Attached FAQs

A 1: "Non-Tariff Barriers" mean measures other than tariffs which effectively prohibit or restrict import or export of products.

A 2: The following has been adopted as the working definition of Non-Tariff Measures by the Interim Technical Working Group on CEPT for AFTA (latter re-organised as the Coordinating Committee on Implementation of the CEPT Scheme for AFTA-CCCA):

1. PARA TARIFF MEASURES: measures that increase the cost of imports in a manner similar to tariff measures by a fixed percentage or by a fixed amount, calculated respectively on the basis of the value and the quantity. Para-tariff measure can be distinguished as customs surcharges/import surcharges, additional charges and decreed customs valuation;
   
   

2. PRICE CONTROL MEASURES: measures that affect the cost of imports in a variable amount calculated on the basis of the existing difference between two prices of same product compared for control purposes. Administrative price fixing of import prices, voluntary export price restraint and variable charges measure are considered as basic tools for price control measures;
   
   

3. FINANCE MEASURES regulate the access to and cost of foreign exchange for imports and define the terms of payment. They may increase the airport cost in a fashion similar to tariff measures. Advance payment requirements, advance import deposits, cash margin requirement, advance payment of customs duties, refundable deposits for sensitive product categories, regulations concerning terms of payment for imports and transfer delays, etc.;
   
   

4. MONOPOLISTIC MEASURES include single channel for imports and compulsory national services. Monopolistic measures create a monopolistic situation by giving exclusive rights to one or a limited group of economic operators for the season of social, fiscal and economic.
   
   

5. TECHNICAL MEASURES refer to technical regulations, product characteristics requirements, marketing requirements, labelling requirements, packaging requirements, testing, inspection and quarantine requirements, pre-shipment inspection and special customs formalities.

[for details, please see AFTA Reader Volume III in the publication section of the ASEANWEB]

Q 3: What is the obligation of Member States regarding the elimination of Non-Tariff Barriers on products traded within the region?

A 3: Article 5 of the Agreement on the Common Effective Preferential Tariff (CEPT) Scheme requires that Member Countries eliminate the Non-Tariff Barriers on a product within a period of five years after that product has begun to enjoy CEPT concessions. A product is said to have enjoyed CEPT concessions when that product receives lower (relative to MFN tariffs) CEPT tariff rates from another ASEAN Country.

A 4: It depends on the type of measure concerned. For example, the green lane for CEPT products was introduced to facilitate customs clearance. Customs surcharges on CEPT products were removed in 1996. Technical barriers are to be reduced through transparency, harmonisation of standards and mutual recognition agreements. Creating a window for competition and market access by other members might help in the elimination of monopolistic measures or state monopoly.

Q 5: What has ASEAN done to eliminate technical barriers to trade?

A 5: So far 20 products groups that are widely traded in ASEAN have been selected for standard harmonisation. Harmonisation of standards for these products groups is carried out through alignment of national standards with relevant international standards and the harmonisation process is targeted for completion by end of this year. The ASEAN Framework Agreement on Mutual Recognition Arrangements was signed on 16^th December 1998, and provides the basis for accelerating the development of bilateral as well as regional mutual recognition arrangements on standards and conformity assessments among ASEAN Members. Under the umbrella of MRAs, sectoral MRAs are being explored for pharmaceutical, cosmetics, electrical and electronic products, and telecommunication equipments. ASEAN also aims to implement the ASEAN Common Technical Dossier for Pharmaceutical Product Registration by year 2002 to assist elimination of technical barriers to trade. In addition, harmonisation of maximum residue limits (MRLs) of pesticides in vegetables is being carried out in ASEAN (i.e. 65 harmonised MRL values for 7 new pesticides for all vegetable type).

A 6: It is possible for some cases. However, deregulation measures are consistently being undertaken to create a conducive business climate through simplification of government regulations. In particular, Indonesia's Law No. 7/1999 on the simplification of import procedures for motor vehicles, recently issued, requires only 5 days for approval.

[Indonesia may wish to provide more details on this new regulation and the relevant procedures please]

Q 7: How long would it normally take to introduce or register new pharmaceutical products in Malaysia?

A 7: The client charter of the National Pharmaceutical Control Bureau of Malaysia indicates a period of 17.5 months to process such an application. However, if documentation is complete during application, the process takes 9-12 months. The rules and regulations for imports and exports have been published, and information on the registration procedures is already available to the public.

In addition, the ASEAN Consultative Committee for Standards and Quality (ACCSQ) has established a product working group on pharmaceuticals to develop harmonisation schemes of pharmaceutical regulations of the ASEAN member countries without compromising on drug quality, efficacy and safety. The work programme of this working group includes the development of common technical requirements for pharmaceutical product registration for ASEAN and the development of common technical dossier for Pharmaceutical Product Registration for ASEAN with a view of arriving at MRAs. The targeted timeframe is up to year 2002.

[Philippines may wish to provide more information and description of this written guideline that was cited, what it is called, where to get it, which are the relevant agencies etc.]

Q 9: Are there still import quotas imposed on feeder cattle, horses, coffee, garlic and cabbage in the Philippines?

A 12: Malaysia's tariff classification is based on the Malaysian Trade Classification and Customs Duties Order 1998. Rule 3(c) states that “When goods cannot be classified by reference to 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration”, and the HS Convention. Pre-entry classification facility exists. Differences in classification may have been due to insufficient information provided prior to importation. Classification rulings are posted on the Malaysian Customs WEBSITE: www.customs.gov.my

Malaysian Customs Departments throughout the country have a unit specialising in classification of goods which will provide immediate classification, pending final decision from the Central Classification Center at Headquarters (HQ), thus providing uniform and binding decisions on classification. Each state has a classification unit where temporary rulings are made subject to endorsement by HQ.

A 13: Malaysia has implemented the WTO Valuation Agreement together with other ASEAN members since 1 January 2000. In the past, valuation up-lifts were not prevalent, but were applied on products seemed to be under-invoiced. The Malaysian legal system allows importers to appeal to the State and Headquarters valuation sections if importers want to do so.

A 14: At present, Thailand is implementing the WTO Valuation Agreement. In the past, Thailand’s Customs valuation has used the highest import value on the date of importation for those with submission of letters of credit or evidence of payments via banks.

Q 15: What is the Philippines’ Customs Memorandum Order (CMO) 9-99? What powers do the Industry Commodity Experts have on customs matter?