Imports from Asean to enjoy low tariff rates

Imports from Cambodia, Laos, Vietnam and Myanmar will enjoy preferential tariff rates under the ASEAN General System of Preferences (GSP) scheme, also known as the ASEAN Integration System of Preferences (AISP).

This is contained in Executive Order No. 166 which was recently signed by President Arroyo.

The AISP is a scheme that calls for the granting of preferential tariff rates for goods coming from ASEAN countries plus the new members – Cambodia, Laos, Myanmar and Vietnam.

Products that are granted zero tariff include edible products of animal origins, vegetable materials for planting; brooms and bristles and waxes; salt; locust beans; chalk; coal and hydrogen.

The Philippines was initially apprehensive that the AISP may be subject to abuse especially by some importers who may only use some of the ASEAN member countries as transshipment points.

Under the rules of the AISP, tariff rates for ASEAN members would be brought down to zero by 2010 for the six original members, namely Singapore, Brunei, Indonesia, Malaysia, Thailand and the Philippines.

For the new ASEAN members, namely Cambodia, Laos, Myanmar and Vietnam, they would be given until 2018 to bring down their tariff rates to zero.