Status

  • ASEAN and India have concluded negotiations on the FTA in goods.

  • The ASEAN-India Trade in Goods Agreement was signed at the Asean Economic Ministers Meeting with India on 13 August 2009 in Bangkok , Thailand .

  • The FTA has entered into force on 1 January 2010.

  • The agreed modalities for the FTA in goods between ASEAN and India are as follows:

    • Normal Track (NT)
      Coverage: 80% of tariff lines and 75% of trade value (imports).

    • Tariff Elimination:

 

ASEAN 5 & India

Philippines & India

India to CLMV

CLMV to India

71% tariff lines & 72% import value (NT1)

1.1.2010 to 31.12.2013

1.1.2010 to 31.12.2018

1.1.2010 to 31.12.2013

1.1.2010 to 31.12.2018

9% tariff lines & 3% import value (NT2)

1.1.2010 to 31.12.2016

1.1.2010 to 31.12.2019

1.1.2010 to 31.12.2016

1.1.2010 to 31.12.2021

    1. Sensitive Track (ST):
      • Coverage: 10% of tariff lines.

ASEAN 5 & India

Philippines & India

India to CLMV

CLMV to India

Reduction of tariffs to 5%:

1.1.2010 to 31.12.2016

1.1.2010 to 31.12.2019

1.1.2010 to 31.12.2016

1.1.2010 to 31.12.2021

  • Products where the tariff is already at 5% and placed in the ST (Standstill lines), it was agreed that:

    • 50 tariff lines at MFN 5% will be at standstill;

    • duties on remaining tariff lines will be reduced to 4.5% rate upon entry into force; and

    • subsequent reduction to 4% rate by 31.12.2016 for ASEAN 6 and India (special arrangements for Indonesia and Thailand ; and 31.12.2019 for Philippines).

  1. Highly Sensitive List (HSL)

    • A three step modalities for tariff reduction has been adopted as follows:

      1. products with duties above 50% to be reduced to 50% by 31.12.2019 for ASEAN 5, 31.12.2022 for Philippines , and 31.12.2024 for CLMV;

      2. products with duties of 50% and below to be reduced by margin of preference (MOP) of 50% by 31.12.2019 for ASEAN 5, 31.12.2022 for Philippines , and 31.12.2024 for CLMV; and

      3. products with duties of 50% and below to be reduced by MOP of 25% by 31.12.2019 for ASEAN 5, 31.12.2022 for Philippines , and 31.12.2024 for CLMV.

  2. Highly Sensitive Track (HST)

    • India has placed crude and refined palm oil, coffee, black tea and pepper in the HST.

Tariff Line

Base Rate

AIFTA Preferential Tariffs
31.12.2019
Not later than 1 January

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

CPO

80

76

72

68

64

60

56

52

48

44

40

37.5

RPO

90

86

82

78

74

70

66

62

58

54

50

45

Coffee

100

95

90

85

80

75

70

65

60

55

50

45

Black Tea

100

90

90

85

80

75

70

65

60

55

50

45

Pepper

70

68

66

64

62

60

58

56

54

52

51

50

  1. Exclusion (EL) :

    • Threshold : 489 tariff lines and not exceeding 5% trade value (imports) on bilateral basis. Malaysia has excluded 361 tariff lines. However, Malaysian exporters can export and benefit from preferential tariff for these products, provided these products are not in India 's Exclusion List.

  2. Rules of Origin (ROO) for AIFTA :

    • General applicable ROO : Regional value content of 35% + Change in Tariff Sub-Heading (CTSH).

    • ROO Agreement for AIFTA: ASEAN and India have reached agreement on the text.

    • Product Specific Rules (PSR): ASEAN and India have finalised the first tranche of 54 PSRs for the AIFTA

  3. iv. Dispute Settlement Agreement :

    • The Agreement was signed on 13 August 2009 in Bangkok , Thailand .

  • The schedule of tariff reduction for the various tracks is as follows:

    1. Normal Track (NT)

      • NT 1

ASEAN-5 to India and India to all ASEAN Member Countries, except the Philippines

Cuts

On

x > 30

x = 30

20 < x < 30

x = 20

15 < x < 20

x = 15

10 < x < 15

x = 10

5 < x < 10

x ≤ 5

1st Cut

1.1.2010

30

25

20

15

15

12.5

10

7.5

5

4

2nd Cut

1.1.2011

20

20

15

12.5

10

10

7.5

5

5

3

3rd Cut

1.1.2012

10

10

10

10

7.5

7.5

5

5

2.5

2

4th Cut

1.1.2013

5

5

5

5

5

5

2.5

2.5

2.5

0

5th Cut

31.12.2013

0

0

0

0

0

0

0

0

0

0

      • NT 2

ASEAN-5 to India and India to all ASEAN Member Countries, except the Philippines

Cuts

On

x > 30

x = 30

20 < x < 30

x = 20

15 < x < 20

x = 15

10 < x < 15

x = 10

5 < x < 10

x ≤ 5

1st Cut

1.1.2010

30

25

20

17.5

15

13

10

7.5

5

4

2nd Cut

1.1.2011

25

20

17

15

12

11

9

6

4

4

3rd Cut

1.1.2012

20

15

15

12

10

8

8

5

3

3

4th Cut

1.1.2013

15

13

13

10

8

6

6

4

3

3

5th Cut

1.1.2014

12

11

10

7

6

5

5

3

2

2

6th Cut

1.1.2015

8

8

7

5

4

3

3

2

2

2

7th Cut

1.1.2016

5

5

5

3

2

2

2

1

1

1

8th Cut

31.12.2016

0

0

0

0

0

0

0

0

0

0

    1. Sensitive Track (ST)

ASEAN-5 and India

Cuts

On

x > 30

x = 30

20 < x < 30

x = 20

15 < x < 20

x = 15

10 < x < 15

x = 10

5 < x < 10

1st Cut

1.1.2010

30

27

20

18

15

14

10

9

6

2nd Cut

1.1.2011

26

24

18

15

13

13

9

8

6

3rd Cut

1.1.2012

23

21

16

13

12

12

8

7

6

4th Cut

1.1.2013

20

18

14

12

11

11

7

7

6

5th Cut

1.1.2014

16

15

12

10

10

10

6

6

5

6th Cut

1.1.2015

13

12

10

8

8

8

6

6

5

7th Cut

1.1.2016

9

8

7

6

6

6

6

5

5

8th Cut

31.12.2016

5

5

5

5

5

5

5

5

5

Note: 4% of ST will be reduced to 0% by 31.12.2018 for ASEAN 5 and India

 

Tariff Schedule HS2007 for AIFTA

ASEAN - India Free Trade Area

Customs Duties Goods under Agreement on Comprehensive Economic Cooperation between Member States of the ASEAN and the Republic of India Order 2009 PU A 492 2009 Part 1

Customs Duties Goods under Agreement on Comprehensive Economic Cooperation between Member States of the ASEAN and the Republic of India Order 2009 PU A 492 2009 Part 2

Customs Duties Goods under Agreement on Comprehensive Economic Cooperation between Member States of the ASEAN and the Republic of India Order 2009 PU A 492 2009 Part 3