Questions On ASEAN - Japan CEP (AJCEP)

The AJCEP is based on the respective Economic Partnership Agreements (EPAs) Japan signed with ASEAN Member countries with improved offers and requests. AJCEP is a comprehensive agreement covering Trade in Goods, Trade in Services, Investment and Economic Cooperation. The Trade in Goods (TIG) Agreement was signed by circulation in March/April 2008 and entered into force on 1 December 2008. For Malaysia it entered into force on 1 February 2009.
 
Negotiations on the Services and Investment Chapters are expected to be concluded by end of 2015.

Under MJEPA, tariff elimination by Japan is done through progressive liberalization over 5-10 years period. For AJCEP, there is immediate elimination for 11 tariff lines and accelerated elimination for 91 tariff lines products of export interest to Malaysia e.g. chemicals and petrochemicals, plastics, textiles, wood and agriculture products. Better concessions for agricultural products, tuna and cuttlefish are also accorded market access by Japan as compared with the concession provided under MJEPA.
 
There is also additional benefits in terms of ROO under AJCEP of which the regional ROO allows greater flexibility for companies to source inputs of production from various ASEAN countries and Japan (under regional cumulation principle). For MJEPA, only inputs sourced from Malaysia and Japan could be considered in the calculation of ROO.
 
Additionally, Malaysian companies can also benefit through offers made bilaterally in the respective EPAs of ASEAN member countries to Japan since the AJCEP is based on bilateral EPAs.
 

To benefit from the lower tariff rates, importers in Malaysia have to check whether the goods are included under the tariff reduction schedules. This can be done by checking the product HS Code in Malaysia’s Schedule contained in the AJCEP Agreement.
 

Exporters must comply to the rules of origin (ROO) in order to benefit from the tariff concessions granted under the AJCEP. In order to enjoy the preferential tariff, exporters must ensure that the finished products are either wholly obtained or comply with the Regional Value Content (RVC) of 40% or more and also the Product Specific Rules (PSR) for some selected products. In the calculation of RVC, materials or inputs sourced from all ASEAN countries and Japan are eligible for accumulation.
 
In addition, in order for a product exported by Malaysia to enjoy preferential treatment in Japan, a Certificate of Origin (CoO) issued by the Ministry of International Trade and Industry Malaysia is required. The CoO is a certificate that can be used to satisfy your buyers that the products exported is originating from Malaysia.
 

Electronic Preferential Certification of Origin (ePCO) is a web-based Preferential Certificate of Origin application and approval system.
 
Please refer to CA and CO Application Procedures.

 

Malaysia can take benefit through the capacity building programme (training, technical expertise etc).