It is an agreement signed bilaterally or multilaterally in which signatory countries agree to:
Central to compliance to qualify for FTA concession is a system of certifying the origin of the products flowing between the signatory countries, to bring down import/export tax. This is called the Rules of Origin (ROO).
If a business is exporting glass beads from The Philippines to Japan:
HS Code: 701810000 (Glass Beads)
By qualifying under the AJCEP, the importer will save 6% in tariffs between importing under MFN rates and AJCEP rates.
There are challenges to optimising the use of FTAs such as:
Generally, to apply for a Preferential Certificate of Origin (PCO) to benefit from the reduced tariffs, a business has to go through the following:
With so many FTAs (more than 280), compliance requirements and procedures and basically, a lack of awareness, it has been proven even more difficult for the SMEs to benefit from the FTAs.
And that's where barterfli helps companies know more about the FTAs, the benefits and how their products may qualify:
More importantly, barterfli's Tariff Finder covers a mulitude of FTAs, allowing comparison in a single screen the different import duties under different FTAs, allowing businesses to plan ahead what alternate destination (markets) to enter and where they are more competitive (or less). And for buyers, where are the alternative sources to purchase with the benefit of reduced tariffs.
So start now. Join as a member, upload products and use the FTA Tariff Gateway to maximize profits and competitiveness!
If you need more information about Free Trade Agreements related to Laos or have questions if your products qualify, please visit Lao Trade Portal at www.laotradeportal.gov.la .