Protocol on the Special Arrangement for Sensitive and Highly Sensitive Products Singapore, 30 September 1999
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1 Protocol on the Special Arrangement for Sensitive and Highly Sensitive Products Singapore, 30 September The Governments of Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, Lao People s Democratic Republic, Malaysia, Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Viet Nam, Member States of the Association of Southeast Asian Nations (hereinafter referred to as "ASEAN"); 2. MINDFUL of the Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA) signed on 28 January 1992 in Singapore as amended by the Protocol to Amend the Agreement on the Common Effective Preferential Tariff Scheme for the ASEAN Free Trade Area signed on 15 December 1995 in Bangkok; 3. HAVING REGARD to the need to arrive at commitments to liberalise trade in unprocessed agricultural products and accordingly expand the product coverage under the CEPT Scheme; 4. RECALLING the decision of the 26 th ASEAN Economic Ministers Meeting held on September 1994 to phase in Unprocessed Agricultural products into the CEPT Scheme; 5. HAVE AGREED AS FOLLOWS: Article I: Definition 1. "CEPT Agreement" means the Agreement on the Common Effective Preferential Tariff Scheme for the ASEAN Free Trade Area signed on 28 January 1992 in Singapore as amended by the Protocol to Amend the Agreement on the Common Effective Preferential Tariff Scheme for the ASEAN Free Trade Area signed on 15 December 1995 in Bangkok. 2. "Highly sensitive products" shall consist of the products listed in Annex "Interpretative Notes" means the Interpretative Notes to the CEPT Agreement. 4. "Non-tariff barriers" mean measures other than tariffs which effectively prohibit or restrict import or export of products with Member States. 5. "Sensitive products" shall consist of the products listed in Annex "Quantitative restriction" means prohibitions or restrictions on trade with other Member States, whether made effective through quotas, licenses, or other measures with equivalent effect, including administrative measures and requirements which restrict trade. Article II: Time Frame 1. Member States, with the exception of Cambodia, Lao PDR, Myanmar and Viet Nam, shall phase in sensitive products to the CEPT Scheme beginning on 1 January 2001 with
2 flexibility but no later than 1 January 2003 and shall complete their phasing in by 1 January Viet Nam shall phase in sensitive products to the CEPT Scheme beginning on 1 January 2004 but no later than 1 January 2006 and shall complete the process by 1 January In the case of sugar, Viet Nam shall complete the phasing in by 1 January Lao PDR and Myanmar shall phase in sensitive products to the CEPT Scheme beginning on 1 January 2006 but no later than 1 January 2008 and shall complete the process by 1 January Cambodia shall phase in sensitive products to the CEPT Scheme beginning on 1 January 2008 but no later than 1 January 2010 and shall complete the process by 1 January Member States shall phase in highly sensitive products to the CEPT Scheme beginning on 1 January 2001 but no later than 1 January 2005 and shall complete their phasing in by 1 January Article III: Tariff Reduction 1. The applied tariff rates shall be used as the beginning rate for the tariff reduction of sensitive products. 2. Member States shall use the following guidelines in determining the tariff reduction for sensitive products: a. The same tariff rate shall not be applied for more than three consecutive years. b. Tariffs shall be reduced at a minimum quantum of 10 percentage points. 3. All sensitive products shall have ending tariff rates of 0-5%. 4. Member States shall have flexibility, in accordance with Annex 3 of this Protocol, in determining the ending tariff rates for highly sensitive products. Tariff reduction for highly sensitive products shall be in accordance with the said Annex 3. Article IV: Quantitative Restrictions 1. Member States, except Cambodia, Lao PDR, Myanmar and Viet Nam, shall eliminate all quantitative restrictions on sensitive and highly sensitive products by 1 January Viet Nam shall eliminate all quantitative restrictions on sensitive products by 1 January Lao PDR and Myanmar shall eliminate all quantitative restrictions on sensitive products by 1 January Cambodia shall eliminate all quantitative restrictions on sensitive products by 1 January Article V: Other Non-Tariff Barriers 1. Member States, except Cambodia, Lao PDR, Myanmar and Viet Nam, shall eliminate all other non-tariff barriers on sensitive and highly sensitive products by 1 January Viet Nam shall eliminate all other non-tariff barriers on sensitive products by 1 January 2013.
