ASEAN - Hong Kong, China
BACKGROUND
The ASEAN Economic Ministers and the Secretary for Commerce and Economic Development of HKC signed the ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA) and ASEAN-Hong Kong, China Investment Agreement (AHKIA) on 12 November 2017 on the sidelines of the 31st ASEAN Summit in Manila, the Philippines.
The AHKFTA contains 14 chapters covering broad areas of market access liberalisation, trade facilitation, rules to promote confidence in trade, and cooperation aimed at facilitating trade in goods and services in the region.
In addition to AHKFTA and AHKIA, Malaysia, Brunei Darussalam, Singapore and HKC also signed a Side Agreement on the Definition of “Natural Person of a Party” under the AHKIA. The Side Agreement aims to maintain the current status whereby a natural person (Nationals and Permanent Residents – PRs) of Malaysia, Brunei Darussalam, Singapore and HKC will be accorded substantially the same treatment in the four Parties, in respect to measures affecting investment.
The AHKFTA and AHKIA have entered into force for Hong Kong, China and five (5) ASEAN Member States namely Lao PDR, Myanmar, Singapore, Thailand and Viet Nam. Malaysia implements the said Agreements, with effect from 13 October 2019.
The Agreements can be obtained from the following links:
Side Agreements on the Definition of “Natural Person of a Party” under the AHKIA
TRADE IN GOODS
Category |
End Rate |
ASEAN 6 |
Cambodia/ |
|||||
Brunei Darussalam/ |
Indonesia/ |
|||||||
Normal Track |
Normal Track1 |
0% |
85% |
65% |
75% |
50% |
65% |
50% |
Normal Track 2 |
0% |
20% |
25% |
15% |
||||
Sensitive Track |
Sensitive |
0-5% |
10% |
5% |
10% |
5% |
20% |
10% |
Highly Sensitive |
≤50% |
5% |
5% |
10% |
||||
Exclusion List |
no tariff commitments |
5% |
15% |
15% |
RULES OF ORIGIN
The Rules of Origin (ROO) for AHKFTA are provided for under Chapter 3 of the AHKFTA. Trade facilitating ROO have been established under the AHKFTA that would help encourage regional cumulation of inputs benefitting both ASEAN Member States and Hong Kong, China.
Article 4 (Origin Criteria) of Chapter 3 (Rules of Origin) stipulates that a good imported into a Party from another Party shall be treated as an originating good if it conforms to the origin requirements under any one of the following conditions:
a good which is wholly obtained or produced in the exporting Party;
a good produced in the exporting Party exclusively from originating materials from one or more of the Parties; or
a good not wholly obtained or produced in the exporting Party;
and meets all other applicable requirements of this Chapter.
Or
- Indirect / Build-down Method
Good subject to the Product Specific Rules (PSRs) shall be treated as an originating good if meets those PSRs as specified in Annex 3-2 (Product Specific Rules) of the AHKFTA agreement.
In order to enjoy preferential tariff treatment under the AHKFTA, eligible good must be supported by a Certificate of Origin (Form AHK) which has fulfilled the conditions for the issuance and verification, in accordance with Annex 3-1 (Operational Certification Procedures) of the Agreement.
CO Form AHK
TRADE IN SERVICES
In line with the services liberalisation under the World Trade Organisation (WTO), Chapter 8 (Trade in Services) under the AHKFTA provides for the progressive liberalisation of the services sector through substantial sectoral coverage. Services and service suppliers/providers in the region will enjoy improved market access and national treatment in sectors/subsectors as specified in the schedules of specific services commitments (by Parties) as follows:
INVESTMENT
Due to HKC’s unique economic status, there is also a stand-alone ASEAN-Hong Kong, China Investment Agreement (AHKIA) in parallel with the main AHKFTA Agreement, in which Parties shall accord to investments fair and equitable treatment and full protection and security.
The Parties are expected to enter into discussions to conclude Annex 1 (Schedules of Reservations) and other outstanding issues as stipulated in Article 22 (Work Programme) of the AHKIA.
RELATED DOCUMENTS
Schedules of Tariff Commitments (by Country)
Schedules of Specific Commitments (by Country)
Side Agreements (by Agreement)
CONTACT US
For matters relating to Preferential Certificate of Origin (CO Form AHK) / Rules of Origin, please contact:
For other enquiries with regard to AHKFTA, please contact following officers:
Ministry of Investment, Trade and Industry
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Last updated : 13-12-2024
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