ASEAN

DFAT has announced that the First Protocol, signed in October 2014, will enter into force on 01 October 2015. The First Protocol will reduce information requirements imposed when completing Certificates of Origin and simplify the presentation of the Agreement's Rules of Origin. Download the full First Protocol here: http://dfat.gov.au/trade/agreements/aanzfta/news/Pages/news.aspx

The member states of ASEAN are Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

The ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) was executed on 27 February 2009 and entered into force on:

  • 1 January 2010 – Brunei, Malaysia, Myanmar, the Philippines, Singapore, Vietnam, Australia and New Zealand;
  • 12 March 2010 – Thailand;
  • 1 January 2011 – Laos;
  • 4 January 2011 – Cambodia; and
  • 10 January 2012 – Indonesia.

Each signatory offers tariff concessions to the other signatories. Approximately 96% of tariffs on Australian exports to the other signatories will be eliminated by 2020. Previously, only 67% of Australian exports to the other signatories were tariff-free.

The AANZFTA regulates goods, services, investment, intellectual property, e-commerce, competition and economic cooperation.

Australia's two-way trade with ASEAN totalled $112 billion in 2008, and has increased at an average annual growth rate of 10%.

For detailed FTA information, please visit: http://dfat.gov.au/trade/agreements/aanzfta/Pages/asean-australia-new-zealand-free-trade-agreement.aspx

Date in force

  • 1 January 2010.

Direct benefits

Reduced or eliminated tariffs. Increases to goods tariffs disallowed.

Below you will find a way to look up the tariffs associated with a SELECTION of popular Australian exports. PLEASE NOTE: this is not a tariff calculator OR an exhaustive list. We recommend obtaining professional advice for products not listed here.

Indirect benefits

Market openness in services and investments.

Enhanced visa and entry permit procedures.

Enhanced intellectual property protections.

Rules of origin allowing Australian companies to engage international supply chains.

Ongoing commitments to economic cooperation and advancement.

Certificate of Origin

Tariff concessions under the AANZFTA are available to goods that "originate" in the signatory countries.

Goods must be either wholly obtained in Australia, produced in Australia from originating materials, or produced in Australia and a signatory country from originating materials, non-originating materials, or a combination of originating and non-originating materials.

Signatory countries can choose the change of tariff classification approach or the regional value content approach with a 40% threshold. The regional value content approach takes into account the cumulation principle. The cumulation principle states that Australian exports to other signatory countries qualify for tariff concessions but so to do exports of signatory countries to other signatory countries produced with Australian exports.

The origin of the goods must be evidenced by a certificate of origin issued by an authorised body of the exporting party.

Doing business with ASEAN

There are many things to consider before embarking upon an export journey. Doing business with the ASEAN member states presents some unique challenges, but there are a number of key areas to consider before doing any international business.

The areas to consider are:

Business activities and risks

  • Location
  • Legal Structure
  • Direct tax
  • Funding
  • Repatriation of profits
  • Transfer pricing
  • Withholding tax
  • Indirect tax
  • Staffing

For a full checklist that will put you on the right path to doing business in ASEAN member states, click HERE.

Want to know more? Visit the Export Council of Australia’s website.