Previously, the procedure was on the PMK number 229/PMK.04/2017, which not only concerns ASEAN trade agreements, but also includes several other international trade agreements. Some of the international trade agreements that are regulated there, such as: (i) if the goods have a regional value of at least 40%, with one of the two methods described in the following infographic. With respect to information on the origin of goods or criteria of origin, goods entitled to preferential duties, goods wholly purchased or produced in a country, and products that are not wholly manufactured in one of the ASEAN countries. Apart from validating the changes to the ASEAN Trade Cooperation Protocol, the government has also adopted more technical rules through the Minister of Finance (PMK) Regulation No. 131/PMK.04/2020. The Regulation specifically established the procedures for the imposition of import duties on imported products on the basis of ATIGA. The guidelines established under ATIGA use the Harmonized System of Tariff Classification as a means of clarifying differences between products and setting standards that certain products must meet. Under the HS system, products are subdivided into: In accordance with ATIGA, goods are considered to originate in the Member State in which the goods were processed or processed. This is determined by compliance with at least one of the following conditions: in general, there is no big difference between the two rules.
The only difference is that the initial supply of products subject to preferential duties has a lower tariff than is generally recognized internationally. The de minimis principle allows goods which contain non-originating materials and which are unable to meet their tariff classification requirements to benefit from preferential tariff treatment under special conditions. Certain products may be considered originating under ATIGA if: According to ATIGA, they were classified as “originating goods” in order to obtain the benefits of tariff reductions. With the introduction of the ACS and the increasing harmonization of regional standards, the importance of regional supply chains cannot be underestimated. Further progress in regional integration is expected to continue these trends, further reduce trade barriers and reduce the impact of compliance on businesses throughout the region. While ASEAN`s prospects are good, success will ultimately depend on the ability of market participants to understand and seize the opportunities offered under agreements such as the ASEAN Agreement on Trade in Goods. Dezan Shira & Associates employs qualified professionals with years of experience in market entry and business creation and is perfectly positioned to assist companies in their efforts to maximize operations and grow throughout the region. . . .