3 3. Lao PDR and Myanmar shall eliminate all other non-tariff barriers on sensitive products by 1 January Cambodia shall eliminate all other non-tariff barriers on sensitive products by 1 January Article VI: Preferential Treatment by State Trading Enterprises Member States shall take measures to encourage State-Trading Enterprise to accord preferential treatment to ASEAN suppliers. Article VII: Safeguards 1. Any emergency measures applied to sensitive products shall be subject to the provisions of Article 6 of the CEPT Agreement and its Interpretative Notes. 2. In addition, flexibility shall be accorded to highly sensitive products. The provisions on flexibility appear in Annex 4 of this Protocol. Article VIII: Reciprocity Sensitive products shall enjoy CEPT concessions subject to the provision of Article 4, Section B of the CEPT Agreement. Article IX: Final Provisions 1. This Protocol shall enter into force upon the deposit of instruments of ratification or acceptance by all signatory governments with the Secretary-General of ASEAN. 2. New Members of ASEAN shall accede to this Protocol on terms and conditions which have been agreed between them and the existing Members of ASEAN. 3. This Protocol shall be deposited with the Secretary-General of ASEAN who shall promptly furnish a certified copy thereof to each Member State. The Secretary-General of ASEAN shall also promptly furnish notifications of ratifications and acceptances made pursuant to paragraph 1 to each Member State. 6. IN WITNESS WHEREOF, the undersigned, being duly authorised thereto by their respective Governments, have signed the Protocol on the Special Arrangement for Sensitive and Highly Sensitive Products. 7. DONE at Singapore on the 30th day of September in the year One Thousand Nine Hundred and Ninety-Nine, in a single copy in the English language. For the Government of Brunei Darussalam
4 ABDUL RAHMAN TAIB Minister of Industry and Primary Resources For the Government of the Kingdom of Cambodia CHAM PRASIDH Minister of Commerce For the Government of the Republic of Indonesia RAHARDI RAMELAN Minister of Commerce For the Government of the Lao People s Democratic Republic PROF. DR. BOUNTEM PHISSAMAY Minister to the Prime Ministers' Office For the Government of Malaysia DATO' SERI RAFIDAH AZIZ Minister of International Trade and Industry For the Government of the Union of Myanmar
5 BRIGADIER GENERAL DAVID O. ABEL Minister at the Office of the Chairman of the State Peace and Development Council For the Government of the Republic of the Philippines JOSE TRINIDAD PARDO Secretary of Trade and Industry For the Government of the Republic of Singapore B.G. (NS) GEORGE YONG-BOON YEO Minister for Trade and Industry For the Government of the Kingdom of Thailand DR. SUPACHAI PANITCHPAKDI Deputy Prime Minister and Minister of Commerce For the Government of the Socialist Republic of Vietnam TRUONG DINH TUYEN Minister of Trade
6 Indonesia No. HS Code ANNEX 1 LIST OF HIGHLY SENSITIVE PRODUCTS Description Rice in the husk (paddy or rough) Husked (brown) rice Semi-milled or wholly milled rice, whether or not polished or glazed Broken rice Malaysia No. HS Code Description Rice in the husk (paddy or rough): Pulut (glutinous rice) Other Husked (brown) rice: Pulut (glutinous rice) Other Semi-milled or wholly milled rice, whether or not polished or glazed: Pulut (glutinous rice) Other Broken rice: For animal feeding Other Philippines No. HS Code Description Rice in the husk (paddy or rough) Husked (brown) rice Semi-milled or wholly milled rice, whether or not polished or glazed Broken rice
7 ANNEX 2 LIST OF SENSITIVE PRODUCTS Brunei Darussalam No. HS Code Description Not decaffeinated: Decaffeinated: Not decaffeinated: Not ground ground Decaffeinated: Not ground ground Green tea (not fermented) in immediate packings of a content not exceeding 3kg: Tea leaf Tea dust Other green tea (not fermented): Tea leaf Tea dust Black tea (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3 kg: Tea leaf Tea dust Other black tea (fermented) and other partly fermented tea: Tea leaf Tea dust Cambodia No. HS Code Description Other Weighing less than 50 kg Weighing 50 kg or more Other Ducks
8 Geese, turkeys and guinea fowls Not cut in pieces, fresh or chilled Not cut in pieces, frozen Cuts and offal, fresh or chilled Wings Thighs Livers Other Of ducks Of geese or guinea fowls Of ducks Of geese or guinea fowls Cuts of ducks Carp Milkfish or lapu lapu fry Milkfish, breeder Other fish fry Orchid cuttings Roses, grafted or not Orchid plants Orchids Other Tomatoes, fresh or chilled Onions Garlic Cauliflowers Headed broccoli Cabbages Other Cabbage lettuce (head lettuce) Other Carrots Turnips Other Cucumbers and gherkins, fresh or chilled Beans(vigna spp., Phaseolus spp.)
