中文 | English | Thailand | Vietnam | Indonesia | Malaysia | Philippine | Singapore | Brunei | Laos | Burma | Cambodia   help help help online consulting

You are here ：Trade topics > Trade in Goods > Modality in the Normal Track

Modality in the Normal Track

By：ATT3 app.1 Agreement on TIG   Update：2016-05-30
1.  Tariff lines placed by each Party in the Normal Track on its own accord shall  have  their  respective  applied  MFN  tariff  rates  gradually  reduced  and eliminated according to the following Schedules:
 
        (i)  ASEAN 6 and China
X = Applied MFN
Tariff Rate		 ACFTA Preferential Tariff Rate  (Not later than 1 January)
2005* 2007 2009 2010
X ≥20% 20 12 5 0
15% ≤ X < 20% 15 8 5 0
10% ≤ X < 15% 10 8 5 0
5% ＜X < 10% 5 5 0 0
X≤5% Standstill 0 0
* The first date of implementation shall be 1 July 2005.
 
        (ii)  Viet Nam
X = Applied MFN
Tariff Rate		 ACFTA Preferential Tariff Rate  (Not later than 1 January)
2005* 2006 2007 2008 2009 2011 2013 2015
X > 60% 60 50 40 30 25 15 10 0
45% < X < 60% 40 35 35 30 25 15 10 0
35% < X < 45% 35 35 30 30 20 15 5 0
30% < X < 35% 30 25 25 20 20 10 5 0
25% < X < 30% 25 25 25 20 20 10 5 0
20% < X < 25% 20 20 15 15 15 10 0-5 0
15% < X < 20% 15 15 15 15 15 5 0-5 0
10% < X < 15% 10 10 10 10 8 5 0-5 0
7% < X < 10% 7** 7** 7** 7** 7** 5 0-5 0
5% < X < 7% 5 5 5 5 5 5 0-5 0
X < 5% Standstill 0
* The first date of implementation shall be 1 July 2005.

        (iii)  Cambodia, Lao PDR and Myanmar
X = Applied MFN
Tariff Rate		 ACFTA Preferential Tariff Rate  (Not later than 1 January)
2005* 2006 2007 2008 2009 2011 2013 2015
X > 60% 60 50 40 30 25 15 10 0
45% < X < 60% 40 35 35 30 25 15 10 0
35% < X < 45% 35 35 30 30 20 15 5 0
30% < X < 35% 30 25 25 20 20 10 5 0
25% < X < 30% 25 25 25 20 20 10 5 0
20% < X < 25% 20 20 15 15 15 10 0-5 0
15% < X < 20% 15 15 15 15 15 5 0-5 0
10% < X < 15% 10 10 10 10 8 5 0-5 0
7% < X < 10% 7** 7** 7** 7** 7** 5 0-5 0
5% < X < 7% 5 5 5 5 5 5 0-5 0
X < 5% Standstill 0
* The first date of implementation shall be 1 July 2005.
** Myanmar shall be allowed to maintain ACFTA Rates at no more than 7.5% until 2010.

2.  If a Party places a tariff line in the Normal Track, that Party shall enjoy the tariff concessions other Parties have made for that tariff line as specified in and applied pursuant to the relevant Schedules either in Annex 1 or Annex 2 together with the undertakings and conditions set out therein. This right shall be enjoyed for so long as that Party adheres to its own commitments for tariff reduction and elimination for that tariff line.  

3.  The tariff rates specified in the relevant Schedules in paragraph 1 only set out the level of the applicable ACFTA preferential tariff rates to be applied by  each  Party  for  the  tariff  lines  concerned  in  the  specified  year  of implementation and shall not prevent any Party from unilaterally accelerating its tariff reduction or elimination at any time if it so wishes.  

4.  Tariff lines in the Normal Track, which are subject to specific  tariff rates, shall  have  such  tariffs  reduced  to  zero,  in  equal  proportions  in  accordance with the timeframes provided in the Schedules set out in paragraph 1 of this Annex.

5.  For  all  tariff  lines  placed  in  the  Normal  Track  where  the  applied  MFN tariff rates are at 0%, they shall remain at 0%. Where they have been reduced to  0%,  they  shall  remain  at  0%.  No  Party  shall  be  permitted  to  increase  the tariff rates for any tariff line, except as otherwise provided by the Agreement.

6.  As  an  integral  part  of  its  commitments  to  reduce  and/or  eliminate  the applied  MFN  tariff  rates  in  accordance  with  the  relevant  Schedules  in paragraph 1, each Party hereby commits to undertake further tariff reduction and/or elimination in accordance with the following thresholds:
(a)  ASEAN 6 and China 
        (i)  Each  Party  shall  reduce  to  0-5%  not  later  than  1  July 2005  the  tariff  rates  for  at  least  40%  of  its  tariff  lines  placed  in the Normal Track.  
        (ii)  Each Party shall reduce to 0-5% not later than 1 January 2007  the  tariff  rates  for  at  least  60%  of  its  tariff  lines  placed  in the Normal Track.   
       (iii)  Each  Party  shall  eliminate  all  its  tariffs  for  tariff  lines placed  in  the  Normal  Track  not  later  than  1  January  2010,  with flexibility  to  have  tariffs  on  some  tariff  lines,  not  exceeding  150 tariff lines, eliminated not later than 1 January 2012.
       (iv)  Each  Party  shall  eliminate  all  its  tariffs  for  tariff  lines placed in the Normal Track not later than 1 January 2012.
(b)  Newer ASEAN Member States  
       (i)  Each Party shall reduce to 0-5% not later than 1 January 2009 for Viet Nam; 1 January 2010 for Lao PDR and Myanmar; and  1  January  2012  for  Cambodia  the  tariff  rates  for  at  least 50% of its tariff lines placed in the Normal Track.  
       (ii)  Cambodia,  Lao  PDR  and  Myanmar  shall  eliminate  their respective  tariffs  not  later  than  1  January  2013  on  40%  of  its tariff lines placed in the Normal Track.
       (iii)  For Viet Nam, the percentage of Normal Track tariff lines to  have  their  tariffs  eliminated  not  later  than  1  January  2013 shall be determined not later than 31 December 2004.
       (iv)  Each  Party  shall  eliminate  all  its  tariffs  for  tariff  lines placed  in  the  Normal  Track  not  later  than  1  January  2015,  with flexibility  to  have  tariffs  on  some  tariff  lines,  not  exceeding  250 tariff lines, eliminated not later than 1 January 2018.
       (v)  Each  Party  shall  eliminate  all  its  tariffs  for  tariff  lines placed in the Normal Track not later than 1 January 2018.

7.  The  tariff  lines  listed  by  the  Parties  in  Appendix  1  shall  have  their respective ACFTA tariffs eliminated not later than 1 January 2012 for ASEAN 6 and China, and 1 January 2018 for CLMV.