Saturday, 29 December 2012

Myanmar lifts import tax under Asean trade deal

Myanmar has waived over US$4.7 million of import tariffs on goods from Association of Southeast Asian Nations (Asean) member countries.

The Ministry of Commerce said it has given the tax relief from 2012-2013 to Asean countries that import goods certified under the Asean Trade in Goods Agreement (ATIGA). The agreement aims to liberalise and trade and investment in Asean with the goal of reaching a single market base with free flow of goods by 2015.


In 2011, the ministry waived about US$731,765 import tax for 318 ATIGA certifications, which is seven-fold of the last year’s amount.

According to the ATIGA programme, imports with approval certifications from Asean Free Trade Area, Asean–China Free Trade Area, Asean Korea Free Trade, Asean Japan Free Trade and Asean-Australia and New Zealand Free Trade are qualified for duty relief in Myanmar.

The Border Trade Department under the ministry is also issuing certifications at its offices in border towns for imports of goods through border gates.

The Common Effective Preferential Tariff Scheme, or CEPT, is a cooperative arrangement among ASEAN Member States that will reduce intra-regional tariffs and remove non-tariff barriers over a 10-year period commencing January 1, 1993. The goal of the Scheme is to reduce tariffs on all manufactured goods to 0-5% by the year 2003. This will benefit Philippine exporters to ASEAN.  The lower CEPT rates make the country’s products cheaper in these markets, thus stimulating greater demand.  The increase in exports to ASEAN would depend on the price elasticity of demand.

 The CEPT Scheme is the main instrument for making ASEAN a free trade area in ten (10) years. This means that ASEAN Member States shall have common effective tariffs among themselves in ASEAN Free Trade Area but the level of tariffs vis-à-vis non-ASEAN countries shall continue to be determined individually.
 
source: Eleven Myanmar

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