9 Other Desiccated Other Pineapples Guavas, mangoes and mangosteens Oranges Watermelons Other Longans LAO PDR No. HS Code Description Other Weighing less than 50 kg Weighing 50 kg or more Fowls Other Fowls Other Other live animals. ( domestic only ) Carcasses and half-carcasses Other cuts with bone in Boneless Carcasses and half-carcasses Other cuts with bone in Boneless Carcasses and half carcasses Harms, shoulders and cuts thereof, with bone in Other Carcasses and half-carcasses Hams, shoulders and cuts thereof, with bone in Other Of bovine animals, fresh or chilled Of bovine animals, frozen Of swine, fresh or chilled Of swine, frozen.
10 Poultry not cut in pieces, fresh or chilled Poultry not cut in pieces, frozen Poultry cuts and offal ( including livers ), fresh or chilled Other Hams, shoulders and cuts thereof, with bone in Bellies (streaky) and cuts thereof Other Meat of bovine animals Other, including edible flours and meals of meat or meat offal Fresh water fish Birds' eggs, in shell, fresh, preserved or cooked Guts, bladders and stomachs of animals ( other than fish ), whole and pieces thereof : Tomatoes, fresh or chilled Onions and shallots Leeks and other alliaceous vegetables Cauliflowers and headed broccoli Lettuce ( Lettuca sativa ) and chicory ( Cichorium spp.) fresh or chilled Carrots and turnips Other Cucumbers and gherkins, fresh or chilled Beans ( Vigna spp., Phaseolus spp.) Other leguminous vegetables Aubergines ( egg - plants ) Mushrooms Fruits of the genus Capsicum or of the genus Pimenta Other Beans ( Vigna spp., Phaseolus spp.) Other Sweet corn Other vegetables Mixtures of vegetables Onions Cucumbers and gherkins Other vegetables; mixtures of vegetables Onions Mushroom ( except truffles ).
11 Other vegetables; mixtures of vegetables Beans ( Vigna spp., Phaseolus spp.) Other Manioc ( Cassava ) Sweet potatoes Other Other nuts, fresh or dried, whether or not shelled or peeled Pineapples Guavas, mangoes and mangosteens Oranges Mandarins ( including tangerines and satumas ); clementines, wilking and similar citrus hybrids Lemons ( Citrus limons, citurs limonum ) and limes ( Citrus aurantifolia ) Other Melons ( including watermelons ) Papaws ( papaya ) Other fruit Mixtures of nuts or dried fruits of this Chapter Fruits of the genus Capsicum or of the genus Pimenta dried or crushed or ground Rice in the husk ( Paddy or rough ) Husked ( brown ) rice Semi - milled or wholly milled rice, whether or not polished or glazed Broken rice Other Sugar cane Other Tobacco, not stemmed / stripped Tobacco, partly or wholly stemmed / stripped Tobacco refuse. Malaysia No. HS Code Description Weighing less than 50 kg Weighing 50 kg or more Fowls of the species Gallus domesticus:
12 Day old chicks Fowls of the species Gallus domesticus, weighing not more than 2,000 g Other: Ducks Carcasses and half-carcasses Hams, shoulders and cuts thereof, with bone in Not cut in pieces, fresh or chilled Of a fat content, by weight, exceeding 6%: Other Birds' eggs, in shell, fresh, preserved or cooked. For hatching: Hens' eggs Ducks' eggs Other: Budded rubber stumps Seedling rubber stumps Rubber budwood Other Other: Cabbages: Round cabbages Bananas, including plantains, fresh or dried: Pisang mas Pisang rastali Pisang berangan Pisang embun Other Pineapples Guavas, Mangoes and mangosteens: Guavas Mangoes Mangosteens Watermelons Other Papaws(papayas):
13 Mardi backcross solo (batik solo) Other Other: Tropical fruit: Rambutan Durian Langsat Jack fruit (cempedak and nangka) Cikus Star fruits Other Not decaffeinated Other: Rubbes seeds: Sterile Other Other Bamboos Rattans: Whole Split: core, not exceeding 12mm in diameter Skin Other Other Tobacco, not stemmed/stripped: Flue cured, of the virginia type Other Tobacco, partly or wholly stemmed/stripped: Flue cured, of the virginia type Other Tobacco refuse cigars, cheroots and cigarillos, containing Cogarettes containing tobacco: Beedies Other
