PPE

ASEAN: it’s not easy to say “duty free” for textiles and clothing

according to the framework agreement of China ASEAN Free Trade Area, more than 90% of the products between China and the six old ASEAN member countries (Brunei, Philippines, 1ndonesia, Malaysia, Thailand and Singapore) will be subject to zero tariff. The average tariff of China to ASEAN will be reduced from 9.8% to 0.1%, and the average tariff of six old ASEAN member countries to China will be reduced from 12.8% to 0.6%. The four new ASEAN members (Vietnam, Laos, Cambodia and Myanmar) will also achieve 90% zero tariff in 2015

however, for some sensitive products set up by China and the ten ASEAN countries, 1 don’t know whether the enterprises also know about them. The final tax rate of these products is not zero. According to the national conditions of each country, 10% of the products of no more than 400 (the old six ASEAN countries) and 500 (the new Four ASEAN countries) are protected sensitive products

according to the list of sensitive products put forward by ten ASEAN countries to China, textiles and clothing are not only on the list, but also the key points. Take 1ndonesia as an example. 1ndonesia’s minister of industry once said that although 1ndonesia would not try to renegotiate the free trade agreement it had reached, it requested to postpone the cancellation of import tariffs on 314 Chinese products from eight industries, including 87 projects in the textile industry. Besides steel industry, textile industry has the most restricted projects. Thailand also lists 28 products as sensitive products, including synthetic fiber blouses, trousers, men’s shirts, cotton men’s pajamas, cotton and chemical fiber bathrobes, baby clothes, pantyhose, socks, etc. according to the plan, the import tariff rate of these products will be reduced to 20% by 2012 and 5% by 2018

all kinds of signs show that it is difficult for most clothing products to achieve “zero tariff” according to the normal process, but this provides sufficient preparation time for clothing enterprises that are not ready

first of all, garment enterprises should keep abreast of the timetable for China and ASEAN to open up their markets and know which products are zero tariff. Understanding the timetable is conducive to seizing business opportunities. Secondly, we should pay attention to the changes of economic policies and industrial orientation of ASEAN countries. We can use some specialized agencies to obtain business information about ASEAN. Moreover, the level of economic development and market characteristics of ASEAN countries are different. Garment enterprises should do a good job of research before entering the market, and develop the market according to the specific situation of different countries

Back to list