and talents in ASEAN, taking into account Member States’ domestic laws and regulations

 

31 December 2008

XIV

Facilitation of Travel in ASEAN

37

Harmonise procedures for the issuance of visas to international travelers

 

DGICM

31 December 2004

38

Provide visa exemption for intra-ASEAN travel by ASEAN nationals

 

2005

XV

Human Resource Development

39

Develop and upgrade skills and capacity building through joint trainings and workshops.

 

Senior Labour Officials Meeting (SLOM)

on-going

SPECIFIC ISSUES

Measures to increase Intra-ASEAN Trade and Investment

XVI

Effective Implementation of AICO and CEPT Scheme

40

ASEAN member countries to consistently adhere to agreed tariff reduction program. 

 

CCCA and WGIC

31 December 2005

41

Involved more SMEs automotive vendors in AICO and CEPT Scheme.

 

30 June 2005

 

42

Identifying current problems and approval criteria on AICO and CEPT in Automotive Industry and provide recommendations.

 

30 June 2005

XVII

Standards and Conformance

43

Harmonise ASEAN safety standard for automotive operating in ASEAN to a common regulatory framework based on UN-ECE Regulation.

 

ACCSQ and ASEAN Automotive Federation (AAF) Technical Committee

2008

44

Harmonise ASEAN emission and fuel property standard based on UN-ECE Regulation.

 

2008

45

Study of current ASEAN practices on Standards and Conformance in Automotive sector and pursuing ASEAN Mutual Recognition Agreement, taking into consideration of the existing international and regional MRAs such as ILAC, APLAC MRA, IAF and PAC.

 

ACCSQ

2008

XVIII

Future Investment

46

Identify specific programmes and activities to promote investment within ASEAN.

 

Coordinating Committee on Investment (CCI)

 

31 December 2005

47

Assess the need to establish network among ASEAN bonded zones and recommend necessary measures to promote ASEAN as a viable investment site.

 

30 June 2005

48

Promote and facilitate joint/cross border investment in order to increase the growth and to improve global competitiveness of ASEAN automotive industries.

 

30 June 2005

XIX

Improvement of Logistics Services

49

Recommend measures on Logistic and Infrastructure that would enhance logistic services related to automotive industry in ASEAN.

 

STOM and AAF

31 December 2006

Measures for increasing ASEAN Automotive Industry’s Technological capabilities

XX

Enhancing ASEAN Car Manufacturing Capability

50

Cooperation to develop an ASEAN database on automotive products.

 

WGIC

31 December 2006

51

Promote specialisation of production processes based on the strengths of individual member countries in order to achieve global competitiveness of ASEAN Automotive industry.

 

beginning 2005

and on going

 

52

Enhance collaboration among ASEAN members in research and development activities.

 

30 June 2006

53

Develop ASEAN portal for ASEAN Automotive Component Industries and update ASEAN Supporting Industries Database (ASID)

 

AAF and WGIC

on-going

54

Encourage private sectors to optimally utilise raw material and automotive parts/components within ASEAN for regional and global market.

 

beginning 2005

and on-going

 

55

Promote automotive products and services with high ASEAN value added.

 

 

 

 

beginning 2005

and on going

Measures for improving Human Resources Capability

XXI

Training and Skill Certification

56

Developing skill certification system for automotive industry sector

 

AAF and WGIC

30 June 2005

 

57

Cooperative arrangement for developing training on automotive industry

 

30 June 2006

58

Develop programs to facilitate and promote exchange of skills among ASEAN members i.e. on the job training in the factory.

 

31 December 2005

 

z



[1] The database on ASEAN NTMs has been completed and posted in the ASEAN Website. 

[2] Timelines as per AIA Agreement (ASEAN-6 = 2010; Viet Nam = 2013; Cambodia, Laos and Myanmar = 2015)

 

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