1.

ASEAN stands for ________________________________

 Association of Southeast Asian Nations

2. The state capital of Cambodia is _________________.

 Phnom Penh

3. This is the national flag of which Asian Country?

 Brunei Darussalam

4. What is the state capital of Indonesia?

 Jakarta

5. What is the state capital of Laos?

 Vientiane

6. This is the national flag of which Asian Country?

 Malaysia

7. This is the national flag of which Asian Country?

 Myanmar

8. What is the state capital of Singapore?

 Singapore City

9. What is the state capital of Thailand?

 Bangkok

10. This is the national flag of which Asian Country?

 Vietnam
 ON-GOING IMPLEMENTATION ISSUES

 Q12. When Member Countries effect unilateral reductions in their tariffs, can they enjoy
CEPT concessions?
 Assuming the product fulfills all the requirements for CEPT concessions (i.e. the product is in the
Inclusion List with a tariff reduction schedule and has a 40% ASEAN content), the product will be
eligible for CEPT concessions, subject to the CEPT rule for the exchange of concessions.

 Q13. When Most Favoured Nation (MFN) tariff rates are revised by Member Countries
during the course of the year, when will exporters/ importers be eligible to enjoy the
changes in concessions?

 When tariff reduction schedules or MFN tariff rates are changed, the eligibility of concessions
accorded under the CEPT will be affected. Importers/exporters can claim concessions as and
when the new tariff rates are effected as long as the products fulfills the conditions for the
enjoyment of concessions (see Q12). There is a need for updating of the CEPT Concessions
Exchange Manual (CCEM) to reflect these latest changes. The CCEM of each country depicts the
CEPT rate for each product and the ASEAN Member Countries eligible for that rate (i.e.
concessions). If such revisions in the reduction schedules or MFN tariff rates are effected during
the course of the year, modifications in the eligibility of concessions can only be reflected in the
CCEM when they prepared at the end of each calendar year.

 Q14. is the ASEAN Preferential Trading Arrangements (PTA) still effective?

 Yes, at the moment the PTA is still in force and Countries can enjoy the margin of preference
(MOP) granted under that scheme. This is because not all PTA products have been included in
the CEPT. The PTA will be phased-out by 1 January 1996. The mechanism to phase-out the PTA
is currently being discussed.

 Q15. Is the ‘CEPT Base Rate’ in the Products and Tariff Reduction Programmes under the
Common Effective Preferential Tariff Scheme (CEPT) (or Product List) the MFN rate?

 Yes. However, there are certain qualifications to this. First, for some PTA products in CEPT
Scheme, the base rate is the MFN rate after accounting for the margin of preference (MOP).
Second, countries may have effected MFN reductions after the publication of the Product List.
Therefore, the base rate may not be reflective of the latest MFN rates of Member Countries. In
any case, traders are allowed to choose the lowest rate applicable.

 Q16. Is the information contained in the CEPT Products List up-to- date?

 Not always for some products. However, the ASEAN Secretariat makes periodic amendments to
the Products List. These amendments usually embody modifications to tariff reduction schedules,
addition of products into the Inclusion list or corrections to the previous Products List. These
amendments will be sent to the Product List subscribers periodically.

 Q17. Where can one obtain clarifications and amplifications to the information contained
in the CEPT Products List?

 One can either enquire at the respective National AFTA Units in respective Member Governments
or the AFTA Unit at the ASEAN Secretariat (the list of addresses and telephone numbers appear
in the “AFTA Unit and National AFTA Units” section).

 Q18. If the tariff rate of a country for a particular product were to be reduced from above
20% to 20% or below, what tariff rate should be applied by that country if the product was
traded with another country with tariff rates of above 20%?
 The country with tariff rate reduced to 20% or below has the option of imposing either the MFN
rate or the previous CEPT rate of above 20%. In this case, the Sixth AFTA Council decided that
the country must revert to the previous CEPT rate of above 20% (which is lower than the MFN
rate).

 Q19. Can products in the Inclusion List be transferred out into the Temporary Exclusion or
Sensitive Lists?

 No. However, Article 6 on Emergency Measures” of the CEPT Agreement provides that member
Countries can suspend preferences provisionally and without discrimination if a particular sector
faces injury or the threat of injury. The suspension of privileges must however only be temporary.
Furthermore, the CEPT Agreement provides that notification will have to be made to the AFTA
Council when Emergency Measures are taken, and such action may be subject to consultations
between the affected parties. In the event when the obligations of the CEPT Agreement are not
complied with by others, Member Countries can also make proposals for consultations with the
other Member Countries, as provided for by Article 8 on “Consultations” in the CEPT Agreement,
with the view to achieving satisfactory adjustment of the matter