14 Other: Cigars, cheroots and cigarillos containing tobacco substitutes Cigarettes containing tobacco substitutes Smoking tobacco, whether or not containing tobacco substitutes in any proportion: Packed for retail sale : in airtight containers Other Other "Homogenised" or "reconstituted" tobacco: For retail sale Other Other: Snuff Cut-rags Other Other Other manufactured tobacco: Myanmar No.HS CodeDescription Peas (Pisum sativum) Beans (Vigna spp., Phaseolus spp.) Coffee, not roasted: - - Not decaffeinated Coffee, not roasted: - - Decaffeinated Green tea (not fermented) in immediate packings of a content not exceeding 3 kg Other green tea (not fermented) Rice in the husk (paddy or rough) Husked (brown) rice Broken rice -Semi-milled or wholly milled rice,whether or not polished or glazed Raw sugar not containing added flavouring or colouring matter:--cane sugar
15 Raw sugar not containing added flavouring or colouring matter:--beet sugar Silk-worm cocoons suitable for reeling Raw silk (not thrown) Not carded or combed Other Cotton, not carded or combed Yarn waste (including thread waste) Other: --Garnetted stock Other: --Other Cotton, carded or combed Philippines No. HS Code Description Live swine. - Other: Weighing less than 50kg: In-Quota Out-Quota Weighing 50 kg or more: In-Quota Out-Quota Live poultry, that is to say, fowls of the species Gallus domesticus, ducks, geese, turkeys and guinea fowls. - Weighing not more than 185 g: Fowls of the species Gallus domesticus: Other: In-Quota Out-Quota - Other: Other: In-Quota Out-Quota Other: In-Quota
16 Out-Quota Meat of swine, fresh, chilled or frozen. -Fresh or chilled: Carcasses and half-carcasses: In-Quota Out-Quota Hams, shoulders and cuts thereof with bone in: In-Quota Out-Quota Other: Pork bellies: In-Quota Out-Quota Fore-ends and cuts thereof : In-Quota Out-Quota Other : In-Quota Out-Quota -Frozen: Carcasses and half-carcasses: In-Quota Out-Quota Hams, shoulders and cuts thereof with bone in: In-Quota Out-Quota Other: Pork bellies: In-Quota Out-Quota Fore-ends and cuts thereof : In-Quota Out-Quota Other : In-Quota Out-Quota
17 02.07 Meat and edible offal, of the poultry of heading No.01.05, fresh, chilled or frozen: -Of fowls of the species gallus domesticus: Not cut in pieces, fresh or chilled: In-Quota Out-Quota Not cut in pieces, frozen: In-Quota Out-Quota Cuts and offal, fresh or chilled: In-Quota Out-Quota Cuts and offal, frozen: Liver: In-Quota Out-Quota Other : In-Quota Out-Quota Cuts and offal, frozen: Liver: In-Quota Out-Quota Other : In-Quota Out-Quota -Of ducks, geese or guinea fowls: Not cut in pieces, fresh or chilled: Of ducks: In-Quota Out-Quota Of geese or guinea fowls : In-Quota Out-Quota Other, fresh or chilled: In-Quota Out-Quota
18 Other, frozen: Fatty livers: In-Quota Out-Quota Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets; sago pith Manioc (cassava) Sweet potatoes Maize(corn) Other: Popcorn Other : In-Quota Out-Quota Grain sorghum Thailand No. HS Code Description Fresh Seed Other Not decaffeinated Decaffeinated Other: Coffee husks and skins Copra Viet Nam No. HS Code 0105 Descriptions Live poultry, that is to say, fowls of the species gallus domesticus, ducks, geese, turkeys and guinea fowls Fowls of the species gallus domesticus:
19 Other Turkeys: Other Other Other Other: Other Other : Other Fowls of the species gallus domesticus, weighing not more than 2,000g: - - Fowls of the species Gallus Domesticus weighing more than 2,000g Meat and edible offal, of the poultry of heading No , fresh, chilled or frozen. - Of fowls of the species Gallus domesticus : Not cut in pieces, fresh or chilled Not cut in pieces, frozen Cuts and offal, fresh or chilled Cuts and offal, frozen Of turkeys : - - Not cut in pieces, fresh or chilled Not cut in pieces, frozen Cuts and offal, fresh or chilled Cuts and offal, frozen Of ducks, geese or guinea fowls: - - Not cut in pieces, fresh or chilled Not cut in pieces, frozen Fatty livers, fresh or chilled Other, fresh or chilled Other, frozen Of rabbits or hares Frogs' legs Other meat and edible meat offal, fresh, chilled or frozen.
