AFTA (ASEAN Free Trade Area AFTA:) AFTA ASEAN free trade area The purpose is to increase the competitiveness of ASEAN as an important production base to enter into the world market. Continuing with the liberalisation of trade and the reduction of taxes and trade barriers hinder any operational duties, as well as modifications to the tariff structure to enrolling FTA. A major tax reduction mechanism of the ASEAN free trade area AFTA is CEPT (Common Effective Preferential Tariff Scheme), which requires that Member countries give tariff entitlement to a return overseas. That is, to be able to benefit from other countries ' tax reduction for any type of item. The Member countries shall be announced to reduce taxes for the same type of item. The CEPT has defined the goods that benefit from the tax reduction must be in proportion to the value that occurs in ASEAN. (ASEAN Local Content) of at least 40% and can calculate raw materials consumption, if this is in the Association of Southeast Asian Nations cumulative (Cumulative Rules of Origin) by setting a minimum rate of 20% is equal to raw materials.
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