Principle 1. AFTA aims to increase the competitiveness of ASEAN as an important production base to supply goods to the world market. Through the liberalization of trade and the reduction of tariffs and non-tariff trade barriers, the barricades. Including the change in tariffs to facilitate free trade second. Mechanism to reduce the tax of AFTA is the CEPT (Common Effective Preferential Tariff Scheme), which requires Member States to benefit from the tariff to each other reciprocal states is to benefit from lower tax countries for. Product type Member States will have to cut taxes for the same product with the CEPT has determined the product to benefit from the tax reduction will be proportional to the value created in the ASEAN (ASEAN Local Content) at least 40% and can calculate material. ASEAN cumulative (Cumulative Rules of Origin) by setting a minimum rate of 20% as raw material.
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