20 Other Birds' eggs, in shell, fresh, preserved or cooked. - For hatching Other 0602 Other live plants, (including their roots), cuttings and slips; mushroom spawn Unrooted cuttings and slips Trees, shrubs and bushes, grafted or not, of kinds which bear edible fruit or nuts Rhododendrons and azaleas, grafted or not Roses, grafted or not Other Citrus fruit, fresh or dried. - Oranges Grapefruit Other Mandarines (including tangerines and satsumas); clementines, wilkings and other similar citrus hybrids - Lemons ( citrus limon, Citrus limonum) and limes ( citrus aurantifolia ) Rice Rice in the husk (paddy or rough) : Other Husked (brown) rice Sausages and similar products, of meat, meat offal or blood; food preparations based on these products. Other prepared or preserved meat, meat offal or blood. - Homogenised preparations Of liver of any Animal Of poultry of heading No : - - Of turkeys Of fowls of the species Gallus domesticus Other
21 Of swine : - - Hams and cuts thereof Shoulders and cuts thereof Other, including mixtures Of bovine animals Other, including preparations of blood of any animal Cane sugar Cane or beet sugar and chemically pure sucrose, in solid form - Raw sugar not containing added flavouring or colouring matter : - Other : Containing added flavouring or colouring matter Other : White sugar Other
22 ANNEX 3 TARIFF REDUCTION FOR HIGHLY SENSITIVE PRODUCTS 1. The beginning tariff rates for highly sensitive products shall be the applied rates in the year of phasing in. 2. The commitment on beginning rates shall not prejudice the right of the Member States in paragraph 1 of this Annex to maintain quantitative restrictions and other non-tariff barriers until 1 January 2010, when they are to be eliminated as stipulated by Article 4 paragraph 1 and Article 5 paragraph of this Protocol. 3. The ending tariff rates for highly sensitive products shall be: o Indonesia: 20%; o Malaysia: 20%; and o Philippines: to be determined within the CEPT framework.
23 ANNEX 4 ADDITIONAL FLEXIBILITY ON SAFEGUARDS 1. An ASEAN Member Country may raise the ASEAN applicable tariffs to the MFN levels when imports from ASEAN sources of highly sensitive commodities subject to the CEPT special concession reach a trigger level. In effect, the ASEAN concession shall be suspended when an import surge threatens domestic producers of the product. 2. The trigger level will be based on the following formula: 3. V = A 3 (1+ASG)(1+DG) where: V = trigger volume; A 3 = average level of imports from ASEAN in the 3 years immediately preceding the last year, expressed in metric tons; ASG = growth rate of the share of imports from ASEAN to total imports, a number agreed upon in ASEAN is 10% per year; and DG = growth rate of domestic consumption, a number agreed upon in ASEAN is 2% per year. 4. The other elements of the special safeguards such as its duration and notification should be consistent with the WTO and that the safeguard action would be to raise the ASEAN applicable tariffs to the MFN level upon the suspension of the concession.
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