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What’s New in the Revised AFTA Rules of Origin

2009/06/04 

The Rules of Origin (ROO) for the ASEAN Free Trade Area (AFTA) and its Operational Certification Procedures (OCP) were first published in 1993. The ROO assist businesses and officials to determine the origin of goods eligible for preferential tariff treatment under the AFTA, whilst the OCP provide procedures for the issuance and verification of the Certificate of Origin (Form D) and other related administrative matters.

To ensure their continued relevance in the changing business environment, the AFTA ROO and its OCP have undergone several revisions since 1993. The latest version is provided in the ASEAN Trade in Goods Agreement (ATIGA) which will enter into force in 2009. This version of the AFTA ROO and its OCP contains new provisions as well as revisions to existing provisions to accommodate changes in business processes.

The revisions provide greater clarity and flexibility; making it possible for exporters and manufacturers to benefit from the more liberal AFTA ROO in the ATIGA which takes into account the ROO agreed upon in ASEAN’s FTAs with Dialogue Partners. For instance, a regional value content requirement of 40 percent used to be the only criterion available for determining origin under the AFTA. Recent changes made to the AFTA ROO means that it is now possible to apply other criteria for determining origin including change in tariff classification, specific manufacturing or processing operations, or a combination of any of these criteria.

 

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