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At the Second ASEAN-India Summit in 2003, the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation was signed by the Leaders of ASEAN and India. The Framework Agreement laid a sound basis for the eventual establishment of an ASEAN-India Regional Trade and Investment Area (RTIA), which includes FTA in goods, services, and investment.

ASEAN and India signed the ASEAN-India Trade in Goods (TIG) Agreement in Bangkok on 13 August 2009, after six years of negotiations. The signing of the ASEAN-India Trade in Goods Agreement paves the way for the creation of one of the world’s largest FTAs – a market of almost 1.8 billion people with a combined GDP of US$ 2.8 trillion. The ASEAN-India FTA will see tariff liberalisation of over 90 percent of products traded between the two dynamic regions, including the so-called “special products,” such as palm oil (crude and refined), coffee, black tea and pepper. Tariffs on over 4,000 product lines will be eliminated by 2016, at the earliest. The ASEAN-India TIG Agreement entered into force on 1 January 2010.

Regarding tariffs, India is committed to eliminating tariffs according to the following schedule:

  • Eliminating 80% of the tariff lines from 2016, increasing to 90% of the tariff lines in 2019 (the last year of the schedule)
  • No commitment to cut taxes for about 10% of the remaining tariff lines.

Vietnam committed to eliminate tariffs according to the following schedule:

  • Eliminate 71% of tariff lines from January 1, 2018, increasing to 80% of tariff lines in 2021 and 90% in 2024 (the last year of the schedule)
  • No commitment to cut tariff for 468 6-digit HS lines, accounting for about 10% of tarriff lines (eggs, sugar, salt, petrol, fertilizer, plastic, rubber, precious metals, iron and steel, machinery and equipment, electrical equipment, automobiles, motorbikes, spare parts, and security and defense items such as fireworks, guns,…)

A good is considered to be AIFTA originating if the good is wholly obtained or produced in a Member State, or it meets either of the following conditions:

  • Goods meeting the general origin criteria:
    • Regional Value Content (RVC): 35% minimum, and
    • Change tariff classification (CTC): at the level of 4-digits (CTH: non-originating materials must be in a different HS group than the HS group of the finished product)
  • Goods with a specific rule of origin: some goods do not apply the general criteria of origin, but the specific rules of origin that apply to that good are specified in the list of Product Specific Rules.

AIFTA Certificate of Origin is C/O form AI. Currently, 100% of AI form C/O issued by Vietnam and AIFTA members in hard copy. AIFTA only allows correcting errors on the face of C/O (if any errors) but does not allow issuing the replaced C/O. C/O form AI can only be issued during or after (no more than 1 year) the time of export of the goods, not before the time of export like other FTAs. AIFTA does not have a provision on Self-Certification of Origin.