Asean seeks harmonized tariff system with free trade partners

Major step toward region’s integration

MANILA, Philippines—The Association of Southeast Asian Nations will encourage its trading partners to use a harmonized tariff nomenclature that will better facilitate trade between the region and these countries.

Tariff Commission chair Edgardo Abon, who heads the Asean group on tariff nomenclature, related that the Asean already had two meetings regarding this proposal. The next meeting, to be held some time this month, would involve Asean’s six trading partners.

The Asean has free trade agreements with China, Korea, Japan, Australia, New Zealand and India.

“We want to exchange views on the possible ways to harmonize their tariff nomenclature with the Asean’s. Of course, we have to know if that’s also what they want,” he said in an interview.

Abon explained that under the current setup, each of the Asean’s six FTA partners has its own system of naming tariff lines. Each country, therefore, has different descriptions for different commodities.

“We want to find ways to reconcile these differences, in a way that will satisfy all of our requirements,” he said.

Abon said harmonizing the tariff nomenclature will have a significant impact on trade facilitation and put the region closer to trade integration.

“In the Asean, we already have the AHTN (Asean Harmonized Tariff Nomenclature). We want to retain the AHTN and use that for trading with them, if that’s workable. We want to use AHTN as a basis,” he added.

The AHTN is an eight-digit commodity nomenclature that the 10 member-nations of the Asean adopted in January 2002.

Based on the harmonized system, each Asean member’s tariff nomenclature is aligned with the AHTN.

The AHTN functions as the uniform tariff nomenclature of the region and also serves as the base for preferential tariff purposes in Asean free trade agreements.

It simplifies the region’s tariff nomenclature system, facilitating trade among member-states. It likewise establishes uniformity of application in the classification of goods, as well as boosts transparency in the classification of commodities. –Abigail L. Ho, Philippine Daily Inquirer